Life Science Reit Slashes Dividends Amid Economic Uncertainty and High Interest Rates

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

The Life Science Reit (LABS) announced a significant decrease in dividends for 2023, with the second payment for the year being reduced from 3p to 1p per share. The 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.

In its annual results for the year ending on 31 December, LABS highlighted the challenges it faced and the need for a reduction in dividends to provide additional financial flexibility. This move would allow LABS to continue delivering on its strategy, even in the face of difficult market conditions. By halving dividends, the company aims to ensure that it can sustainably grow from this new level and position itself for future success.

The Life Science Reit (LABS) has announced a significant decrease in dividends for 2023 due to several factors such as economic uncertainty, occupiers delaying rental decisions and high interest rates. Despite good progress during the year, LABS decided to rebase its dividend payment from £9m per quarter down to £4.5m per quarter per share. This decision was made in order to ensure that earnings would cover any potential future reductions in rental income.

In its annual report for 2023, LABS highlighted several challenges that affected its operations throughout the year. These included delays in rental decisions from tenants due to economic uncertainty and high interest rates. In order to address these challenges and maintain financial stability, LABS chose to reduce its dividend payments by half.

Life Science Reit (LABS) announced a significant decrease in dividends for 2023 due to various market conditions such as economic uncertainty and high-interest rates. Although LABS had made good progress throughout the year, they deemed it necessary

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