LXi welcomes ‘material outperformance’ in value change

The top team at LXi REIT has hailed an outperformance in the valuation change for its long-income assets.  In a trading update, the company said its portfolio had been valued at £3.36bn as of the end of March, down from £3.66bn at the end of September. That reflects a net initial yield of 5.35%, compared to 4.87% six months ago. The company said the valuation reflects an outward yield shift of 48 basis points and an 8.6% like-for-like reduction in value since September. Net tangible assets per share stand at 120p, down from 140p at the end of September and 143p a year ago. The trading update said: “Although the company has clearly not been immune to the repricing of real assets driven by rising interest rates and high inflation, this valuation change reflects material outperformance relative to the wider property market.” The company noted that the CBRE All Property monthly index shows a fall of 15.4% between October 2022 and February 2023.  The largest drop came in the company’s food stores, down by 12.8%, and industrials, down by 11.8%. The smallest fall was in budget hotels, down by 5.5%.   To send feedback, e-mail tim.burke@eg.co.uk or tweet @_tim_burke or @EGPropertyNews