LXI.L Regulatory News (LXI)

22 July 2019

LXi REIT plc

(the "Company" or "LXi REIT")

NEW £100 MILLION REVOLVING CREDIT FACILITY

The Board of Directors of LXi REIT (ticker: LXI), the specialist inflation-protected long income REIT, is pleased to announce that the Company has agreed a new £100 million revolving credit facility to gear the net proceeds of the Company's recent equity raise (the "New Facility").

The New Facility, which has been provided by Lloyds Bank plc at an attractive margin of 1.55% per annum over LIBOR, provides the Company with additional operational flexibility and complements the Company's existing 10-year, 12-year and 15-year term loan facilities with Scottish Widows.

The New Facility has an initial term of three years, which may be extended by up to two years and is on a non-recourse basis to the Company, secured against a defined portfolio of the Company's assets, held as a lending group through a wholly owned Company subsidiary.

The New Facility, once fully drawn, will maintain the Company's loan-to-value ratio at 30%, in line with its medium term target and below its maximum level of aggregate borrowings of 35%, and the Company will hedge the underlying interest rate with a cap instrument.

John White, Partner at LXI REIT Advisors Limited, commented:

"We are pleased to have agreed this new revolving credit facility with Lloyds Bank, which will provide the Company with flexible and cost-efficient committed capital, to invest in additional long-let and index-linked assets, which we expect will deliver further value for our shareholders. The continued backing from our core relationship loan provider underlines the strength of support for the Company and our investment strategy as well as the strong fundamentals of the inflation-protected long income real estate sector."

FOR FURTHER INFORMATION, PLEASE CONTACT:

The Company's LEI is: 2138008YZGXOKAXQVI45

NOTES:

LXi REIT plc invests in UK commercial property assets let, or pre-let, on very long (typically 20 to 30 years to first break), inflation-linked leases to a wide range of strong tenant covenants across a diverse range of robust property sectors.

The Company may invest in fixed-price forward funded developments, provided they are pre-let to an acceptable tenant and full planning permission is in place. The Company will not undertake any direct development activity nor assume direct development risk.

The Company is targeting an annual dividend of 5.75 pence per ordinary share, starting from the financial period commencing 1 April 2019, with the potential to grow the dividend in absolute terms through upward-only inflation-protected long-term lease agreements, and is targeting a total NAV return of a minimum of 8 per cent. per annum over the medium term.*

The Company, a real estate investment trust ("REIT") incorporated in England and Wales, is listed on the premium listing segment of the Official List of the Financial Conduct Authority and was admitted to trading on the main market for listed securities of the London Stock Exchange in February 2017. The Company is a constituent of the FTSE EPRA/NAREIT and MSCI indices.

Further information on the Company is available at www.lxireit.com

* These are targets only and not a profit forecast and there can be no assurance that they will be met.