LXi rent roll triples after ‘transformational’ Secure Income merger
LXi REIT’s rental income has risen by nearly 200% following its merger with Secure Income REIT.
Rent for the half year to the end of September rose to £75.5m from £25.4m, and operating profit soared from £21m to £66m.
The portfolio value, while falling 1.4% on a like-for-like basis, is now £3.66bn, a 137% increase on last year’s £1.54bn.
LXi REIT’s rental income has risen by nearly 200% following its merger with Secure Income REIT.
Rent for the half year to the end of September rose to £75.5m from £25.4m, and operating profit soared from £21m to £66m.
The portfolio value, while falling 1.4% on a like-for-like basis, is now £3.66bn, a 137% increase on last year’s £1.54bn.
During the period LXi merged with Secure Income, growing to 348 fully-let properties with a contracted annual rent of £200m.
Its portfolio ranges from healthcare to hotels, theme parks and supermarkets, but is characterised by being long-term. The WAULT to first break is a 26 years.
LXi chair Cyrus Ardalan said: “This year’s merger between LXi and Secure Income REIT has been truly transformational for the group. The merger has significantly enhanced the scale of our operation. It has also strengthened the defensive characteristics of our portfolio, positioning us well to navigate the economic headwinds the UK now faces. Furthermore, we achieved significant cost savings from the merger, which will be visible in our full-year results.”
He added that LXi’s inflation-protected rents and very long leases were “already showing their defensive qualities”.
“As a result, rental growth has largely offset the negative movement in our portfolio valuations to deliver a neutral total return for the half-year.”
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