LXi 'relatively well placed' to deal with Covid-19, confirms final dividend

Real estate investment trust LXi said on Monday that it was "relatively well placed" to deal with the Covid-19 pandemic as the company confirmed that it expects to approve the payment of its final quarterly dividend.

LXi said its robust balance sheet, low leverage and defensive and diversified portfolio of long let, with index-linked real estate assets let or pre-let to a wide range of strong tenant covenants had left it in a position with a lower amount of material risks to face than others, leading it to suggest payment of its 1.43p per share final dividend.

The FTSE 250-listed group did note that 67% of rents due for the quarter ending 30 June had been received as customers were experiencing "unprecedented short-term disruption" to their business models and said it was actively assisting those that were being materially impacted by providing "proportionate assistance".

LXi added that it was in advanced discussions with tenants which represent a further 30% of its rent roll to agree to payment plans - including conversions to monthly or in arrears payments or deferral and stage repayments over a defined period.

The firm also cautioned that pre-let forward funding projects may well take longer to deliver than originally anticipated given Covid-19's impact on working practices but said it did not anticipate any financial impact from potential delays.

As of 0935 BST, LXI shares had dropped 0.69% to 104.87p.