12th Aug 2026 11:14
(Alliance News) - CLS Holdings PLC on Wednesday said its first-half loss widened as falling property valuations and lower rental income weighed on earnings.
Shares in the commercial property investment company were down 5.0% to 46.60 pence per share on Wednesday morning in London. Over the past six-month period, shares are down 22%.
CLS reported a pretax loss of GBP72.5 million for the first half of 2026, widened from GBP24.3 million a year earlier. The loss was primarily due to an GBP84.2 million decline in the value of investment properties, compared with an GBP32.3 million decline a year earlier, the company said.
Revenue fell 12% to GBP64.3 million from GBP71.9 million. CLS said the first-half revenue, earnings and valuation pressures reflected those set out in a trading update earlier in August, where the company announced that its largest tenant Spring Gardens would no longer be seeking a short-term extension to their lease, ending in September.
Net rental income fell 13% to GBP46.3 million from GBP53.3 million, reflecting income lost from asset disposals and tenant departures. Like-for-like net rental income fell 4.7% to GBP50.8 million, partly reflecting lease expiries and German insolvencies.
CLS Holdings' EPRA net tangible assets per share were 177.7 pence on June 30, down 11.5% from 200.7 pence at December 31.
Statutory net asset value per share was 164.2 pence, down 12% from 186.4 pence.
EPRA earnings fell 32% to GBP10.9 million from GBP16.1 million a year earlier, while EPRA earnings per share fell 33% to 2.7 pence from 4.0 pence.
CLS said the decline in EPRA earnings per share was due to lower rental income from asset sales and tenant departures, partly offset by lower administration, property costs and net finance expense from reduced debt levels and borrowing costs.
The company's portfolio valuation fell 4.6% on a like-for-like basis in local currency, with values falling 7.2% in the UK, 2.5% in Germany and 3.7% in France. CLS said this reflected property yield expansion and a decline in estimated rental values.
CLS said it will pay no interim dividend, highlighting the importance of reducing leverage and completing its disposal programme. The board intends to consider a single final dividend for 2026 when full-year earnings are known. The company paid an interim dividend of 1.30 pence a share a year earlier.
CLS's statutory loss per share widened to 17.5 pence from 6.1 pence a year earlier.
CLS said it made progress against its strategic priorities during the period, including reducing vacancy, selling assets, refinancing debt and investing selectively in its portfolio.
Chief Executive Officer Fredrik Widlund said: "Our priorities are clear: to focus on the actions within our control and execute them effectively across the portfolio.
"Our local teams remain focused on active, asset-by-asset management of our well-located, multi-let offices: leasing vacant space, reducing void costs, progressing disposals and refinancing, and investing selectively where there is clear occupier demand or an opportunity to improve the use of an asset.
"We have made progress in each of these areas, but there is more work to do. Our focus for the second half is on completing that activity and converting it into improved occupancy and financial flexibility over time. The actions we are taking to strengthen the business over the medium term are positioning CLS for sustainable long-term growth."
By Niall Holden, Alliance News reporter
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