Life Science REIT’s portfolio valuation dropped by 7.1% in the year ended 31 December 2023 as market movements in offices pulled values down.
The group’s portfolio is now valued at £382.3m, with its labs assets proving more resilient. Space defined as laboratories was down by 1.6% over the period, compared with a 9.8% drop in the value of its office assets.
Despite the fall in valuations, the business posted a strong set of results with gross property income up from £13.1m to £15.5m and a reduction in its IFRS pretax loss from £27.5m to £21.9m.
Occupancy across the portfolio dipped from 81% to 79%, however, with its weighted average unexpired lease term to expiry coming in from 6.2 years to 5.8 years.
Simon Farnsworth, managing director at Ironstone Asset Management, investment adviser to Life Science REIT, said: “While the macro-economic backdrop has been challenging and occupiers are postponing decisions where they can, the group has continued to sign rents ahead of expectations and to attract occupiers from across the life sciences spectrum.
“This demonstrates that the group’s assets are in the right locations, and that the offer is both attractively priced and tailored to growing parts of the UK life science market. With further opportunities in the portfolio and a sound financial position, we have every confidence that the group will continue to deliver on its strategy going forward.”
Photo from Life Science REIT
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