TIDMCLI
RNS Number : 2321W
CLS Holdings PLC
22 April 2021
PRESS RELEASE
Release date: 22 April 2021
Embargoed until: 07:00
CLS Holdings plc ("CLS", the "Company" or the "Group")
Trading Update
CLS, a leading FTSE250 office space specialist with a c.GBP2.3
billion portfolio in the UK, Germany and France, today announces a
trading update for the period 14 January to 21 April 2021. The
announcement is being issued prior to the Company's Annual General
Meeting, which is being held later today.
Fredrik Widlund, Chief Executive of CLS, commented:
"It has been a busy and active start to the year in terms of
acquisitions and financing activity. The five German acquisitions
for GBP147.8 million and one in the UK for GBP16.9 million, which
exchanged in December 2020 and January 2021, have all now completed
and will help drive rental income growth going forward. The
associated acquisition financing of GBP81.3 million for the German
acquisitions has also been completed.
"Rent collection at 95% for the second quarter remains
consistently strong. However, in terms of letting activity, the
markets display a mixed picture across the countries. Vacancy rates
have understandably increased as viewings are harder to conduct
during lockdowns. However, we are starting to see increased lease
enquiries as vaccination programmes are rolled out and economic
activity picks up, which makes us cautiously optimistic for the
remainder of the year."
A summary of our key operational and financial metrics is set
out below:
Q2 2021 rent collections
The Group's rental income in the UK and France is due on a
quarterly basis with the current payment due between 25 March 2021
and 1 April 2021. In Germany, rents are due monthly and the current
payment was due on 10 April 2021.
By close on 21 April 2021, we had received 93% of contractual
rents due or 95% taking into account those tenants we are
supporting by switching to monthly rents (2020: 91% and 93%).
Update on Q1 2021 rent collections
For the first quarter of 2021 we have now collected 98% of rents
due (2020: 99%), which is an increase of 8% since our 14 January
2021 trading update.
Acquisitions
The one acquisition in the UK and five acquisitions in Germany
completed on the following dates:
-- Radius House, Watford - 15 January 2021, GBP16.9 million;
-- FleXion (formerly known as Goldstuck), Berlin - 1 April 2021, GBP37.0 million;
-- The Brix, Essen - 8 April, GBP33.1 million; and
-- Hansaallee 299, D ü sseldorf; Storkower Strasse 132, Berlin;
and Wendenstrasse 408, Hamburg - 16 April 2021, GBP 77.7
million
Disposals
The previously exchanged disposals in the UK of Atholl House,
Aberdeen and Quest House, Hounslow have now completed realising
cash proceeds of GBP5.9 million for the Group. We have also
exchanged on the sales of Falcon House, Hounslow for GBP6.1
million, Frohbösestraße, Hamburg for GBP4.1 million and
Gennevilliers, Paris for GBP6.0 million at sales prices 21.8%, 5.3%
and 6.3% respectively above the 31 December 2020 valuations. All
are due to complete by mid July 2021.
Liquid resources and financing
The Group's balance sheet remains well-capitalised and robust.
As at 31 March 2021, CLS had cash of over GBP185 million with a
further GBP50 million in undrawn facilities.
Financing of GBP81.3 million has been secured at a blended rate
of 1.10% against the German acquisitions and we are looking at
options for the financing of the Watford acquisition together with
other UK properties.
Vacancy and lettings (as at 31 March 2021)
As expected, given the ongoing limitations of Covid-19
restrictions, vacancy has increased from 31 December 2020. This
increase is primarily due to recent lease expiries across the
portfolio. Vacancy will continue to increase short-term following
the completion of the recent German acquisitions which were
deliberately bought with vacancy as they provide excellent asset
management opportunities.
-- EPRA vacancy rates (Based on December 2020 ERVs):
Group: 6.2% (31 December 2020: 5.1%)
UK: 7.4% (31 December 2020: 5.9%)
Germany: 4.5% (31 December 2020: 3.6%)
France: 5.2% (31 December 2020: 5.1%)
Since 14 January 2021, there have been 29 deals securing GBP2.9
million of annual rent at 6% below ERV. The most significant
transaction was a lease renewal at Inside, Paris to Veolia for at
least 4.5 years. Veolia has taken additional space under the
renewal and now occupies over half of the property, which has
resulted in the building being fully let. Excluding the Veolia
letting, the remaining 28 deals were 2% above ERV.
Dividend
Subject to approval at this AGM, a final dividend of 5.20 pence
per share will be paid on 29 April 2021.
-ends-
For further information, please contact:
CLS Holdings plc
(LEI: 213800A357TKB2TD9U78)
www.clsholdings.com
Fredrik Widlund, Chief Executive Officer
Andrew Kirkman, Chief Financial Officer
+44 (0)20 7582 7766
Liberum Capital Limited
Richard Crawley
Jamie Richards
+44 (0)20 3100 2222
Panmure Gordon
Hugh Rich
+44 (0)20 7886 2733
Elm Square Advisers Limited
Jonathan Gray
+44 (0)20 7823 3695
Smithfield Consultants (Financial PR)
Alex Simmons
Rob Yates
+44 (0)20 3047 2546
Forward-looking statements
This announcement may contain certain 'forward-looking
statements'. By their nature, forward-looking statements involve
risk and uncertainty because they relate to future events and
circumstances. Actual outcomes and results may differ materially
from those expressed or implied by such forward-looking statements.
Any forward-looking statements made by or on behalf of CLS speak
only as of the date they are made and no representation or warranty
is given in relation to them, including as to their completeness or
accuracy or the basis on which they were prepared. Except as
required by its legal or statutory obligations, the Company does
not undertake to update forward-looking statements to reflect any
changes in its expectations with regard thereto or any changes in
events, conditions or circumstances on which any such statement is
based. Information contained in this document relating to the
Company should not be relied upon as an indicator of future
performance or construed as a profit forecast.
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END
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