TIDMCLI
RNS Number : 2978F
CLS Holdings PLC
11 November 2015
Release date: 11 November 2015
CLS Holdings plc
("CLS", the "Company" or the "Group")
Trading Update for the period 1 July 2015 to 10 November
2015
Executive Chairman of CLS, Sten Mortstedt, commented:
"The second half of 2015 has been an active period, with an
enhanced planning resolution gained at Spring Mews and Westminster
Tower, the acquisition of Chancery House, disposals of non-core
properties, over GBP80 million of new financing, and lettings well
exceeding their estimated rental values of last December. I am also
pleased that we have met the conditionality of our agreement for
the student building at Vauxhall Square, and that our refurbishment
programme continues to provide high quality and affordable office
space across our portfolio.
"With a low cost of debt, a strong balance sheet and low vacancy
levels, we remain well positioned to take advantage of future
opportunities and to continue delivering value for our
shareholders."
Portfolio changes since 1 July 2015
-- Completion of acquisition of Tangentis, Munich for EUR24.4
million at a net initial yield of 7.9%
-- Acquisition of Chancery House, Sutton for GBP10.2 million at a net initial yield of 7.0%
-- Disposal of six UK properties for GBP7.4 million, GBP1.6
million above their external valuation at 31 December 2014
-- Disposal of Unterschleissheim, Munich for EUR3.8 million,
marginally below its external valuation at 31 December 2014 after
foreign exchange variations
Developments and refurbishments
-- Planning resolution gained on an undeveloped site adjacent to
Spring Mews, SE11 to add three floors and to change the use from
student accommodation to residential and offices
-- Planning resolution gained at Westminster Tower, SE1 to
enhance the private residential provision by 5 units to 28
units
-- All conditionality now met on agreement with specialist
student operator to build and manage the 454 room student building
at Vauxhall Square, SW8; completion due in December
-- Review of options to progress Vauxhall Square ongoing
-- Refurbishment of 1,380 sqm of pre-let offices at 405
Kennington Road, SE11 on schedule to complete in Q4
-- GBP4.9 million of capital expenditure on refurbishments since 1 July 2015
Operational metrics
-- 26,900 sqm vacated or expired since 1 July 2015, and 800 sqm
of vacancies acquired in Chancery House
-- 19,200 sqm of new leases, lease renewals and extensions
completed at an average of 3.3% above ervs of 31 December 2014
-- Included in the above:
o At 138 Fetter Lane, EC4: 617 sqm (6,640 sq ft) let for ten
years with no breaks at GBP60 per sq ft
o at Vänerparken, Sweden: 17,400 sqm expired and 14,500 sqm was
relet
o at Great West House, Brentford: 1,500 sqm expired and is
undergoing refurbishment
-- Overall Group vacancy rate: 3.8% (30 June 2015: 3.4%):
o London: 5.1% (30 June 2015: 4.9%)
o Rest of UK: 0.7% (30 June 2015: 0.9%)
o Germany: 2.5% (30 June 2015: 1.8%)
o France: 3.9% (30 June 2015: 4.6%)
o Sweden: 4.3% (30 June 2015: 0.8%)
Financing
-- GBP82.2 million of new or refinanced bank loans completed since 1 July 2015:
o New loan of GBP54.5 million at Spring Mews for 6 years at
3.5%
o New loan of EUR17.2 million at Tangentis, Munich for 7 years
fixed at 1.4%
o Refinanced loan of GBP10.5 million at Apex Tower, New Malden
for 2.5 years at 2.3%
-- Weighted average cost of debt remains low at 3.48% (30 June 2015: 3.46%)
-- Weighted average loan to value of property loans comfortable at 51.8%
-- 60 loans from 24 lenders, two unsecured corporate bonds, a secured note and a debenture
-- Liquid resources of over GBP158 million, comprising GBP55
million of cash, GBP67 million of corporate bonds, and available
undrawn facilities in excess of GBP36 million
-- In the latest tender offer, all of the shares available were
cancelled by the Company on 24 September, resulting in a
distribution of GBP5.7 million to shareholders and leaving
42,140,581 shares in circulation
Portfolio statistics
-- Current portfolio split by region:
o London 57%
o Rest of UK 7%
o Germany 18%
o France 15%
o Sweden 3%
-- 52% of portfolio is subject to indexation
-- 42% of rent roll is derived from government tenants and 22% from major corporations
Board changes
-- Further to the announcement made on 6 January 2015, Henry
Klotz has agreed to remain as Executive Vice Chairman on a
part-time basis with effect from 1 January 2016.
-ends-
For further information, please contact:
CLS Holdings plc +44 (0)20 7582 7766
www.clsholdings.com
Sten Mortstedt, Executive Chairman
Henry Klotz, Executive Vice Chairman
Fredrik Widlund, Chief Executive Officer
John Whiteley, Chief Financial Officer
Liberum Capital Limited +44 (0)20 3100 2222
Tom Fyson
Panmure Gordon (UK) Limited +44 (0)20 7886 2500
Mark Taylor
Russell Cook
Kinmont Limited +44 (0)20 7087 9100
Jonathan Gray
Smithfield Consultants (Financial PR) +44 (0)20 7903 0669
Alex Simmons
Forward-looking statements
This document 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 or its share price, or the yield on its shares, should not
be relied upon as an indicator of future performance.
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTBBBFTMBIBMPA
(END) Dow Jones Newswires
November 11, 2015 02:01 ET (07:01 GMT)
Cls (LSE:CLI)
Historical Stock Chart
From Aug 2024 to Sep 2024
Cls (LSE:CLI)
Historical Stock Chart
From Sep 2023 to Sep 2024