15th Aug 2018 09:35
LONDON (Alliance News) - Property investor CLS Holdings PLC reported a rise in interim net asset value as well as solid growth in net rental income for the period.
Basic net asset value at the end of the period was 260.2 pence, 3.3% higher than the figure at the end of December, while EPRA net asset value was 3.0% higher at 294.7p.
CLS's net rental income rose 8.7% year-on-year to GBP55.0 million, while its vacancy rate fell to 5.7% from 5.8%.
Pretax profit for the period was GBP64.9 million, down year-on-year from GBP119.4 million, due to lower property valuation changes as well as the fact the comparable had a significantly higher property sale gain.
At the end of June, the value of CLS's portfolio was GBP1.89 billion, GBP82.3 million more than six months prior, due to additions and a valuation uplift, which was slightly offset by currency movements.
The company is paying a 2.20p interim dividend, 7.3% higher than the 2.05p paid a year prior.
Looking forward, the company said it is focusing partly on making investments in Germany and the south-east of the UK. The UK as a whole, however, is likely to remain subdued to to Brexit, but Germany and France are benefiting from strong property demand and a limit on new office space.
Executive Chairman Henry Klotz said: "The first six months of 2018 has seen CLS deliver a strong set of results underpinned by robust and disciplined growth. We have delivered on our strategy of refocusing our portfolio with acquisitions at attractive yields and the disposal of properties which no longer meet our return targets."
"The strength of our results for the first six months of 2018 underlines the benefits of our geographical diversification across Europe's three largest economies: the UK, Germany and France. Over the period, the Group has produced underlying earnings and valuation gains across all regions in which we operate, which has resulted in solid growth in NAV," Klotz added.
Shares were 2.2% lower on Wednesday at a price of 230.25p apiece.
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CLS Holdings