NAV and Portfolio Valuation Update
16 March 2022
LEI: 213800RG7JNX7K8F7525
Life Science REIT plc
("Life Science REIT" or the "Company")
NAV at 31 December 2021 and Portfolio Valuation Update
Increase in Portfolio Valuation of £14.5 million in the six weeks post IPO
Life Science REIT (AIM: LABS), the real estate investment trust focused on UK life science properties, is pleased to announce its unaudited Net Asset Value ("NAV") as at 31 December 2021 together with an update on its corporate activity.
Portfolio Acquisitions
Since the Company's IPO on 19 November 2021, the Company has completed five acquisitions, totalling nine individual properties, for a total value of £184.2 million including acquisition costs. The assets, which are all in the life science "Golden Triangle" of Oxford, Cambridge and London, have been acquired at an average net initial yield of 4.9 per cent. with the current passing rent (including rent guarantees) being £9.1 million and an average unexpired lease term across the portfolio of 6.4 years.
The Company has initiated its asset management plans across the portfolio which include leasing the remaining vacant space at Rolling Stock Yard and Cambourne Business Park, with a variety of potential occupiers in the life science space showing strong interest.
31 December 2021 Property Valuation
The Company's portfolio has been valued by the Company's independent valuer at £192.2 million, as at 31 December 2021. The uplift in the portfolio valuation of £14.5 million over the aggregate acquisition price (excluding £6.5 million of acquisition costs), is a result of the acquisitions being agreed off-market and in advance of the IPO, further progress with lettings, and some yield shift arising from the strength of investment demand for well positioned, high quality assets in the life science sector.
31 December 2021 Net Asset Value
The Company's unaudited NAV at 31 December 2021 was approximately £350.6 million or 100.2 pence per ordinary share. This is the first valuation since the Company's IPO on 19 November 2021 and it is expected that the Company will publish its NAV twice yearly on an ongoing basis.
Acquisition Pipeline
The Investment Adviser continues to make significant progress with its negotiations and diligence on a number of potential acquisitions and expects to make further announcements on these transactions over the next few months. The expected timeframe for the net IPO proceeds to be substantially invested remains in line with the Company's guidance at IPO.
Full Year Results
The Company's results for the year ended 31 December 2021 are expected to be announced on 11 May 2022 at which time the Investment Adviser will provide a comprehensive update on portfolio activity.
Simon Farnsworth, Managing Director of Ironstone Asset Management, the Company's Investment Adviser, commented:
"In the period since our IPO, we are pleased to have deployed over half of the IPO proceeds in five, high quality, immediately income producing life science transactions across the Golden Triangle of London, Oxford and Cambridge and are making significant progress on a number of other acquisition opportunities.
"Our 31 December 2021 valuation demonstrates the value we have been able to create via our off-market acquisition strategy whilst the demand and supply dynamics in the life science sector, especially for well located, high quality assets, remain compelling. We have also initiated our asset management plans at our two flagship assets at Rolling Stock Yard and Cambourne Business Park and expect to make considerable progress in the near term at leasing the remaining unoccupied space."
FOR FURTHER INFORMATION, PLEASE CONTACT:
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Ironstone Asset Management - Investment Adviser |
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Simon Farnsworth |
via Buchanan below |
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Panmure Gordon - Nominated Adviser and Joint Corporate Broker |
+44 20 7886 2500 |
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Atholl Tweedie / Sapna Shah / Philip Shields / Chloe Ponsonby |
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Jefferies International Limited - Joint Corporate Broker |
+44 20 7029 8000 |
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Tom Yeadon / Andrew Morris / Oliver Nott |
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Buchanan - Financial PR |
+44 20 7466 5000 |
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Mark Court / Henry Wilson / Verity Parker LifeSciencereit@buchanan.uk.com |
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Notes to editors
Life Science REIT plc is a property business focused solely on the UK's growing life science sector, specifically targeting opportunities in the "Golden Triangle" research and development hubs of Oxford, Cambridge and London St Pancras. The Company's intention is to become the property provider of choice for life science companies in the UK, whilst enabling shareholders to gain exposure to a specific growth sector.
The objective of the Company's investment policy is focused on capital growth, whilst also providing a growing level of income, by investing primarily in a diversified portfolio of properties that are leased, or intended to be leased, to tenants operating in the life science sector in the UK.
Life Science REIT joined the AIM market of the London Stock Exchange on 19 November 2021, having raised £350 million in its IPO. Its shares trade under the ticker LABS.
Further information is available at https://lifesciencereit.co.uk
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