Life Science Reit (LABS) Halves Dividends to Ensure Sustainable Growth Amid Economic Uncertainty

Life Science Real Estate Investment Trust reduces dividends due to economic slowdown affecting progress

In its annual results for the year ending on 31 December, Life Science Reit (LABS) announced a significant decrease in dividends for 2023. The second payment for the year was reduced from 3p to 1p per share. This decision was made in light of economic uncertainty, occupiers delaying rental decisions, and high interest rates. Despite good progress during the year, the £284m specialist property fund felt it necessary to rebase the dividend to ensure it was covered by earnings and could grow sustainably.

The challenges faced by LABS were highlighted in its annual report, including the need for a reduction in dividends to provide additional financial flexibility. By halving dividends, the company aims to ensure that it can sustainably grow from this new level and position itself for future success. LABS stated that this move would allow them to continue delivering on their strategy, even in the face of difficult market conditions.

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