Life Science REIT captures positive momentum despite uncertainty
Life Science REIT continues to focus on capturing earnings momentum from the portfolio. despite the uncertainty around its future.
Last month, the company launched a strategic review to explore all options available to maximise value for shareholders, including the potential sale or wind down. The move came after higher inflation and elevated interest rates hurt leasing activity and investor sentiment.
Life Science REIT has suspended its future dividend payments, pending the outcome of the strategic review. Over the course of 2024, the company has paid a dividend of 1 pence a share, down from 2 pence in 2023.
Life Science REIT continues to focus on capturing earnings momentum from the portfolio. despite the uncertainty around its future.
Last month, the company launched a strategic review to explore all options available to maximise value for shareholders, including the potential sale or wind down. The move came after higher inflation and elevated interest rates hurt leasing activity and investor sentiment.
Life Science REIT has suspended its future dividend payments, pending the outcome of the strategic review. Over the course of 2024, the company has paid a dividend of 1 pence a share, down from 2 pence in 2023.
In its most recent financial statement, the REIT reported its portfolio value of £385.2m as at the end of 2024, up from £382.3m the previous year.
Contracted rent for the investment portfolio totalled £15.3m, with a further £600,000 from developments, taking total contracted rent to £15.9m. The figure stood at £14m at the end of 2023. The firm has signed five new leases in 2024, increasing its occupancy levels across the portfolio to 84.4% from 79%. On a like-for-like basis, occupancy rose to 83.6% from 79% year-on-year.
The company reported narrowed pretax loss of £14m in 2024 versus £21.9m in 2023, but EPRA net tangible asset per share has ticked down to 74.4 pence from 79.9 pence per share.
Claire Boyle, chair of Life Science REIT, said: “We have assembled a portfolio, with locations in the Golden Triangle and embedded opportunities to develop and repurpose our space over time. Our assets are focused on a market which is structurally well supported in terms of long-term demand drivers and constrained supply. However, an unfavourable macro environment, combined with the company’s size and low levels of liquidity have proved challenging to our business model.
“In the meantime, the team remains focused on capturing upside from the portfolio; £1.5m of contracted rent has been captured since the interim results in September 2024, a further £1.1m is in solicitors’ hands, and occupier engagement is encouraging.”
