(Alliance News) - LXi REIT PLC on Monday said it has increased its target annual dividend, as its portfolio value grew.
The London-based real estate investment trust said it is now targeting an annual dividend of 6.3 pence per share for the financial year that starts on April 1.
This represents a 5% increase on its dividend target of 6.0p per share for the current financial year, ending March 31.
LXi said its property portfolio has been valued by Knight Frank LLP at GBP1.33 billion as at December 31. At September 30, the portfolio value was GBP1.22 billion, indicating a 9.0% increase in value over three months.
The company said it expects to collect 100% of the rent due in the first quarter, adding that this would represent 100% rent collection for the year ending March 31.
On the basis of its updated property valuation, LXi said its estimated net asset value per share at December 31 was 139.5p. At September 30 the company's NAV per share was 135.5p, a 3.0% increase over three months.
Looking forward, Stephen Hubbard, chair of LXi, said: "The company remains well positioned to provide further value to our shareholders and with 96% of the group's contracted rents either inflation-linked or containing fixed uplifts, the group's portfolio is well placed to deliver defensive inflation protected income returns and capital growth going forward."
Shares in LXi were up 1.4% at 145.40 pence on Monday morning in London.
By Heather Rydings; heatherrydings@alliancenews.com
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