Life Science Reit (LABS) has recently announced that it will be cutting its dividends in half for 2023. Specifically, the second payment of the year will be reduced from 3p to 1p per share. Despite reporting strong progress in its annual results for the year ending on 31 December, LABS faced several challenges that threatened its financial stability. These challenges included economic uncertainty, occupiers delaying rental decisions, and high interest rates.
In order to address these challenges and ensure long-term sustainability, LABS made the difficult decision to rebase its dividend. By cutting dividends, the company aims to have more financial flexibility to deliver on its strategy effectively. In a statement, LABS explained that this move was necessary to ensure that its dividend payments were covered by earnings and could continue to grow in the future. While some investors may be disappointed by this decision, LABS believes that it is the right one for the company’s long-term success.
