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Prices & Quotes - UK Markets - LXI Reit (LXI)

Risk Warning The value of investments can fall as well as rise and any income from them is not guaranteed and you may get back less than you invested. Past performance is not a guide to future performance.

Share Price:
Up 144.20p
Change Today:
2.60p
Market Cap:
896.68m
Sector:
Real Estate Investment Trusts

Travelodge CVA seeks significant rent reductions from Secure Income Reit

By Abigail Townsend

Date: Thursday 04 Jun 2020

LONDON (ShareCast) - (Sharecast News) - Travelodge is seeking temporary rent reductions of nearly 70% from Secure Income Reit, the budget hotel chain's largest landlord confirmed on Thursday.
Travelodge, which has more than 560 hotels, is locked in an increasingly bitter row with its 135 landlords. The chain was forced to it close its doors because of lockdown measures introduced to tackle the Covid-19 outbreak and has refused to pay its second quarter rent bill.

Its landlords, however, argue that it has funds, and have accused it of using the pandemic to reduce costs it can otherwise afford. Travelodge is owned by Goldman Sachs as well as US hedge funds Golden Tree Asset Management and Avenue Capital.

Secure Income said at the time that the missed second quarter rent payment accounted for 6.4% of its annual rental income.

Travelodge now intends to force through a rent reduction via a creditors voluntary agreement, a form of bankruptcy that must be agreed with creditors. CVAs are traditionally used by struggling retailers to close shops. However, Travelodge does not plan to close any hotels.

Aim-listed Secure Income said on Thursday that if the CVA was approved, it would result in an estimated short-term aggregate reduction in rent of 23.4m, "equivalent to a total of 10 months' rent spread for two years across SIR's entire 123 hotel Travelodge portfolio".

It continued: "The proposed rent reductions would represent 67.7% of rents otherwise receivable from Travelodge from 1 April to 31 December 2020, and 26.1% throughout 2021."

Fellow listed fund LXi Reit, which owns 12 hotels either let or pre-let to Travelodge, also updated investors on the CVA on Thursday. It said that assuming it does not forfeit the leases, the CVA would result in a 4.6% reduction in annual contracted rent in the year to March 2021, and a 2.9% reduction in the following year.

Neither Secure Income nor LXi have decided if they will back the CVA.

Under the timetable set out by the CVA, creditors will be able to vote on 17 June ahead of a creditors meeting on 19 June.

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LXI Reit Market Data

Currency UK Pounds
Price 144.20p
Change Today 2.60p
52 Week High 148.00p
52 Week Low 103.12p
Volume 450,802
Shares Issued 621.83m
Market Cap 896.68m

Performance Indicators

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What The Brokers Say

Strong Buy 2
Buy 0
Neutral 0
Sell 0
Strong Sell 0
Total 2
strong_buy
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LXI Reit Dividends

  Latest Previous
  4th Interim 3rd Interim
Ex-Div 24-Jun-21 25-Feb-21
Paid 16-Jul-21 26-Mar-21
Amount 1.46p 1.44p

Trades for 22-Jun-2021

Time Volume / Share Price
14:10 2,248 @ 144.40p
14:10 1,345 @ 144.40p
14:10 635 @ 144.20p
14:10 143 @ 144.20p
14:10 133 @ 144.20p

LXI Reit Key Personnel