LONDON: CLS Holdings PLC (LSE: CLI), a leading office space specialist with a £1.75 billion portfolio across the UK, Germany, and France, announced its half-year financial results for the six months ended June 30, 2025, highlighting strategic progress in lettings, asset sales, and refinancing.
The Group reported a net rental income of £53.3 million, down 9.5% from £58.9 million in the same period last year, primarily due to property disposals and lease expiries. EPRA earnings per share fell 16.7% to 4.0 pence, while statutory EPS from continuing operations stood at (6.1) pence, reflecting valuation declines.
Despite the financial headwinds, CLS completed or exchanged property sales worth £143 million and refinanced or repaid £310.9 million in debt, reducing its loan-to-value ratio to 49.2%. CEO Fredrik Widlund emphasized the company’s focus on creating a higher-quality, faster-growing portfolio, noting a 17% increase in lettings compared to H1 2024.
“Positive leasing momentum has accelerated post-period end, and we expect this trend to continue,” Widlund said. “We enter the second half with cautious optimism, supported by improving market fundamentals and a robust leasing environment.”
Operational highlights included 52 lease events securing £7.5 million in annual rent, with new leases signed above estimated rental value (ERV). Vacancy rates rose to 15.1%, impacted by strategic repositioning at New Printing House Square, though significant lease renewals are underway.
CLS also reaffirmed its commitment to sustainability, with £6 million earmarked for energy efficiency and carbon reduction projects in 2025, aligned with its 2030 Net Zero Carbon Pathway.
The interim dividend was halved to 1.30 pence per share, in line with the revised dividend policy aimed at reinvesting in the portfolio. The dividend will be paid on Oct. 2, 2025.
With signs of recovery in investment markets and increased occupational activity in its core geographies, CLS remains focused on reducing vacancy and unlocking earnings growth through strategic asset management.