Life Science REIT more than doubled its portfolio valuation over its first six months of operation following an impressive spending spree.
But profit and revenue are still subdued as the REIT continues its growth phase.
The portfolio was valued at the end of June at £413.4m, up from £192.2m in December.
Revenue was just £6.3m, while profit, thanks to a revaluation gain of £5.8m, rose to £6.9m.
Chair Claire Boyle said: “This was the company’s first full six months of operation and I am pleased to report that we have made further excellent progress with our strategy.”
During the period Life Science REIT bought Oxford Technology Park, the final asset in its initial pipeline, along with 7-11 Herbrand Street, WC1.
“As a result of these purchases, the portfolio is well balanced between all three points of the Golden Triangle and is well diversified by asset size and development stage.”
It has not only deployed the funds raised during its IPO, but also made significant inroads into its loans and credit facilities.
Total gross debt stood at £98.1m at the period end, including £33.8m of debt acquired with Oxford Technology Park. However this still only leaves an LTV of 9.5%.
The current contracted rent roll stands at £13.7m, up from December’s £9.3m. However the REIT estimates that this will rise to £17.2m. Occupancy is stable at 81%.
All this will literally pay dividends in the the second half, said Boyle.
“We have immediate income-producing assets let to life science occupiers, major conversion opportunities and new-build developments at OTP. This gives us significant potential to drive value from the portfolio, through both income growth and increased capital values. We also intend to add further attractive assets in our chosen locations.”
Boyle added that the REIT is expected to deliver further revenue and earnings growth in the remainder of the year, as it reaps the benefit of a full period from the assets acquired in the first half.
“We therefore look forward to the second half of 2022 with confidence.”
The Aim-listed REIT declared its first interim dividend of 1p per share for the period. The dividend will be payable on 31 October.
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