(Alliance News) - LXi REIT PLC on Thursday increased its annual dividend target starting with its current financial year 2024, and announced it signed a loan facility.
The London-based commercial real estate-focused investment trust said it signed a GBP565 million loan facility, which it explained was the final step of the GBP773 million refinancing of its near-term debt maturities, which allowed it to increase its payout target.
The company said the secured interest-only debt facility with a syndicate of banks comprised of a GBP200 million five-year revolving credit facility, a GBP115 million five-year term loan and a GBP250 million three-year term loan. The blended margin on the bank facility is 2.23% per year over sterling overnight index average, an interest rate benchmark known as SONIA.
LXi REIT increased its annual dividend target by 4.8% to 6.6 pence per share, starting from financial year 2024 that started on April 1, up from a 6.3p target for financial 2023 ended March 31.
LXi REIT shares were 0.6% higher at 102.30 pence each on Thursday morning in London.
By Tom Budszus, Alliance News reporter
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