REG - Life Science REIT - Strategic Review Update and Trading Update

Life Science ReitAnnouncement

Mon 07:00

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RNS Number : 7687S  Life Science REIT PLC  28 July 2025

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OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A
VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION.

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 as it forms part of UK domestic law by virtue of
the European Union (Withdrawal) Act 2018 ("MAR").

For immediate release

28 July 2025

Life Science REIT plc

(the "Company")

Strategic Review Update and Trading Update

Further to the Company's announcement on 14 March 2025 in relation to the
commencement of a strategic review and formal sale process, the Board of Life
Science REIT plc today provides an update on progress and announces a trading
update, together with the unaudited EPRA NTA as at 30 June 2025.

Strategic Review Update

Following the commencement of the strategic review and formal sale process,
the Company has received a significant amount of interest from a range of
sources, with certain parties being granted access to additional due diligence
materials and meetings with Ironstone Asset Management Limited (the
"Investment Adviser"). In parallel, the Board continues to carry out an
assessment of the likely return to shareholders that could be delivered in a
managed wind-down of its portfolio, taking into consideration, inter alia, the
views of the Investment Adviser and of other investment managers in the real
estate sector, information gathered during the strategic review process and
the committed development spend and available liquidity of the Company.

The Board continues to evaluate the potential options available to the Company
to determine which is most likely to achieve best value for shareholders and
will provide a further conclusive update in due course.

Valuation update

The Company today announces that its unaudited EPRA NTA as at 30 June 2025 was
£232.1 million or 66.3 pence per share, representing a 10.9% decline from the
31 December 2024 valuation of £260.4 million or 74.4 pence per share. This
reflects a broadly uniform decline across each of the Company's five assets
and is representative of the continued challenging backdrop overall together
with slower than anticipated leasing activity in the Life Science market. The
overall fall in value is predominantly due to outward yield movement
particularly applied to assets with existing vacancy which reflects a market
wide trend.

Banking facilities

The Board and Investment Adviser have been in active dialogue with the
Company's lending banks (the "Banks") throughout the strategic review process.
In the last assessment period there was a minor technical covenant breach on
the projected interest cover ratio ("ICR") test as at 30 June 2025, for which
a waiver has been agreed; the cover test result was 193.1% for the period
against the required threshold of 200%. Further hedging could have been put in
place to ensure this test was passed but given the ongoing strategic review
the Banks were supportive of providing a waiver instead. As such, the Company
decided not to enter into any further hedging to provide the requisite cover
to meet the ICR threshold. The Banks continue to be supportive of the Company
during this period.

Asset Update

During 2025 the Company has signed leases with 4 new occupiers, increasing
contracted rent to £17.4 million (31 December 2024: £15.9 million) and
occupancy to 85.1% (31 December 2024: 84.4%) as at the date of this update.
These figures include the lease at unit 9 of the Innovation Quarter at Oxford
Technology Park ("OTP") to Oxford Expression Technologies which recently
completed. This lease was announced in April and the tenant's lab fitout has
been completed on time and on budget.

The Company also announced on 27 June 2025 the significant letting to Wayve
Technologies at Rolling Stock Yard which is now fully leased.

The Company is also pleased to announce it has entered into a Deed of
Variation with Oxtec, the developer at OTP, having agreed a new amended scheme
for the design of the final assets, buildings 10 & 11. The redesign will
create seven smaller units rather than two large, big box units per the
original design. There is anticipated to be considerably more demand for small
to mid-size units and they will allow a provision for grow on space for
existing occupiers in Building 1 and the Innovation Quarter. These smaller
units are also expected to command a higher ERV of £25.0 per sq ft,
increasing the overall ERV on these two Buildings by £0.35 million to £2.1
million. The additional cost of the redesign is £5.0 million. The redesign
will now be entered into planning and development work will commence in the
coming months once planning permission is received.

Furthermore, the remaining buildings at OTP continue to be completed and
energised with Buildings 6 and 7 completing in the first half of 2025 and
Buildings 8 and 9 due to complete imminently. Work has also commenced on the
Nexus café and amenity space with scheduled completion in early Q4 2025
following strong demand from existing and potential occupiers.

 

FOR FURTHER INFORMATION, PLEASE CONTACT:

 Life Science REIT plc

 Claire Boyle, Chair                                                            via Panmure Liberum

 MUFG Corporate Governance Limited - Company Secretary

 labs_cosec@cm.mpms.mufg.com

 Panmure Liberum - Financial Adviser & Corporate Broker                         +44 20 7886 2500

 Tom Scrivens / Chris Clarke / Alex Collins / Tim Medak

 labsstrategicreview@panmureliberum.com

 G10 Capital Limited - AIFM                                                     +44 20 7397 5450

 Maria Baldwin

 FTI Consulting - PR Adviser

 Dido Laurimore / Richard Gotla / Oliver Parsons                                +44 20 3727 1000

 LifeScienceReit@fticonsulting.com (mailto:LifeScienceReit@fticonsulting.com)

 

Other notices

Panmure Liberum Limited ("Panmure Liberum"), which is authorised and regulated
in the United Kingdom by the Financial Conduct Authority, is acting as
financial adviser exclusively for the Company and no one else in connection
with the matters set out in this announcement and will not be responsible to
anyone other than the Company for providing the protections afforded to
clients of Panmure Liberum or for giving advice in relation to such matters.

Neither Panmure Liberum nor any of its affiliates (nor their respective
directors, officers, employees or agents) owes or accepts any duty, liability
or responsibility whatsoever (whether direct or indirect, whether in contract,
in tort, under statute or otherwise) to any person who is not a client of
Panmure Liberum in connection with this announcement, any statement contained
herein or otherwise. No representation or warranty, express or implied, is
made by Panmure Liberum as to the contents of this announcement.

This announcement is not intended to, and does not, constitute or form part of
any offer, invitation or the solicitation of an offer to purchase, otherwise
acquire, subscribe for, sell or otherwise dispose of, any securities whether
pursuant to this announcement or otherwise.

The release, publication or distribution of this announcement in jurisdictions
outside the United Kingdom may be restricted by laws of the relevant
jurisdictions and therefore persons into whose possession this announcement
comes should inform themselves about, and observe, such restrictions. Any
failure to comply with the restrictions may constitute a violation of the
securities law or any such jurisdiction.

Disclosure requirements of the Takeover Code (the "Code")

Under Rule 8.3(a) of the Code, any person who is interested in 1% or more of
any class of relevant securities of an offeree company or of any securities
exchange offeror (being any offeror other than an offeror in respect of which
it has been announced that its offer is, or is likely to be, solely in cash)
must make an Opening Position Disclosure following the commencement of the
offer period and, if later, following the announcement in which any securities
exchange offeror is first identified. An Opening Position Disclosure must
contain details of the person's interests and short positions in, and rights
to subscribe for, any relevant securities of each of (i) the offeree company
and (ii) any securities exchange offeror(s). An Opening Position Disclosure by
a person to whom Rule 8.3(a) applies must be made by no later than 3.30 pm
(London time) on the 10th business day following the commencement of the offer
period and, if appropriate, by no later than 3.30 pm (London time) on the 10th
business day following the announcement in which any securities exchange
offeror is first identified. Relevant persons who deal in the relevant
securities of the offeree company or of a securities exchange offeror prior to
the deadline for making an Opening Position Disclosure must instead make a
Dealing Disclosure.

Under Rule 8.3(b) of the Code, any person who is, or becomes, interested in 1%
or more of any class of relevant securities of the offeree company or of any
securities exchange offeror must make a Dealing Disclosure if the person deals
in any relevant securities of the offeree company or of any securities
exchange offeror. A Dealing Disclosure must contain details of the dealing
concerned and of the person's interests and short positions in, and rights to
subscribe for, any relevant securities of each of (i) the offeree company and
(ii) any securities exchange offeror(s), save to the extent that these details
have previously been disclosed under Rule 8. A Dealing Disclosure by a person
to whom Rule 8.3(b) applies must be made by no later than 3.30 pm (London
time) on the business day following the date of the relevant dealing.

If two or more persons act together pursuant to an agreement or understanding,
whether formal or informal, to acquire or control an interest in relevant
securities of an offeree company or a securities exchange offeror, they will
be deemed to be a single person for the purpose of Rule 8.3.

Opening Position Disclosures must also be made by the offeree company and by
any offeror and Dealing Disclosures must also be made by the offeree company,
by any offeror and by any persons acting in concert with any of them (see
Rules 8.1, 8.2 and 8.4).

Details of the offeree and offeror companies in respect of whose relevant
securities Opening Position Disclosures and Dealing Disclosures must be made
can be found in the Disclosure Table on the Takeover Panel's website at
www.thetakeoverpanel.org.uk, including details of the number of relevant
securities in issue, when the offer period commenced and when any offeror was
first identified. You should contact the Panel's Market Surveillance Unit on
+44 (0)20 7638 0129 if you are in any doubt as to whether you are required to
make an Opening Position Disclosure or a Dealing Disclosure.

Website publication

In accordance with Rule 26.1 of the Takeover Code, a copy of this announcement
will be available (subject to certain restrictions relating to persons
resident in restricted jurisdictions) on the Company's website
www.lifesciencereit.co.uk by no later than 12 noon (London time) on 29 July
2025. Neither the content of any website referred to in this announcement nor
the content of any website accessible from hyperlinks is incorporated into, or
forms part of, this announcement.

 

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