Life Science Reit (LABS) Slashes Dividends for 2023 Amidst Economic Uncertainty and High Interest Rates

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

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

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