Life Science REIT plc (LSE:LABS) has reported a sharp decline in asset values, with its property portfolio valued at £332.6 million as at 31 December 2025, representing a 7.8% reduction over the period. Unaudited EPRA net tangible assets fell by 13% to £201.8 million, equivalent to 57.7 pence per share, reflecting weaker property valuations alongside higher leverage used to fund development activity.
The downturn was largely attributed to outward yield movements across the estate, compounded by softer demand for laboratory space. Management pointed to reduced venture capital availability and lower levels of follow-on funding for life science companies as key factors weighing on occupier demand. The most pronounced impact was seen at the Cambourne Park Science and Technology Campus, where ongoing vacancies and capital expenditure requirements led valuers to reassess the site as an office or business park rather than a core life science asset.
Elsewhere in the portfolio, valuation declines were more moderate. Improving tenant demand and rising estimated rental values at Oxford Technology Park provided some support, while a lease regear at Herbrand Street in Bloomsbury was cited as a positive contributor. The company said further detail will be provided with the release of its full-year results, scheduled for April 2026.
Looking ahead, sentiment around the group remains cautious. Financial pressure, negative valuation trends, and proposed managed wind-down and asset disposal plans are weighing heavily on the outlook, overshadowing any near-term operational improvements.
More about Life Science REIT plc
Life Science REIT plc is a UK-listed real estate investment trust focused on the ownership and development of life science and technology-focused real estate. Its portfolio is concentrated in established innovation clusters, including assets within the UK’s “Golden Triangle,” and comprises science parks, laboratory-led campuses, and technology-oriented business parks.
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