LXI REIT has announced a 6% increase in its quarterly dividend having collected 97% of rents so far for the current quarter.
The company, which owns a portfolio of long-let, index-linked property, has increased the dividend guidance to 1.44 pence per share for the quarter ending December 2020.
It said the dividend is expected to be fully covered by net rental income for the quarter. The 97% rent collection rate is one of the highest in the REIT sector and the company said it had not been adjusted by rent deferrals.
Temporary rent reductions granted to tenants due to the impact of Covid-19 are now expected to be at an average rate of 2.85% of the group’s total annual contracted rent for the financial years ending 31 March 2021 and 2022, the company said.
LXI also reported that in the six months to the end of September 2020, it had completed 41 rent reviews (representing approximately 20% of the portfolio rent roll) with a weighted average uplift of 2.1% per annum.
The average increase is greater than both RPI and CPI inflation and reflects the collar (minimum annual increase on an inflation linked lease) and fixed rental uplifts that are contained in 71% of the portfolio’s rent reviews.
LXI : LXI REIT reports 6% increase in dividend