Life Science Reit reduces dividend payment due to economic challenges delaying rollout

Life Science Reit Rebases Dividend for 2023 to Prioritize Long-Term Growth and Financial Stability

As the property market continues to evolve, Life Science Reit (LABS) has made the decision to halve dividends for 2023. The £284m specialist property fund, which focuses on healthcare properties, has been facing challenges such as economic uncertainty, occupiers delaying rental decisions, and high interest rates. Despite reporting good progress in its annual results for the year ending on 31 December, LABS had to make a difficult decision to rebase the dividend in order to ensure it was covered by earnings and could grow sustainably from this level.

In making this decision, LABS is prioritizing its long-term growth and financial stability. By cutting dividends, the company aims to have additional financial flexibility to deliver on its strategy effectively. This move will allow LABS to invest more heavily in new opportunities and maintain its competitive edge in the healthcare real estate market.

Despite these challenges, LABS remains committed to delivering value for its shareholders. The company’s management team is confident that with this new approach, LABS will continue to generate strong returns for investors in the years ahead.

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