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Investing.com -- Life Science REIT PLC stock fell 8% after the company reported a 10.9% decline in its unaudited EPRA Net Tangible Assets (NTA) for the first half of 2025.
The company’s NTA decreased to £232.1 million or 66.3 pence per share as of June 30, 2025, down from £260.4 million or 74.4 pence per share at the end of December 2024.
LABS also disclosed a minor technical covenant breach on its projected interest cover ratio test. The company reported a cover test result of 193.1% against the required threshold of 200%, but has secured a waiver from its lenders.
Despite the NTA decline, LABS noted some operational improvements during 2025, including signing leases with four new occupiers. This increased contracted rent to £17.4 million from £15.9 million at the end of 2024, while occupancy rose slightly to 85.1% from 84.4%.
The company also announced a redesign of buildings 10 and 11 at its OTP development, creating seven smaller units instead of two large ones. This change, which comes with an additional cost of £5.0 million, is expected to increase the overall estimated rental value (ERV) on these buildings by £0.35 million to £2.1 million, reflecting higher demand for small to mid-sized units with an ERV of £25 per square foot.
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