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Life Science Reit (LABS) Rebases Dividends Amidst Economic Uncertainty and High Interest Rates: A Strategic Move Towards Sustainable Success

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) Rebases Dividends Amidst Economic Uncertainty and High Interest Rates: A Strategic Move Towards Sustainable Success

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 has reported good progress during the past year, but believes that rebasement of the dividend is necessary to ensure it is covered by earnings and can grow sustainably from this new level.

The reduction in dividends will see the second payment for the year decreased from 3p to 1p per share, with the first payment remaining unchanged at 2p per share. LABS has stated that this adjustment was made to provide additional financial flexibility for the fund to deliver on its strategy in a challenging market environment. By cutting dividends, LABS hopes to be better positioned to navigate current economic conditions and continue making progress towards its long-term objectives.

Despite facing challenges such as high interest rates and occupier delays in rental decisions, LABS remains optimistic about its future prospects. The specialist property fund is focused on creating value for shareholders in the years ahead and believes that this reduction in dividends will ultimately lead to sustainable growth and long-term success.

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