21st Nov 2019 10:16
(Alliance News) - CLS Holdings PLC said Thursday it expects to report annual results in line with expectations, as the group continues to actively manage its portfolio for growth opportunities.
During the second half to date, the FTSE 250 property investor made four acquisitions for a total consideration of GBP109.2 million with a blended net initial yield of 6.1%. Post-period, the acquisition of the One Six Six office property in Harrow, north west London was agreed in November and is expected to be be completed in January.
On the other hand, CLS Holdings completed four disposals within the period, for GBP91.7 million in total, but realising net GBP70 million following the repayment of associated debt.
Post-period, CLS is expected to sell two more properties for GBP25 million, which are due to be completed before the end of 2019.
As a result of the transactions, CLS's vacancy rate increased to 4.6% as at October 31 from 4.2% as at June 30; however the group noted that it remained below its targeted vacancy rate of 5%.
CLS said 51% of its current portfolio is situated in the UK, with 34% in Germany and the remainder in France.
"We anticipate that our full year results will be in line with expectations. Whilst economic and political uncertainty persists, we remain confident in the long-term fundamentals of our markets and our strategy. Furthermore, we have the resources, and a well-positioned portfolio, to continue to capture opportunities in our core markets and deliver sustainable growth," said Chief Executive Fredrik Widlund.
Shares in CLS Holdings - which is headquartered in London - were down 2.9% at 253.00 on Thursday.
By Dayo Laniyan; [email protected]
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