CLS Holdings PLC on Wednesday said it swung to a loss in its half year, but reported a rise in revenue.
CLS Holdings, the London-based commercial property investor said revenue in the six months ended June 30 was up 5.9% £72.3 million, from £68.3 million.
The company swung to a pretax loss of £106.4 million, from a profit of £21.3 million year-on-year. CLS booked a £132.9 million hit from net revaluation movements on investment property, up markedly from £5.1 million a year prior.
Chief Executive Officer Fredrik Widlund said: ‘CLS has continued to perform well and deliver on its business plan despite macro-economic conditions remaining challenging.
‘CLS remains focussed on executing operational and portfolio improvements, and our geographic diversity and high-quality properties continue to provide resilience and performance. Recent lettings are encouraging and demonstrate our ability to capture opportunities for our properties when they arise.’
Net rental income totalled £55.6 million, up 5.3% from £52.8 million the year prior.
CLS Holdings declared an interim dividend of 2.60 pence per share, unchanged from the year before.
The company said it expected the economic backdrop of the property market to remain ‘challenging’ until interest rates have peaked.
‘Our long-term approach and active asset management should keep the Group in good stead, and we have significant opportunities to increase rental income through reducing vacancy, to more than compensate for higher interest costs, over the next couple of years,’ said CEO Widlund.
Shares in CLS Holdings were down 5.9% at 134.98 pence in London on Wednesday morning.
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