Life Science Reit (LABS) Halves Dividends for 2023, Emphasizing Financial Flexibility Amid Economic Uncertainty

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

Life Science Reit (LABS) has announced a significant decrease in dividends for 2023, with the second payment for the year being reduced from 3p to 1p per share. 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 in light of economic uncertainty, occupiers delaying rental decisions, and high interest rates. These factors have put pressure on LABS’s finances and forced the company to make tough choices about its payout policy.

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.

Leave a Reply