No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Property investment firm CLS Holdings reported a significantly wider interim statutory loss and a steep drop in EPRA earnings on Wednesday, reflecting lower rental income, valuation declines and continued portfolio repositioning.
CLS posted a £69.6m statutory loss after tax, widening from £24.4m a year earlier, driven by £84.2m of investmentproperty valuation declines, and said statutory losses per share increased to 17.5p from 6.1p. EPRA earnings also weakened, with EPRA EPS down 32.5% to 2.7p, reflecting reduced rental income following disposals and tenant departures, partly offset by lower costs and finance expenses.
Portfolio values fell 4.6% in local currency, with declines across the UK, Germany and France due to yield expansion and softer enterprise rental vallues. EPRA net tangible assets per share dropped 11.5% to 177.7p, while total accounting return came to 9.5%.
CLS said net rental income fell 13.1% to £46.3m, reflecting lease expiries, German insolvencies and £201m of disposals since early 2025. It also completed £56.8m of sales in H1 and has continued to progress disposals and lettings, securing £5.7m of contracted rent across 57 new leases and renewals. Vacancy remained stable at 14.5%.
The FTSE 250-listed firm, which said its will not pay an interim dividend, said net debt reduced by £44.2m through disposals, though loan-to-value edged up to 51.6% due to valuation declines. CLS said 89% of 2026 refinancing activity has been completed or agreed, with average debt costs at 3.9%.
Looking ahead, CLS expects FY26 EPS of 4.6p to 5.5p, with nearterm earnings still pressured by asset sales and the departure of its largest tenant, but said progress on disposals, refinancing and leasing had positioned the group to benefit as market conditions improve.
As of 1005 BST, CLS shares were down 6.22% at 46p.
Reporting by Iain Gilbert at Sharecast.com
See latest RNS at Investegate
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.