Life Science Reit Reduces Dividends by Half in Light of Economic Uncertainty and High Interest Rates

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, in light of economic uncertainty 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 decision to reduce dividends was made after LABS faced challenges throughout the year, including occupiers delaying rental decisions. However, by halving dividends, the company aims to ensure that it can sustainably grow from this new level and position itself for future success.

“We are disappointed to have had to make this decision,” said LABS CEO John Roe. “However, we believe it is in the best interests of our shareholders and our long-term growth as a company.”

The reduction in dividends will provide additional financial flexibility for LABS, allowing it to continue delivering on its strategy even in difficult market conditions. The move is expected to have a positive impact on the company’s balance sheet and cash flow, while also allowing it to invest more heavily in growth opportunities.

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