Source: Sharecast
CLS posted a £69.6m statutory loss after tax, widening from £24.4m a year earlier, driven by £84.2m of investment‑property valuation declines, and said statutory losses per share increased to 17.5p from 6.1p. EPRA earnings also weakened, with EPRA EPS down 32.5% to 2.7p, reflecting reduced rental income following disposals and tenant departures, partly offset by lower costs and finance expenses.
Portfolio values fell 4.6% in local currency, with declines across the UK, Germany and France due to yield expansion and softer enterprise rental vallues. EPRA net tangible assets per share dropped 11.5% to 177.7p, while total accounting return came to ‑9.5%.
CLS said net rental income fell 13.1% to £46.3m, reflecting lease expiries, German insolvencies and £201m of disposals since early 2025. It also completed £56.8m of sales in H1 and has continued to progress disposals and lettings, securing £5.7m of contracted rent across 57 new leases and renewals. Vacancy remained stable at 14.5%.
The FTSE 250-listed firm, which said its will not pay an interim dividend, said net debt reduced by £44.2m through disposals, though loan-to-value edged up to 51.6% due to valuation declines. CLS said 89% of 2026 refinancing activity has been completed or agreed, with average debt costs at 3.9%.
Looking ahead, CLS expects FY26 EPS of 4.6p to 5.5p, with near‑term earnings still pressured by asset sales and the departure of its largest tenant, but said progress on disposals, refinancing and leasing had positioned the group to benefit as market conditions improve.
As of 1005 BST, CLS shares were down 6.22% at 46p.
Reporting by Iain Gilbert at Sharecast.com
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