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Life Science Reit Plc (GB:LABS)
:LABS
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Life Science Reit Plc (LABS) AI Stock Analysis

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GB:LABS

Life Science Reit Plc

(LSE:LABS)

Rating:58Neutral
Price Target:
The overall score of 58 for Life Science Reit Plc reflects a mix of financial challenges and positive technical and strategic developments. The company's financial instability, characterized by negative profitability and cash flow issues, is a major concern. However, technical indicators show potential for upward stock movement, and recent corporate events highlight strategic initiatives and investor confidence, providing a balanced but cautious outlook.

Life Science Reit Plc (LABS) vs. iShares MSCI United Kingdom ETF (EWC)

Life Science Reit Plc Business Overview & Revenue Model

Company DescriptionLife Science Reit Plc is an investment company, which intends to carry on business as a REIT. Its objective is to provide Shareholders with an attractive level of total return. The company was founded on July 27, 2021 and is headquartered in London, the United Kingdom.
How the Company Makes MoneyLife Science Reit Plc generates revenue primarily through leasing its properties to life sciences tenants. The company's revenue model is based on long-term rental agreements, which provide consistent and predictable cash flows. Key revenue streams include rental income from leases, which may include base rents, percentage rents, and additional charges for property services. LABS also benefits from increasing demand for specialized life science facilities driven by growth in the biotechnology and pharmaceutical sectors. Significant partnerships with leading research institutions and biotech firms enhance its portfolio's attractiveness, ensuring high occupancy rates and stable revenue generation.

Life Science Reit Plc Financial Statement Overview

Summary
Life Science Reit Plc exhibits financial instability with decreasing revenue and profitability issues. Despite a strong balance sheet with no debt, persistent negative free cash flow and operational inefficiencies highlight significant financial challenges.
Income Statement
45
Neutral
The company's income statement reveals a volatile revenue trajectory and negative profitability. The negative total revenue in the latest year is a concerning trend, with a significant decline from positive revenue in 2023. Gross profit and net income margins are negative, indicating challenges in achieving profitability. The EBIT margin is also negative, reflecting operational inefficiencies.
Balance Sheet
60
Neutral
The balance sheet shows a relatively stable equity position with a high equity ratio, suggesting low leverage and a lower risk profile. The company has no total debt in the most recent year, which is a positive sign. However, the large fluctuations in stockholders' equity and total assets over the years indicate potential instability in asset management.
Cash Flow
55
Neutral
Cash flow analysis highlights a mixed picture with positive operating cash flow in the latest year, yet persistent negative free cash flow. The operating cash flow to net income ratio is robust, showing the company's ability to convert earnings into cash. However, the negative free cash flow growth rate signals potential issues in managing capital expenditures.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue-5.63M19.94M15.71M532.00K
Gross Profit-5.63M10.44M7.15M77.00K
EBITDA9.78M8.72M-65.04M-302.00K
Net Income-13.98M-21.71M-27.61M7.74M
Balance Sheet
Total Assets401.19M410.70M447.82M361.40M
Cash, Cash Equivalents and Short-Term Investments5.57M14.34M45.61M165.96M
Total Debt122.24M107.92M109.83M0.00
Total Liabilities138.42M126.96M128.37M10.82M
Stockholders Equity262.77M283.75M319.45M350.58M
Cash Flow
Free Cash Flow-6.36M-16.42M-8.73M3.54M
Operating Cash Flow12.92M7.62M-1.09M3.54M
Investing Cash Flow-16.35M-11.64M-186.38M-181.52M
Financing Cash Flow-5.34M-27.24M67.11M343.94M

Life Science Reit Plc Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price38.40
Price Trends
50DMA
41.76
Negative
100DMA
42.34
Negative
200DMA
39.99
Negative
Market Momentum
MACD
-1.07
Negative
RSI
39.91
Neutral
STOCH
75.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:LABS, the sentiment is Neutral. The current price of 38.4 is below the 20-day moving average (MA) of 38.70, below the 50-day MA of 41.76, and below the 200-day MA of 39.99, indicating a bearish trend. The MACD of -1.07 indicates Negative momentum. The RSI at 39.91 is Neutral, neither overbought nor oversold. The STOCH value of 75.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:LABS.

Life Science Reit Plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
£484.34M11.617.68%5.63%1.73%21.53%
73
Outperform
4.41%
68
Neutral
£247.49M81.611.05%6.56%
63
Neutral
C$2.00B5.80-0.84%5.13%1.83%-19.11%
58
Neutral
£134.75M-5.11%5.17%1.84%35.65%
58
Neutral
£270.01M9.666.76%2.05%-19.90%
53
Neutral
£199.49M78.060.71%35.42%-7.28%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:LABS
Life Science Reit Plc
38.40
5.05
15.14%
GB:HLCL
Helical
225.00
5.95
2.72%
GB:SHED
Urban Logistics REIT plc
156.00
40.68
35.28%
GB:SREI
Schroder Real Estate ate ate Investment
50.60
6.03
13.53%
GB:ASLI
abrdn European Logistics Income PLC
47.90
3.62
8.18%
GB:WHR
Warehouse REIT PLC
113.60
32.68
40.39%

Life Science Reit Plc Corporate Events

Business Operations and Strategy
BlackRock Increases Stake in Life Science REIT PLC
Positive
May 1, 2025

Life Science REIT PLC, a UK-based real estate investment trust, announced that BlackRock, Inc. has crossed the 5% threshold in its voting rights, now holding a total of 5% in the company. This acquisition of voting rights by a major investment firm like BlackRock could signify increased investor confidence and potentially impact the company’s strategic decisions and market positioning.

Spark’s Take on GB:LABS Stock

According to Spark, TipRanks’ AI Analyst, GB:LABS is a Neutral.

Life Science REIT Plc’s overall score reflects financial instability and valuation concerns, partially offset by positive technical indicators and proactive corporate strategies. Key strengths include a debt-free balance sheet and recent leasing successes, while profitability and cash flow remain significant risks.

To see Spark’s full report on GB:LABS stock, click here.

Shareholder MeetingsRegulatory Filings and Compliance
Life Science REIT Releases 2024 Annual Report and AGM Notice
Neutral
Apr 29, 2025

Life Science REIT plc has announced the distribution of its 2024 Annual Report and the Notice of its 2025 Annual General Meeting (AGM) to shareholders who opted for hard copies. These documents have also been submitted to the Financial Conduct Authority’s National Storage Mechanism. The AGM is scheduled to take place on 3 June 2025 at Ironstone Asset Management’s offices in London. This announcement ensures compliance with UK Listing and Disclosure Guidance and Transparency Rules, reinforcing the company’s commitment to transparency and regulatory adherence.

Spark’s Take on GB:LABS Stock

According to Spark, TipRanks’ AI Analyst, GB:LABS is a Neutral.

Life Science REIT Plc’s overall score reflects financial instability and valuation concerns, partially offset by positive technical indicators and proactive corporate strategies. Key strengths include a debt-free balance sheet and recent leasing successes, while profitability and cash flow remain significant risks.

To see Spark’s full report on GB:LABS stock, click here.

Business Operations and StrategyRegulatory Filings and Compliance
BlackRock Reduces Stake in Life Science REIT PLC
Neutral
Apr 25, 2025

Life Science REIT PLC, a UK-based real estate investment trust, has announced a change in the voting rights held by BlackRock, Inc. BlackRock’s voting rights in Life Science REIT have fallen below 5%, indicating a reduction in their stake. This change in voting rights could impact the company’s shareholder dynamics and influence future decision-making processes.

Spark’s Take on GB:LABS Stock

According to Spark, TipRanks’ AI Analyst, GB:LABS is a Neutral.

Life Science REIT Plc’s overall score reflects financial instability and valuation concerns, partially offset by positive technical indicators and proactive corporate strategies. Key strengths include a debt-free balance sheet and recent leasing successes, while profitability and cash flow remain significant risks.

To see Spark’s full report on GB:LABS stock, click here.

DividendsBusiness Operations and Strategy
Life Science REIT Initiates Strategic Review Amid Market Challenges
Negative
Apr 16, 2025

Life Science REIT plc has announced a strategic review to explore options for maximizing shareholder value, prompted by challenges such as high inflation, elevated interest rates, and low liquidity, which have led to a prolonged discount in share price. Despite these challenges, the company has made progress in leasing activities and cost-saving measures, with a focus on capturing rental growth and completing development projects, while future dividends are suspended pending the review’s outcome.

Business Operations and Strategy
Life Science REIT Sets New Rental Record with Oxford Technology Park Lease
Positive
Apr 14, 2025

Life Science REIT has signed a new lease agreement with Oxford Expression Technologies Limited at Oxford Technology Park, setting a new rental high for the park. This agreement highlights the company’s commitment to catering to emerging life science businesses by providing flexible and specialized spaces. The lease will bring the total estimated rental value captured since September 2024 to £1.5 million, emphasizing the company’s strategic positioning in the life sciences property market. The move by OET to the park signifies the growing demand for bespoke facilities that support the development and success of life science companies.

Business Operations and Strategy
BlackRock Increases Stake in Life Science REIT to 5%
Positive
Apr 9, 2025

Life Science REIT PLC announced that BlackRock, Inc., a major shareholder, has increased its voting rights in the company to 5% as of April 8, 2025. This acquisition of voting rights by BlackRock signifies a strengthened position in the company, potentially impacting its governance and strategic decisions, and reflects confidence in the company’s market positioning within the life sciences real estate sector.

Business Operations and Strategy
BlackRock Adjusts Holdings in Life Science REIT PLC
Neutral
Apr 8, 2025

Life Science REIT PLC, a UK-based real estate investment trust, announced a change in major holdings as BlackRock, Inc., a global investment management corporation, has adjusted its voting rights in the company to below 5%. This adjustment in BlackRock’s holdings indicates a shift in its investment strategy, which could have implications for the company’s market perception and investor confidence.

Business Operations and StrategyFinancial Disclosures
Life Science REIT Revises Investment Advisory Agreement for Cost Efficiency
Positive
Mar 31, 2025

Life Science REIT plc has revised its investment advisory agreement with Ironstone Asset Management Limited, changing the fee calculation basis from net asset value to the lower of net asset value and average market capitalisation. This adjustment, effective from April 2025, is expected to save the company £1.0 million annually, enhancing earnings per share by 0.3 pence. The revisions also remove the requirement for Ironstone to acquire shares in relation to 15% of the advisory fee, potentially impacting the company’s financial dynamics and stakeholder interests.

Business Operations and StrategyRegulatory Filings and Compliance
Life Science REIT PLC Announces Change in Major Holdings
Neutral
Mar 20, 2025

Life Science REIT PLC announced a change in major holdings as Rathbones Investment Management Ltd adjusted its voting rights, now holding 14.98% down from 15.87%. This shift in voting rights indicates a slight reduction in influence by Rathbones, which may impact future strategic decisions or shareholder dynamics within the company.

DividendsBusiness Operations and Strategy
Life Science REIT Initiates Strategic Review Amid Market Challenges
Negative
Mar 14, 2025

Life Science REIT plc has announced a strategic review to explore options for maximizing shareholder value, including a potential sale or managed wind down, amid challenges like high inflation and interest rates affecting the REIT sector. The company has suspended dividends due to delays in leasing activity and is negotiating reduced fees with its investment advisor to better align interests with shareholders. The strategic review will include a formal sale process, with Panmure Liberum appointed as the financial adviser, but there is no certainty of an offer being made.

Business Operations and Strategy
Life Science REIT Boosts Cambourne Park Occupancy with New Lease
Positive
Feb 10, 2025

Life Science REIT plc has announced a significant leasing deal at its Cambourne Park Science & Technology Campus in Cambridge, further solidifying its position as a key player in the life sciences real estate market. The company has successfully let 17,200 sq ft to 42 Technology Limited, a consultancy specializing in technical solutions across various sectors, marking a critical step in repositioning Cambourne Park as a premier science and technology hub. This lease increases occupancy to 83% and demonstrates the company’s effective strategy in attracting life sciences and technology businesses, enhancing its asset value and market positioning.

Business Operations and Strategy
Life Science REIT Achieves Full Occupancy at Rolling Stock Yard
Positive
Feb 5, 2025

Life Science REIT has successfully leased 5,100 sq ft of laboratory space at Rolling Stock Yard in London to CFDX Ltd, marking full occupancy of the building. This move highlights the company’s ability to meet the precise needs of leading life science firms and taps into the strong demand for quality lab spaces in prime locations, reinforcing its strategic position in the UK life science property market.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 02, 2025