CLS Holdings PLC on Wednesday said net asset value decreased across 2023, but that its rental income increased and momentum has been strong.
The UK, Germany, and France-focused commercial property investor said its NAV per share was 233.8 pence at December 31, down 24% from 307.3p at the same time one year prior.
EPRA net tangible assets decreased 23% to 253.0p per share from 329.6p. EPRA earnings per share decreased 11% to 10.3p in 2023 from 11.6p in 2022, while its statutory loss per share widened to 62.9p from 20.2p.
CLS also reported a pretax loss of £263.4 million, following the previous year’s £82.0 million loss.
Contracted rents increased 2.2% to £112.6 million from £110.2 million, while net rental income increased 4.8% to £113.0 million from £107.8 million.
CLS attributed this to 55% of its contracted rent being index-linked, income from 2022 acquisitions, and its hotel and student accommodation assets delivering an ‘excellent performance’.
Moreover, CLS said leasing momentum was strong throughout the year, with 130 new lettings and renewals generating £15.5 million in annual rent, up from £8.2 million.
CLS also proposed a final dividend of 5.35p per share, unchanged from 2022 and leaving the total 2023 payout likewise unchanged at 7.95p.
Going forward, CLS said its long-term strategy and geographical focus remain unchanged, and that it will continue pursuing growth through acquisitions in the medium term.
The company said its key objective for 2024 is to ‘capture the substantial rental upside’ within its portfolio by reducing vacancy.
‘Securing these rental increases is critical to drive rental growth in excess of rising financing costs and thus achieve higher profits,’ CLS added.
‘CLS performed well during the period and made progress on its strategic objectives,’ commented Chief Executive Officer Fredrik Widlund.
He continued: ‘As expected, valuations reduced in the period. However, our outperformance relative to the markets we operate in and the embedded rental growth potential in our portfolio give us confidence in our ability to deliver long-term growth.’
CLS Holdings shares were up 2.5% at 94.29 pence each on Wednesday afternoon in London.
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