LXi REIT ups dividend despite net asset value fall

(Alliance News) - LXi REIT PLC on Thursday reported a decline in net asset value, noting higher ...

Alliance News 30 November, 2023 | 9:27AM
Email Form Facebook Twitter LinkedIn RSS

(Alliance News) - LXi REIT PLC on Thursday reported a decline in net asset value, noting higher interest rates set by the Bank of England.

The London-based commercial real estate investment trust said net asset value per share as at September 30 declined 18% to 116.4 pence per share from 142.8p a year prior.

LXi REIT said this was due to the Bank of England raising interest rates and a current "higher for longer" rate sentiment.

"This has led to a significant expansion in property yields and increased funding costs. Notwithstanding this, LXi's strong operational performance and robust rental growth have served to mitigate the impact on net asset value," Chair Cyrus Ardalan said.

The company declared a half-year dividend of 3.30p per share, up 4.8% from 3.15p a year prior.

Looking ahead, LXi REIT said it continued to receive "significant" unsolicited interest in its portfolio and expects to continue to selectively sell assets.

It said its priority is to continue to own profitable assets "that are attractive to tenant operators in sectors with the most positive and stable outlook."

LXi REIT shares fell 0.9% to 94.50 pence each on Thursday morning in London.

By Tom Budszus, Alliance News slot editor

Comments and questions to newsroom@alliancenews.com

Copyright 2023 Alliance News Ltd. All Rights Reserved.

Email Form Facebook Twitter LinkedIn RSS

Securities Mentioned in Article

Security Name Price Change (%) Morningstar
LXI REIT Ord 100.90 GBX -0.39 -

About Author

Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.

© Copyright 2024 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Modern Slavery Statement        Cookie Settings        Disclosures