Despite reporting good progress during the 12-month period, Life Science Reit (LABS) announced that it will be reducing its dividends for 2023. The second payment for the year decreased from 3p to 1p per share, while the dividends will be halved to 2p per share. The decision was made due to economic uncertainty, occupiers postponing rental decisions, and high interest rates. LABS believes that by making this adjustment, it will be better positioned to navigate the current economic landscape and continue to progress towards its long-term objectives.
The fund remains optimistic about its future prospects despite the necessary dividend reduction. LABS aims to ensure that the dividend is covered by earnings and can grow sustainably from this new level. By providing additional financial flexibility, LABS hopes to deliver on its strategy in the face of challenges in the market.
In a statement announcing the changes, LABS CEO said: “We have made a difficult decision to rebase our dividend in order to provide additional financial flexibility as we continue to navigate through challenging market conditions.” The CEO further stated that “We remain optimistic about our future prospects and are focused on creating value for our shareholders in the years ahead.”
