Half Year Results

23 September 2025

LEI: 213800RG7JNX7K8F7525

Life Science REIT plc

("Life Science REIT", the "Company" or, together with its subsidiaries, the "Group")

Results for the six months ended 30 June 2025

Claire Boyle, Chair of Life Science REIT plc, commented: "As announced on 19 September 2025, the Board has completed its Strategic Review and has concluded that a managed wind-down ("Managed Wind-Down") of the Company presents the best means of maximising value for Shareholders at this time. Subject to shareholder approval, the Company will be managed with the intention of realising all the assets in its portfolio in an orderly manner with a view to repaying borrowings and making timely capital returns to shareholders.

The macro environment has remained challenging and as a result, leasing progress in the period has remained slow, albeit we have continued to sign deals at attractive prices and to shift the occupier line up further in favour of life sciences businesses. The recommitment of Thought Machine, our largest occupier, to Herbrand Street and recent letting to Wayve Technologies at Rolling Stock Yard, which is now fully let, is a strong endorsement of our space, and provides significant optionality going forward."

STRATEGIC REVIEW

· Strategic Review completed with the Board concluding that a Managed Wind-Down would be in the best interests of shareholders and a process to implement this is now underway

· Realisations may take the form of disposals of single assets, groups of assets or the portfolio as a whole

· Anticipated that the realisation of the portfolio will be concluded over a 12-18 month period, depending on, amongst other things, the prevailing market environment

· Implementation of the Managed Wind-Down will require amendments to the Company's investment objective and investment policy to be approved by shareholders by ordinary resolution at a general meeting to be convened in the near future

· Shareholders should refer to the announcement on 19 September 2025 for full details

FINANCIAL HIGHLIGHTS

Further leasing progress offset by higher interest costs:

· Contracted rent increased to £17.2 million (31 December 2024: £15.3 million)

· Gross property income up to £8.9 million (30 June 2024: £8.1 million) reflecting a full six months' contribution from 2024 lettings and income from 2025 lettings

· Adjusted earnings stable at £3.4 million with increased rental income offset by higher finance costs of £2.6 million (H124 £1.7 million) reflecting higher debt levels to fund capex and development costs

· Adjusted EPS of 1.0 pence per share (30 June 2024: 1.0 pence per share)

Macro headwinds and slower than anticipated leasing drives further outward yield shift:

· Portfolio value of £360.6 million (31 December 2024: £385.2 million), down £24.6 million on an absolute basis (6.7% like-for-like), driven by outward net equivalent yield shift of 49 basis points

· Corresponding reduction in EPRA NTA to £232.1 million (31 December 2024: £260.4 million) or 66.3 pence per share (31 December 2024: 74.4 pence per share)

Banking facilities:

· Debt fully hedged at 5.5% interest payable until September 2025 and 4.5% to December 2025

· No further hedging put in place after December 2025 given the conclusion of the Strategic Review and new lease signed at Herbrand Street

OPERATIONAL HIGHLIGHTS

Pace of leasing activity slower, reflecting challenging occupational market but pricing remains firm:

· 5 new leases commenced in 2025 adding a net £1.3 million to contracted rent after expiries and breaks exercised in the period

· Post period end one lease completed, to Oxford Expressions Technology Limited ("OET") at Oxford Technology Park ("OTP") and a new lease has been signed at Herbrand Street to existing occupier Thought Machine, increasing the asset WAULT to seven years. These two transactions have added a further £1.3 million to contracted rent

· Proportion of the Group's assets leased to life sciences occupiers increased to 57.5% of the Group's contracted rent (31 December 2024: 54.3%)

· Occupancy stable at 84.0% (31 December 2024: 84.4%) rising to 85.1% following completion of OET lease; like-for-like occupancy increased to 88.2%

· 100% of properties EPC A-C rated (31 December 2024: 100%)

Development progress:

· 61,100 sq ft completed at OTP year to date; a further 91,800 sq ft is expected to complete in Q4 2025

· Post period end agreement with the developer at OTP to redesign Buildings 10 and 11 to deliver seven smaller units which command a higher ERV of £25.0 per sq ft, increasing the overall ERV of the space by £0.3 million

Embedded opportunities to drive future rents through development, repurposing and capturing reversion:

· Target portfolio ERV of £28.2 million, representing an uplift of over £11.0 million on the June 2025 total portfolio contracted rent of £17.2 million, comprising:

o  Embedded reversion of 18.6% on let space, equating to £3.2 million additional rent

o  £3.8 million to come from completed developments and repurposing activities

o  £1.9 million ERV from development assets, which are expected to complete in Q4 2025

o  £2.1 million ERV from development land following the agreed redesign of Buildings 10 and 11 at OTP after the period end

1. The Group presents EPRA Best Practices Recommendations as Alternative Performance Measures ("APMs") to assist stakeholders in assessing performance alongside the Group's statutory results reported under IFRS. APMs are among the key performance indicators used by the Board to assess the Group's performance and are used by research analysts covering the Group. EPRA Best Practices Recommendations have been disclosed to facilitate comparison with the Group's peers through consistent reporting of key real estate specific performance measures. However, these are not intended as a substitute for IFRS measures. Please see the unaudited supplementary notes for further details on APMs.

2. This is the total of dividends paid and declared in respect of the period to 30 June 2025. Dividends paid in 2024 totalled 1.0 pence per share.

Enquiries:

Notes to editors

Life Science REIT plc is a specialist property business focused on the UK's growing life science sector. The Company's portfolio of assets is located across the "Golden Triangle" of research and development hubs in Oxford, Cambridge and London's Knowledge Quarter.

Life Science REIT trades on the Main Market of the London Stock Exchange under the ticker LABS.

CHAIR'S STATEMENT

Strategic Review update

As announced on 19 September 2025, the Board has completed its Strategic Review and has concluded that a Managed Wind-Down of the Company presents the best means of maximising value for Shareholders at this time. Subject to shareholder approval, the Company will be managed with the intention of realising all the assets in its portfolio in an orderly manner with a view to repaying borrowings and making timely capital returns to shareholders. Shareholders should refer to the announcement for full details.

The macro environment has remained challenging and as a result, leasing progress in the period has remained slow, albeit we have continued to sign deals at attractive prices and to shift the occupier line up further in favour of life sciences businesses. The recommitment of Thought Machine, our largest occupier to Herbrand Street and recent letting to Wayve Technologies at Rolling Stock Yard, which is now fully let, is a strong endorsement of our space and provides significant optionality going forward. The Oxford and Cambridge markets have been challenging, impacting progress at OTP and Cambourne respectively, but development progress at both sites means that these assets are now better placed to appeal to both occupiers and potential investors.

Market context

Take up across the Golden Triangle was 266,000 sq ft for H1 2025, ahead of last year but led by London where a single transaction in the second quarter accounted for 26% of the H1 total. Both the Oxford and Cambridge markets remained subdued. Sentiment was impacted by geo-political events, in particular the US President's Liberation Day tariff policies which heightened uncertainty across the broader market. This was reflected in a fall in VC funding, which in the second quarter fell to £563.5 million, less than half of the first quarter total, and well below the five year average of c. £ 0.8 billion. 

On the supply side, 3.8 million sq ft of lab space was under construction across the Golden Triangle at the end of June 2025, of which 11% was pre let. An additional 5.1 million sq ft has planning secured, but given elevated construction and financing costs, and ongoing macro uncertainty, not all of these schemes are expected to progress. However, recent completions have pushed out vacancy rates, particularly in Cambridge, where supply has historically been tight, to 9.0% (from 4.8% in Q125), while vacancy is stable at 11.3% in Oxford. 

Operational update

Despite a challenging leasing environment, five new leases commenced in the period, increasing rents by a net £1.3 million, to £17.2 million and post period end, we were pleased to sign a further occupier at OTP, which set a new record for rents at the park. We have been pleased with the level of rents achieved, but with leasing momentum slower than expected, occupancy is lower than we would like at 84.0%. This has also impacted our valuation, which was down 6.7% on a like for like basis, reflecting an outwards like for like yield shift of 50 bps. As a result, the portfolio was valued at £360.6 million at the period end, compared to £385.2 million as at 31 December 2024. 

In recent weeks, we are pleased to have signed a new lease at Herbrand Street with Thought Machine, a leading FinTech business and our largest occupier. The new lease will run for seven years and at £75.0 per sq ft, is in line with ERV.

We have made progress on developments, with the second half of Building 6 and Building 7 at OTP both completing in the period and post period end, and we have come to an agreement with the OTP developer on a redesign of Buildings 10 and 11 which is expected to add £0.3 million to its rental value.

Financial performance

Net rental income increased by 8.8% on a like for like basis to £8.1 million. Admin costs were slightly lower, reflecting savings delivered by the revisions to the Investment Adviser's fee, however, finance costs were notably higher at £2.6 million (H124: £1.7 million) as a result of higher debt levels, drawn to fund ongoing capex for developments. As a result, adjusted earnings were unchanged versus the prior year at £3.4 million.

Conclusion

While the long-term structural drivers which underpin our investment proposition remain intact, the macroeconomic and Company specific challenges which have impacted the Company's performance since IPO have not abated. These factors, combined with the Company's small size and low levels of liquidity, led to the Board's decision to launch the Strategic Review in March. Having thoroughly reviewed all options since then, the Board has concluded that a Managed Wind-Down represents the best opportunity to maximise value for Life Science REIT shareholders at this time and will provide further updates as appropriate.

Claire Boyle | Chair

22 September 2025

INVESTMENT ADVISER'S REPORT

Leasing performance

The wider occupational market has remained challenging in the period, with uncertainty further elevated by the US President's "Liberation Day" policies impacting both occupier confidence and the wider life sciences funding environment. As a result, leasing momentum has been slower than expected, but deals are signing at levels at or ahead of ERV, reinforcing confidence in the Group's broader investment proposition of delivering specialist life science space.

During the period to 30 June 2025, five new leases with three new occupiers commenced, comprising:

• CFDX Limited ("CFDX") has taken 5,100 sq ft of fully fitted space at Rolling Stock Yard ("RSY") for £110.0 per sq ft on an eight year lease with a four year break. This lease completed in February 2025.

• 42 Technology Limited ("42T") signed three 10 year leases, also in February 2025, for 17,200 sq ft at Building 1020 in Cambourne at a rent of £25.5 per sq ft.

• Wayve Technologies Limited ("Wayve") signed a five year lease with a three year break at Rolling Stock Yard in June 2025, following the vacation of Xero (UK), paying a rent of £84.5 per sq ft, 24.5% ahead of the prior rent

The contracted rent roll for the investment portfolio at the period end therefore increased by a net of £1.3 million or 8.2% to £17.2 million (31 December 2024: £15.3 million with a further £0.6 million let on development assets) after taking into account the above lettings, plus breaks exercised and reversion captured in the period.

In addition, during the period one lease extension also completed, extending the Group's weighted average lease length:

• Carl Zeiss at Cambourne agreed a new lease on expiry of their current lease in 2028, adding a further five years to the term with the rent subject to review in 2028.

Since the period end, the following leases have completed increasing total contracted rent to £18.5 million and occupancy to 85.1% at the reporting date:

• Oxford Expression Technologies Limited ("OET"), signed a ten year lease for 5,600 sq ft of fully fitted space in the IQ at OTP on 24 July 2025 at £46.5 per sq ft, which sets a new record for the park. This was previously under an agreement for lease during the period whilst their unit was being fitted out.

• Thought Machine Group Limited ("Thought Machine"), the existing and sole occupier at Herbrand Street signed a new seven-year lease with a headline rent of £75.0 per sq ft, in line with June 2025 ERV; the new lease includes a 16.5 month rent free period

Potential for strong income growth

The total portfolio ERV was £27.9 million at 30 June 2025 (31 December 2024: £27.9 million), comprising £24.2 million for investment assets (31 December 2024: £22.4 million) and £3.7 million for development assets (31 December 2024: £5.5 million). The ERV of the investment assets is £7.0 million above the contracted rent of £17.2 million, of which £3.8 million arises from vacant space at the period end and £3.2 million reflects the reversionary potential of the portfolio. The let area in the investment assets portfolio has a reversionary percentage of 18.6%.

Since the period end, the ERV has increased by £0.3 million to £28.2 million following the agreed redesign of the final two buildings at OTP. See the OTP section below for further details.

The Group's occupiers

The proportion of the Group's assets leased to life science occupiers has continued to grow, with 57.5% of the Group's contracted rent attributed to life science occupiers as at 30 June 2025 (31 December 2024: 54.3%).

The three largest life science occupiers by contracted rent at the period end were:

• Gyroscope Therapeutics, a clinical-stage company owned by Novartis, developing gene therapies to treat diseases of the eye that cause vision loss and blindness who occupy three floors in Rolling Stock Yard;

• Fortescue, a technology and engineering services provider delivering innovative solutions to a range of sectors including green energy, medical engineering and automotive, based at OTP; and

• Carl Zeiss, a leading technology enterprise, operating in the optics and optoelectronics industries; the UK headquarters for its life science businesses of microscopy, medical technology and consumer optics is in Building 1030 at Cambourne.

Under the Group's investment policy, no occupier should account for more than 30.0% of the higher of gross contracted rents or the valuer's ERV of the portfolio, including developments under forward-funding agreements. The Group remains within this limit, with the largest occupier accounting for 23.4% of gross contracted rents and 21.2% of the ERV at the year end.

1 HS - Herbrand Street; RSY - Rolling Stock Yard; CP - Cambourne Park Science and Technology Campus; OTP - Oxford Technology Park.

2 LS - Life Science occupier; Other - hotel and offices.

3 Investment portfolio only. As at 30 June 2025 there was no contracted rent agreed within development assets.

The portfolio

Well-located assets offering laboratory and office space

The portfolio is in strong locations within the Golden Triangle and primarily comprises office and laboratory space. See below for the split of assets by location and type as at 30 June 2025.

Asset location by valuation

· London 40.4%

· Oxford 38.3%

· Cambridge 21.3%

Life science exposure by contracted rent

· Life science 57.5%

· Non-life science 42.5%

Life science occupier area by floor type1

· Office 52.4%

· Labs 47.6%

1 49.6% of portfolio area (including vacant space) currently let to life science occupiers.

During the period there were no changes to the Group's portfolio, which comprised the following assets at 30 June 2025:

1 Full build-out area.

OTP development assets comprise buildings under construction and the remaining development land. The 873,600 sq ft shown in the table above is the expected area of these assets once practically complete. At the period end, this related to the remaining development land at OTP plus Buildings 8 and 9, which are expected to reach practical completion in Q4 2025. Unit 6B in Building 6 and Building 7 reached practical completion during the period.

Occupancy at the period end decreased by 0.4 percentage points to 84.0% (31 December 2024: 84.4%). This decrease was driven primarily by the move of vacant development space at OTP into investment assets during the period, partly offset by the lettings noted above in the leasing section. On a like-for-like basis, occupancy increased by 3.8 percentage points to 88.2%.

The WAULT to expiry increased by 0.3 years to 5.6 years (31 December 2024: 5.3 years), reflecting the net effect of new leases in the year and the natural reduction in remaining lease lengths over time.

Valuation performance

The portfolio was independently valued by CBRE as at 30 June 2025, in accordance with the internationally accepted RICS Valuation - Professional Standards (the "Red Book").

The table below analyses the movement in valuation during the period:

The portfolio valuation at the period end decreased on an absolute basis by £24.6 million to £360.6 million. The value of the investment portfolio increased, driven primarily by the transfers of development assets at OTP (Buildings 6 & 7), which reached practical completion during the year, offset by outward yield shift at all assets with the market remaining subdued. This transfer resulted in a corresponding reduction in the absolute value of the development assets in addition to further outward yield shift. Capital expenditure of £5.9 million primarily related to the development at OTP. As a result of this expenditure, £1.0 million of finance costs have been capitalised. Combined, these factors resulted in a fair value loss of £31.6 million during the first half of 2025.

The table below analyses the key drivers of the valuation movement during the first half of 2025 compared to 2024 in further detail:

£22.3 million of the £31.6 million fair value loss in the period is attributable to the like-for-like portfolio, resulting in 6.7% like-for-like reduction in value for the period driven by yield expansion of 50 basis points. On the remaining assets, the £9.3 million fair value loss reflected an outward NEY shift of 52 basis points following Building 6 and 7's completion, offset by development spend in the period. While the pace of valuation decline had slowed over the prior year, wider macro uncertainty was elevated in the period, and investment volumes were very low, negatively impacting investor sentiment. Relatively high vacancy levels, reflecting the volume of space recently completed is also a factor driving downwards yield shift, in line with wider market trends. 

Based upon 30 June 2025 valuations, there is up to an 80 basis points yield variance in the vacant development space versus completed and let space. This represents significant valuation upside to come once the vacant space is let, assuming constant yields.

Asset management update

Cambourne Park Science and Technology Campus ("Cambourne")

The Group acquired Cambourne in 2021, with the intention of repositioning it as a dedicated life science and technology hub. A key step in this evolution is the repurposing of vacant ground floor office space in Building 2020 into four fully fitted laboratories of around 2,200 sq ft each. The project reached practical completion at the end of 2024 and the space is targeting rents of £50.0 per sq ft, which compares to c. £25.0 per sq ft for typical office space on the park. Given the subdued occupational market, the space has been slower to let than expected.

During the period, 17,200 sq ft of vacant office space at Building 1020 was let to 42T, a product development and innovation consultancy which delivers specialist technical solutions in healthcare & life sciences, industrial and consumer sectors. A five year lease extension to Carl Zeiss, the largest occupier on the park with 43,300 sq ft in Building 1030 was also agreed. Carl Zeiss has recommitted until 2033 at the same rent, with a rent review in 2028, and will be carrying out a number of sustainability improvements to the building, including replacing gas boilers and installing photovoltaic panels.

Occupancy as a result increased by 7.3 percentage points to 83.8% at the period end (31 December 2024: 76.5%).

Oxford Technology Park

OTP is 20-acre science and technology park strategically located in the Golden Triangle, close to Oxford University and adjacent to Begbroke Science Park and Oxford Airport. On acquisition in 2022, three of the planned buildings were complete. Since then, 126,700 sq ft has been delivered; the Innovation Quarter ("IQ") completed in 2023, Building 5 and unit 6A in Building 6 completed in 2024 and during the first half of 2025, unit 6B and Building 7 completed covering 61,100 sq ft. Buildings 8 and 9 are expected to complete in Q4 2025 following connection to the local power grid.

The current rent roll of OTP is £4.1 million and the ERV of unlet space in the completed buildings and those due to complete imminently (Buildings 8 and 9) is £4.7 million. Letting this space would therefore increase the rent roll at OTP to £8.8 million. The existing leases at OTP also have inbuilt reversion of £0.1 million.

Based on designs in place at period end, Buildings 10 and 11 would have added an additional £1.8 million to ERV. On 18 July 2025 the Group entered into a deed of variation contract with the developer at OTP to redesign Buildings 10 and 11 for an additional £5.0 million capital expenditure. The redesign will create seven smaller units rather than two large, big box units per the original design. These smaller units will also command a higher ERV of £25.0 per sq ft, increasing the overall ERV by £0.3 million to £2.1 million.

At 30 June 2025, OET were fitting out their unit IQ9 under an agreement for lease. On 24 July 2025 the lease completed and OET took occupation. See leasing section above for further details.

Occupancy at OTP investment assets was 59.1% at the period end (31 December 2024: 70.8%), the reduction driven by vacant development buildings completing in the period and transferring to investment assets. As noted above, the OET lease has now completed, increasing occupancy to 62.7% as at the reporting date.

Following strong demand for more amenities on site from existing and potential occupiers, the Nexus cafe plus additional meeting space is due to complete early Q4 2025.

Rolling Stock Yard

RSY, located in London's Knowledge Quarter, offers office and fully fitted laboratory space. In February 2025, 5,100 sq ft of vacant space on the first floor was let to CFDX at £110.0 per sq ft (in line with ERV) adding £0.6 million to contracted rent. The lease is for eight years with an occupier's break at year four. For more on this new life science occupier see leasing performance above.

Xero, exercised their break in the period and vacated the 7th and 8th floors in April 2025; both floors, covering 10,500 sq ft, were let to Wayve Technologies, a pioneer in embodied AI in the automotive sector in less than three months, for a rent of £84.50 per sq ft. As a result, occupancy was 100.0% at the period end (31 December 2024: 90.0%).

7-11 Herbrand Street

Herbrand Street is an iconic Grade II listed building, in London's Knowledge Quarter, fully let to Thought Machine, a leading FinTech business providing cloud-based banking and payments services. Post period end, in September 2025, a new seven-year lease was agreed with Thought Machine at a headline rent of £75.0 per sq ft, in line with June 2025 ERV and equating to a total rent of £5.1 million. The new lease includes a 16.5 month rent free period. 

The Merrifield Centre

The Merrifield Centre is a fully let building just outside of Cambridge. Astellas Engineered Small Molecules UK Limited, the occupier, has shown its commitment to the asset by investing significant amounts in the building and we have a well-established routine of occupier engagement. The lease expires in December 2031, with a break in December 2026.

Financial review

Financial performance

The Group's financial results are summarised below.

Total gross property income in the period increased 9.9% to £8.9 million (2024: £8.1 million), reflecting the new leases that commenced in the period and a full six months of income from leases agreed in 2024, partially offset by rent lost on expiries and breaks exercised. The quality of the Group's occupier base is reflected in rent collection of 100.0% in the period.

Property operating expenses are primarily void costs on vacant units and totalled £0.8 million (six months ended 30 June 2024: £0.7 million), resulting in net rental income of £8.1 million (six months ended 30 June 2024: £7.4 million). On a like-for-like basis, net rental income increased by 8.8%, following the letting up of vacant space and the IQ at OTP moving into the like-for-like portfolio in 2025.

Administration costs of £2.1 million (six months ended 30 June 2024: £2.3 million) include the Investment Adviser's fee of £1.1 million (six months ended 30 June 2024: £1.5 million) reflecting the revisions to the fee, which is now linked to the lower of net asset value and the average market capitalisation for the quarter, which was effective from 1 April 2025. Other costs of £1.0 million (six months ended 30 June 2024: £0.8 million), include audit and valuation fees, Directors' fees, other corporate expenses and Strategic Review costs of £0.2 million.

The above results in a total cost ratio for the period (including direct vacancy costs) of 32.2% (six months ended 30 June 2024: 36.6%). Higher rental income was the key contributor to the reduction versus 2024.

Adjusted net finance costs for the period were higher at £2.6 million (six months ended 30 June 2024: £1.7 million) as higher drawn debt levels were used to fund ongoing development work. This comprised loan interest, expenses and arrangement fees of £4.9 million, partially offset by capitalised finance costs of £1.0 million and adjusted finance income of £1.3 million.

As a REIT, the Group is not subject to corporation tax on its property rental business. The estimated tax charge on its residual business was £nil (six months ended 30 June 2024: £nil). Adjusted earnings for the period totalled £3.4 million (six months ended 30 June 2024: £3.4 million).

Fair value losses on derivatives and deferred premiums were £1.5 million (six months ended 30 June 2024: £1.0 million loss), relating to the Group's interest rate caps.

The unrealised loss on revaluation of investment properties was £31.6 million (six months ended 30 June 2024: £15.4 million loss). See the valuation section above for more information.

The IFRS loss after tax for the period was £29.7 million (six months ended 30 June 2024: £13.0 million loss). This resulted in IFRS loss per share of 8.5 pence (six months ended 30 June 2024: 3.7 pence loss) and adjusted earnings per share ("EPS") of 1.0 pence (six months ended 30 June 2024: 1.0 pence).

Dividends

Following the Board's announcement of a Strategic Review on 14 March 2025, future dividends were suspended until the Strategic Review has been concluded, thus no dividends were paid during the period. At 30 June 2025, the Group had distributable reserves of £330.2 million (31 December 2024: £326.9 million), with the majority being in the Company.

Net asset value

IFRS NAV was 66.6 pence per share at the year end (31 December 2024: 75.1 pence per share). The EPRA NTA at the period end was 66.3 pence per share (31 December 2024: 74.4 pence per share). The reduction in the EPRA NTA per share was primarily the result of the revaluation loss, partially offset by positive adjusted earnings. For further details on the valuation decline in the year see the valuation section above.

Debt financing

The Group has a £100.0 million term loan and a £50.0 million RCF, both of which run to June 2026, with two one-year extension options. The Group also has a £35.0 million accordion facility option available on the RCF. The facilities are secured on all of the Group's assets, with £40.0 million of the term loan defined as a Green loan in accordance with the LMA Green Loan Principles.

The debt facility carries a cost of SONIA plus a 2.50% margin. The SONIA reference rate has been capped at 3.00% per annum until 30 September 2025 and 2.00% per annum for the quarter ending 31 December 2025. As at the reporting date, no further hedging had been put in place given the Strategic Review (see Chair's statement for further information). As a result, this led to a breach in the projected interest cover ratio at the 30 June 2025 test which both lenders have provided a waiver for, and which was announced in a trading update to the market on 28 July 2025. The lenders continue to be supportive of the Group.

At 30 June 2025, £126.7 million of debt was drawn (31 December 2024: £122.7 million), with the £100.0 million term loan fully drawn and £26.7 million drawn against the £50.0 million RCF. The Group also had cash and cash equivalents of £4.7 million (31 December 2024: £5.6 million), giving a net borrowings position of £122.0 million (31 December 2024: £117.1 million). LTV was therefore 33.8% at the period end (31 December 2024: 30.4%).

At the period end, there was £23.3 million undrawn on the RCF, of which £17.0 million is available to be drawn as at the date of this report, with the balance subject to future asset valuations. Including cash of £4.7 million this provides liquidity of £21.7 million. Committed costs to complete at the date of this report were £27.8 million with a further £2.2 million of uncommitted costs. This is higher than the current facility available to draw, however these total costs will not need to be drawn in full on day one, with the majority of the spend in 2026 when the Group expects to have disposed of at least one asset, as part of the Managed Wind-Down, providing more liquidity. The facility will continue to be drawn as required to meet funding requirements whilst minimising interest costs.

Principal risks and uncertainties

The Group's principal risks are presented on pages 50 to 58 of the 2024 Annual Report and are summarised below.

The Board has regularly reviewed existing and emerging risks during the period, including detailed consideration of the principal risks, which are those most material to the Group. The Board have concluded that whilst the existing principal risks remain the same, there have been changes to the impact and likelihood of some principal risks which have been detailed below:

Business risks

· Significant legal challenge - decreased following completions of Buildings 6B and 7 at OTP and the agreement of the deed of variation post period end with the developer for Buildings 10 and 11.

Financial risks

· Breach of loan covenants or borrowing policy - increased following the breach of the projected ICR covenant at 30 June 2025 and future breaches forecast. A waiver was obtained for the breach at 30 June 2025 and the lenders continue to be supportive of the Group during the Managed Wind-Down process mitigating this increased risk.

Going concern

The Board announced a strategic review on 14 March 2025 to consider the future of the Group and to explore all strategic options available to maximise value for shareholders, which may include a potential sale or a managed wind down. The Board acknowledges the challenges and significant headwinds that the Group has faced since IPO, in common with the wider REIT sector, including higher inflation and elevated interest rates which have driven a fundamental slowdown in leasing activity and negatively impacted investor sentiment. These factors, coupled with the Group's size and low levels of liquidity have led to an under performance 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 Board monitors the Group's ability to continue as a going concern. Specifically, at quarterly Board meetings, the Board reviews summaries of the Group's liquidity position and compliance with loan covenants, as well as forecast financial performance and cash flows. Throughout the period, the Board met frequently, in conjunction with the Investment Adviser, to review cash resources and the progress of the development and repurposing of the investment property portfolio.

The Group ended the period with £4.7 million of unrestricted cash and £23.3 million of headroom available under its debt facilities, of which £17.0 million is available to draw as at the date of this report with the balance subject to future asset valuations and capital commitments. These valuations are due to increase as the development of OTP continues and completes. There is limited risk that a fall in bank valuations would result in a liquidity issue in the base and sensitised cases, however further asset disposals would mitigate this risk.

As at the reporting date, no further hedging had been put in place given the strategic review was still ongoing at that time (see Chair's statement for further information). As a result, this has led to a breach in the projected interest cover ratio ("ICR") at the 30 June 2025 test which both lenders have provided a waiver for.

Due to the substantial rent free agreed in the Herbrand lease regear, the projected ICR will continue to breach in the interim until the disposal of an asset occurs and a proportion of the debt is repaid reducing future interest costs. The Group is managing this risk to cashflow with the lenders, however this risk presents a material uncertainty to Going Concern. This risk will be mitigated during the managed wind down process as assets are disposed of and the proceeds are used to pay down the debt facility.

The Group is operating within all other covenants and a sensitivity analysis has been performed to identify the decrease in valuations that would result in a breach of the LTV. For the HSBC and Bank of Ireland facility, current bank valuations would need to fall by 27.7% as at the period end covenant test date, before this covenant would be breached. As at 22September 2025, 99.4% of rents invoiced in June 2025 in relation to the quarter to 29 September 2025 were received.

The Board has looked at its forecast cash flow for at least the next 12 months and under the base case scenario, as expected, it can meet its covenants and liquidity requirements within the current facility headroom. The Directors have reviewed a number of scenarios which included plausible downside sensitivities in relation to rental cash collection, discretionary capital expenditure, delayed disposals with reduced proceeds, and minimum dividend distributions under the REIT rules. The sensitivity analysis also includes, for example, considering the timing of cash flows on committed capital expenditure at OTP and assumptions over the commencement and speed of completion of the work, which impacts the timing of cash outflows being payable, which is currently not certain.

In combination with this, the Directors note the debt facilities are due for maturity in June 2026, and will consider the prospects of any refinancing necessary, and any resultant liquidity constraints, as part of the proposed Managed Wind-Down where individual and collective asset sales are under consideration. The facility may be refinanced in full, in part at a reduced amount, or repaid in full. The capital expenditure relating to the development of OTP is the largest contributor to using up headroom in the facility across the going concern period. Whilst the timing of these costs is not certain, as noted above, the Group has currently forecast that headroom will remain available up to the refinancing date, based on the Directors' best estimate of the build schedule as of the date of approving the Financial Statements and proposed disposal schedule (in the absence of a full portfolio sale). Should it not, there are further mitigating actions management can take to generate additional liquidity which, whilst not entirely within the Board's control as there is a reliance on the market and the ability to dispose of assets as part of the proposed Managed Wind-Down.

On 19 September 2025, the Board announced the conclusion of the strategic review. During the process, the Company received a significant amount of interest from a range of sources, with certain parties being granted access to additional due diligence materials and meetings with the Investment Adviser. However, the Board have concluded that the offers received for a full portfolio sale do not provide the optimal return to shareholders and therefore have concluded to proceed with a proposed Managed Wind-Down of the portfolio which is most likely to achieve best value for shareholders. The conclusion of the strategic review is considered a non-adjusting post balance sheet event which is detailed further in note 23 of the financial statements below and therefore has no impact on the going concern basis as at 30 June 2025.

Under the base case, the Directors have a reasonable expectation that the Group and the Company would have adequate resources to continue in business for a period of at least 12 months from the date of approval of the Financial Statements, given facility headroom and liquidity remains available. However, the Directors believe their remains material uncertainty that may cast significant doubt over the Group's ability to continue to be in operation for at least the next 12 months, even at the base case.

Alternative Investment Fund Manager ("AIFM")

G10 Capital Limited ("G10") is the Company's AIFM, for the purposes of the UK AIFM Regime, with Ironstone providing advisory services to both G10 and the Company.

Investment Adviser

Ironstone Asset Management Limited is the Investment Adviser to the Company and the AIFM.

Ironstone Asset Management Limited Investment Adviser

22 September 2025

DIRECTORS' RESPONSIBILITIES STATEMENT

The Directors confirm to the best of our knowledge:

· the condensed set of financial statements has been prepared in accordance with IAS 34 Interim Financial Reporting and gives a true and fair view of the assets, liabilities, financial position, and profit of the Group, as required by DTR 4.2.4R;

· the Interim Report includes a fair review of the information required by DTR 4.2.7R (indication of the important events during the first six months and description of principal risks and uncertainties for the remaining six months of the financial year); and

· the Interim Report includes a fair review of the information required by DTR 4.2.8R (disclosure of related party transactions and changes therein).

The Directors of Life Science REIT plc are listed on the Company website www.lifesciencereit.co.uk

By order of the Board

Claire Boyle

Chair

22 September 2025

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (UNAUDITED)

FOR THE SIX MONTHS ENDED 30 JUNE 2025

All items in the above statement derive from continuing operations. No operations were discontinued during the period.

There is no other comprehensive income and as such a separate statement is not present. The loss after tax is therefore also the total comprehensive loss.

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED)

AS AT 30 JUNE 2025

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)

FOR THE SIX MONTHS ENDED 30 JUNE 2025

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)

FOR THE SIX MONTHS ENDED 30 JUNE 2025

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

FOR THE SIX MONTHS ENDED 30 JUNE 2025

1. General information

Life Science REIT plc (the "Company") is a closed-ended Real Estate Investment Trust ("REIT") incorporated in England and Wales on 27 July 2021. The Company began trading on 19 November 2021 and its shares are admitted to trading on the Premium Listing Segment of the Main Market of the London Stock Exchange. The registered office of the Company is located at Central Square, 29 Wellington Street, Leeds, England, LS1 4DL

The Group's interim condensed consolidated unaudited financial statements for the six months ended 30 June 2025 comprise the results of the Company and its subsidiaries (together constituting the "Group") and were approved by the Board and authorised for issue on 22 September 2025.

2. Basis of preparation

These interim condensed consolidated unaudited financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting and United Kingdom adopted international accounting standards and International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB").

These interim condensed consolidated unaudited financial statements should be read in conjunction with the Company's last financial statements for the year ended 31 December 2024. These interim condensed consolidated unaudited financial statements do not include all of the information required for a complete set of annual financial statements prepared in accordance with IFRS; however, they have been prepared using the accounting policies adopted in the audited financial statements for the year ended 31 December 2024 and selected explanatory notes have been included to explain events and transactions that are significant in understanding changes in the Company's financial position and performance since the last financial statements.

The financial statements have been prepared under the historical cost convention, except for the revaluation of investment properties and financial instruments that are measured at revalued amounts or fair values at the end of each reporting period, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

IAS 34 requires that comparative figures are presented for the comparable interim period in the preceding year, therefore the six-month period ended 30 June 2024 has been presented.

The financial information contained within these interim results does not constitute full statutory accounts as defined in section 434 of the Companies Act 2006.

The financial statements for the six months ended 30 June 2025 and for the six-months ended 30 June 2024 have been neither audited nor reviewed by the Company's Auditor. The information for the year ended 31 December 2024 has been extracted from the latest published Annual Report and Financial Statements, which has been filed with the Registrar of Companies. The Auditor reported on those accounts; its report was unqualified and did not contain a statement under sections 498(2) or (3) of the Companies Act 2006.

2.1 Going concern

The Board announced a strategic review on 14 March 2025 to consider the future of the Group and to explore all strategic options available to maximise value for shareholders, which may include a potential sale or a managed wind down. The Board acknowledges the challenges and significant headwinds that the Group has faced since IPO, in common with the wider REIT sector, including higher inflation and elevated interest rates which have driven a fundamental slowdown in leasing activity and negatively impacted investor sentiment. These factors, coupled with the Group's size and low levels of liquidity have led to an under performance 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 Board monitors the Group's ability to continue as a going concern. Specifically, at quarterly Board meetings, the Board reviews summaries of the Group's liquidity position and compliance with loan covenants, as well as forecast financial performance and cash flows. Throughout the period, the Board met frequently, in conjunction with the Investment Adviser, to review cash resources and the progress of the development and repurposing of the investment property portfolio.

The Group ended the period with £4.7 million of unrestricted cash and £23.3 million of headroom available under its debt facilities, of which £17.0 million is available to draw as at the reporting date with the balance subject to future asset valuations and capital commitments. These valuations are due to increase as the development of OTP continues and completes. There is limited risk that a fall in bank valuations would result in a liquidity issue in the base and sensitised cases, however further asset disposals would mitigate this risk.

As at the reporting date, no further hedging had been put in place given the strategic review was still ongoing at that time (see Chair's statement for further information). As a result, this has led to a breach in the projected interest cover ratio ("ICR") at the 30 June 2025 test which both lenders have provided a waiver for.

Due to the substantial rent free agreed in the Herbrand lease regear, the projected ICR will continue to breach in the interim until a disposal of an asset occurs and a proportion of the debt is repaid reducing future interest costs. The Group is managing this risk to cashflow with the lenders, however this risk presents a material uncertainty to Going Concern. This risk will be mitigated during the managed wind down process as assets are disposed of and the proceeds are used to pay down the debt facility.

The Group is operating within all other covenants and a sensitivity analysis has been performed to identify the decrease in valuations that would result in a breach of the LTV. For the HSBC and Bank of Ireland facility, current bank valuations would need to fall by 27.7% as at the period end covenant test date, before this covenant would be breached. As at 22 September 2025, 99.4% of rents invoiced in June 2025 in relation to the quarter to 29 September 2025 were received.

The Board has looked at its forecast cash flow for at least the next 12 months and under the base case scenario, as expected, it can meet its covenants and liquidity requirements within the current facility headroom. The Directors have reviewed a number of scenarios which included plausible downside sensitivities in relation to rental cash collection, discretionary capital expenditure, delayed disposals with reduced proceeds, and minimum dividend distributions under the REIT rules. The sensitivity analysis also includes, for example, considering the timing of cash flows on committed capital expenditure at OTP and assumptions over the commencement and speed of completion of the work, which impacts the timing of cash outflows being payable, which is currently not certain.

In combination with this, the Directors note the debt facilities are due for maturity in June 2026, and will consider the prospects of any refinancing necessary, and any resultant liquidity constraints, as part of the proposed Managed Wind-Down where individual and collective asset sales are under consideration. The facility may be refinanced in full, in part at a reduced amount, or repaid in full. The capital expenditure relating to the development of OTP is the largest contributor to using up headroom in the facility across the going concern period. Whilst the timing of these costs is not certain as noted above, the Group has currently forecast that headroom will remain available up to the refinancing date, based on the Directors' best estimate of the build schedule as of the date of approving the Financial Statements and proposed disposal schedule (in the absence of a full portfolio sale). Should it not, there are further mitigating actions management can take to generate additional liquidity which, whilst not entirely within the Board's control as there is a reliance on the market, and the ability to dispose of assets as part of the proposed Managed Wind-Down.

On 19 September 2025, the Board announced the conclusion of the strategic review. During the process, the Company received a significant amount of interest from a range of sources, with certain parties being granted access to additional due diligence materials and meetings with the Investment Adviser. However, the Board have concluded that the offers received for a full portfolio sale do not provide the optimal return to shareholders and therefore have concluded to proceed with a proposed Managed Wind-Down of the portfolio which is most likely to achieve best value for shareholders. The conclusion of the strategic review is considered a non-adjusting post balance sheet event which is detailed further in note 23 of the financial statements below and therefore has no impact on the going concern basis as at 30 June 2025.

Under the base case, the Directors have a reasonable expectation that the Group and the Company would have adequate resources to continue in business for a period of at least 12 months from the date of approval of the Financial Statements, given facility headroom and liquidity remains available. However, the Directors believe their remains material uncertainty that may cast significant doubt over the Group's ability to continue to be in operation for at least the next 12 months, even at the base case.

2.2 New standards and interpretations effective in the current period

The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended 31 December 2024, except for the adoption of new standards effective as of 1 January 2025. The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.

2.3 New and revised accounting standards not yet effective

There are a number of new standards and amendments to existing standards which have been published and are mandatory for the Group's accounting periods beginning on or after 1 January 2025 or later. The Group is not adopting these standards early. The following are the most relevant to the Group:

• Amendments to IAS 21 Lack of Exchangeability to assist entities in determining whether a currency is exchangeable into another currency, and the spot exchange rate to use when it is not.

• IFRS 18 Presentation and Disclosures in Financial Statements. This is the new standard on presentation and disclosure in financial statements, which replaces IAS 1, with a focus on updates to the statement of profit or loss.

• IFRS 19 Subsidiaries without Public Accountability: Disclosures. This reduces disclosure requirements that an eligible subsidiary entity is permitted to apply instead of the disclosure requirements in other IFRS Accounting Standards.

• Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures. The amendments provide clarity on the date of recognition and derecognition of certain financial instruments and amends/updates the disclosure required for some financial instruments.

The Directors have yet to assess the full outcome of these new standards, amendments and interpretations; however, with the exception of IFRS 18, these other new standards, amendments and interpretations are not expected to have a significant impact on the Group's financial statements.

2.4 Significant accounting judgements and estimates

The preparation of these Financial Statements in accordance with IFRS requires the Directors of the Company to make judgements, estimates and assumptions that affect the reported amounts recognised in the Financial Statements. However, uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of the asset or liability in the future.

Judgements

In the course of preparing the Financial Statements, the Investment Adviser has made the following judgements in the process of applying the Group's accounting policies which have had a significant effect on the amounts recognised in the Financial Statements.

Business combinations

The Group acquires subsidiaries that own investment properties. At the time of acquisition, the Group considers whether each acquisition represents the acquisition of a business or the acquisition of an asset. Management considers the substance of the assets and activities of the acquired entity in determining whether the acquisition represents the acquisition of a business.

The Group accounts for an acquisition as a business combination where an integrated set of activities is acquired in addition to the property. Where such acquisitions are not judged to be the acquisition of a business, they are not treated as business combinations. Rather, the cost to acquire the corporate entity is allocated between the identifiable assets and liabilities of the entity based upon their relative fair values at the acquisition date. Accordingly, no goodwill or additional deferred tax arises.

No corporate acquisitions were made during the period and therefore no business combinations were considered in this financial period.

Estimates

In the process of applying the Group's accounting policies, the Investment Adviser has made the following estimates which have the most significant risk of material change to the carrying value of assets recognised in the consolidated Financial Statements:

Valuation of property

The valuations of the Group's investment property are at fair value as determined by the external valuer on the basis of market value in accordance with the internationally accepted RICS Valuation - Professional Standards January 2022 (incorporating the International Valuation Standards) and in accordance with IFRS 13. The key estimates made by the valuer are the ERV and equivalent yields of each investment property.

On-site developments are valued by applying the 'residual method' of valuation, which is the investment method described above with a deduction for all costs necessary to complete the development, with a further allowance for remaining risk and developers' profit. Properties and land held for future development are valued using the highest and best use method, by adopting the residual method allowing for all associated risks, the investment method, or a value per acre methodology.

See notes 11 and 19 for further details.

2.5 Summary of significant accounting policies

The principal accounting policies applied in the preparation of these Financial Statements are stated in the notes to the Financial Statements.

a) Basis of consolidation

The Company does not meet the definition of an investment entity and therefore does not qualify for the consolidation exemption under IFRS 10. The interim condensed consolidated unaudited Financial Statements comprise the Financial Statements of the Group and its subsidiaries as at 30 June 2025. Subsidiaries are consolidated from the date of acquisition, being the date on which the Group obtained control, and will continue to be consolidated until the date that such control ceases. An investor controls an investee when the investor is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. In preparing these Financial Statements, intra-group balances, transactions and unrealised gains or losses have been eliminated in full. All non-dormant subsidiaries have the same year end as the Company. Uniform accounting policies are adopted in the Financial Statements for like transactions and events in similar circumstances.

b) Functional and presentation currency

The overall objective of the Group is to generate returns in Pound Sterling and the Group's performance is evaluated in Pound Sterling. Therefore, the Directors consider Pound Sterling as the currency that most faithfully represents the economic effects of the underlying transactions, events and conditions and have therefore adopted it as the functional and presentation currency.

All values are rounded to the nearest thousand pounds (£'000), except when otherwise stated.

c) Segmental reporting

The Directors are of the opinion that the Group is engaged in a single segment of business, being the investment and management of premises relating to the life science sector.

d) Derivative financial instruments

Derivative financial instruments, comprising interest rate derivatives for mitigating interest rate risks, are initially recognised at fair value and are subsequently measured at fair value, being the estimated amount that the Group would receive or pay to terminate the agreement at the period end date, taking into account current interest rate expectations and the current credit rating of the Group and its counterparties. Premiums payable under such arrangements are initially capitalised into the statement of financial position.

The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data is available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs significant to the fair value measurement as a whole. Changes in fair value of interest rate derivatives are recognised within finance expenses in profit or loss in the period in which they occur.

e) Exceptional costs

Items are classified as exceptional by virtue of their size, nature or incidence, where their inclusion would otherwise distort the underlying recurring earnings of the Group. Examples include, but are not limited to, business transformation costs, early redemption costs of financial instruments and tax charges specific to disposals. Exceptional costs are excluded from the Group's adjusted earnings.

3. Revenue

4. Property operating and administration expenses

5. Finance income

6. Finance expense

7. Taxation

Corporation tax has arisen as follows:

Reconciliation of tax charge to loss before tax:

8. Operating leases

Operating lease commitments - as lessor

The Group has entered into commercial property leases on its investment property portfolio. These non-cancellable leases have a remaining term of up to 20 years (31 December 2024: 20 years).

Future minimum rentals receivable under non-cancellable operating leases as at 30 June 2025 are as follows:

9. Dividends

10. Earnings per share

Basic EPS is calculated by dividing profit for the period attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares during the period. As there are no dilutive instruments in issue, basic and diluted EPS are identical.

1. Adjusted earnings are aligned with EPRA earnings in all periods.

11. UK investment property

1. During the current period and 2024 there were no acquisitions of new assets. The movement reflects the finalisation of acquisition balances from prior periods.

12. Trade and other receivables

13. Cash and cash equivalents

Cash equivalents includes £1.0 million (31 December 2024: £2.0 million) of cash held by various banks on short-term deposits.

14. Interest rate derivatives

To mitigate the interest rate risk that arises as a result of entering into variable rate linked loans, the Group entered into interest rate derivatives.

A number of forward starting interest rate caps were entered into as at 26 June 2023 for a total deferred premium of £3.6 million to align with the expected debt draw down of the debt facility. This caps SONIA at a strike rate of 2.00% with a termination date of March 2025 (aligned with the cap entered into in 2022). During 2024, two further interest rate caps were entered into:

• In September 2024, for a premium of £0.6 million, a six-month hedge was entered into capping SONIA at a strike rate of 3.00% from 1 April 2025 to 30 September 2025. At the same time, the notional of the forward starting caps terminating in March 2025 was reduced in line with updated debt draw down assumptions resulting in a termination value of £0.3 million as above.

• In December 2024, for a deferred premium of £0.8 million, a three-month hedge was entered into capping SONIA at a strike rate of 2.00% from 1 October 2025 to 31 December 2025.

15. Interest-bearing loans and borrowings

The Company has a debt facility with HSBC and Bank of Ireland ("BOI") split 60% and 40%, respectively (the "debt facility"). The debt facility comprises a £100.0 million term loan and £50.0 million revolving credit facility ("RCF") with an expiry date of 23 June 2026. It has an interest rate in respect of drawn amounts of 250 basis points over SONIA and is secured on all of the assets of the Group, including Oxford Technology Park ("OTP"). The debt facility borrowers are Ironstone Life Science Holdings Limited and Oxford Technology Park Holdings Limited, both direct subsidiaries of the Company. The £100.0 million term loan was fully drawn during 2024. The RCF is being drawn to fund the OTP development and other refurbishment projects, with £26.7 million drawn as at 30 June 2025 (31 December 2024: £22.7 million) and a remaining £23.3 million available to utilise (31 December 2024: £27.3 million). The Group also has a £35.0 million accordion facility available on the RCF, which has not been utilised as at 30 June 2025.

The debt facility includes LTV and interest cover covenants. As at 30 June 2025 the Group was in full compliance with all loan covenants other than the projected interest cover ratio which both lenders have provided a waiver for. Given the ongoing strategic review, no further hedging had been put in place leading to the breach and subsequent waiver. The lenders continue to be supportive of the Group during the strategic review period. The facility also includes a ratchet clause that reduces the margin to 2.35% if the gross LTV decreases to 30%, based on the lenders' annual valuation of the portfolio.

The Group has also defined £40.0 million of the term loan as a Green Loan in accordance with the LMA Green Loan Principles. This is secured on Rolling Stock Yard and completed OTP buildings, which are rated either BREEAM Excellent or EPC A.

16. Other payables and accrued expenses

17. Share capital

Share capital is the nominal amount of the Company's ordinary shares in issue.

The share capital comprises one class of ordinary shares. At general meetings of the Company, ordinary shareholders are entitled to one vote on a show of hands and on a poll, to one vote for every share held. There are no restrictions on the size of a shareholding or the transfer of shares, except for the UK REIT restrictions.

In a prior period, the Company cancelled its share premium account and, as a result, transferred the balance to the capital reduction reserve. The share premium account is no longer presented in the financial statements.

18. Net asset value per share

Basic NAV per share amounts are calculated by dividing net assets attributable to ordinary equity holders of the Company in the consolidated statement of financial position by the number of ordinary shares outstanding at the end of the period. As there are no dilutive instruments in issue, basic and diluted NAV per share are identical.

EPRA net tangible assets ("EPRA NTA") is calculated using property values in line with IFRS, where values are net of real estate transfer tax ("RETT") and other purchasers' costs. EPRA NTA is considered to be the most relevant measure for the Group's operating activities.

19. Fair value

IFRS 13 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used to estimate the fair values.

The fair value of cash and short-term deposits, trade receivables, trade payables and other current liabilities approximate their carrying amounts due to the short-term maturities of these instruments.

Interest-bearing loans and borrowings are disclosed at amortised cost. The carrying values of the loans and borrowings approximate their fair value due to the contractual terms and conditions of the loan. The HSBC and BOI debt facility has an interest rate of 250 basis points over SONIA in respect of drawn amounts.

The fair value of the interest rate contracts is recorded in the statement of financial position and is revalued quarterly by an independent valuations specialist, Chatham Financial.

Six-monthly valuations of investment property are performed by CBRE, accredited external valuers with recognised and relevant professional qualifications and recent experience of the location and category of the investment property being valued, on a variable fee basis. However, the valuations are the ultimate responsibility of the Director who appraise these every six months.

The valuation of the Group's investment property at fair value is determined by the external valuer on the basis of market value in accordance with the internationally accepted RICS Valuation - Professional Standards January 2022 (incorporating the International Valuation Standards).

Completed investment properties are valued by adopting the 'income capitalisation' method of valuation. This approach involves applying capitalisation yields to current and future rental streams, net of income voids arising from vacancies or rent-free periods and associated running costs. These capitalisation yields and future rental values are based on comparable property and leasing transactions in the market using the valuer's professional judgement and market observations. Other factors taken into account in the valuations include the tenure of the property, tenancy details and ground and structural conditions.

On-site developments are valued by applying the 'residual method' of valuation, which is the investment method described above with a deduction for all costs necessary to complete the development, with a further allowance for remaining risk and developers' profit. Properties and land held for future development are valued using the highest and best use method, by adopting the residual method allowing for all associated risks, the investment method, or a value per acre methodology.

The following table shows an analysis of the fair values of investment properties recognised in the statement of financial position by level of the fair value hierarchy1: