(Alliance News) - FTSE 250-listed LXi REIT PLC on Wednesday reported a strong first half leading to a bolstered dividend and says it is well fortified for the rising inflation.
LXi shares were up 2.6% to 151.20 pence each in London on Wednesday morning.
The London-based real estate investment trust posted a 7.8% rise in net asset value per share to 135.5 pence at September 30 from 125.7p a year ago. On September 30, 2019 a NAV per share of 119.6p was recorded.
EPRA NTA per share rose 6.6% to 134.0p from 125.7p.
Pretax profit for the six months to September 30 came in at GBP73.6 million, swinging from a GBP4.0 million loss; while rental income increased 25% to GBP25.4 million from GBP20.3 million. The company booked a GBP55.5 million gain in fair value of investment property, compared to a GBP18.9 million loss.
Chair Stephen Hubbard said: "This has been a busy six-months, delivering substantial portfolio growth, an increased capital base and a strong total return performance. The group's income and capital growth have produced a half-year total NAV return of 9.0% [compared to last year's negative 0.6%], and we are on track to meet our 6.0 pence per share dividend target for the full year.
LXi declared an interim dividend of 3.00p per share, 13% higher than last year's 2.65p.
Looking ahead, LXi said: "The outlook for the UK economy is increasingly positive and the government has announced its winter plan for the UK stating the main line of defence as vaccine and not lockdown. The replacement of restrictions with guidance and advice will undoubtedly assist our tenant stakeholders, in particular the hotel and pub operators."
It added that recent equity raises have allowed the company to diversify via acquisition as "to dilute certain exposures".
At the beginning of the month, LXi announced GBP19.5 million in long-let forward funding acquisitions. It said it had exchanged contracts on the pre-let forward funding of a Lidl foodstore and a Lok'n Store Group PLC self-storage facility in Basildon, Essex.
On inflation, LXi said its portfolio is well placed to deliver inflation protection for investors.
Peel Hunt increased LXi's EPRA NAV per share March forecast by 2.2% to 140p from 137p.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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