Life Science Reit (LABS) has announced a significant reduction in dividends for 2023, with the payment per share dropping to 2p from 3p for the second half of the year. In its annual results for the year ending on December 31, the £284m property fund highlighted the challenges it faced due to economic uncertainty, occupiers delaying rental decisions, and high interest rates. As a result, the decision was made to cut dividends to ensure they were covered by earnings and could grow sustainably in the future.
Despite these challenges, LABS reported good progress during the 12-month period and emphasized the importance of rebasing the dividends to maintain financial stability. The fund acknowledged that this was a difficult decision but one that was necessary to align with its strategy and provide additional financial flexibility. By reducing dividends, LABS aims to continue delivering on its objectives and position itself for future growth.
Overall, LABS remains focused on navigating the current market conditions and optimizing its portfolio to maintain a strong financial position. With the revised dividend payments, the fund is confident in its ability to adapt to challenges and capitalize on opportunities in the life sciences real estate sector.
