• Wed. May 29th, 2024

Life Science Reit cuts dividend due to economic uncertainties affecting rollout速Life Science Reit reduces dividend payout amidst economic challenges hindering expansion efforts

Byeditor

Mar 26, 2024

In its annual results for the year ending on December 31, Life Science Reit (LABS) announced that it will be reducing its dividends for 2023. The dividends will be halved to 2p per share, with the second payment for the year decreased from 3p to 1p per share. Despite reporting good progress during the 12-month period, the £284m specialist property fund cited economic uncertainty, occupiers postponing rental decisions, and high interest rates as factors contributing to the difficult decision to rebase the dividend. The goal is to ensure that the dividend is covered by earnings and can grow sustainably from this new level.

The decision to cut dividends was made to provide additional financial flexibility for LABS to deliver on its strategy in the face of challenges in the market. By making this adjustment, LABS believes it will be better positioned to navigate the current economic landscape and continue to progress towards its long-term objectives. The fund remains optimistic about its future prospects, despite the necessary dividend reduction, and is focused on creating value for shareholders in the years ahead.

By editor

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