Company Announcements

21 September 2022

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EC NO. 596/2014) AS IT FORMS PART OF THE DOMESTIC LAW OF THE UNITED KINGDOM BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 (AS AMENDED) (THE "UK MARKET ABUSE REGULATION")

NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, NEW ZEALAND, CANADA, SINGAPORE, THE REPUBLIC OF SOUTH AFRICA, JAPAN OR ANY MEMBER STATE OF THE EEA (OTHER THAN ANY MEMBER STATE OF THE EEA WHERE THE COMPANY'S SECURITIES MAY BE LEGALLY MARKETED), OR ANY OTHER JURISDICTION WHERE SUCH DISTRIBUTION IS UNLAWFUL, OR TO ANY NATIONAL, RESIDENT OR CITIZEN OF AUSTRALIA, NEW ZEALAND, CANADA, SINGAPORE, THE REPUBLIC OF SOUTH AFRICA, JAPAN OR ANY MEMBER STATE OF THE EEA (OTHER THAN ANY MEMBER STATE OF THE EEA WHERE THE COMPANY'S SECURITIES MAY BE LEGALLY MARKETED)

LXi REIT plc

(the "Company" or "LXi REIT")

Statement Regarding Press Speculation

Further to recent press speculation, the Board of LXi REIT (ticker: LXI), the specialist inflation-protected very long income REIT, confirms that it is currently in discussions to acquire from Sainsbury's, on a sale and leaseback basis, a portfolio of 18 prime grocery store assets predominantly located in Southern England locations and to be let to Sainsbury's Supermarkets Limited (the "Target Portfolio").

The Target Portfolio benefits from several defensive characteristics including: strong trading performance, very low and sustainable indexed rents, long-term 'green' leases, low site coverage and modern buildings that provide omni-channel sales optionality.

The Company anticipates that the Target Portfolio could be acquired for approximately £500 million, equating to a net initial acquisition yield of approximately 5.0 per cent., which the Company would seek to fund through a mix of new equity and debt in-line with its existing borrowing policy.

As such, the Company will be discussing with potential investors the possibility of an equity raise in order to part-fund the acquisition of the Target Portfolio. Should any equity raise occur, it is expected to have an issue price set at a premium to the Company's estimated NAV per Ordinary Share as at 31 July 2022 (unaudited) of approximately 142 pence, reduced by the interim dividend of 1.575 pence per Ordinary Share that is expected to be declared shortly in respect of the quarter ended 30 June 2022.

As no binding terms with Sainsbury's Supermarkets Limited have been agreed, there can be no certainty that the acquisition, or the associated equity raise, will take place. A further announcement will be made if and when appropriate.

FOR FURTHER INFORMATION, PLEASE CONTACT:

The Company's LEI is: 2138008YZGXOKAXQVI45

NOTES:

LXI REIT plc invests in UK commercial property assets let, or pre-let, on long (typically 20 to 30 years to expiry or first break), inflation-linked leases to a wide range of strong tenant covenants across a diverse range of robust property sectors.

The Company may invest in fixed-price forward funded developments, provided they are pre-let to an acceptable tenant and full planning permission is in place. The Company will not undertake any direct development activity nor assume direct development risk.

The Company is targeting a dividend of 6.3 pence per ordinary share for the year which commenced on 1 April 2022*.

The Company, a real estate investment trust ("REIT") incorporated in England and Wales, is listed on the premium listing segment of the Official List of the UK Financial Conduct Authority and was admitted to trading on the main market for listed securities of the London Stock Exchange in February 2017.

The Company is a constituent of the FTSE 250, EPRA/NAREIT and MSCI indices.

Further information on the Company is available at www.lxireit.com

*     This is a target and not profit forecast.

Important Information

This announcement is not for publication or distribution, directly or indirectly, in or into the United States of America.  This announcement is not an offer of securities for sale into the United States. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States, except pursuant to an applicable exemption from registration.  No public offering of securities is being made in the United States.