LXi increases dividend target – The board of LXi REIT (LXI) has announce that the Company has increased its dividend target.
The target is being introduced over two time periods. The first one is from the IPO (27 February 2017) to 31 March 2018, when the target total dividend has been increased by 33.3% to 4.0 pence per share, up from a minimum of 3.0 pence per share. From that point forward to 31 March 2019, the target annual dividend has been increased by 10% to 5.5 pence per share, up from a minimum of 5.0 pence per share.
In the announcement, the company makes it clear that these are targets only and not a profit forecast and there can be no assurance that they will be met.
The reason that the company feels that it can raise the target is that since launch, they have been able to allocate the money they raised at launch at better discounts than expected and therefore the overall rental yield they are getting is higher.
More on LXi REIT
LXi REIT is targeting attractive inflation-protected income and capital returns through a diversified portfolio of very long-let and index-linked UK property assets. Typically, it will invest in 20 to 30 years to expiry or first break index-linked leases with institutional grade tenants. LXi REIT will not undertake any direct development activity nor assume direct development risk.
What is a REIT?
A REIT is a closed-end fund investing in property. Real Estate Investment Trusts or REITs must distribute 90% of their income to investors but in return are exempt from paying capital gains tax. For more on REITs click here: www.reita.org
LXI : LXi increases dividend target