Jefferies said it had chosen to lower its earnings estimates on delayed option to purchase leasing due to political and economic uncertainty from FY24 into FY25, which was a timing issue.

However, Jefferies expects an under-supplied market of high-quality lab space to put upward pressure on rents, with the UK increasingly the "centre of excellence" for European Life Science businesses.

"We capitalise the FY25e covered dividend per share (1.80p) at 5% which gives a 36.0p price target (45.0p) with the divi subsidised out of net asset value and anticipating full cover in FY26," added Jefferies, which reiterated its 'hold' rating on the stock.

Reporting by Iain Gilbert at Sharecast.com