LondonMetric intends to increase dividend, while LXi REIT negotiates over rents

LXI said it was trying to “strike an appropriate balance between” protecting the interests of shareholders and providing proportionate support to those tenants impacted by the coronavirus pandemic

One of LXI's troubled clients is Travelodge

LXi REIT PLC (LON:LXI) said it has so far collected 84% of rents due for the June to September quarter, but that was bested by fellow landlord LondonMetric Property PLC (LON:LMP), which increased its dividend as it boasted a collection rate of 95% of rents due up to June 24, 2020.

LondonMetric, which invests in logistics sector property, clarified that of this 95%, some was for the whole quarter to September and some was being paid monthly, while a further 3% is expected to be received “imminently” and of the remaining 2%, less than half is expected to be forgiven.

The FTSE 250-listed real estate investment trust said that it intends to increase its first quarterly dividend for the financial year to next March 2021 “in light of the strong rent collection and in line with its progressive dividend policy”. 

This quarterly dividend will be announced at the end of August and paid in early October.

LXI, meanwhile, which invests in a diverse range of commercial property and is also listed on the mid-cap index, said of the 16% of rents that have not yet been collected, 6% is subject to agreed deferrals, 4% is subject to negotiations and 6% mainly relates to Travelodge Hotels as it undergoes a CVA process.

It said it was trying to “seek to strike an appropriate balance between protecting the interests of its shareholders and providing proportionate support to a small number of its tenants which have been impacted temporarily by Covid-19”.

LXI assured that it remains “well capitalised, with a strong balance sheet, low leverage, significant liquidity and very long term debt facilities”.

Quick facts: LXi REIT PLC

Price: 116 GBX

Market: LSE
Market Cap: £604.85 m

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