Life Science Reit reduces dividend payment due to economic challenges delaying rollout

Rebasing Dividends: Life Science REIT (LABS) Takes Difficult Step for Sustainable Growth

Life Science Reit (LABS) has announced that it will be halving its dividends for the year 2023. Specifically, the second payment of the year will be reduced from 3p to 1p per share. Despite reporting strong progress in its annual results for the year ending on December 31, LABS faced challenges such as economic uncertainty, occupiers delaying rental decisions, and high interest rates.

In making this decision, LABS stated that it had to take a difficult step to rebase the dividend in order to ensure that it was covered by earnings and could grow sustainably from this level. By cutting dividends, LABS is hoping to gain additional financial flexibility to effectively deliver on its strategy.

Despite these challenges, LABS reported good progress in its annual results for the year ending on December 31. The £284m specialist property fund saw strong growth in its portfolio value and net income for the year. However, these gains were tempered by economic uncertainty and high interest rates, which made it difficult for occupiers to make rental decisions.

Overall, LABS remains committed to delivering sustainable growth for its shareholders despite these challenges. By cutting dividends now, the company hopes to position itself for long-term success and maintain its competitive edge in the industry.

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