• Mon. May 20th, 2024

Life Science Reit Announces Dividend Reduction for 2023: Rebasing Strategies Amid Economic Uncertainty and Occupier Delays

BySamantha Nguyen

Mar 27, 2024
Life Science Reit reduces dividend payment due to economic challenges delaying rollout

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

In a statement, the company 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 hopes to have additional financial flexibility to deliver on its strategy effectively.

Despite these challenges, LABS reported good progress in its annual results for the year ending on 31 December. The company’s net asset value increased by 7% to £459m and total dividend payments were £156m for the year. However, economic uncertainty and occupier delays continued to pose challenges for the specialist property fund.

In order to address these challenges, LABS made the difficult decision to reduce its dividend payment by half for 2023. This move will help the company maintain financial stability while allowing it to invest more heavily in its growth strategy going forward.

By Samantha Nguyen

As a content writer at newsskio.com, I weave words to craft compelling narratives that captivate readers and bring stories to life. With a keen eye for detail and a passion for storytelling, I strive to create engaging and informative content that resonates with our audience. Whether I'm delving into the latest news trends or exploring unique angles on various topics, my goal is to deliver quality content that informs, entertains, and inspires. Join me on this journey as we uncover the news stories that matter most.

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