CLS Holdings FY losses narrow

(Sharecast News) - Property investor CLS Holdings said on Friday that full-year losses had significantly narrowed in 2025, but warned that it continued to face pressure from weaker valuations, higher vacancy and recent disposals. CLS posted a statutory post‑tax loss of £50.3m for the year to 31 December, a marked improvement on the £93.6m loss recorded in 2024 - largely driven by a reduced £79.2m net decline in investment property values, compared with £127.7m a year earlier.

However, EPRA earnings fell 17% to £30.2m, reflecting increased vacancy across its portfolio and the impact of asset sales, with EPRA earnings per share dropping from 9.2p in FY24 to 7.6p in FY25. Property valuation movements also weighed on CLS' balance sheet, with EPRA net tangible assets per share slipping 6.7% to 200.7p.

Nonetheless, CLS proposed a final dividend of 2.7p, taking its full‑year payout to 4p, down from the 5.28p it returned to investors in the prior year.

CLS ended FY25 with a loan‑to‑value ratio of 50%, and said it intends to dispose of £100m to £150m worth of assets during FY26 as part of efforts to bring down leverage.

Chief executive Fredrik Widlund said: "In 2025, CLS has focused on achieving its strategic priorities, concentrating on what is within our control and continuing to navigate a prolonged downturn in the property cycle amid significant domestic and international economic and political uncertainty.

"We are clear on what we need to do to refocus the business and drive operational efficiency, strengthen our balance sheet and position our assets for long-term growth: we made good progress in 2025 and expect that to continue in 2026."

As of 0845 GMT, CLS shares were down 9.70% at 52,82p.

Reporting by Iain Gilbert at Sharecast.com