CLS Holdings reports £24.4 million loss amid property sales push

Published 13/08/2025, 07:04
CLS Holdings reports £24.4 million loss amid property sales push

LONDON - CLS Holdings PLC reported a half-year loss of £24.4 million for the period ended June 30, 2025, as the office space specialist continues its strategic portfolio reshaping through property sales and refinancing efforts.

The company’s EPRA Net Tangible Assets per share declined 2.6% to 209.5 pence, while net rental income fell 9.5% to £53.3 million compared to the same period last year, according to the half-yearly financial report released Wednesday.

CLS completed or exchanged property sales totaling £143 million in the first half, including Spring Mews Student in Vauxhall and a property in Grafelfing, Munich. Two additional sales worth £24.3 million in Germany and France are expected to complete by the end of August.

The company’s vacancy rate increased to 15.1% from 12.7% at the end of 2024, partly due to planned lease expirations at New Printing House Square to support future redevelopment. However, CLS reported improved leasing momentum with 52 lease events securing £7.5 million in annual rent.

"We continue to make progress reshaping the business, creating a more focused portfolio of higher-quality, faster-growing properties to drive earnings growth," said Fredrik Widlund, Chief Executive Officer of CLS.

The company’s loan-to-value ratio decreased to 49.2% from 50.7% at the end of 2024, reflecting the impact of property sales partially offset by valuation declines. The weighted average cost of debt fell slightly to 3.75%.

CLS declared an interim dividend of 1.30 pence per share, down from 2.60 pence in the same period last year, in line with its new dividend policy announced in April 2025.

The company’s portfolio valuation decreased 1.6% in local currencies, with declines of 2.2% in the UK, 0.5% in Germany, and 3.5% in France.

Looking ahead, CLS noted signs of improvement in occupational markets with increased take-up in the UK and Germany, and early indications of recovery in investment markets in the UK and France.

This article is based on a press release statement from CLS Holdings.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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