Life Science REIT to pursue managed wind-down

(Sharecast News) - Life Science REIT said Friday that it has opted to pursue a managed wind-down of its portfolio following the conclusion of a strategic review and formal sale process launched in March. The board said the decision came after receiving several non-binding offers for the company or its assets, which were ultimately deemed to represent "material discounts to the company's latest net asset value".

It added that a managed wind-down was expected to deliver materially higher value for shareholders, allowing it to benefit from further asset management initiatives and potential letting activity before disposing of assets.

The move followed a prolonged period of weak leasing activity and sustained share price underperformance, which the board said had been exacerbated by high inflation, elevated interest rates and poor investor sentiment.

Life Science REIT shares had traded at a persistent discount to net asset value since 2022, hampering its ability to raise capital to fund portfolio development.

Under the plan, the company said it intended to sell its assets in an orderly fashion over the next 12 to 18 months, initially using proceeds to repay borrowings before returning capital to shareholders.

The board said it would seek shareholder approval to amend the company's investment objective and policy to enable the wind-down, and has opened talks with its investment adviser, Ironstone Asset Management, over the management of the process.

"Further to a detailed strategic review, and following consideration of the alternative options available, the board believes that a managed wind-down will maximise value for shareholders and is in the best interests of shareholders," said chair Claire Boyle.

"The board would like to thank the company's shareholders for their significant patience and support during this challenging period."

At 1150 BST, shares in Life Science REIT were down 0.26% at 39.5p.

Reporting by Josh White for Sharecast.com.