Life Science REIT exploring potential sale, shares surge

(Sharecast News) - Shares in Life Science REIT surged on Friday after the real estate group announced it has kicked off a review to explore "all strategic options", including a potential sale, aimed at maximising value for shareholders. The company, which invests in properties like labs, incubators and testing facilities within the life sciences sector, said that, among the options being considered, was a potential sale or managed winddown.

"A number of discussions" have already taken place with potential acquirers in recent months, though it is not currently in talks or in receipt of an approach from any party.

Life Science REIT has experienced challenges and significant headwinds since its IPO in November 2021, with high inflation and elevated interest rates slowing leasing activity and negative impacting investor sentiment.

"These factors, coupled with the company's size and low levels of liquidity have led to an underperformance 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 company said in a statement.

The board "has confidence that, in the context of a strategic review, the business should be attractive to multiple parties if the outcome of the strategic review leads to the sale of the business".

Shares were up nearly 9% at 42.2p by 0912 GMT.