Key Insights About REIT Stock - LXI REIT Plc (LXI)

  • May 20, 2019 BST
  • Team Kalkine
Key Insights About REIT Stock - LXI REIT Plc (LXI)

LXI REIT Plc (LXI) is a real estate investment trust company incorporated in England and Wales. The company is intended to deliver capital growth and inflation-protected income through investing in a varied portfolio of UK’s property. The company invests in assets with leases having a regular and upward review and does not take any development activity directly. The company is a specialist in inflation-protected very long income REIT.

Financial Highlights – Financial Year 2019 (£, million)

(Source: Annual Report, Company Website)

The company released its annual results for the year ending 31st March 2019 on 20th May 2019. The company’s NAV (Net asset value) return for FY2019 was 12.13 per cent (FY2018: 11.91 per cent), ahead of the annual target of 8 per cent. Due to the strong performance of the Company's portfolio, dividend payments, share price and increased targets, the total shareholder return was 30.68 per cent in FY2019 as compared to 2.45 per cent in FY2018. EPRA (The European Public Real Estate Association) NAV was up by 6.44 per cent to 114.60 pence at 31 March 2019 versus 107.67 pence in FY2018. Paid and proposed dividend per share for FY2019 stood at 5.50 pence against 4 pence in FY2018. The company had increased its dividend target by 4.55 per cent to 5.75 pence for FY19/20. The company’s Adjusted earnings per share was up by 20.99 per cent to 6.11 pence in FY2019 from 5.05 pence in FY2018, which includes developer licence fees. EPRA EPS excludes developer licence fees stood at 5.55 pence in FY2019 versus 4.20 pence in FY2018. Operating Profit for FY2019 surged by 69.01 per cent from £22.07 million in FY2018 to £37.3 million in FY2019. Portfolio valuation for FY2019 increased by 111.35 per cent from £278.92 million in FY2018 to £589.5 million. Average fixed cost to debt for FY2019 was 2.94 per cent against 2.90 per cent in FY2018. With the increased scale and a largely fixed cost base, the EPRA cost ratio declined to 16.37 per cent in FY2019 against 25.83 per cent in FY2018.

Share Price Performance

Daily Chart as at May-20-19, before the market close (Source: Thomson Reuters)

On 20th May 2019, at the time of writing (before the market close, GMT 03:30 PM), LXI REIT Plc shares were trading at GBX 125.80, down by 3.53 per cent against its previous day closing price. Stock's 52 weeks High and Low is GBX 134.00/GBX 106.12. The outstanding market capitalisation was around £549.58 million with a dividend yield of 4.68 per cent. 

The company proposed a final quarterly dividend of 1.375 pence per ordinary share on 20th May 2019 in respect of the year ended 31 March 2019, subject to approval at the Company's Annual General Meeting and will be payable on 3 July 2019 to shareholders on the register at 31 May 2019. After payment of the proposed final quarterly dividend, the company will have paid in total of 5.50 pence per ordinary share in dividends for the year ending 31 March 2019.

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