Life Science Reit’s Decision to Rebase Dividend for Sustainable Growth in 2023

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

Despite good progress during the year, LABS faced significant challenges due to economic uncertainty and delayed rental decisions from occupiers. High interest rates also added to these difficulties.

The decision to reduce dividends was made in order to provide additional financial flexibility for LABS. This would allow the company to continue delivering on its strategy even as market conditions proved challenging.

By reducing dividends, LABS hopes to ensure that it can sustainably grow from this new level and position itself for future success. The company has made good progress throughout the year but has faced significant challenges due to economic uncertainty and delayed rental decisions from occupiers. Additionally, high interest rates have added to these difficulties.

In its annual results for 2023, Life Science Reit (LABS) announced a significant decrease in dividends due to economic uncertainty and other factors such as delayed rental decisions and high interest rates. Despite making good progress throughout the year, LABS felt that rebasement of dividend was necessary to ensure sustainability of growth and future success of the company.