Life Science Reit Adjusts Dividend Strategy Amid Economic Uncertainty and High Interest Rates

By Eleanor Harrison Mar27,2024
Life Science Reit cuts dividend due to economic uncertainties affecting rollout速Life Science Reit reduces dividend payout amidst economic challenges hindering expansion efforts

Life Science Reit (LABS) announced that it will be reducing its dividends for 2023, citing economic uncertainty, occupiers postponing rental decisions, and high interest rates as factors contributing to the difficult decision. The fund’s £284m specialist property portfolio reported good progress during the 12-month period, but the challenges mentioned above made it necessary to rebase the dividend.

The dividends will be halved to 2p per share, with the second payment for the year decreased from 3p to 1p per share. LABS believes that this adjustment will provide additional financial flexibility for the fund to deliver on its strategy and navigate current market challenges. By reducing the dividend, LABS aims to ensure that it is covered by earnings and can grow sustainably from this new level.

Despite the necessary dividend reduction, LABS remains optimistic about its future prospects and is focused on creating value for shareholders in the years ahead. The fund believes that by making this adjustment, it will be better positioned to continue progressing towards its long-term objectives while delivering on its strategy in a challenging market environment.

By Eleanor Harrison

As a content writer at newseasoning.com, I infuse flavor into words, crafting compelling stories that captivate and inform our audience. With a keen eye for detail and a passion for creativity, I strive to create content that not only engages but also inspires. Whether I'm concocting a savory blog post or whipping up a spicy product description, I pour my heart and soul into every piece I write. Join me on this flavorful journey as we explore the tantalizing world of content creation together.

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