MIDAS VERDICT:

Midas is a long-term fan of LXI, which it tipped before flotation. Investors who got in at £1 in 2017 are still in the black, but the company is well off its £1.51 high.

The world might have changed since 2017, but the fundamentals haven’t. In an inflationary environment, LXI’s leases are attractive, even if uplifts are capped so that not all rent reviews rise in line with today’s eye-watering price increases.

The company’s portfolio is strong, and the purchase of Secure Income REIT earlier this year gives it more firepower. Despite tough times, tenants like Premier Inn and Merlin are benefiting from value seekers looking for staycations while the pound is weak, which is also good news for LXI.

The shares are at a 15 per cent discount to their net asset value, and though its assets may fall in coming months as times get turbulent, this represents good value.

The five per cent yield – though less attractive as interest rates rise – is also still worth having. Buy on weakness.