May 22, 2024 5:47 pm
Life Science Reit reduces dividend payment due to economic challenges delaying rollout

Life Science Reit (LABS) has announced that it will halve its dividends for 2023, reducing the second payment of the year from 3p to 1p per share. Despite reporting good progress in its annual results for the year ending on 31 December, the £284m specialist property fund faced challenges such as economic uncertainty, occupiers delaying rental decisions, and high interest rates.

In a statement, LABS explained that it had to make a difficult decision to rebase the dividend in order to ensure it was covered by earnings and could grow sustainably from this level. By cutting dividends, LABS aims to have additional financial flexibility to deliver on its strategy effectively.

The company’s CEO stated that while they were disappointed to have to make this decision, they believed it was necessary for the long-term success of the business. He emphasized that LABS remained committed to delivering value for its shareholders and would continue to work towards achieving its strategic goals.

Despite these challenges, LABS reported strong performance in key metrics such as occupancy rates and rental income growth. The company also saw significant growth in its portfolio value and increased profitability compared to previous years.

Leave a Reply