Editing LXi REIT plc: Statement Regarding Press Speculation

==Summary==
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.

==Details==