LXI REIT has reported a 2.9% fall in EPRA net tangible assets (NTA) in half-year results, as the value of its hotel and leisure portfolio took a hit during the pandemic.
The company, which specialises in inflation-protected long income real estate, posted an EPRA NTA of 120.8p at 30 September 2020, compared to 124.3p at March 2020.
Its property portfolio fell 1.8% in value in the period to £892.7m, mainly driven by its hotel and leisure assets, which dropped 7.7%.
Its industrial assets, which is the group’s largest exposure, saw a 3.3% increase in value, while foodstores, car parks, care homes and other sectors was broadly flat.
The fall in NAV resulted in a NAV total return for the period of -0.6%, with dividends of 2.65p largely offsetting the fall in property values.
The dividends paid in the period were 7.8% down on the previous rate and reflected reduced rent collection, which now stands at 91%.
The group has targeted a quarterly dividend of 1.44p for the current quarter (in line with the pre-COVID level), which it expects to be covered by rent collected.
The group’s portfolio is spread between nine sectors and has 52 tenants. The WAULT to first break is 22 years and the portfolio achieved an average rental uplift of 2% (in line with last year).
LXI : Hotels and leisure assets weigh on LXI REIT