LXB.L Regulatory News (LXB)

 For immediate release 26 May 2011

LXB Retail Properties Plc

INTERIM RESULTS FOR THE PERIOD ENDED 31 MARCH 2011

LXB Retail Properties Plc, a closed-ended real estate investment company focused on edge of town and out of town retail assets, today announces interim results for the period ended 31 March 2011.

Highlights

·; Acquired Stone Lake Retail Park in Greenwich, for £27.84m (including direct costs) in December 2010.

·; Continued to make further strategic acquisitions in Greenwich through the period.

·; Exchanged contracts on a subject to planning basis to acquire a Wm Morrison Supermarkets plc led development site on the Isle of Sheppey in January 2011.

·; Entered into a £25.95m loan facility arrangement with Deutsche Hypothekenbank in February 2011.

·; Cash deposits and liquid investments at 31 March 2011: £47.0m.

·; NAV per share at 31 March 2011: 100.16p.

·; Earnings per share: 6.10p.

Post period end:

·; April 2011: acquisition of 31 developable acres in Rushden, Northamptonshire for £4.7m (including direct costs).

·; May 2011: exchanged an agreement for lease on a subject to planning basis with J. Sainsbury Plc at Bugsby's Way, Greenwich for a new store of 145,000 sq ft (gross external).

·; May 2011: announcement of intention to raise approximately £100m before expenses by means of a share placing.

Phil Wrigley, Chairman of LXB Retail Properties Plc commented:

"Thus far we have raised equity of £147.6m of which £124.6m had been invested at the balance sheet date, with the remainder earmarked for developments which we own and other projects that we have already identified. Our highly experienced Investment Manager continues to identify significant new opportunities and, in order to capitalise on them, we have today, also announced our intention to raise approximately £100m by means of a share placing. Full details are set out in the announcement of the placing."

26 May 2011

For further information please contact:

LXB Manager LLP Tel: 020 7432 7900

Tim Walton, CEO

Brendan O'Grady, FD

Buchanan Communications Tel: 020 7466 5000

Charles Ryland / Suzanne Brocks

Forward looking statements

This document includes forward looking statements which are subject to risks and uncertainties. You are cautioned that forward looking statements are not guarantees of future performance and that if risks and uncertainties materialise, or if assumptions underlying any of these statements prove incorrect, the actual results of operations and financial condition of the Group may materially differ from those made in, or suggested by, forward looking statements. Other than in accordance with its legal or regulatory obligations, the Company undertakes no obligation to review, update or confirm expectations or estimates or to release publicly any revisions to any forward looking statements to reflect events that occur or circumstances that arise after the date of this document.

Chairman's Statement

Dear Shareholder,

I am pleased to present the Group's Interim Report for the half year ended 31 March 2011.

In the Company's last annual report I said that the Group anticipated making further acquisitions and progress with our existing developments and I am very pleased to report good progress on both fronts.

At Greenwich, we continue to make significant progress. This week's announcement of an agreement for a 25 year lease with J. Sainsbury Plc for a new 145,000 sq ft store represents a significant milestone, and is the culmination of many months' hard work by our Investment Manager. The agreement is subject to securing planning consent and we anticipate starting work on the site next year, with completion in 2013. Construction of Phase 1 at Greenwich (a new Wickes store) is expected to commence shortly, and we continue to pursue planning on Phase 2 (hotel and retail).

The site at Sheppey will include a 55,000 sq ft Wm Morrison Supermarkets plc foodstore. Our public exhibition to showcase our plans for the redevelopment was very positively received with visitors citing job creation, additional choice for shoppers, and the positive impact on local infrastructure as tangible benefits of our investment in their community. We aim to work closely with all stakeholders and the very positive feedback at Sheppey reinforces our belief that we are delivering what retailers and local communities want.

At Biggleswade, we have secured an additional 40,000 sq ft of retail consent which means that we now have existing consent for over 300,000 sq ft of retail space at that site. Tenant interest is strong and we are in detailed discussions with a potential anchor tenant. We remain on track to submit a comprehensive planning application in July of this year.

Earlier this month we told you about our investment at Rushden which offers the potential for a retail scheme of up to 250,000 sq ft in a prime location on the A45 in Northamptonshire, opposite an existing Waitrose. This project is at an early stage and planning applications have yet to be submitted, but there has already been very active interest from potential anchor tenants.

On financing, I am very pleased that we were able to secure a £26m investment facility in February of this year. Sensible use of leverage is a key component of our strategy to assemble a portfolio of high quality retail investments, and our Investment Manager maintains a regular dialogue with a number of banks to ensure they are apprised of the quality and potential of our proposition. Your board does not intend to gear its investments excessively; however it is very encouraging that we are observing a real appetite from lenders for our proposition.

We are monitoring the proposed changes to the UK REIT regime announced in the 2011 Budget on 23 March 2011, and the impact these might have on any decision to convert to REIT status at some point in the future.

Notwithstanding some of the current themes surrounding the retail sector, we are finding that demand for our product remains strong. The major retail players, who we intend to be anchor tenants in our developments, are maintaining their focus on acquiring new space in the right locations.

Thus far we have raised equity of £147.6m of which £124.6m had been invested at the balance sheet date, with the remainder earmarked for developments which we own and other projects that we have already identified. Our highly experienced Investment Manager continues to identify significant new opportunities and, in order to capitalise on them, we have today, also announced our intention to raise approximately £100m by means of a share placing. Full details are set out in the announcement of the placing.

In summary, I believe we are delivering our business plan. Our existing acquisitions are already driving shareholder value and we are creating a portfolio with strong investment characteristics. There is strong demand from our target tenants, the debt markets are very receptive to our proposition, and our Investment Manager continues to bring forward attractive new investment opportunities. I anticipate further positive news for shareholders in the coming months.

Phil Wrigley

Chairman

26 May 2011

All amounts relate to continuing activities.

Notes to the Interim Report

1. General information about the Group

LXB Retail Properties Plc was listed on the AIM and CISX markets on 23 October 2009. It is a closed-ended real estate investment company that was incorporated in Jersey on 27 August 2009.

This Interim Report includes the results and net assets of the Company and its subsidiaries, together referred to as the Group, on a consolidated basis.

Further general information about the Company can be found on its website:

www.lxbretailproperties.com

2. Basis of preparation

The financial information contained in this report has been prepared in accordance with IAS 34, "Interim Financial Reporting", as adopted by the European Union and on a going concern basis.

The condensed set of financial statements for the half year are unaudited and do not constitute statutory accounts for the purposes of The Companies (Jersey) Law 1991. They should be read in conjunction with the Group's statutory financial statements for the period ended 30 September 2010, which were prepared under IFRS and upon which an unqualified auditors' report was given.

The accounting policies adopted in this report are consistent with those applied in the Group's first annual report and financial statements for the period ended 30 September 2010 (the 2010 annual report) and are expected to be consistently applied in the year ending 30 September 2011. The 2010 annual report is available from the "Investor relations" page of the Company's website, www.lxbretailproperties.com, or by writing to the Company Secretary at Ogier Fund Administration (Jersey) Limited, Ogier House, The Esplanade, St Helier, Jersey, JE4 9WG.

3. Segmental information

During the period, the Group operated in and was managed as one business segment, being property investment, with all investment properties located in the United Kingdom.

4. Finance income and costs

Further information about the derivative financial instruments, including details of their valuation at each balance sheet date, is included in note 11.

5. Taxation

The tax assessed for the period varies from the standard rate of income tax in the UK of 20%. The differences are explained below:

The Group has revenue related losses of £253,776 (31 March 2010: £nil; 30 September 2010: £116,675) available to carry forward to utilise against applicable future revenue profits, for which no deferred tax asset is currently recognised.

Tax status of the Company and its subsidiaries

All Group undertakings are either tax resident in Jersey or are tax transparent entities owned by Jersey resident entities. Jersey has a corporate tax rate of zero, so the Company and its subsidiaries have no liability to taxation on their income or gains in Jersey. The Company is not subject to UK Corporation tax on any dividend or interest income it receives.

The Group's investment properties are located in the United Kingdom and the net rental income earned less deductible items is subject to UK income tax, currently at a rate applicable to the relevant group undertakings of 20%.

6. Earnings / (loss) per share

Earnings / (loss) per share is calculated on 154,907,536 ordinary shares (31 March 2010: weighted average of 113,393,208 ordinary shares; 30 September 2010: weighted average of 120,734,012 ordinary shares) in issue for the period and is based on a profit attributable to ordinary shareholders for the period of £7,990,753 (31 March 2010: £1,762,839 loss; 30 September 2010: £1,681,423 loss).

There are no share options or other equity instruments in issue and therefore no adjustments need to be made for dilutive or potentially dilutive equity arrangements.

The European Public Real Estate Association ("EPRA") has issued guidelines aimed at providing a measure of earnings per share designed to present underlying earnings from core operating activities only. The adjusted EPRA earnings per share figure is calculated as follows:

7. Investment properties

The properties were valued as at 31 March 2011 by King Sturge LLP, Chartered Surveyors, in their capacity as external valuers. The valuation was undertaken in accordance with the Royal Institution of Chartered Surveyors' Valuation Standards on the basis of market value. Market value represents the estimated amount for which a property would be expected to exchange at the date of valuation between a willing buyer and a willing seller in an arm's length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion. A deduction is made to reflect an estimate of the purchasers' acquisition costs.

The historic cost of the Group's investment properties as at 31 March 2011 was £124,623,103 (31 March 2010: £30,028,138; 30 September 2010: £92,740,217).

8. Business and other receivables

All amounts above are due within one year.

9. Cash and cash equivalents and Money Market Fund investments

The Money Market Fund investment is an investment in a Liquidity Fund with instant access and is therefore disclosed in the balance sheet as a current asset investment.

Included within the Group's cash and cash equivalents balance as at 31 March 2011 is £485,679 (31 March 2011: n/a; 30 September 2010: n/a) in bank accounts held as security by the provider of the secured bank debt.

10. Business and other payables

All amounts above are due within one year.

11. Derivative financial assets and liabilities

a) Derivative financial assets

On 8 January 2010, the Group entered into four purchaser swaptions in order to protect the Group against potential future interest rate rises. The following table provides a summary of the purchaser swaptions that were still exercisable in the period and their bid values at 31 March 2011.

The valuation of the purchaser swaptions at 30 September 2010 was £1,436 (31 March 2010: £207,900).

b) Derivative financial liabilities

On 22 February 2011, the Group entered into an interest rate swap and floor. The following table provides a summary of the instruments and their bid values at 31 March 2011.