Life Science Reit Halves Dividends to Prioritize Financial Flexibility and Sustainable Growth in 2023

Life Science Reit cuts dividend due to economic uncertainties affecting rollout速Life Science Reit reduces dividend payout amidst economic challenges hindering expansion efforts

Despite reporting good progress during the 12-month period, Life Science Reit (LABS) announced that it will be reducing its dividends for 2023. The decision to cut dividends was made to provide additional financial flexibility for LABS to deliver on its strategy in the face of challenges in the market.

The dividends will be halved to 2p per share, with the second payment for the year decreased from 3p to 1p per share. Despite this reduction, LABS remains optimistic about its future prospects and is focused on creating value for shareholders in the years ahead.

Economic uncertainty, occupiers postponing rental decisions, and high interest rates were cited as factors contributing to the difficult decision to rebase the dividend. The goal is to ensure that the dividend is covered by earnings and can grow sustainably from this new level. By making this adjustment, LABS believes it will be better positioned to navigate the current economic landscape and continue to progress towards its long-term objectives.

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