Commercial landlords could use some good spin after the steep falls in property values and unpaid rent bills they’ve been forced to stomach over the past two years. Rapidly rising inflation may prove the perfect marketing opportunity for some, as investors seek to hedge against their returns being eroded.
LXi Reit may actually have a better claim than most in protecting against swiftly rising costs. About 96 per cent of the real estate investment trust’s leases are inflation-linked or have fixed annual uplifts, the majority of which are pegged to the retail prices index. Rising inflation also prompted the company to increase the target dividend for the next financial year by 5 per cent to 6.3p a share, equivalent to a yield of roughly 4.5
