LXi’s Secure Income merger quadruples rental income
LXi REIT’s rental income has almost quadrupled since its merger with Secure Income.
In its annual results published this morning, the long income REIT said rental income had risen to £198.2m over the year to the end of March, from £58.5m the previous year.
The merger, which completed in July last year, also doubled the REIT’s portfolio from £1.54bn to £3.36bn, with the portfolio growing to 350 properties.
LXi REIT’s rental income has almost quadrupled since its merger with Secure Income.
In its annual results published this morning, the long income REIT said rental income had risen to £198.2m over the year to the end of March, from £58.5m the previous year.
The merger, which completed in July last year, also doubled the REIT’s portfolio from £1.54bn to £3.36bn, with the portfolio growing to 350 properties.
However, that is in fact a like-for-like fall of 9.6%, with outward yield shift to 5.4% offset by 2.3% like-for-like rental growth.
Chair Cyrus Ardalan said: “The successful merger has created a platform from which we will be able to grow the group even further, leveraging our scale and low cost base.”
He added that the REIT had been affected by “the very challenging wider economic headwinds”, just like everyone else.
But, he added: “Challenging markets often throw up interesting opportunities and we intend to take advantage of them as and when they do.”
The REIT said that it expected to see “a significant pipeline of assets” due to structural changes within open-ended funds, which have traditionally held vast prime long income portfolios.
In addition, companies forced to refinance low-cost bonds in a high inflation environment “will create a source of new, long income stock through sale and leasebacks”.
And, it said, there was potential for a further merger or buyout with many investors below scale and facing share price discounts.
To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews
