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CLS (LSE:CLI), a leading office space specialist and a sustainable commercial landlord with a portfolio valued at approximately £1.9 billion across the UK, Germany, and France, has released its financial results for the half-year ended June 30, 2024. The Group’s diverse portfolio provides geographical reach along with local expertise and knowledge.
Financial Performance
For the first half of 2024, CLS experienced a decline in EPRA Net Tangible Assets (NTA), which fell by 10.1%. This decrease is primarily attributed to a 4.1% decline in property valuations in local currencies (5.3% in Group currency). The valuation decline was partially offset by EPRA earnings, reflecting the quality and resilience of the portfolio.
The portfolio valuation decreased by 4.1% in local currencies, which was a more favorable outcome compared to the broader market declines in the respective countries. This performance highlights the strength of CLS's portfolio and its indexed-linked leases. The yield expansion led to valuation decreases of 4.4% in the UK, 3.6% in Germany, and 5.0% in France, all measured in local currencies.
The Company reported a loss after tax of £61.1 million, a notable improvement from the £104.1 million loss reported for the same period in 2023. This reduction in losses is primarily due to a decrease in valuation declines on investment properties, which were £82.8 million for the current half-year compared to £132.9 million in the previous year.
Earnings and Dividend
EPRA Earnings Per Share (EPS) decreased by 7.7% to 4.8 pence per share. This decline was driven by higher financing costs, although it was partly mitigated by increased net rental income from indexation, higher other income, and lower tax expenses. Statutory EPS reflected a decline of (15.4) pence per share, reflecting the impact of valuation declines on the portfolio.
The Board has declared an interim dividend of 2.60 pence per share, consistent with the interim dividend declared for the first half of 2023. The interim dividend will be paid on October 2, 2024.
Dividend Timetable
The dividend timetable for the interim dividend is as follows:
- Announcement Date: August 7, 2024
- Ex-Dividend Date: September 5, 2024
- Record Date: September 6, 2024
- Payment Date: October 2, 2024
Total Accounting Return
The total accounting return for the half-year stood at -8.0%, showing an improvement from the -9.9% return reported for the same period in 2023.
