CLS earnings, NTA seen in line with FY24 expectations

(Sharecast News) - Property investment firm CLS Holdings said on Monday that earnings and net tangible assets were both seen in line with market expectations. CLS said FY24 property valuations were down 5.8% in local currency. However, when including the strengthening of Sterling in the year, valuations were down by 8.3%.

The FTSE 250-listed firm stated valuations across all of its markets "appear to be bottoming out", with Germany and France flat in H2, reflecting greater rental indexation and interest rate reductions supporting valuation yields.

In the UK, the shortening lease to the National Crime Agency at Spring Gardens, one of the largest assets in the group, contributed to half of the UK reduction as the site was valued as an office investment and not yet as a development site.

For the full year, CLS said transaction levels showed strong momentum with letting activity above FY23 levels and "continued healthy rental growth" as it signed 112 leasing deals and secured annual rent of £16.6m at 6.8%, up from £15.5m and 6.9%, respectively.

Total vacancy increased to 12.7%, up from 11.0%, as more high-quality refurbishments were completed in the UK and France, and CLS disposed of five properties for £66.1m, collectively in line with book value as part of its targeted £270.0m disposal programme.

Chief executive Fredrik Widlund said: "In 2024, CLS made meaningful progress with its strategic goals of letting recent refurbishments and executing its refinancing and sales programme.

"With good progress on the redevelopment opportunities in the portfolio, property values bottoming in the second half of 2024, and positive leasing activity since the start of the year, we are confident of delivering improved shareholder value over the near term."

As of 0915 GMT, CLS shares were up 1.07% at 72.97p.

Reporting by Iain Gilbert at Sharecast.com