REG - Life Science REIT - Half Year Results
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RNS Number : 3120A Life Science REIT PLC 23 September 2025
23 September 2025
LEI: 213800RG7JNX7K8F7525
Life Science REIT plc
("Life Science REIT", the "Company" or, together with its subsidiaries, the
"Group")
Results for the six months ended 30 June 2025
Claire Boyle, Chair of Life Science REIT plc, commented: "As announced on 19
September 2025, the Board has completed its Strategic Review and has concluded
that a managed wind-down ("Managed Wind-Down") of the Company presents the
best means of maximising value for Shareholders at this time. Subject to
shareholder approval, the Company will be managed with the intention of
realising all the assets in its portfolio in an orderly manner with a view to
repaying borrowings and making timely capital returns to shareholders.
The macro environment has remained challenging and as a result, leasing
progress in the period has remained slow, albeit we have continued to sign
deals at attractive prices and to shift the occupier line up further in favour
of life sciences businesses. The recommitment of Thought Machine, our largest
occupier, to Herbrand Street and recent letting to Wayve Technologies at
Rolling Stock Yard, which is now fully let, is a strong endorsement of our
space, and provides significant optionality going forward."
STRATEGIC REVIEW
· Strategic Review completed with the Board concluding that a
Managed Wind-Down would be in the best interests of shareholders and a process
to implement this is now underway
· Realisations may take the form of disposals of single assets,
groups of assets or the portfolio as a whole
· Anticipated that the realisation of the portfolio will be
concluded over a 12-18 month period, depending on, amongst other things, the
prevailing market environment
· Implementation of the Managed Wind-Down will require amendments
to the Company's investment objective and investment policy to be approved by
shareholders by ordinary resolution at a general meeting to be convened in the
near future
· Shareholders should refer to the announcement on 19 September
2025 for full details
FINANCIAL HIGHLIGHTS
Further leasing progress offset by higher interest costs:
· Contracted rent increased to £17.2 million (31 December 2024:
£15.3 million)
· Gross property income up to £8.9 million (30 June 2024: £8.1
million) reflecting a full six months' contribution from 2024 lettings and
income from 2025 lettings
· Adjusted earnings stable at £3.4 million with increased rental
income offset by higher finance costs of £2.6 million (H124 £1.7 million)
reflecting higher debt levels to fund capex and development costs
· Adjusted EPS of 1.0 pence per share (30 June 2024: 1.0 pence per
share)
Macro headwinds and slower than anticipated leasing drives further outward
yield shift:
· Portfolio value of £360.6 million (31 December 2024: £385.2
million), down £24.6 million on an absolute basis (6.7% like-for-like),
driven by outward net equivalent yield shift of 49 basis points
· Corresponding reduction in EPRA NTA to £232.1 million (31
December 2024: £260.4 million) or 66.3 pence per share (31 December 2024:
74.4 pence per share)
Banking facilities:
· Debt fully hedged at 5.5% interest payable until September 2025
and 4.5% to December 2025
· No further hedging put in place after December 2025 given the
conclusion of the Strategic Review and new lease signed at Herbrand Street
OPERATIONAL HIGHLIGHTS
Pace of leasing activity slower, reflecting challenging occupational market
but pricing remains firm:
· 5 new leases commenced in 2025 adding a net £1.3 million to
contracted rent after expiries and breaks exercised in the period
· Post period end one lease completed, to Oxford Expressions
Technology Limited ("OET") at Oxford Technology Park ("OTP") and a new lease
has been signed at Herbrand Street to existing occupier Thought Machine,
increasing the asset WAULT to seven years. These two transactions have added a
further £1.3 million to contracted rent
· Proportion of the Group's assets leased to life sciences
occupiers increased to 57.5% of the Group's contracted rent (31 December 2024:
54.3%)
· Occupancy stable at 84.0% (31 December 2024: 84.4%) rising to
85.1% following completion of OET lease; like-for-like occupancy increased to
88.2%
· 100% of properties EPC A-C rated (31 December 2024: 100%)
Development progress:
· 61,100 sq ft completed at OTP year to date; a further 91,800 sq
ft is expected to complete in Q4 2025
· Post period end agreement with the developer at OTP to redesign
Buildings 10 and 11 to deliver seven smaller units which command a higher ERV
of £25.0 per sq ft, increasing the overall ERV of the space by £0.3 million
Embedded opportunities to drive future rents through development, repurposing
and capturing reversion:
· Target portfolio ERV of £28.2 million, representing an uplift of
over £11.0 million on the June 2025 total portfolio contracted rent of £17.2
million, comprising:
o Embedded reversion of 18.6% on let space, equating to £3.2 million
additional rent
o £3.8 million to come from completed developments and repurposing
activities
o £1.9 million ERV from development assets, which are expected to complete
in Q4 2025
o £2.1 million ERV from development land following the agreed redesign of
Buildings 10 and 11 at OTP after the period end
FINANCIAL HIGHLIGHTS(1) Six months ended Six months ended
30 June 2025 30 June 2024
Gross property income £8.9m £8.1m
IFRS loss before tax £(29.7)m £(13.0)m
IFRS loss per share (8.5)p (3.7)p
EPRA earnings per share 1.0p 1.0p
Adjusted earnings per share 1.0p 1.0p
Dividends per share(2) n/a 1.0p
As at As at
30 June 2025 31 December 2024
Portfolio valuation £360.6m £385.2m
IFRS net asset value £233.1m £262.8m
IFRS net asset value per share 66.6p 75.1p
EPRA net tangible assets £232.1m £260.4m
EPRA net tangible assets per share 66.3p 74.4p
Loan to value ratio 33.8% 30.4%
Total accounting return (10.9)% (4.4)%
OPERATIONAL HIGHLIGHTS - INVESTMENT ASSETS As at As at
30 June 2025 31 December 2024
Contracted rent roll £17.2m £15.3m
Estimated rental value £24.2m £22.4m
Occupancy 84.0% 84.4%
WAULT to expiry 5.6 years 5.3 years
WAULT to first break 3.3 years 3.1 years
Net equivalent yield 6.1% 5.6%
1. The Group presents EPRA Best Practices Recommendations as
Alternative Performance Measures ("APMs") to assist stakeholders in assessing
performance alongside the Group's statutory results reported under IFRS. APMs
are among the key performance indicators used by the Board to assess the
Group's performance and are used by research analysts covering the Group. EPRA
Best Practices Recommendations have been disclosed to facilitate comparison
with the Group's peers through consistent reporting of key real estate
specific performance measures. However, these are not intended as a substitute
for IFRS measures. Please see the unaudited supplementary notes for further
details on APMs.
2. This is the total of dividends paid and declared in respect of the
period to 30 June 2025. Dividends paid in 2024 totalled 1.0 pence per share.
Enquiries:
Ironstone Asset Management - Investment Adviser +44 20 3011 2160
Simon Farnsworth, Managing Director
Simon.farnsworth@ironstoneam.com (mailto:Simon.farnsworth@ironstoneam.com)
Joanna Waddingham, Head of Investor Relations and Corporate Affairs
Joanna.Waddingham@ironstoneam.com (mailto:Joanna.Waddingham@ironstoneam.com)
MUFG Corporate Governance Limited - Company Secretary
labs_cosec@cm.mpms.mufg.com (mailto:labs_cosec@cm.mpms.mufg.com)
Panmure Liberum - Financial Adviser & Corporate Broker +44 20 7886 2500
Alex Collins / Tom Scrivens
G10 Capital Limited - AIFM +44 20 7397 5450
Maria Baldwin
FTI Consulting - Financial PR +44 20 3727 1000
Dido Laurimore / Richard Gotla / Oliver Parsons
LifeScienceReit@fticonsulting.com (mailto:LifeScienceReit@fticonsulting.com)
Notes to editors
Life Science REIT plc is a specialist property business focused on the UK's
growing life science sector. The Company's portfolio of assets is located
across the "Golden Triangle" of research and development hubs in Oxford,
Cambridge and London's Knowledge Quarter.
Life Science REIT trades on the Main Market of the London Stock Exchange under
the ticker LABS.
CHAIR'S STATEMENT
Strategic Review update
As announced on 19 September 2025, the Board has completed its Strategic
Review and has concluded that a Managed Wind-Down of the Company presents the
best means of maximising value for Shareholders at this time. Subject to
shareholder approval, the Company will be managed with the intention of
realising all the assets in its portfolio in an orderly manner with a view to
repaying borrowings and making timely capital returns to shareholders.
Shareholders should refer to the announcement for full details.
The macro environment has remained challenging and as a result, leasing
progress in the period has remained slow, albeit we have continued to sign
deals at attractive prices and to shift the occupier line up further in favour
of life sciences businesses. The recommitment of Thought Machine, our largest
occupier to Herbrand Street and recent letting to Wayve Technologies at
Rolling Stock Yard, which is now fully let, is a strong endorsement of our
space and provides significant optionality going forward. The Oxford and
Cambridge markets have been challenging, impacting progress at OTP and
Cambourne respectively, but development progress at both sites means that
these assets are now better placed to appeal to both occupiers and potential
investors.
Market context
Take up across the Golden Triangle was 266,000 sq ft for H1 2025, ahead of
last year but led by London where a single transaction in the second quarter
accounted for 26% of the H1 total. Both the Oxford and Cambridge markets
remained subdued. Sentiment was impacted by geo-political events, in
particular the US President's Liberation Day tariff policies which heightened
uncertainty across the broader market. This was reflected in a fall in VC
funding, which in the second quarter fell to £563.5 million, less than half
of the first quarter total, and well below the five year average of c. £ 0.8
billion.
On the supply side, 3.8 million sq ft of lab space was under construction
across the Golden Triangle at the end of June 2025, of which 11% was pre let.
An additional 5.1 million sq ft has planning secured, but given elevated
construction and financing costs, and ongoing macro uncertainty, not all of
these schemes are expected to progress. However, recent completions have
pushed out vacancy rates, particularly in Cambridge, where supply has
historically been tight, to 9.0% (from 4.8% in Q125), while vacancy is stable
at 11.3% in Oxford.
Operational update
Despite a challenging leasing environment, five new leases commenced in the
period, increasing rents by a net £1.3 million, to £17.2 million and post
period end, we were pleased to sign a further occupier at OTP, which set a new
record for rents at the park. We have been pleased with the level of rents
achieved, but with leasing momentum slower than expected, occupancy is lower
than we would like at 84.0%. This has also impacted our valuation, which was
down 6.7% on a like for like basis, reflecting an outwards like for like yield
shift of 50 bps. As a result, the portfolio was valued at £360.6 million at
the period end, compared to £385.2 million as at 31 December 2024.
In recent weeks, we are pleased to have signed a new lease at Herbrand Street
with Thought Machine, a leading FinTech business and our largest occupier. The
new lease will run for seven years and at £75.0 per sq ft, is in line with
ERV.
We have made progress on developments, with the second half of Building 6 and
Building 7 at OTP both completing in the period and post period end, and we
have come to an agreement with the OTP developer on a redesign of Buildings 10
and 11 which is expected to add £0.3 million to its rental value.
Financial performance
Net rental income increased by 8.8% on a like for like basis to £8.1 million.
Admin costs were slightly lower, reflecting savings delivered by the revisions
to the Investment Adviser's fee, however, finance costs were notably higher at
£2.6 million (H124: £1.7 million) as a result of higher debt levels, drawn
to fund ongoing capex for developments. As a result, adjusted earnings were
unchanged versus the prior year at £3.4 million.
Conclusion
While the long-term structural drivers which underpin our investment
proposition remain intact, the macroeconomic and Company specific challenges
which have impacted the Company's performance since IPO have not abated. These
factors, combined with the Company's small size and low levels of liquidity,
led to the Board's decision to launch the Strategic Review in March. Having
thoroughly reviewed all options since then, the Board has concluded that a
Managed Wind-Down represents the best opportunity to maximise value for Life
Science REIT shareholders at this time and will provide further updates as
appropriate.
Claire Boyle | Chair
22 September 2025
INVESTMENT ADVISER'S REPORT
Leasing performance
The wider occupational market has remained challenging in the period, with
uncertainty further elevated by the US President's "Liberation Day" policies
impacting both occupier confidence and the wider life sciences funding
environment. As a result, leasing momentum has been slower than expected, but
deals are signing at levels at or ahead of ERV, reinforcing confidence in the
Group's broader investment proposition of delivering specialist life science
space.
During the period to 30 June 2025, five new leases with three new occupiers
commenced, comprising:
• CFDX Limited ("CFDX") has taken 5,100 sq ft of fully fitted space at
Rolling Stock Yard ("RSY") for £110.0 per sq ft on an eight year lease with a
four year break. This lease completed in February 2025.
• 42 Technology Limited ("42T") signed three 10 year leases, also in
February 2025, for 17,200 sq ft at Building 1020 in Cambourne at a rent of
£25.5 per sq ft.
• Wayve Technologies Limited ("Wayve") signed a five year lease with a
three year break at Rolling Stock Yard in June 2025, following the vacation of
Xero (UK), paying a rent of £84.5 per sq ft, 24.5% ahead of the prior rent
The contracted rent roll for the investment portfolio at the period end
therefore increased by a net of £1.3 million or 8.2% to £17.2 million (31
December 2024: £15.3 million with a further £0.6 million let on development
assets) after taking into account the above lettings, plus breaks exercised
and reversion captured in the period.
In addition, during the period one lease extension also completed, extending
the Group's weighted average lease length:
• Carl Zeiss at Cambourne agreed a new lease on expiry of their
current lease in 2028, adding a further five years to the term with the rent
subject to review in 2028.
Since the period end, the following leases have completed increasing total
contracted rent to £18.5 million and occupancy to 85.1% at the reporting
date:
• Oxford Expression Technologies Limited ("OET"), signed a ten year
lease for 5,600 sq ft of fully fitted space in the IQ at OTP on 24 July 2025
at £46.5 per sq ft, which sets a new record for the park. This was previously
under an agreement for lease during the period whilst their unit was being
fitted out.
• Thought Machine Group Limited ("Thought Machine"), the existing and
sole occupier at Herbrand Street signed a new seven-year lease with a headline
rent of £75.0 per sq ft, in line with June 2025 ERV; the new lease includes a
16.5 month rent free period
Investment property or development property and land Total portfolio Total portfolio
30 June 22 September
2025 2025
£m £m
Contracted rent Investment 17.2 18.5
Contracted rent Development - -
Contracted rent - total portfolio 17.2 18.5
Inbuilt reversion in current leases Investment 3.2 2.1
Letting vacant space at Oxford Technology Park, Cambourne and Rolling Stock Investment 3.8 3.6
Yard
Letting developments currently on-site Development 1.9 1.9
(Buildings 8 and 9 at OTP)
Letting future developments Development 1.8 2.1
(Buildings 10 and 11 at OTP)
Target estimated rental value 27.9 28.2
Potential for strong income growth
The total portfolio ERV was £27.9 million at 30 June 2025 (31 December 2024:
£27.9 million), comprising £24.2 million for investment assets (31 December
2024: £22.4 million) and £3.7 million for development assets (31 December
2024: £5.5 million). The ERV of the investment assets is £7.0 million above
the contracted rent of £17.2 million, of which £3.8 million arises from
vacant space at the period end and £3.2 million reflects the reversionary
potential of the portfolio. The let area in the investment assets portfolio
has a reversionary percentage of 18.6%.
Since the period end, the ERV has increased by £0.3 million to £28.2 million
following the agreed redesign of the final two buildings at OTP. See the OTP
section below for further details.
The Group's occupiers
The proportion of the Group's assets leased to life science occupiers has
continued to grow, with 57.5% of the Group's contracted rent attributed to
life science occupiers as at 30 June 2025 (31 December 2024: 54.3%).
The three largest life science occupiers by contracted rent at the period end
were:
• Gyroscope Therapeutics, a clinical-stage company owned by Novartis,
developing gene therapies to treat diseases of the eye that cause vision loss
and blindness who occupy three floors in Rolling Stock Yard;
• Fortescue, a technology and engineering services provider delivering
innovative solutions to a range of sectors including green energy, medical
engineering and automotive, based at OTP; and
• Carl Zeiss, a leading technology enterprise, operating in the optics
and optoelectronics industries; the UK headquarters for its life science
businesses of microscopy, medical technology and consumer optics is in
Building 1030 at Cambourne.
Under the Group's investment policy, no occupier should account for more than
30.0% of the higher of gross contracted rents or the valuer's ERV of the
portfolio, including developments under forward-funding agreements. The Group
remains within this limit, with the largest occupier accounting for 23.4% of
gross contracted rents and 21.2% of the ERV at the year end.
Occupier Asset(1) Occupier Annual % of total
type(2)
contracted
rent
(£m)
Thought Machine Group Ltd HS Other 4.0 23.4%
Gyroscope Therapeutics Ltd RSY LS 1.5 9.0%
Fortescue Zero Ltd OTP LS 1.1 6.7%
Carl Zeiss Ltd CP LS 1.0 5.6%
Wayve Technologies Ltd RSY Other 0.9 5.2%
Beacon Therapeutics Ltd RSY LS 0.8 4.7%
Premier Inn Ltd OTP Other 0.8 4.5%
Cambridge Cambourne Centre Ltd (Regus) CP Other 0.7 4.0%
MTK Wireless Ltd CP LS 0.7 3.9%
Oxford Ionics Ltd OTP LS 0.6 3.5%
Subtotal - top ten 12.1 70.5%
Remaining 5.1 29.5%
Total(3) 17.2 100.0%
( )
( )
( )
( )
( )
( )
( )
( )
( )
( )
( )
( )
( )
(1) HS - Herbrand Street; RSY - Rolling Stock Yard; CP - Cambourne Park
Science and Technology Campus; OTP - Oxford Technology Park.
(2) LS - Life Science occupier; Other - hotel and offices.
(3) Investment portfolio only. As at 30 June 2025 there was no contracted
rent agreed within development assets.
The portfolio
Well-located assets offering laboratory and office space
The portfolio is in strong locations within the Golden Triangle and primarily
comprises office and laboratory space. See below for the split of assets by
location and type as at 30 June 2025.
Asset location by valuation
· London 40.4%
· Oxford 38.3%
· Cambridge 21.3%
Life science exposure by contracted rent
· Life science 57.5%
· Non-life science 42.5%
Life science occupier area by floor type(1)
· Office 52.4%
· Labs 47.6%
(1) 49.6% of portfolio area (including vacant space) currently let to life
science occupiers.
During the period there were no changes to the Group's portfolio, which
comprised the following assets at 30 June 2025:
Valuation WAULT Contracted rent
Asset £m £ per Area Occupancy to break to expiry £m p.a. £ per NIY NEY NRY
years
years
sq ft sq ft % sq ft % % %
OTP - Investments 112.4 342 329,100 59.1 6.7 10.3 4.1 20.2 3.4 5.8 6.0
Rolling Stock Yard 79.1 1,468 53,900 100.0 2.1 5.5 4.3 79.1 5.0 5.8 6.7
Cambourne 69.9 304 230,100 83.8 3.4 5.1 4.5 22.5 6.0 7.0 7.8
7-11 Herbrand Street 66.4 968 68,600 100.0 1.3 1.3 4.0 58.5 5.7 5.9 7.2
The Merrifield 7.0 554 12,600 100.0 1.5 6.5 0.3 23.1 3.9 5.8 6.3
Centre
Investment assets 334.8 482 694,300 84.0 3.3 5.6 17.2 31.9 4.8 6.1 6.8
OTP - Developments(1) 25.8 144 179,300(1) - - - - - - - -
Development 25.8 144 179,300 - - - - - - - -
assets
Total 360.6 413 873,600 - - - - - - - -
(1) Full build-out area.
OTP development assets comprise buildings under construction and the remaining
development land. The 873,600 sq ft shown in the table above is the expected
area of these assets once practically complete. At the period end, this
related to the remaining development land at OTP plus Buildings 8 and 9, which
are expected to reach practical completion in Q4 2025. Unit 6B in Building 6
and Building 7 reached practical completion during the period.
Occupancy at the period end decreased by 0.4 percentage points to 84.0% (31
December 2024: 84.4%). This decrease was driven primarily by the move of
vacant development space at OTP into investment assets during the period,
partly offset by the lettings noted above in the leasing section. On a
like-for-like basis, occupancy increased by 3.8 percentage points to 88.2%.
The WAULT to expiry increased by 0.3 years to 5.6 years (31 December 2024: 5.3
years), reflecting the net effect of new leases in the year and the natural
reduction in remaining lease lengths over time.
Valuation performance
The portfolio was independently valued by CBRE as at 30 June 2025, in
accordance with the internationally accepted RICS Valuation - Professional
Standards (the "Red Book").
The table below analyses the movement in valuation during the period:
Investment Development Total
assets
assets
£m
£m £m
Portfolio valuation at 31 December 2024 328.7 56.5 385.2
Capital expenditure 0.7 5.2 5.9
Finance costs capitalised - 1.0 1.0
Movement in rent incentives 0.1 - 0.1
Fair value losses on investment properties (25.6) (6.0) (31.6)
Transfer from development to investment 30.9 (30.9) -
Portfolio valuation at 30 June 2025 334.8 25.8 360.6
The portfolio valuation at the period end decreased on an absolute basis by
£24.6 million to £360.6 million. The value of the investment portfolio
increased, driven primarily by the transfers of development assets at OTP
(Buildings 6 & 7), which reached practical completion during the year,
offset by outward yield shift at all assets with the market remaining subdued.
This transfer resulted in a corresponding reduction in the absolute value of
the development assets in addition to further outward yield shift. Capital
expenditure of £5.9 million primarily related to the development at OTP. As a
result of this expenditure, £1.0 million of finance costs have been
capitalised. Combined, these factors resulted in a fair value loss of £31.6
million during the first half of 2025.
The table below analyses the key drivers of the valuation movement during the
first half of 2025 compared to 2024 in further detail:
30 June 31 December H1 2025 FY 2024
2025 2024 LFL LFL
% %
Investment assets
Valuation £m 334.8 328.7 (6.7)% (4.0)%
ERV £m 24.2 22.4 0.0% 8.6%
NEY % 6.1 5.6 50bps 30bps
Development assets
Valuation £m 25.8 56.5 n/a n/a
Total portfolio valuation £m 360.6 385.2 (6.7)% (4.0)%
£22.3 million of the £31.6 million fair value loss in the period is
attributable to the like-for-like portfolio, resulting in 6.7% like-for-like
reduction in value for the period driven by yield expansion of 50 basis
points. On the remaining assets, the £9.3 million fair value loss reflected
an outward NEY shift of 52 basis points following Building 6 and 7's
completion, offset by development spend in the period. While the pace of
valuation decline had slowed over the prior year, wider macro uncertainty was
elevated in the period, and investment volumes were very low, negatively
impacting investor sentiment. Relatively high vacancy levels, reflecting the
volume of space recently completed is also a factor driving downwards yield
shift, in line with wider market trends.
Based upon 30 June 2025 valuations, there is up to an 80 basis points yield
variance in the vacant development space versus completed and let space. This
represents significant valuation upside to come once the vacant space is let,
assuming constant yields.
Asset management update
Cambourne Park Science and Technology Campus ("Cambourne")
The Group acquired Cambourne in 2021, with the intention of repositioning it
as a dedicated life science and technology hub. A key step in this evolution
is the repurposing of vacant ground floor office space in Building 2020 into
four fully fitted laboratories of around 2,200 sq ft each. The project reached
practical completion at the end of 2024 and the space is targeting rents of
£50.0 per sq ft, which compares to c. £25.0 per sq ft for typical office
space on the park. Given the subdued occupational market, the space has been
slower to let than expected.
During the period, 17,200 sq ft of vacant office space at Building 1020 was
let to 42T, a product development and innovation consultancy which delivers
specialist technical solutions in healthcare & life sciences, industrial
and consumer sectors. A five year lease extension to Carl Zeiss, the largest
occupier on the park with 43,300 sq ft in Building 1030 was also agreed. Carl
Zeiss has recommitted until 2033 at the same rent, with a rent review in 2028,
and will be carrying out a number of sustainability improvements to the
building, including replacing gas boilers and installing photovoltaic panels.
Occupancy as a result increased by 7.3 percentage points to 83.8% at the
period end (31 December 2024: 76.5%).
Oxford Technology Park
OTP is 20-acre science and technology park strategically located in the Golden
Triangle, close to Oxford University and adjacent to Begbroke Science Park and
Oxford Airport. On acquisition in 2022, three of the planned buildings were
complete. Since then, 126,700 sq ft has been delivered; the Innovation Quarter
("IQ") completed in 2023, Building 5 and unit 6A in Building 6 completed in
2024 and during the first half of 2025, unit 6B and Building 7 completed
covering 61,100 sq ft. Buildings 8 and 9 are expected to complete in Q4 2025
following connection to the local power grid.
The current rent roll of OTP is £4.1 million and the ERV of unlet space in
the completed buildings and those due to complete imminently (Buildings 8 and
9) is £4.7 million. Letting this space would therefore increase the rent roll
at OTP to £8.8 million. The existing leases at OTP also have inbuilt
reversion of £0.1 million.
Based on designs in place at period end, Buildings 10 and 11 would have added
an additional £1.8 million to ERV. On 18 July 2025 the Group entered into a
deed of variation contract with the developer at OTP to redesign Buildings 10
and 11 for an additional £5.0 million capital expenditure. The redesign will
create seven smaller units rather than two large, big box units per the
original design. These smaller units will also command a higher ERV of £25.0
per sq ft, increasing the overall ERV by £0.3 million to £2.1 million.
At 30 June 2025, OET were fitting out their unit IQ9 under an agreement for
lease. On 24 July 2025 the lease completed and OET took occupation. See
leasing section above for further details.
Occupancy at OTP investment assets was 59.1% at the period end (31 December
2024: 70.8%), the reduction driven by vacant development buildings completing
in the period and transferring to investment assets. As noted above, the OET
lease has now completed, increasing occupancy to 62.7% as at the reporting
date.
Following strong demand for more amenities on site from existing and potential
occupiers, the Nexus cafe plus additional meeting space is due to complete
early Q4 2025.
Rolling Stock Yard
RSY, located in London's Knowledge Quarter, offers office and fully fitted
laboratory space. In February 2025, 5,100 sq ft of vacant space on the first
floor was let to CFDX at £110.0 per sq ft (in line with ERV) adding £0.6
million to contracted rent. The lease is for eight years with an occupier's
break at year four. For more on this new life science occupier see leasing
performance above.
Xero, exercised their break in the period and vacated the 7(th) and 8(th)
floors in April 2025; both floors, covering 10,500 sq ft, were let to Wayve
Technologies, a pioneer in embodied AI in the automotive sector in less than
three months, for a rent of £84.50 per sq ft. As a result, occupancy was
100.0% at the period end (31 December 2024: 90.0%).
7-11 Herbrand Street
Herbrand Street is an iconic Grade II listed building, in London's Knowledge
Quarter, fully let to Thought Machine, a leading FinTech business providing
cloud-based banking and payments services. Post period end, in September 2025,
a new seven-year lease was agreed with Thought Machine at a headline rent of
£75.0 per sq ft, in line with June 2025 ERV and equating to a total rent of
£5.1 million. The new lease includes a 16.5 month rent free period.
The Merrifield Centre
The Merrifield Centre is a fully let building just outside of Cambridge.
Astellas Engineered Small Molecules UK Limited, the occupier, has shown its
commitment to the asset by investing significant amounts in the building and
we have a well-established routine of occupier engagement. The lease expires
in December 2031, with a break in December 2026.
Financial review
Financial performance
The Group's financial results are summarised below.
Six months Six months ended Year
ended 30 June ended
30 June 2024 31 December 2024
2025 £m £m
£m
Gross property income 8.9 8.1 16.3
Property operating expenses (0.8) (0.7) (1.9)
Net rental income 8.1 7.4 14.4
Adjusted administration costs (2.1) (2.3) (4.8)
Adjusted operating profit 6.0 5.1 9.6
Adjusted net finance costs (2.6) (1.7) (3.7)
Tax - - -
Adjusted earnings 3.4 3.4 5.9
Fair value losses on derivatives and deferred premium (1.5) (1.0) (2.5)
Fair value losses on investment properties (31.6) (15.4) (17.4)
IFRS loss after tax (29.7) (13.0) (14.0)
Total gross property income in the period increased 9.9% to £8.9 million
(2024: £8.1 million), reflecting the new leases that commenced in the period
and a full six months of income from leases agreed in 2024, partially offset
by rent lost on expiries and breaks exercised. The quality of the Group's
occupier base is reflected in rent collection of 100.0% in the period.
Property operating expenses are primarily void costs on vacant units and
totalled £0.8 million (six months ended 30 June 2024: £0.7 million),
resulting in net rental income of £8.1 million (six months ended 30 June
2024: £7.4 million). On a like-for-like basis, net rental income increased by
8.8%, following the letting up of vacant space and the IQ at OTP moving into
the like-for-like portfolio in 2025.
Administration costs of £2.1 million (six months ended 30 June 2024: £2.3
million) include the Investment Adviser's fee of £1.1 million (six months
ended 30 June 2024: £1.5 million) reflecting the revisions to the fee, which
is now linked to the lower of net asset value and the average market
capitalisation for the quarter, which was effective from 1 April 2025. Other
costs of £1.0 million (six months ended 30 June 2024: £0.8 million), include
audit and valuation fees, Directors' fees, other corporate expenses and
Strategic Review costs of £0.2 million.
The above results in a total cost ratio for the period (including direct
vacancy costs) of 32.2% (six months ended 30 June 2024: 36.6%). Higher rental
income was the key contributor to the reduction versus 2024.
Adjusted net finance costs for the period were higher at £2.6 million (six
months ended 30 June 2024: £1.7 million) as higher drawn debt levels were
used to fund ongoing development work. This comprised loan interest, expenses
and arrangement fees of £4.9 million, partially offset by capitalised finance
costs of £1.0 million and adjusted finance income of £1.3 million.
As a REIT, the Group is not subject to corporation tax on its property rental
business. The estimated tax charge on its residual business was £nil (six
months ended 30 June 2024: £nil). Adjusted earnings for the period totalled
£3.4 million (six months ended 30 June 2024: £3.4 million).
Fair value losses on derivatives and deferred premiums were £1.5 million (six
months ended 30 June 2024: £1.0 million loss), relating to the Group's
interest rate caps.
The unrealised loss on revaluation of investment properties was £31.6 million
(six months ended 30 June 2024: £15.4 million loss). See the valuation
section above for more information.
The IFRS loss after tax for the period was £29.7 million (six months ended 30
June 2024: £13.0 million loss). This resulted in IFRS loss per share of 8.5
pence (six months ended 30 June 2024: 3.7 pence loss) and adjusted earnings
per share ("EPS") of 1.0 pence (six months ended 30 June 2024: 1.0 pence).
Dividends
Following the Board's announcement of a Strategic Review on 14 March 2025,
future dividends were suspended until the Strategic Review has been concluded,
thus no dividends were paid during the period. At 30 June 2025, the Group had
distributable reserves of £330.2 million (31 December 2024: £326.9 million),
with the majority being in the Company.
Net asset value
IFRS NAV was 66.6 pence per share at the year end (31 December 2024: 75.1
pence per share). The EPRA NTA at the period end was 66.3 pence per share (31
December 2024: 74.4 pence per share). The reduction in the EPRA NTA per share
was primarily the result of the revaluation loss, partially offset by positive
adjusted earnings. For further details on the valuation decline in the year
see the valuation section above.
Debt financing
The Group has a £100.0 million term loan and a £50.0 million RCF, both of
which run to June 2026, with two one-year extension options. The Group also
has a £35.0 million accordion facility option available on the RCF. The
facilities are secured on all of the Group's assets, with £40.0 million of
the term loan defined as a Green loan in accordance with the LMA Green Loan
Principles.
The debt facility carries a cost of SONIA plus a 2.50% margin. The SONIA
reference rate has been capped at 3.00% per annum until 30 September 2025 and
2.00% per annum for the quarter ending 31 December 2025. As at the reporting
date, no further hedging had been put in place given the Strategic Review (see
Chair's statement for further information). As a result, this led to a breach
in the projected interest cover ratio at the 30 June 2025 test which both
lenders have provided a waiver for, and which was announced in a trading
update to the market on 28 July 2025. The lenders continue to be supportive of
the Group.
At 30 June 2025, £126.7 million of debt was drawn (31 December 2024: £122.7
million), with the £100.0 million term loan fully drawn and £26.7 million
drawn against the £50.0 million RCF. The Group also had cash and cash
equivalents of £4.7 million (31 December 2024: £5.6 million), giving a net
borrowings position of £122.0 million (31 December 2024: £117.1 million).
LTV was therefore 33.8% at the period end (31 December 2024: 30.4%).
At the period end, there was £23.3 million undrawn on the RCF, of which
£17.0 million is available to be drawn as at the date of this report, with
the balance subject to future asset valuations. Including cash of £4.7
million this provides liquidity of £21.7 million. Committed costs to complete
at the date of this report were £27.8 million with a further £2.2 million of
uncommitted costs. This is higher than the current facility available to draw,
however these total costs will not need to be drawn in full on day one, with
the majority of the spend in 2026 when the Group expects to have disposed of
at least one asset, as part of the Managed Wind-Down, providing more
liquidity. The facility will continue to be drawn as required to meet funding
requirements whilst minimising interest costs.
Principal risks and uncertainties
The Group's principal risks are presented on pages 50 to 58 of the 2024 Annual
Report and are summarised below.
The Board has regularly reviewed existing and emerging risks during the
period, including detailed consideration of the principal risks, which are
those most material to the Group. The Board have concluded that whilst the
existing principal risks remain the same, there have been changes to the
impact and likelihood of some principal risks which have been detailed below:
Business risks
· Significant legal challenge - decreased following completions of
Buildings 6B and 7 at OTP and the agreement of the deed of variation post
period end with the developer for Buildings 10 and 11.
Financial risks
· Breach of loan covenants or borrowing policy - increased
following the breach of the projected ICR covenant at 30 June 2025 and future
breaches forecast. A waiver was obtained for the breach at 30 June 2025 and
the lenders continue to be supportive of the Group during the Managed
Wind-Down process mitigating this increased risk.
Going concern
The Board announced a strategic review on 14 March 2025 to consider the future
of the Group and to explore all strategic options available to maximise value
for shareholders, which may include a potential sale or a managed wind down.
The Board acknowledges the challenges and significant headwinds that the Group
has faced since IPO, in common with the wider REIT sector, including higher
inflation and elevated interest rates which have driven a fundamental slowdown
in leasing activity and negatively impacted investor sentiment. These factors,
coupled with the Group's size and low levels of liquidity have led to an under
performance of the share price, which has, as a result, traded at a
significant discount to net asset value for a prolonged period of time.
The Board monitors the Group's ability to continue as a going concern.
Specifically, at quarterly Board meetings, the Board reviews summaries of the
Group's liquidity position and compliance with loan covenants, as well as
forecast financial performance and cash flows. Throughout the period, the
Board met frequently, in conjunction with the Investment Adviser, to review
cash resources and the progress of the development and repurposing of the
investment property portfolio.
The Group ended the period with £4.7 million of unrestricted cash and £23.3
million of headroom available under its debt facilities, of which £17.0
million is available to draw as at the date of this report with the balance
subject to future asset valuations and capital commitments. These valuations
are due to increase as the development of OTP continues and completes. There
is limited risk that a fall in bank valuations would result in a liquidity
issue in the base and sensitised cases, however further asset disposals would
mitigate this risk.
As at the reporting date, no further hedging had been put in place given the
strategic review was still ongoing at that time (see Chair's statement for
further information). As a result, this has led to a breach in the projected
interest cover ratio ("ICR") at the 30 June 2025 test which both lenders have
provided a waiver for.
Due to the substantial rent free agreed in the Herbrand lease regear, the
projected ICR will continue to breach in the interim until the disposal of an
asset occurs and a proportion of the debt is repaid reducing future interest
costs. The Group is managing this risk to cashflow with the lenders, however
this risk presents a material uncertainty to Going Concern. This risk will be
mitigated during the managed wind down process as assets are disposed of and
the proceeds are used to pay down the debt facility.
The Group is operating within all other covenants and a sensitivity analysis
has been performed to identify the decrease in valuations that would result in
a breach of the LTV. For the HSBC and Bank of Ireland facility, current bank
valuations would need to fall by 27.7% as at the period end covenant test
date, before this covenant would be breached. As at 22September 2025, 99.4% of
rents invoiced in June 2025 in relation to the quarter to 29 September 2025
were received.
The Board has looked at its forecast cash flow for at least the next 12 months
and under the base case scenario, as expected, it can meet its covenants and
liquidity requirements within the current facility headroom. The Directors
have reviewed a number of scenarios which included plausible downside
sensitivities in relation to rental cash collection, discretionary capital
expenditure, delayed disposals with reduced proceeds, and minimum dividend
distributions under the REIT rules. The sensitivity analysis also includes,
for example, considering the timing of cash flows on committed capital
expenditure at OTP and assumptions over the commencement and speed of
completion of the work, which impacts the timing of cash outflows being
payable, which is currently not certain.
In combination with this, the Directors note the debt facilities are due for
maturity in June 2026, and will consider the prospects of any refinancing
necessary, and any resultant liquidity constraints, as part of the proposed
Managed Wind-Down where individual and collective asset sales are under
consideration. The facility may be refinanced in full, in part at a reduced
amount, or repaid in full. The capital expenditure relating to the development
of OTP is the largest contributor to using up headroom in the facility across
the going concern period. Whilst the timing of these costs is not certain, as
noted above, the Group has currently forecast that headroom will remain
available up to the refinancing date, based on the Directors' best estimate of
the build schedule as of the date of approving the Financial Statements and
proposed disposal schedule (in the absence of a full portfolio sale). Should
it not, there are further mitigating actions management can take to generate
additional liquidity which, whilst not entirely within the Board's control as
there is a reliance on the market and the ability to dispose of assets as part
of the proposed Managed Wind-Down.
On 19 September 2025, the Board announced the conclusion of the strategic
review. During the process, the Company 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 the Investment Adviser.
However, the Board have concluded that the offers received for a full
portfolio sale do not provide the optimal return to shareholders and therefore
have concluded to proceed with a proposed Managed Wind-Down of the portfolio
which is most likely to achieve best value for shareholders. The conclusion of
the strategic review is considered a non-adjusting post balance sheet event
which is detailed further in note 23 of the financial statements below and
therefore has no impact on the going concern basis as at 30 June 2025.
Under the base case, the Directors have a reasonable expectation that the
Group and the Company would have adequate resources to continue in business
for a period of at least 12 months from the date of approval of the Financial
Statements, given facility headroom and liquidity remains available. However,
the Directors believe their remains material uncertainty that may cast
significant doubt over the Group's ability to continue to be in operation for
at least the next 12 months, even at the base case.
Alternative Investment Fund Manager ("AIFM")
G10 Capital Limited ("G10") is the Company's AIFM, for the purposes of the UK
AIFM Regime, with Ironstone providing advisory services to both G10 and the
Company.
Investment Adviser
Ironstone Asset Management Limited is the Investment Adviser to the Company
and the AIFM.
Ironstone Asset Management Limited
Investment Adviser
22 September 2025
DIRECTORS' RESPONSIBILITIES STATEMENT
The Directors confirm to the best of our knowledge:
· the condensed set of financial statements has been prepared in
accordance with IAS 34 Interim Financial Reporting and gives a true and fair
view of the assets, liabilities, financial position, and profit of the Group,
as required by DTR 4.2.4R;
· the Interim Report includes a fair review of the information
required by DTR 4.2.7R (indication of the important events during the first
six months and description of principal risks and uncertainties for the
remaining six months of the financial year); and
· the Interim Report includes a fair review of the information
required by DTR 4.2.8R (disclosure of related party transactions and changes
therein).
The Directors of Life Science REIT plc are listed on the Company website
www.lifesciencereit.co.uk
By order of the Board
Claire Boyle
Chair
22 September 2025
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME (UNAUDITED)
FOR THE SIX MONTHS ENDED 30 JUNE 2025
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
Continuing operations Notes £'000 £'000 £'000
Gross property income 3 8,881 8,067 16,355
Service charge income 3 1,886 1,970 3,953
Revenue 10,767 10,037 20,308
Recoverable service charges 4 (1,886) (1,970) (3,953)
Property operating expenses 4 (772) (724) (1,931)
Gross profit 8,109 7,343 14,424
Administration expenses 4 (2,145) (2,276) (4,838)
Operating profit before losses on investment properties 5,964 5,067 9,586
Fair value losses on investment properties 11 (31,600) (15,412) (17,376)
Operating loss (25,636) (10,345) (7,790)
Finance income 5 1,297 2,089 4,203
Finance expense 6 (5,373) (4,759) (10,390)
Loss before tax (29,712) (13,015) (13,977)
Taxation 7 - - -
Loss after tax for the period and total comprehensive income attributable to (29,712) (13,015) (13,977)
equity holders
Loss per share (basic and diluted) (pence) 10 (8.5) (3.7) (4.0)
All items in the above statement derive from continuing operations. No
operations were discontinued during the period.
There is no other comprehensive income and as such a separate statement is not
present. The loss after tax is therefore also the total comprehensive loss.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED)
AS AT 30 JUNE 2025
30 June 31 December
2025 2024
Notes £'000 £'000
Assets
Non-current assets
Investment property 11 360,575 385,220
Interest rate derivatives 14 - -
Trade and other receivables 12 3,889 3,826
364,464 389,046
Current assets
Trade and other receivables 12 4,819 4,196
Cash and cash equivalents 13 4,719 5,567
Interest rate derivatives 14 944 2,378
10,482 12,141
Total assets 374,946 401,187
Liabilities
Non-current liabilities
Interest-bearing loans and borrowings 15 - (122,238)
Other payables and accrued expenses 16 (3,889) (3,826)
(3,889) (126,064)
Current liabilities
Interest-bearing loans and borrowings 15 (126,402) -
Other payables and accrued expenses 16 (11,599) (12,355)
(138,001) (12,355)
Total liabilities (141,890) (138,419)
Net assets 233,056 262,768
Equity
Share capital 17 3,500 3,500
Capital reduction reserve 314,823 314,823
Retained loss (85,267) (55,555)
Total equity 233,056 262,768
Number of shares in issue (thousands) 350,000 350,000
Net asset value per share (basic and diluted) (pence) 18 66.6 75.1
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
FOR THE SIX MONTHS ENDED 30 JUNE 2025
Capital
Share reduction Retained
capital reserve loss Total
Notes £'000 £'000 £'000 £'000
Balance at 1 January 2025 3,500 314,823 (55,555) 262,768
Loss for the period and total comprehensive loss - - (29,712) (29,712)
Dividends paid 9 - - - -
Balance at 30 June 2025 3,500 314,823 (85,267) 233,056
Capital
Share reduction Retained
capital reserve loss Total
Notes £'000 £'000 £'000 £'000
Balance at 1 January 2024 3,500 321,823 (41,578) 283,745
Loss for the period and total comprehensive loss - - (13,015) (13,015)
Dividends paid 9 - (3,500) - (3,500)
Balance at 30 June 2024 3,500 318,323 (54,593) 267,230
Capital
Share reduction Retained
capital reserve loss Total
Notes £'000 £'000 £'000 £'000
Balance at 1 July 2024 3,500 318,323 (54,593) 267,230
Loss for the period and total comprehensive loss - - (962) (962)
Dividends paid 9 - (3,500) - (3,500)
Balance at 31 December 2024 3,500 314,823 (55,555) 262,768
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED 30 JUNE 2025
Six months Six months Year
ended ended Ended
30 June 30 June 31 December
2025 2024 2024
Notes £'000 £'000 £'000
Cash flows from operating activities
Operating loss (25,636) (10,345) (7,790)
Adjustments to reconcile profit for the period to net cash flows:
Changes in fair value of investment properties 11 31,600 15,412 17,376
Operating cash flows before movements in working capital 5,964 5,067 9,586
Decrease/(increase) in other receivables and prepayments 25 4,499 3,911
(Decrease)/increase in other payables and accrued expenses (691) (980) (576)
Net cash flow generated from operating activities 5,298 8,586 12,921
Cash flows from investing activities
Acquisition of investment properties - (358) (1,127)
Capital expenditure (5,806) (14,689) (19,280)
Interest received 1,688 2,028 4,057
Net cash used in investing activities (4,118) (13,019) (16,350)
Cash flows from financing activities
Bank loans drawn down 15 4,000 10,000 14,000
Loan interest and other finance expenses paid (6,028) (5,897) (12,345)
Dividends paid in the period - (3,500) (7,000)
Net cash flow (used in)/generated from financing activities (2,028) 603 (5,345)
Net decrease in cash and cash equivalents (848) (3,830) (8,774)
Cash and cash equivalents at start of the period 5,567 14,341 14,341
Cash and cash equivalents at end of the period 13 4,719 10,511 5,567
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
FOR THE SIX MONTHS ENDED 30 JUNE 2025
1. General information
Life Science REIT plc (the "Company") is a closed-ended Real Estate Investment
Trust ("REIT") incorporated in England and Wales on 27 July 2021. The Company
began trading on 19 November 2021 and its shares are admitted to trading on
the Premium Listing Segment of the Main Market of the London Stock Exchange.
The registered office of the Company is located at Central Square, 29
Wellington Street, Leeds, England, LS1 4DL
The Group's interim condensed consolidated unaudited financial statements for
the six months ended 30 June 2025 comprise the results of the Company and its
subsidiaries (together constituting the "Group") and were approved by
the Board and authorised for issue on 22 September 2025.
2. Basis of preparation
These interim condensed consolidated unaudited financial statements have been
prepared in accordance with IAS 34 Interim Financial Reporting and United
Kingdom adopted international accounting standards and International Financial
Reporting Standards ("IFRS") as issued by the International Accounting
Standards Board ("IASB").
These interim condensed consolidated unaudited financial statements should be
read in conjunction with the Company's last financial statements for the year
ended 31 December 2024. These interim condensed consolidated unaudited
financial statements do not include all of the information required for a
complete set of annual financial statements prepared in accordance with IFRS;
however, they have been prepared using the accounting policies adopted in the
audited financial statements for the year ended 31 December 2024 and selected
explanatory notes have been included to explain events and transactions that
are significant in understanding changes in the Company's financial position
and performance since the last financial statements.
The financial statements have been prepared under the historical cost
convention, except for the revaluation of investment properties and financial
instruments that are measured at revalued amounts or fair values at the end of
each reporting period, as explained in the accounting policies below.
Historical cost is generally based on the fair value of the consideration
given in exchange for goods and services.
IAS 34 requires that comparative figures are presented for the comparable
interim period in the preceding year, therefore the six-month period ended 30
June 2024 has been presented.
The financial information contained within these interim results does not
constitute full statutory accounts as defined in section 434 of the Companies
Act 2006.
The financial statements for the six months ended 30 June 2025 and for the
six-months ended 30 June 2024 have been neither audited nor reviewed by the
Company's Auditor. The information for the year ended 31 December 2024 has
been extracted from the latest published Annual Report and Financial
Statements, which has been filed with the Registrar of Companies. The Auditor
reported on those accounts; its report was unqualified and did not contain a
statement under sections 498(2) or (3) of the Companies Act 2006.
2.1 Going concern
The Board announced a strategic review on 14 March 2025 to consider the future
of the Group and to explore all strategic options available to maximise value
for shareholders, which may include a potential sale or a managed wind down.
The Board acknowledges the challenges and significant headwinds that the Group
has faced since IPO, in common with the wider REIT sector, including higher
inflation and elevated interest rates which have driven a fundamental slowdown
in leasing activity and negatively impacted investor sentiment. These factors,
coupled with the Group's size and low levels of liquidity have led to an under
performance of the share price, which has, as a result, traded at a
significant discount to net asset value for a prolonged period of time.
The Board monitors the Group's ability to continue as a going concern.
Specifically, at quarterly Board meetings, the Board reviews summaries of the
Group's liquidity position and compliance with loan covenants, as well as
forecast financial performance and cash flows. Throughout the period, the
Board met frequently, in conjunction with the Investment Adviser, to review
cash resources and the progress of the development and repurposing of the
investment property portfolio.
The Group ended the period with £4.7 million of unrestricted cash and £23.3
million of headroom available under its debt facilities, of which £17.0
million is available to draw as at the reporting date with the balance subject
to future asset valuations and capital commitments. These valuations are due
to increase as the development of OTP continues and completes. There is
limited risk that a fall in bank valuations would result in a liquidity issue
in the base and sensitised cases, however further asset disposals would
mitigate this risk.
As at the reporting date, no further hedging had been put in place given the
strategic review was still ongoing at that time (see Chair's statement for
further information). As a result, this has led to a breach in the projected
interest cover ratio ("ICR") at the 30 June 2025 test which both lenders have
provided a waiver for.
Due to the substantial rent free agreed in the Herbrand lease regear, the
projected ICR will continue to breach in the interim until a disposal of an
asset occurs and a proportion of the debt is repaid reducing future interest
costs. The Group is managing this risk to cashflow with the lenders, however
this risk presents a material uncertainty to Going Concern. This risk will be
mitigated during the managed wind down process as assets are disposed of and
the proceeds are used to pay down the debt facility.
The Group is operating within all other covenants and a sensitivity analysis
has been performed to identify the decrease in valuations that would result in
a breach of the LTV. For the HSBC and Bank of Ireland facility, current bank
valuations would need to fall by 27.7% as at the period end covenant test
date, before this covenant would be breached. As at 22 September 2025, 99.4%
of rents invoiced in June 2025 in relation to the quarter to 29 September 2025
were received.
The Board has looked at its forecast cash flow for at least the next 12 months
and under the base case scenario, as expected, it can meet its covenants and
liquidity requirements within the current facility headroom. The Directors
have reviewed a number of scenarios which included plausible downside
sensitivities in relation to rental cash collection, discretionary capital
expenditure, delayed disposals with reduced proceeds, and minimum dividend
distributions under the REIT rules. The sensitivity analysis also includes,
for example, considering the timing of cash flows on committed capital
expenditure at OTP and assumptions over the commencement and speed of
completion of the work, which impacts the timing of cash outflows being
payable, which is currently not certain.
In combination with this, the Directors note the debt facilities are due for
maturity in June 2026, and will consider the prospects of any refinancing
necessary, and any resultant liquidity constraints, as part of the proposed
Managed Wind-Down where individual and collective asset sales are under
consideration. The facility may be refinanced in full, in part at a reduced
amount, or repaid in full. The capital expenditure relating to the development
of OTP is the largest contributor to using up headroom in the facility across
the going concern period. Whilst the timing of these costs is not certain as
noted above, the Group has currently forecast that headroom will remain
available up to the refinancing date, based on the Directors' best estimate of
the build schedule as of the date of approving the Financial Statements and
proposed disposal schedule (in the absence of a full portfolio sale). Should
it not, there are further mitigating actions management can take to generate
additional liquidity which, whilst not entirely within the Board's control as
there is a reliance on the market, and the ability to dispose of assets as
part of the proposed Managed Wind-Down.
On 19 September 2025, the Board announced the conclusion of the strategic
review. During the process, the Company 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 the Investment Adviser.
However, the Board have concluded that the offers received for a full
portfolio sale do not provide the optimal return to shareholders and therefore
have concluded to proceed with a proposed Managed Wind-Down of the portfolio
which is most likely to achieve best value for shareholders. The conclusion of
the strategic review is considered a non-adjusting post balance sheet event
which is detailed further in note 23 of the financial statements below and
therefore has no impact on the going concern basis as at 30 June 2025.
Under the base case, the Directors have a reasonable expectation that the
Group and the Company would have adequate resources to continue in business
for a period of at least 12 months from the date of approval of the Financial
Statements, given facility headroom and liquidity remains available. However,
the Directors believe their remains material uncertainty that may cast
significant doubt over the Group's ability to continue to be in operation for
at least the next 12 months, even at the base case.
2.2 New standards and interpretations effective in the current period
The accounting policies adopted in the preparation of the interim condensed
consolidated financial statements are consistent with those followed in the
preparation of the Group's annual consolidated financial statements for the
year ended 31 December 2024, except for the adoption of new standards
effective as of 1 January 2025. The Group has not early adopted any standard,
interpretation or amendment that has been issued but is not yet effective.
2.3 New and revised accounting standards not yet effective
There are a number of new standards and amendments to existing standards which
have been published and are mandatory for the Group's accounting periods
beginning on or after 1 January 2025 or later. The Group is not adopting these
standards early. The following are the most relevant to the Group:
• Amendments to IAS 21 Lack of Exchangeability to assist entities in
determining whether a currency is exchangeable into another currency, and the
spot exchange rate to use when it is not.
• IFRS 18 Presentation and Disclosures in Financial Statements. This
is the new standard on presentation and disclosure in financial statements,
which replaces IAS 1, with a focus on updates to the statement of profit or
loss.
• IFRS 19 Subsidiaries without Public Accountability: Disclosures.
This reduces disclosure requirements that an eligible subsidiary entity is
permitted to apply instead of the disclosure requirements in other IFRS
Accounting Standards.
• Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial
Instruments: Disclosures. The amendments provide clarity on the date of
recognition and derecognition of certain financial instruments and
amends/updates the disclosure required for some financial instruments.
The Directors have yet to assess the full outcome of these new standards,
amendments and interpretations; however, with the exception of IFRS 18, these
other new standards, amendments and interpretations are not expected to have a
significant impact on the Group's financial statements.
2.4 Significant accounting judgements and estimates
The preparation of these Financial Statements in accordance with IFRS requires
the Directors of the Company to make judgements, estimates and assumptions
that affect the reported amounts recognised in the Financial Statements.
However, uncertainty about these assumptions and estimates could result in
outcomes that require a material adjustment to the carrying amount of
the asset or liability in the future.
Judgements
In the course of preparing the Financial Statements, the Investment Adviser
has made the following judgements in the process of applying the Group's
accounting policies which have had a significant effect on the amounts
recognised in the Financial Statements.
Business combinations
The Group acquires subsidiaries that own investment properties. At the time of
acquisition, the Group considers whether each acquisition represents the
acquisition of a business or the acquisition of an asset. Management considers
the substance of the assets and activities of the acquired entity in
determining whether the acquisition represents the acquisition of a business.
The Group accounts for an acquisition as a business combination where an
integrated set of activities is acquired in addition to the property. Where
such acquisitions are not judged to be the acquisition of a business, they are
not treated as business combinations. Rather, the cost to acquire the
corporate entity is allocated between the identifiable assets and liabilities
of the entity based upon their relative fair values at the acquisition date.
Accordingly, no goodwill or additional deferred tax arises.
No corporate acquisitions were made during the period and therefore no
business combinations were considered in this financial period.
Estimates
In the process of applying the Group's accounting policies, the Investment
Adviser has made the following estimates which have the most significant risk
of material change to the carrying value of assets recognised in the
consolidated Financial Statements:
Valuation of property
The valuations of the Group's investment property are at fair value as
determined by the external valuer on the basis of market value in accordance
with the internationally accepted RICS Valuation - Professional Standards
January 2022 (incorporating the International Valuation Standards) and in
accordance with IFRS 13. The key estimates made by the valuer are the ERV and
equivalent yields of each investment property.
On-site developments are valued by applying the 'residual method' of
valuation, which is the investment method described above with a deduction for
all costs necessary to complete the development, with a further allowance for
remaining risk and developers' profit. Properties and land held for future
development are valued using the highest and best use method, by adopting the
residual method allowing for all associated risks, the investment method,
or a value per acre methodology.
See notes 11 and 19 for further details.
2.5 Summary of significant accounting policies
The principal accounting policies applied in the preparation of these
Financial Statements are stated in the notes to the Financial Statements.
a) Basis of consolidation
The Company does not meet the definition of an investment entity and therefore
does not qualify for the consolidation exemption under IFRS 10. The interim
condensed consolidated unaudited Financial Statements comprise the Financial
Statements of the Group and its subsidiaries as at 30 June 2025. Subsidiaries
are consolidated from the date of acquisition, being the date on which the
Group obtained control, and will continue to be consolidated until the date
that such control ceases. An investor controls an investee when the investor
is exposed, or has rights, to variable returns from its involvement with the
investee and has the ability to affect those returns through its power over
the investee. In preparing these Financial Statements, intra-group balances,
transactions and unrealised gains or losses have been eliminated in full. All
non-dormant subsidiaries have the same year end as the Company. Uniform
accounting policies are adopted in the Financial Statements for like
transactions and events in similar circumstances.
b) Functional and presentation currency
The overall objective of the Group is to generate returns in Pound Sterling
and the Group's performance is evaluated in Pound Sterling. Therefore, the
Directors consider Pound Sterling as the currency that most faithfully
represents the economic effects of the underlying transactions, events and
conditions and have therefore adopted it as the functional and presentation
currency.
All values are rounded to the nearest thousand pounds (£'000), except when
otherwise stated.
c) Segmental reporting
The Directors are of the opinion that the Group is engaged in a single segment
of business, being the investment and management of premises relating to the
life science sector.
d) Derivative financial instruments
Derivative financial instruments, comprising interest rate derivatives for
mitigating interest rate risks, are initially recognised at fair value and are
subsequently measured at fair value, being the estimated amount that the Group
would receive or pay to terminate the agreement at the period end date, taking
into account current interest rate expectations and the current credit rating
of the Group and its counterparties. Premiums payable under such arrangements
are initially capitalised into the statement of financial position.
The Group uses valuation techniques that are appropriate in the circumstances
and for which sufficient data is available to measure fair value, maximising
the use of relevant observable inputs and minimising the use of unobservable
inputs significant to the fair value measurement as a whole. Changes in fair
value of interest rate derivatives are recognised within finance expenses in
profit or loss in the period in which they occur.
e) Exceptional costs
Items are classified as exceptional by virtue of their size, nature or
incidence, where their inclusion would otherwise distort the underlying
recurring earnings of the Group. Examples include, but are not limited to,
business transformation costs, early redemption costs of financial instruments
and tax charges specific to disposals. Exceptional costs are excluded from the
Group's adjusted earnings.
3. Revenue
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
£'000 £'000 £'000
Rental income 8,026 7,762 15,652
Other income 553 217 506
Rental income straight-line adjustment 219 7 33
Insurance recharged 83 81 164
Gross property income 8,881 8,067 16,355
Service charge income 1,886 1,970 3,953
Total 10,767 10,037 20,308
4. Property operating and administration expenses
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
£'000 £'000 £'000
Recoverable service charges 1,886 1,970 3,953
Premises expenses 351 277 662
Rates 181 109 378
Service charge void costs 137 227 665
Insurance expense 102 109 198
Bad debt charge 1 2 28
Property operating expenses 772 724 1,931
Investment Adviser fees 1,120 1,513 2,979
Other administration expenses 801 573 1,473
Audit fees 124 92 185
Directors' remuneration 100 98 201
Administration expenses 2,145 2,276 4,838
Total 4,803 4,970 10,722
5. Finance income
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
£'000 £'000 £'000
Interest receivable from interest rate derivatives 1,253 2,003 3,858
Income from cash and short-term deposits 40 78 150
Other interest received 4 - -
Change in fair value of deferred consideration on interest rate derivatives - 8 195
Total 1,297 2,089 4,203
6. Finance expense
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
£'000 £'000 £'000
Loan interest 4,430 4,535 9,221
Change in fair value of interest rate derivatives and deferred consideration 1,506 975 2,649
Loan expenses 234 155 286
Loan arrangement fees amortised 164 153 320
Gross interest costs 6,334 5,818 12,476
Capitalisation of finance costs (961) (1,059) (2,086)
Total 5,373 4,759 10,390
7. Taxation
Corporation tax has arisen as follows:
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
£'000 £'000 £'000
Corporation tax on residual income - - -
Total - - -
Reconciliation of tax charge to loss before tax:
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
£'000 £'000 £'000
Loss before tax (29,712) (13,015) (13,977)
Corporation tax at 25.0% (7,428) (3,254) (3,494)
Change in value of investment properties 7,900 3,853 4,344
Change in value of interest rate derivatives and deferred consideration 377 242 613
Tax-exempt property rental business (849) (841) (1,463)
Current year tax charge - - -
8. Operating leases
Operating lease commitments - as lessor
The Group has entered into commercial property leases on its investment
property portfolio. These non-cancellable leases have a remaining term of up
to 20 years (31 December 2024: 20 years).
Future minimum rentals receivable under non-cancellable operating leases as at
30 June 2025 are as follows:
30 June 31 December
2025 2024
£'000 £'000
Within one year 15,994 15,384
Between one and five years 44,808 38,974
More than five years 34,229 31,133
Total 95,031 85,491
9. Dividends
Pence
For the six months ended 30 June 2025 per share £'000
Total - -
Paid as:
Property income distribution - -
Non-property income distribution - -
Total - -
Pence
For the six months ended 30 June 2024 per share £'000
Second interim dividend for the year ended 31 December 2023, paid on 13 May 1.0 3,500
2024
Total 1.0 3,500
Paid as:
Property income distribution - -
Non-property income distribution 1.0 3,500
Total 1.0 3,500
Pence
For the six months ended 31 December 2024 per share £'000
First interim dividend for year ended 31 December 2024, paid on 31 October 1.0 3,500
2024
Total 1.0 3,500
Paid as:
Property income distribution - -
Non-property income distribution 1.0 3,500
Total 1.0 3,500
10. Earnings per share
Basic EPS is calculated by dividing profit for the period attributable to
ordinary shareholders of the Company by the weighted average number of
ordinary shares during the period. As there are no dilutive instruments in
issue, basic and diluted EPS are identical.
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
£'000 £'000 £'000
IFRS earnings (29,712) (13,015) (13,977)
EPRA earnings adjustments:
Fair value losses/(gains) on investment properties 31,600 15,412 17,376
Changes in fair value of interest rate derivatives 1,433 975 2,649
Changes in fair value of deferred consideration payable on interest rate 73 (8) (195)
derivatives
EPRA earnings(1) 3,394 3,364 5,853
1. Adjusted earnings are aligned with EPRA earnings in all periods.
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
£'000 £'000 £'000
Basic IFRS EPS (8.5) (3.7) (4.0)
Diluted IFRS EPS (8.5) (3.7) (4.0)
EPRA EPS 1.0 1.0 1.7
Adjusted EPS 1.0 1.0 1.7
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2025 2024 2025
Number Number Number
of shares of shares of shares
Weighted average number of shares in issue (thousands) 350,000 350,000 350,000
11. UK investment property
Completed Development Total
investment property investment
property and land property
£'000 £'000 £'000
Investment property valuation brought forward as at 1 January 2025 328,673 56,547 385,220
Acquisitions(1) - - -
Capital expenditure 696 5,160 5,856
Finance costs capitalised - 961 961
Fair value losses on investment property (25,617) (5,983) (31,600)
Movement in rent incentives and amortisation 151 (13) 138
Transfer from development to investment 30,872 (30,872) -
Fair value at 30 June 2025 334,775 25,800 360,575
Completed Development Total
investment property investment
property and land property
£'000 £'000 £'000
Investment property valuation brought forward as at 1 January 2024 314,858 67,442 382,300
Acquisitions(1) (218) - (218)
Capital expenditure 5,493 13,048 18,541
Finance costs capitalised 61 2,025 2,086
Fair value losses on investment property (12,511) (4,865) (17,376)
Movement in rent incentives and amortisation (256) 143 (113)
Transfer from development to investment 21,246 (21,246) -
Fair value at 31 December 2024 328,673 56,547 385,220
1. During the current period and 2024 there were no acquisitions of
new assets. The movement reflects the finalisation of acquisition balances
from prior periods.
12. Trade and other receivables
30 June 31 December
2025 2024
£'000 £'000
Amounts due from property manager 1,908 5
Prepayments and other receivables 1,476 964
Rent and insurance receivable 566 2,333
Interest receivable 324 714
VAT receivable 369 -
Occupier deposits 176 180
Current trade and other receivables 4,819 4,196
Occupier deposits 3,889 3,826
Non-current trade and other receivables 3,889 3,826
Total trade and other receivables 8,708 8,022
13. Cash and cash equivalents
30 June 31 December
2025 2024
£'000 £'000
Cash 3,719 3,567
Cash equivalents 1,000 2,000
Total 4,719 5,567
Cash equivalents includes £1.0 million (31 December 2024: £2.0 million) of
cash held by various banks on short-term deposits.
14. Interest rate derivatives
30 June 31 December
2025 2024
£'000 £'000
At the start of the period 2,378 3,998
Additional premiums paid and accrued - 1,351
Changes in fair value of interest rate derivatives (1,434) (2,649)
Balance at the end of the period 944 2,378
Current 944 2,378
Non-current - -
Total 944 2,378
To mitigate the interest rate risk that arises as a result of entering into
variable rate linked loans, the Group entered into interest rate derivatives.
A number of forward starting interest rate caps were entered into as at 26
June 2023 for a total deferred premium of £3.6 million to align with the
expected debt draw down of the debt facility. This caps SONIA at a strike rate
of 2.00% with a termination date of March 2025 (aligned with the cap entered
into in 2022). During 2024, two further interest rate caps were entered into:
• In September 2024, for a premium of £0.6 million, a six-month hedge
was entered into capping SONIA at a strike rate of 3.00% from 1 April 2025 to
30 September 2025. At the same time, the notional of the forward starting caps
terminating in March 2025 was reduced in line with updated debt draw down
assumptions resulting in a termination value of £0.3 million as above.
• In December 2024, for a deferred premium of £0.8 million, a
three-month hedge was entered into capping SONIA at a strike rate of 2.00%
from 1 October 2025 to 31 December 2025.
15. Interest-bearing loans and borrowings
30 June 31 December
2025 2024
£'000 £'000
At the beginning of the period 122,726 108,726
Drawn in the period 4,000 14,000
Interest-bearing loans and borrowings 126,726 122,726
Unamortised fees at the beginning of the period (488) (808)
Amortisation charge for the period 164 320
Unamortised loan arrangement fees (324) (488)
Loan balance less unamortised loan arrangement fees 126,402 122,238
Current 126,402 -
Non-current - 122,238
Total 126,402 122,238
The Company has a debt facility with HSBC and Bank of Ireland ("BOI") split
60% and 40%, respectively (the "debt facility"). The debt facility comprises a
£100.0 million term loan and £50.0 million revolving credit facility ("RCF")
with an expiry date of 23 June 2026. It has an interest rate in respect of
drawn amounts of 250 basis points over SONIA and is secured on all of the
assets of the Group, including Oxford Technology Park ("OTP"). The debt
facility borrowers are Ironstone Life Science Holdings Limited and Oxford
Technology Park Holdings Limited, both direct subsidiaries of the Company. The
£100.0 million term loan was fully drawn during 2024. The RCF is being drawn
to fund the OTP development and other refurbishment projects, with £26.7
million drawn as at 30 June 2025 (31 December 2024: £22.7 million) and a
remaining £23.3 million available to utilise (31 December 2024: £27.3
million). The Group also has a £35.0 million accordion facility available on
the RCF, which has not been utilised as at 30 June 2025.
The debt facility includes LTV and interest cover covenants. As at 30 June
2025 the Group was in full compliance with all loan covenants other than the
projected interest cover ratio which both lenders have provided a waiver for.
Given the ongoing strategic review, no further hedging had been put in place
leading to the breach and subsequent waiver. The lenders continue to be
supportive of the Group during the strategic review period. The facility also
includes a ratchet clause that reduces the margin to 2.35% if the gross LTV
decreases to 30%, based on the lenders' annual valuation of the portfolio.
The Group has also defined £40.0 million of the term loan as a Green Loan in
accordance with the LMA Green Loan Principles. This is secured on Rolling
Stock Yard and completed OTP buildings, which are rated either BREEAM
Excellent or EPC A.
16. Other payables and accrued expenses
30 June 31 December
2025 2024
£'000 £'000
Deferred income 4,076 4,222
Capital expenses payable 1,986 1,943
Accounts payable 1,776 761
Loan interest payable 1,694 1,809
Administration and other expenses payable 984 1,101
Deferred consideration on interest rate caps 754 1,922
Occupier deposits payable to occupier 176 180
Property operating expenses payable 153 389
VAT payable - 28
Current other payables and accrued expenses 11,599 12,355
Occupier deposits payable to occupier 3,889 3,826
Non-current other payables and accrued expenses 3,889 3,826
Total other payables and accrued expenses 15,488 16,181
17. Share capital
Share capital is the nominal amount of the Company's ordinary shares in issue.
30 June 31 December
2025 2024
Ordinary shares of £0.01 each Number £'000 Number £'000
Authorised, issued and fully paid:
Shares issued 350,000,000 3,500 350,000,000 3,500
Balance at the end of the period 350,000,000 3,500 350,000,000 3,500
The share capital comprises one class of ordinary shares. At general meetings
of the Company, ordinary shareholders are entitled to one vote on a show of
hands and on a poll, to one vote for every share held. There are no
restrictions on the size of a shareholding or the transfer of shares, except
for the UK REIT restrictions.
In a prior period, the Company cancelled its share premium account and, as a
result, transferred the balance to the capital reduction reserve. The share
premium account is no longer presented in the financial statements.
18. Net asset value per share
Basic NAV per share amounts are calculated by dividing net assets attributable
to ordinary equity holders of the Company in the consolidated statement of
financial position by the number of ordinary shares outstanding at the end of
the period. As there are no dilutive instruments in issue, basic and diluted
NAV per share are identical.
EPRA net tangible assets ("EPRA NTA") is calculated using property values in
line with IFRS, where values are net of real estate transfer tax ("RETT") and
other purchasers' costs. EPRA NTA is considered to be the most relevant
measure for the Group's operating activities.
30 June 31 December
2025 2024
£'000 £'000
IFRS net assets attributable to ordinary shareholders 233,056 262,768
IFRS net assets for calculation of NAV 233,056 262,768
Adjustment to net assets:
Fair value of interest rate derivatives (944) (2,378)
EPRA NTA 232,112 260,390
30 June 31 December
2025 2024
Pence Pence
IFRS basic and diluted NAV per share 66.6 75.1
EPRA NTA per share 66.3 74.4
30 June 31 December
2025 2024
Number Number
of shares of shares
Number of shares in issue (thousands) 350,000 350,000
19. Fair value
IFRS 13 defines fair value as the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date. The following methods and assumptions
were used to estimate the fair values.
The fair value of cash and short-term deposits, trade receivables, trade
payables and other current liabilities approximate their carrying amounts due
to the short-term maturities of these instruments.
Interest-bearing loans and borrowings are disclosed at amortised cost. The
carrying values of the loans and borrowings approximate their fair value due
to the contractual terms and conditions of the loan. The HSBC and BOI debt
facility has an interest rate of 250 basis points over SONIA in respect of
drawn amounts.
The fair value of the interest rate contracts is recorded in the statement of
financial position and is revalued quarterly by an independent valuations
specialist, Chatham Financial.
Six-monthly valuations of investment property are performed by CBRE,
accredited external valuers with recognised and relevant professional
qualifications and recent experience of the location and category of the
investment property being valued, on a variable fee basis. However, the
valuations are the ultimate responsibility of the Director who appraise these
every six months.
The valuation of the Group's investment property at fair value is determined
by the external valuer on the basis of market value in accordance with the
internationally accepted RICS Valuation - Professional Standards January 2022
(incorporating the International Valuation Standards).
Completed investment properties are valued by adopting the 'income
capitalisation' method of valuation. This approach involves applying
capitalisation yields to current and future rental streams, net of income
voids arising from vacancies or rent-free periods and associated running
costs. These capitalisation yields and future rental values are based on
comparable property and leasing transactions in the market using the valuer's
professional judgement and market observations. Other factors taken into
account in the valuations include the tenure of the property, tenancy details
and ground and structural conditions.
On-site developments are valued by applying the 'residual method' of
valuation, which is the investment method described above with a deduction for
all costs necessary to complete the development, with a further allowance for
remaining risk and developers' profit. Properties and land held for future
development are valued using the highest and best use method, by adopting the
residual method allowing for all associated risks, the investment method, or a
value per acre methodology.
The following table shows an analysis of the fair values of investment
properties recognised in the statement of financial position by level of the
fair value hierarchy(1):
30 June 2025
Level 1 Level 2 Level 3 Total
Assets and liabilities measured at fair value £'000 £'000 £'000 £'000
Investment properties - - 360,575 360,575
Interest rate derivatives - 944 - 944
Deferred consideration on interest rate caps - (754) - (754)
Total - 190 360,575 360,765
31 December 2024
Level 1 Level 2 Level 3 Total
Assets and liabilities measured at fair value £'000 £'000 £'000 £'000
Investment properties - - 385,220 385,220
Interest rate derivatives - 2,378 - 2,378
Deferred consideration on interest rate caps - (1,922) - (1,922)
Total - 456 385,220 385,676
1. Explanation of the fair value hierarchy:
· Level 1 - quoted prices (unadjusted) in active markets for
identical assets or liabilities that the entity can access at the measurement
date;
· Level 2 - use of a model with inputs (other than quoted prices
included in Level 1) that are directly or indirectly observable market data;
and
· Level 3 - use of a model with inputs that are not based on
observable market data.
There have been no transfers between Level 1 and Level 2 during either period,
nor have there been any transfers in or out of Level 3.
Sensitivity analysis to significant changes in unobservable inputs within the
valuation of investment properties
The following table analyses:
· the fair value measurements at the end of the reporting period;
· a description of the valuation techniques applied;
· the inputs used in the fair value measurement, including the
ranges of rent charged to different units within the same
· building; and
· for Level 3 fair value measurements, quantitative information
about significant unobservable inputs used in the fair value measurement.
Key
Fair value Valuation unobservable
30 June 2025 £'000 technique inputs Range
Completed investment property 334,775 Income capitalisation ERV £15.4 - £110.0
per sq ft
Equivalent yield 5.5% - 8.25%
Development property 22,727 Income capitalisation/ residual method ERV £20
per sq ft
Equivalent yield 6.3%
Development land 3,073 Comparable method/ residual method Sales rate £35.1
per sq ft
Total 360,575
Key
Fair value Valuation unobservable
31 December 2024 £'000 technique inputs Range
Completed investment property 328,673 Income capitalisation ERV £15.4 - £110.0
per sq ft
Equivalent yield 5.05% - 7.25%
Development property 50,972 Income capitalisation/ residual method ERV £20.0 per sq ft
Equivalent yield 5.05% - 5.75%
Development land 5,575 Comparable method/ residual method Sales rate £63.7
per sq ft
Total 385,220
( )
(1) ERV range excludes one unit which has an ERV of £nil.
Significant increases/decreases in the ERV (per sq ft per annum) and rental
growth per annum in isolation would result in a significantly higher/lower
fair value measurement. Significant increases/decreases in the long-term
vacancy rate and discount rate (and exit yield) in isolation would result in a
significantly higher/lower fair value measurement.
Generally, a change in the assumption made for the ERV (per sq ft per annum)
is accompanied by:
· a similar change in the rent growth per annum and discount rate
(and exit yield); and
· an opposite change in the long-term vacancy rate.
Gains and losses recorded in profit or loss for recurring fair value
measurements categorised within Level 3 of the fair value hierarchy amount to
a loss of £31.6 million (31 December 2024: £17.4 million loss) and are
presented in the consolidated statement of comprehensive income in line item
'fair value gains/(losses) on investment properties'.
All gains and losses recorded in profit or loss for recurring fair value
measurements categorised within Level 3 of the fair value hierarchy are
attributable to changes in unrealised gains or losses relating to investment
property held at the end of the reporting period.
The carrying amount of the Group's other assets and liabilities is considered
to be the same as their fair value.
20. Capital commitments
At 30 June 2025, the Group had contracted capital expenditure of £22.8
million (31 December 2024: £27.4 million).
21. Related party transactions
Directors
The Directors (all Non-Executive Directors) of the Company and its
subsidiaries are considered to be the key management personnel of the Group.
Directors' remuneration for the period totalled £100,440 (six months to 30
June 2024: £98,232), including £10,440 of employers' National Insurance
contributions (six months to 30 June 2024: £8,232); and at 30 June 2025, a
balance of £nil (31 December 2024: £nil) was outstanding.
Investment Adviser
The Company is party to an Investment Advisory Agreement with the AIFM and the
Investment Adviser, pursuant to which the Investment Adviser has been
appointed to provide investment advisory services relating to the respective
assets on a day-to‑day basis in accordance with their respective investment
objectives and policies, subject to the overall supervision and direction by
the AIFM and the Board of Directors.
For its services to the Company, the Investment Adviser is entitled to a fee
payable quarterly in arrears calculated at the rate of one quarter of 1.1% per
quarter on that part of the NAV up to, and including, £500 million; one
quarter of 0.9% per quarter on that part of the NAV in excess of £500 million
and up to £1 billion; and one quarter of 0.75% per quarter on NAV in excess
of £1 billion.
Following the strategic review announcement on 14 March 2025, the Board and
Investment Adviser have agreed to revisions to the fee, effective from the
quarter commencing 1 April 2025. The Investment Advisory fee will move from
being calculated on net asset value to the lower of net asset value and the
average market capitalisation for the quarter, subject to a floor of no lower
than 70.0% of net asset value. In addition the rate applied to the initial fee
threshold of £500 million has been lowered to 1.0%. Refer to the Directors'
report in the Annual Report for further information.
During the period, the Group incurred £1,120,144 (six months to 30 June 2024:
£1,513,045) in respect of investment advisory fees. As at 30 June 2025,
£666,611 (31 December 2024: £726,625) was outstanding.
22. Ultimate controlling party
It is the view of the Directors that there is no ultimate controlling party.
23. Post balance sheet events
Deed of variation:
On 18 July 2025 the Group entered into a deed of variation contract with the
developer at OTP to redesign Buildings 10 and 11 for an additional £5.0
million capital expenditure. This expenditure was not committed as at 30 June
2025 and therefore has not been reflected in the financial statements or in
note 20.
Conclusion of strategic review:
On 14 March 2025, the Board of Directors of the Company announced the
commencement of a strategic review to assess the long-term options available
to the business, which may include a potential sale or managed wind down.
On 19 September 2025, following the conclusion of the strategic review, the
Board formally resolved to commence an orderly wind down of the Company over
an anticipated period of between 12-18 months.
As this decision occurred after the reporting date of 30 June 2025, it is
classified as a non-adjusting event under IAS 10 Events After the Reporting
Period. Accordingly, the interim financial statements have been prepared on a
going concern basis with material uncertainty, which is aligned with the
approach at the year ended 31 December 2024.
Based on preliminary assessments, the financial impact of the planned wind
down is not expected to differ materially from the values reported in these
interim financial statements as at 30 June 2025. However, the ultimate
financial effect of the liquidation depends on several uncertain factors,
including the timing and method of asset realisation and liability settlement,
and therefore cannot yet be reliably estimated in full at this stage.
The Company will adopt the liquidation (or break up) basis of accounting for
its next financial reporting period, in accordance with the requirements of
IAS 1 and applicable guidance.
UNAUDITED SUPPLEMENTARY NOTES NOT PART OF THE CONSOLIDATED FINANCIAL
INFORMATION
FOR THE SIX MONTHS ENDED 30 JUNE 2025
EPRA has developed and defined the following performance measures to give
transparency, comparability and relevance of financial reporting across
entities which may use different accounting standards. The following measures
are calculated in accordance with EPRA guidance. These are not intended as a
substitute for IFRS measures.
Table 1: EPRA performance measures summary
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
Notes £'000 £'000 £'000
EPRA earnings (£'000) Table 2 3,394 3,364 5,853
EPRA EPS (pence) Table 2 1.0 1.0 1.7
EPRA cost ratio (including direct vacancy cost) Table 6 32.2% 36.6% 40.8%
EPRA cost ratio (excluding direct vacancy cost) Table 6 28.4% 32.0% 34.1%
30 June 31 December
Notes 2025 2024
EPRA NDV per share (pence) Table 3 66.6 75.1
EPRA NRV per share (pence) Table 3 73.1 81.7
EPRA NTA per share (pence) Table 3 66.3 74.4
EPRA net initial yield Table 4 4.0% 3.9%
EPRA 'topped-up' net initial yield Table 4 4.5% 4.1%
EPRA vacancy rate Table 5 16.0% 15.6%
EPRA LTV Table 10 35.7% 32.5%
Table 2: EPRA income statement
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
Notes £'000 £'000 £'000
Revenue 3 10,767 10,037 20,308
Less: insurance recharged 3 (83) (81) (164)
Less: service charge income 3 (1,886) (1,970) (3,953)
Rental income (A) 8,798 7,986 16,191
Property operating expenses (including recoverable service charges) 4 (2,658) (2,694) (5,884)
Add: insurance recharged 3 83 81 164
Add: service charge income 3 1,886 1,970 3,953
Gross profit (B) 8,109 7,343 14,424
Administration expenses 4 (2,145) (2,276) (4,838)
Operating profit before interest and tax 5,964 5,067 9,586
Finance income 5 1,297 2,089 4,203
Finance expenses 6 (5,373) (4,759) (10,390)
Less: change in fair value of interest rate derivatives and deferred 6 1,506 967 2,454
consideration
Adjusted profit before tax 3,394 3,364 5,853
Taxation 7 - - -
EPRA earnings 3,394 3,364 5,853
Weighted average number of shares in issue (thousands) 17 350,000 350,000 350,000
EPRA EPS (pence) 10 1.0 1.0 1.7
Gross to net rental income ratio (B/A) 92.2% 91.9% 89.1%
In all periods reflected above adjusted earnings are aligned with EPRA
earnings. Adjusted earnings represents earnings from operational activities.
It is a key measure of the Group's underlying operational results and an
indication of the extent to which dividend payments are supported by earnings.
Table 3: EPRA balance sheet and net asset value performance measures
EPRA net disposal value ("NDV"), EPRA net reinstatement value ("NRV") and EPRA
net tangible assets ("NTA"). A reconciliation of the three EPRA NAV metrics
from IFRS NAV is shown in the table below. Total accounting return is
calculated based on EPRA NTA.
EPRA NDV EPRA NRV EPRA NTA
As at 30 June 2025 Notes £'000 £'000 £'000
Total properties(1) 11 360,575 360,575 360,575
Net borrowings(2) 13,15 (122,007) (122,007) (122,007)
Other net liabilities (5,512) (5,512) (5,512)
IFRS NAV 18 233,056 233,056 233,056
Include: real estate transfer tax(3) - 23,887 -
Exclude: fair value of interest rate derivatives 14 - (944) (944)
NAV used in per share calculations 233,056 255,999 232,112
Number of shares in issue (thousands) 18 350,000 350,000 350,000
NAV per share (pence) 66.6 73.1 66.3
EPRA NDV EPRA NRV EPRA NTA
As at 31 December 2024 Notes £'000 £'000 £'000
Total properties(1) 11 385,220 385,220 385,220
Net borrowings(2) 13,15 (117,159) (117,159) (117,159)
Other net liabilities (5,293) (5,293) (5,293)
IFRS NAV 18 262,768 262,768 262,768
Include: real estate transfer tax(3) - 25,529 -
Exclude: fair value of interest rate derivatives 14 - (2,378) (2,378)
NAV used in per share calculations 262,768 385,919 260,390
Number of shares in issue (thousands) 18 350,000 350,000 350,000
NAV per share (pence) 75.1 81.7 74.4
1. Professional valuation of investment property.
2. Comprising interest-bearing loans and borrowings (excluding
unamortised loan arrangement fees) of £126.7 million net of cash of £4.7
million (31 December 2024: £122.7 million net of cash of £5.6 million).
3. EPRA NTA and EPRA NDV reflect IFRS values which are net of real
estate transfer tax. Real estate transfer tax is added back when calculating
EPRA NRV.
EPRA NDV details the full extent of liabilities and resulting shareholder
value if Company assets are sold and/or if liabilities are not held until
maturity. Deferred tax and financial instruments are calculated as to the full
extent of their liability, including tax exposure not reflected in the
statement of financial position, net of any resulting tax.
EPRA NTA assumes entities buy and sell assets, thereby crystallising certain
levels of deferred tax liability.
EPRA NRV highlights the value of net assets on a long-term basis and reflects
what would be needed to recreate the Company through the investment markets
based on its current capital and financing structure. Assets and liabilities
that are not expected to crystallise in normal circumstances, such as the fair
value movements on financial derivatives and deferred taxes on property
valuation surpluses, are excluded. Costs such as real estate transfer taxes
are included.
Table 4: EPRA net initial yield
30 June 31 December
2025 2024
Notes £'000 £'000
Total properties per external valuer's report 11 360,575 385,220
Less development property and land 11 (25,800) (56,547)
Net valuation of completed properties 334,775 328,673
Add estimated purchasers' costs(1) 22,243 21,925
Gross valuation of completed properties including estimated purchasers' costs 357,018 350,598
(A)
Gross passing rents(2) (annualised) 15,269 14,894
Less irrecoverable property costs(2) (1,049) (1,077)
Net annualised rents (B) 14,220 13,817
Add notional rent on expiry of rent-free periods or other lease incentives(3) 1,885 530
'Topped-up' net annualised rents (C) 16,105 14,347
EPRA NIY (B/A) 4.0% 3.9%
EPRA 'topped-up' net initial yield (C/A) 4.5% 4.1%
1. Estimated purchasers' costs at 6.6% (31 December 2024: 6.7%).
2. Gross passing rents and irrecoverable property costs assessed as at the
balance sheet date for completed investment properties excluding development
property and land.
3. Adjustment for unexpired lease incentives such as rent-free periods,
discounted rent period and step rents. The adjustment includes the annualised
cash rent that will apply at the expiry of the lease incentive. Rent-frees
expire over a weighted average period of 8 months (31 December 2024: 4
months).
EPRA NIY represents annualised rental income based on the cash rents passing
at the balance sheet date, less non-recoverable property operating expenses,
divided by the market value of the property, increased with (estimated)
purchasers' costs. It is a comparable measure for portfolio valuations
designed to make it easier for investors to judge themselves how the valuation
of portfolio X compares with portfolio Y.
EPRA 'topped-up' NIY incorporates an adjustment to the EPRA NIY in respect of
the expiration of rent-free periods (or other unexpired lease incentives such
as discounted rent periods and step rents).
NIY as stated in the Investment Adviser's report calculates net initial yield
on topped-up annualised rents but does not deduct non-recoverable property
costs.
Table 5: EPRA vacancy rate
30 June 31 December
2025 2024
£'000 £'000
Annualised ERV of vacant premises (A) 3,864 3,488
Annualised ERV for the investment portfolio (B) 24,213 22,383
EPRA vacancy rate (A/B) 16.0% 15.6%
EPRA vacancy rate represents ERV of vacant space divided by ERV of the
completed investment portfolio, excluding development property and land. It is
a pure measure of investment property space that is vacant, based on ERV.
Table 6: Total cost ratio/EPRA cost ratio
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
Notes £'000 £'000 £'000
Property operating expenses (excluding service charge expenses) 4 635 497 1,266
Service charge expenses 4 2,023 2,197 4,618
Add back: service charge income 3 (1,886) (1,970) (3,953)
Add back: insurance recharged 3 (83) (81) (164)
Net property operating expenses 689 643 1,767
Administration expenses 4 2,145 2,276 4,838
Total cost including direct vacancy cost (A) 2,834 2,919 6,605
Direct vacancy cost (337) (364) (1,077)
Total cost excluding direct vacancy cost (B) 2,497 2,555 5,528
Rental income(1) 3 8,798 7,986 16,191
Gross rental income (C) 3 8,798 7,986 16,191
Less direct vacancy cost (337) (364) (1,077)
Net rental income 8,461 7,622 15,114
Total cost ratio including direct vacancy cost (A/C) 32.2% 36.6% 40.8%
Total cost ratio excluding direct vacancy cost (B/C) 28.4% 32.0% 34.1%
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
Notes £'000 £'000 £'000
Total cost including direct vacancy cost (A) 2,834 2,919 6,605
EPRA total cost (D) 2,834 2,919 6,605
Direct vacancy cost (337) (364) (1,077)
EPRA total cost excluding direct vacancy cost (E) 2,497 2,555 5,528
EPRA cost ratio including direct vacancy cost (D/C) 32.2% 36.6% 40.8%
EPRA cost ratio excluding direct vacancy cost (E/C) 28.4% 32.0% 34.1%
1. Includes rental income, rental income straight-line adjustment and
other income as per note 3.
EPRA cost ratios represent administrative and operating costs (including and
excluding costs of direct vacancy) divided by gross rental income. They are a
key measure to enable meaningful measurement of the changes in the Group's
operating costs.
It is the Group's policy not to capitalise overheads or operating expenses and
no such costs were capitalised in the six months ended 30 June 2025 or in
prior periods.
Table 7: Lease data
Year 1 Year 2 Years 3-5 Year 5+ Total
As at 30 June 2025 £'000 £'000 £'000 £'000 £'000
Passing rent of leases expiring in: 919 4,917 1,038 8,395 15,269
ERV of leases expiring in: 1,004 6,400 1,063 11,883 20,350
Passing rent subject to review in: 4,669 5,945 3,698 957 15,269
ERV subject to review in: 5,961 7,792 4,627 1,970 20,350
Year 1 Year 2 Years 3-5 Year 5+ Total
As at 31 December 2024 £'000 £'000 £'000 £'000 £'000
Passing rent of leases expiring in: 825 4,722 2,277 7,070 14,894
ERV of leases expiring in: 896 6,191 2,571 9,237 18,895
Passing rent subject to review in: 2,596 8,115 4,183 - 14,894
ERV subject to review in: 2,843 10,750 5,302 - 18,895
WAULT to expiry is 5.6 years (31 December 2024: 5.3 years) and to break is 3.3
years (31 December 2024: 3.1 years).
Table 8: Capital expenditure
Six months Year
ended ended
30 June 31 December
2025 2024
Notes £'000 £'000
Acquisitions(1) 11 - (218)
Development spend(2) 11 5,160 13,048
Movement in rent incentives and amortisation 11 138 (113)
Completed investment properties:(3)
No incremental lettable space - like-for-like portfolio 11 696 5,493
No incremental lettable space - other - -
Total capital expenditure 5,994 18,210
Conversion from accruals to cash basis (188) 2,197
Total capital expenditure on a cash basis 5,806 20,407
2. During the current period and prior year end there were no acquisitions
of new assets, the balances reflected relate to the finalisation of
acquisitions from prior periods.
3. Expenditure on development property and land.
4. Expenditure on completed investment properties.
Table 9: Like-for-like net rental income
Six months Six months
ended ended
30 June 30 June
2025 2024
Notes £'000 £'000 % Change
Like-for-like net rental income 7,274 6,687 8.8%
Development lettings 835 656
Properties disposed in current and prior year - -
Properties acquired in current and prior year - -
Net rental income 3,4 8,109 7,343
Table 10: Loan to value ("LTV") and EPRA LTV
Gross debt less cash, short-term deposits and liquid investments, divided by
the aggregate value of properties and investments. The Group also presents the
EPRA LTV which is defined as net borrowings divided by total property market
value.
30 June 31 December
2025 2024
Notes £'000 £'000
Interest-bearing loans and borrowings(1) 15 126,726 122,726
Cash 13 (4,719) (5,567)
Net borrowings (A) 122,007 117,159
Investment property at fair value (B) 11 360,575 385,220
LTV (A/B) 33.8% 30.4%
EPRA LTV
30 June 31 December
2025 2024
Notes £'000 £'000
Interest-bearing loans and borrowings(1) 15 126,726 122,726
Net payables(2) 6,780 8,159
Cash 13 (4,719) (5,567)
Net borrowings (A) 128,787 125,318
Investment properties at fair value 11 360,575 385,220
Total property value (B) 360,575 385,220
EPRA LTV (A/B) 35.7% 32.5%
1. Excludes unamortised loan arrangement fees asset (see note 15) of £0.3
million (31 December 2024: £0.5 million).
2. Net payables include trade and other receivables, other payables and
accrued expenses. See Consolidated Statement of Financial Position and notes
12 and 16 for a full breakdown.
Table 11: Total accounting return
The movement in EPRA NTA over a period plus dividends paid in the period,
expressed as a percentage of the EPRA NTA at the start of the period.
Six months Year
ended ended
30 June 31 December
2025 2024
Pence per Pence per
Notes share share
Opening EPRA NTA (A) 18 74.4 79.9
Movement (B) (8.1) (5.5)
Closing EPRA NTA 18 66.3 74.4
Dividend per share (C) 9 - 2.0
Total accounting return (B+C)/A (10.9)% (4.4)%
Table 12: Interest cover
Adjusted operating profit before gains on investment properties, interest and
tax divided by the underlying adjusted net interest expense.
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
Notes £'000 £'000 £'000
Adjusted operating profit/(loss) before losses on investment properties (A) 5,964 5,067 9,586
Finance expenses 6 5,373 4,759 10,390
Add back: capitalised finance costs 6 961 1,059 2,086
Less: finance income 5 (1,297) (2,089) (4,203)
Add back: change in fair value of interest rate derivatives and deferred 5,6 (1,506) (967) (2,454)
consideration
Loan interest (B) 3,531 2,762 5,819
Interest cover (A/B) 168.9% 183.5% 164.7%
Table 13: Ongoing charges ratio
Ongoing charges ratio represents the costs of running the REIT as a percentage
of NAV as prescribed by the Association of Investment Companies.
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
Notes £'000 £'000 £'000
Administration expenses 4 2,145 2,276 4,838
Ongoing charges 2,145 2,276 4,838
Annualised ongoing charges (A) 4,290 4,552 4,838
Opening NAV as at start of period 262,768 283,745 283,745
NAV as at 30 June - - 267,230
Closing NAV as at end of period 233,056 267,230 262,768
Average undiluted NAV during the period (B) 247,912 275,488 271,248
Ongoing charges ratio (A/B) 1.7% 1.7% 1.8%
Glossary
Adjusted earnings per share ("Adjusted EPS")
EPRA EPS adjusted to exclude one-off costs, divided by the weighted average
number of shares in issue during the period
AGM
Annual General Meeting
AIC
The Association of Investment Companies
AIFM
Alternative Investment Fund Manager
AIM
A market operated by the London Stock Exchange
Association of Investment Companies
The Company is a member of the AIC
BREEAM
Building research establishment environmental assessment method
BREEAM Interim Excellent
Interim BREEAM certifications indicate the performance of the building at the
design stage of assessment
Carbon neutrality
Purchasing carbon reduction credits equivalent to emissions released without
the need for emission reductions to have taken place
Company
Life Science REIT plc
Contracted rent
Gross annual rental income currently receivable on a property plus rent
contracted from expiry of rent-free periods and uplifts agreed at the balance
sheet date less any ground rents payable under head leases
Development property and land
Whole or a material part of an estate identified as having potential for
development. Such assets are classified as development property and land until
development is completed and they have the potential to be fully income
generating
EPC
Energy performance certificate
EPRA
The European Public Real Estate Association, the industry body for European
REITs
EPRA cost ratio
The sum of property and administration expenses as a percentage of gross
rental income calculated both including and excluding direct vacancy cost
EPRA earnings
IFRS profit after tax excluding movements relating to changes in fair value of
investment properties, gains/losses on property disposals, changes in fair
value of financial instruments and the related tax effects
EPRA earnings per share ("EPRA EPS")
A measure of EPS on EPRA earnings designed to present underlying earnings from
core operating activities based on the weighted average number of shares in
issue during the period
EPRA guidelines
The EPRA Best Practices Recommendations Guidelines September 2024
EPRA NAV/EPRA NDV/EPRA NRV/EPRA NTA per share
The EPRA net asset value measures figures divided by the number of shares
outstanding at the balance sheet date
EPRA net disposal value ("EPRA NDV")
The net asset value measure detailing the full extent of liabilities and
resulting shareholder value if company assets are sold and/or if liabilities
are not held until maturity. Deferred tax and financial instruments are
calculated as to the full extent of their value or liability, net of any
resulting tax
EPRA net initial yield ("EPRA NIY")
The annualised passing rent generated by the portfolio, less estimated
non-recoverable property operating expenses, expressed as a percentage of the
portfolio valuation (adding notional purchasers' costs), excluding development
property and land
EPRA net reinstatement value ("EPRA NRV")
The net asset value measure to highlight the value of net assets on a
long-term basis and reflect what would be needed to recreate the Company
through the investment markets based on its current capital and financing
structure. Assets and liabilities that are not expected to crystallise in
normal circumstances, such as the fair value movements on financial
derivatives and deferred taxes on property valuation surpluses, are excluded.
Costs such as real estate transfer taxes are included
EPRA net tangible assets ("EPRA NTA")
An EPRA net asset value measure with adjustments made for the fair values of
certain financial derivatives and assumes entities buy and sell assets,
thereby crystallising certain levels of deferred tax liability
EPRA sBPR
European public real estate association sustainable best practice
recommendations
EPRA 'topped-up' net initial yield
The annualised passing rent generated by the portfolio, topped up for
contracted uplifts, less estimated non‑recoverable property operating
expenses, expressed as a percentage of the portfolio valuation (adding
notional purchasers' costs), excluding development property and land
EPRA vacancy rate
Total open market rental value of vacant units divided by total open market
rental value of the portfolio, excluding development property and land
EPS
Earnings per share
Equivalent yield
The weighted average rental income return expressed as a percentage of the
investment property valuation, plus purchasers' costs, excluding development
property and land
ERV
The estimated annual open market rental value of lettable space as assessed by
the external valuer
EU taxonomy
A classification system that aims to provide a clear definition of what should
be considered as 'sustainable' economic activity
FCA
Financial Conduct Authority
Fitwel
A real estate certification that measures a building against seven health
impact categories
FRI
A full repairing and insuring lease, known as a FRI lease, is a commercial
lease which gives the occupier sole responsibility for the maintenance,
repair, and insurance of the asset for the duration of their lease.
GAV
Gross asset value
Group
Life Science REIT plc and its subsidiaries
IASB
International Accounting Standards Board
IFRS
International Financial Reporting Standards
IFRS earnings per share ("EPS")
IFRS earnings after tax for the year divided by the weighted average number of
shares in issue during the period
IFRS NAV per share
IFRS net asset value divided by the number of shares outstanding at the
balance sheet date
Interest cover
Adjusted operating profit before gains on investment properties, interest and
tax divided by the underlying net interest expense
Investment property
Completed buildings, excluding development property and land, also referred to
as investment assets
Like-for-like rental income movement
The increase/decrease in contracted rent of properties owned throughout the
period under review, expressed as a percentage of the contracted rent at the
start of the period, excluding acquisitions, disposals, development property
and land
Like-for-like net rental income movement
The increase/decrease in net rental income of properties owned throughout the
period under review, expressed as a percentage of the net rental income at the
start of the period, excluding acquisitions, disposals, development property
and land
Like-for-like valuation movement
The increase/decrease in the valuation of properties owned throughout the
period under review, expressed as a percentage of the valuation at the start
of the period, net of capital expenditure
Loan to value ratio ("LTV")
Gross debt less cash, short-term deposits and liquid investments, divided by
the aggregate value of properties and investments
Main Market
The premium segment of the London Stock Exchange's Main Market
NAV
Net asset value
Net equivalent yield ("NEY")
The weighted average rental income return expressed as a percentage of the
investment property valuation, plus purchasers' costs, excluding development
property and land
Net initial yield ("NIY")
Contracted rent at the balance sheet date, expressed as a percentage of the
investment property valuation, plus purchasers' costs, excluding development
property and land
Net rental income
Gross annual rental income receivable after deduction of ground rents and
other net property outgoings, including void costs and net service charge
expenses
Net reversionary yield ("NRY")
The anticipated yield to which the net initial yield will rise (or fall) once
the rent reaches the ERV
Net zero carbon
The overall balance between emitting and absorbing carbon in the atmosphere
Occupancy
Total open market rental value of the units leased divided by total open
market rental value, excluding development property and land, equivalent to
one minus the EPRA vacancy rate
Ongoing charges ratio
Ongoing charges ratio represents the costs of running the Group as a
percentage of IFRS NAV as prescribed by the Association of Investment
Companies
Passing rent
Gross annual rental income currently receivable on a property as at the
balance sheet date less any ground rents payable under head leases
Property income distribution ("PID")
Profits distributed to shareholders that are subject to tax in the hands of
the shareholders as property income. PIDs are usually paid net of withholding
tax (except for certain types of tax-exempt shareholders). REITs also pay out
normal dividends called non-PIDs
RCF
Revolving credit facility
Real Estate Investment Trust ("REIT")
A listed property company that qualifies for, and has elected into, a tax
regime that is exempt from corporation tax on profits from property rental
income and UK capital gains on the sale of investment properties
Scope 1 and 2 emissions
GHGs released directly and indirectly from the Group e.g. company offices,
company vehicles and energy purchased by the Group
Scope 3 emissions
All other GHGs released indirectly by the Group, upstream and downstream of
the Group's business
SONIA
Sterling Overnight Index Average
Task Force on Climate-related Financial Disclosures ("TCFD")
An organisation established with the goal of developing a set of voluntary
climate-related financial risk disclosures to be adopted by companies to
inform investors and the public about the risks they face relating to climate
change
Total accounting return
The movement in EPRA NTA over a period plus dividends paid in the period,
expressed as a percentage of the EPRA NTA at the start of the period
Total cost ratio
EPRA cost ratio, excluding one-off costs calculated both including and
excluding vacant property costs
UK AIFM Regime
The Alternative Investment Fund Managers Regulations 2013 (as amended by The
Alternative Investment Fund Managers (Amendment etc.) (EU Exit) Regulations
2019) and the Investment Funds Sourcebook forming part of the FCA Handbook
Weighted average unexpired lease term ("WAULT")
Average unexpired lease term to first break or expiry weighted by contracted
rent across the portfolio, excluding development property and land
ENDS
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