LXI REIT delivers 'resilient' set of H1 results

Real estate investment trust LXI said on Monday that the defensive characteristics of its "highly diversified portfolio" had allowed the group to deliver "a resilient set of financial results" for the first half of its trading year.

LXI, which collected 97% of rents due, said it was currently targeting a dividend of 1.44p per share for the quarter ending 31 December.

The group's portfolio valuation increased from £803.3m on 30 September 2019 to £892.7m on the same date a year later, while operating profits grew 26.6% from £13.9m to £17.6m.

EPRA net tangible assets and net asset value ("NAV") per share under IFRS was 120.8p at the end of the quarter, reflecting a half-year reduction of 2.9%, but remained 1.0% ahead of 30 September 2019 reading of of 119.6p

Total net asset value return contracted 0.6%, with dividends largely offsetting the impact of the like-for-like change in portfolio valuation.

Average net initial yield on acquisitions was flat at 5.8p.

Chairman Stephen Hubbard said: "Clearly, we are in unprecedented times, and we remain cognisant of the potential for further changes to UK Government guidance that would impact our portfolio.

"However, I take comfort in the key attributes of our properties and lease arrangements that demonstrate defensive characteristics and I remain comforted by the strength of the platform and its ability to maintain ongoing and attractive returns to our shareholders."

As of 0910 GMT, LXI shares were up 2.34% at 122.60p.