This could be the last set of half-year results from out-of-town retail assets group LXB Retail Properties (LXB). In February shareholders voted to accept a board proposal to sell all the assets by 31 March next year. And given that the share price is considerably lower than the net asset value per share, the decision to realise all the value held within the portfolio is hard to fault.
The company is now engaging on the delicate task of selling the assets to return cash, while trying to realise the portfolio at best value. That process is already under way, with the planned return on 9 June of £63.97m from the sale of a retail and leisure complex at Rushden Lakes for £64m. That's around 38p per share.
Other investments that are ready to market now include a B&Q store at Greenwich and Neats Court Retail Park at Sheppey. Several other investments have been sold under forward funding agreements, whereby the buyer pays for the development costs. LXB will receive final payment for these sites once construction and letting are completed. There are other sites that are owned by LXB that are still under construction, most of which will be completed later this year.
Net asset value fell as a result of the sales made, but there was also a small revaluation deficit reflecting the fact that selling some properties within the timescale will not allow enough time to maximise the potential value.
| LXB RETAIL (LXB) | ||||
|---|---|---|---|---|
| ORD PRICE: | 62.75p | MARKET VALUE: | £106m | |
| TOUCH: | 62.75-63p | 12-MONTH HIGH: | 65p | LOW: 48p |
| DIVIDEND YIELD: | nil | TRADING PROPERTIES: | nil | |
| DISCOUNT TO NAV: | 38% | NET DEBT: | 31% | |
| INVESTMENT PROPERTIES: | £202m | |||
| Half-year to 31 Mar | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2015 | 140 | 10.2 | 5.6 | nil |
| 2016 | 102 | -2.7 | -1.6 | nil |
| % change | -27 | - | - | - |
