The boards of LondonMetric Property Plc (LSE:LMP) (?LondonMetric?) and LXI REIT plc (LSE:LXI) (?LXi?) noted the recent media speculation and confirm that they are in discussions regarding a possible all-share merger of the two companies, pursuant to which LondonMetric would acquire the entire issued and to be issued ordinary share capital of LXi (the ?Possible Merger?). The making of any firm offer by LondonMetric is subject to a number of pre-conditions, waivable at LondonMetric's discretion. These pre-conditions include the completion of mutual due diligence, the provision of certain consents, waivers and approvals by each company's lenders and the recommendation of the Possible Merger to LXi's shareholders by the Board of LXi.

The boards of LondonMetric and LXi see the potential to bring together two companies with complementary strategic approaches and a key focus on delivering compounding income-led total shareholder returns through the cycle. The Possible Merger would result in: A UK-focused triple net lease REIT of scale with a pro forma gross asset value of approximately £6.4 billion and market capitalization of approximately £3.9 billion which is expected to provide improved share liquidity and better access to capital; A combined portfolio aligned to structurally supported sectors (with approximately 93% exposure to the logistics, healthcare, convenience, entertainment and leisure sectors) and with income longevity and security; and An internally managed REIT delivering economies of scale and operating efficiencies, targeting sustainable earnings and dividend progression. There can be no certainty that any firm offer will be made nor as to the terms on which any firm offer might be made.

A further announcement will be made in due course. Important Code Notes: In accordance with Rule 2.6(a) of the Code, LondonMetric must by no later than 5.00 pm (London time) on 15 January 2024, either announce a firm intention to make an offer for LXi in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer for LXi, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline can only be extended with the consent of the Panel on Takeovers and Mergers (the ?Panel?) in accordance with Rule 2.6(c) of the Code.

This announcement has been made with the consent of LondonMetric. As a consequence of this announcement an offer period (as defined in the Code) has now commenced in respect of LXi and the attention of shareholders is drawn to the disclosure requirements of Rule 8 of the Code.