1st Jun 2016 07:14
LONDON (Alliance News) - Real estate investment company LXB Retail Properties PLC on Wednesday there has been a major change in its strategy since shareholders voted at February's annual general meeting for the company's focus to be entirely on realising value from the investment portfolio and returning capital.
In February a continuation vote was held at LXB Retail's annual general meeting, in which LXB proposed that it be allowed to continue in its existing form so that it can continue to drive shareholder value through its existing schemes. However, shareholders voted for the strategy to be changed to no longer invest in new projects and instead realise value and return capital.
LXB Retail said, since the annual general meeting, it has revised the investment manager's mandate and said it expects the balance sheet to reduce in size over the next twelve months. This, LXB Retail said, is already underway with the planned return of GBP64.0 million following the sale of Rushden Lakes to property developer The Crown Estate in May.
"We will adopt a patient approach with realisations in order to extract best value, so I cannot commit to a timetable for future cash returns, but I will say that the board anticipates being able to make further significant returns over the course of the current calendar year," said Chairman Phil Wrigley.
"I should also comment on ultimate value. It is impossible to provide a forecast of what the end net asset value in the portfolio will be as it is dependent on the outcome of a number of incomplete projects, some of which are subject to some material uncertainties which are still to be resolved, and now within a much reduced timescale," Wrigley added.
The company's net asset value per share dropped to 102.18 pence at the end of March, from 103.27p at September 30, and LXB Retail posted a loss per share of 1.62p, compared to the 14.06p earnings per share it saw a year earlier. This was due to a revaluation deficit for the period of GBP800,0000.
LXB Retail said it has started marketing its Sheppey investment, in which there are two adjacent plots with planning permission for employment use and restaurants respectively. The company is also marketing its Greenwich B&Q investment, and said it is "confident that there will be good interest from potential acquirers".
Shares in LXB Retail were up 1.2% at 62.00p on Wednesday.
By Hannah Boland; [email protected]; @Hannaheboland
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