12th May 2015 07:24
LONDON (Alliance News) - CLS Holdings PLC Tuesday said it had got off to a strong start in 2015, with occupational demand remaining firm, core investment operations delivering in line with or above expectations, and its cost of borrowings down after it arranged new bank financing.
The property company said its overall vacancy rate stood at 4.8% of rental income on May 12, up from 3.0% at the end of 2014, after 4.421 square metres of former development stock was made available for letting. It completed 5,231 square metres of new leases, lease renewals and extensions, while 8,420 square metres was vacated or expired, of which 4,966 square metres is to be redeveloped.
Its weighted average cost of debt has fallen to 3.62%, from 3.64% at the end of 2014.
"The acquisition of the Tangentis building in Munich demonstrates once again our ability to find opportunistic investments at attractive yields and let to strong covenants. Managing our properties in-house continues to pay dividends and I am encouraged by our letting performance, particularly in France, and by the interest shown in the recently-completed developments at 138 Fetter Lane and the hotel at Spring Mews," Chairman Sten Mortstedt said in a statement.
"With a low cost of debt, high occupancy levels, and further rental streams to come from our new developments, we look forward with confidence to building on a strong start to the year," he added.
CLS Holdings shares were up 0.1% at 1,861.50 pence early Tuesday.
By Steve McGrath; [email protected]; @stevemcgrath1
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