13th Nov 2024 12:08
(Alliance News) - CLS Holdings PLC on Wednesday said it is focusing on refinancing efforts for 2025.
In a trading update, the London-based commercial property investor noted that it anticipates further progress by the end of the year.
In its operational review for the nine months that ended September 30, the company reported 81 leasing deals, which have collectively contributed over GBP10.1 million in annual rent at 5.5% above estimated rental value.
This compares to 93 deals in the same period last year, which secured GBP10.2 million in annual rent at 9.1% above ERV.
CLS Holdings added that its disposal program is advancing well, noting that debt costs have already decreased as of September. The company expects further reductions as it uses proceeds from asset sales to pay down higher-cost loans.
Refinancing activity for 2024 is nearly complete, with a loan under GBP10 million remaining, expected to close in December.
As of June 30, the company had 12 loans totalling GBP372 million set to mature in 2025. The company has provisionally arranged GBP161 million in early refinancing, restructuring and repayments tied to asset sales.
CLS Holdings said its balance sheet remains strong with over GBP62 million in cash, GBP50 million in undrawn revolving credit facilities and a GBP10 million overdraft.
Operationally, CLS Holdings reported transaction levels in the first three quarters of 2024 on par with 2023 levels.
The EPRA vacancy rate for the group was 13.3% as of September, up slightly from 13.2% in June. The UK segment had a vacancy rate of 19.0%, down from 19.6% in June.
Chief Executive Officer Fredrik Widlund said: "We continue to deliver on our strategic goals to increase lettings, reduce leverage through targeted disposals, and execute our financing strategy. The letting trend remains positive although we are experiencing longer decision timelines due to macro and political factors slowing progress."
CLS Holdings shares were down 1.5% at 87.30 in London on Wednesday morning.
By Eva Castanedo, Alliance News reporter
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