By Najat Kantouar
LXI REIT said its portfolio valuation fell sequentially at the first half of fiscal 2024 due to rising interest rates and a reduction in rental growth.
The real-estate trust said on Monday that for the half year ended September 30 the group’s property portfolio net value was 3.19 billion pounds ($3.90 billion) compared with GBP3.36 billion in March 2023, reflecting a decrease in net value.
The company expects a loan-to-value of 38% compared with 37% in March 31, providing material headroom for its covenants.
With 100% of rent due collected for the six months ended 30 September, the real-estate trust remains confident in delivering income growth.
“The past six months have continued to be marked by considerable economic uncertainty, with high rates of inflation and rising interest rates. As a result, and notwithstanding a strong operational performance and robust rental growth, we have witnessed a further, small reduction in our property valuation,” Chairman Cyrus Ardalan said.
“The company maintained its stable and secure balance sheet–with 100% of the company’s drawn debt fixed or capped–and see the benefits of the economies of scale created by its merger with Secure Income REIT,” he said.
The board said it is targeting an annual dividend of 6.6 pence per share, in line with its policy of paying a fully-covered dividend in four quarterly installments.
Write to Najat Kantouar at [email protected]
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