14th Aug 2019 10:18
(Alliance News) - CLS Holdings PLC on Wednesday reported double-digit profit growth in the first half of 2019, boosted by portfolio valuation gains.
The stock was trading 3.6% higher on Wednesday in London at 230.00p a share.
The FTSE 250 property investment company said pretax profit rose 28% to GBP84.6 million in the six months to the end of June from GBP66.0 million reported a year earlier.
Net asset value per share also improved, rising by 5.0% to 325.3 pence from 309.8p year-on-year.
CLS noted that the growth was driven by portfolio valuation gains of GBP36.9 million, compared to GBP31.2 million a year earlier, and the increase in the value of its shareholding in Catena AB of GBP21.0 million after foreign exchange variations.
CLS owns a 10.6% shareholding in Catena, a Stockholm-listed logistics real estate company.
Net rental income increased by 5.9% to GBP53.8 million from GBP50.8 million year-on-year.
CLS Holdings declared an interim payout of 2.35p a share, up 6.8% from 2.20p paid a year ago.
"We have continued to refine our portfolio by making acquisitions at attractive yields and the disposal of properties which no longer meet our return targets," said Executive Chair Henry Klotz.
Looking ahead, Klotz added: "With a proven strategy of owning and managing high-yielding office properties across our three core markets, and our progressive dividend policy, I am confident we will continue to deliver value for our shareholders."
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