TIDMCLI
RNS Number : 3119S
CLS Holdings PLC
08 July 2020
PRESS RELEASE
Release date: 8 July 2020
Embargoed until: 07:00
CLS Holdings plc ("CLS", the "Company" or the "Group")
Trading Update for the period 1 January 2020 to 7 July 2020
HIGH RENT COLLECTIONS CONTINUE
Fredrik Widlund, Chief Executive of CLS, commented:
"As the lockdown measures are eased, we remain focused on the
welfare of our staff and other stakeholders while also recognising
that we need to do what we can to help the economy get back to
normality. All of our offices across the UK, Germany and France are
open and we have made the necessary modifications to make the
buildings compliant with Covid-19 safety measures to ensure we
continue to support our tenants.
"Our tenant base has a strong underpinning of government and
major corporations, with limited exposure to those sectors that
have been most impacted by Covid-19, such as retail, hospitality
and leisure. We are continuing to work closely with our tenants and
this can be seen in our rent collections, which have continued to
perform well, demonstrating the resilience of our business and
strategy."
A summary of our key operational and financial metrics is set
out below:
Q3 rent collections
The Group's rental income in the UK and France is due on a
quarterly basis with the current payment due between 24 June and 1
July. In Germany, rents are due monthly and the current payment was
due on 3 July. As at 30 June 2020, the Group's contractual rents
are split 52% in the UK, 33% in Germany and 15% in France.
By close on 7 July 2020, we had recei ved 86% of contractual
rents due or 93% taking into account those tenants we are
supporting by switching to monthly rents ( 2019: 96% of rents had
been collected by 7 July 2019).
Update on first half 2020 rent collections
In the first quarter we collected 99% of rents due and in the
second quarter we have, by 7 July 2020, collected 96% of the rent
due.
Overall, for the first half of 2020 we had received 98% of
contractual rents due by 7 July 2020 (2019: 97% of rents had been
collected by 7 July 2019).
Vacancy and lettings (as at 30 June 2020)
As expected, vacancy has increased from 31 December 2019. This
increase is due to completed refurbishments, now available to let,
and acquired vacancy in the UK, and some recent lease expiries
across the portfolio.
-- Vacancy rates (Based on December 2019 ERVs):
Group: 5.2% (31 December 2019:
4.0%)
UK: 5.9% (31 December 2019:
4.1%)
Germany: 4.6% (31 December 2019:
4.3%)
France: 3.7% (31 December 2019:
3.1%)
The vacancy numbers based on 30 June 2020 ERVs will be published
as part of our half-yearly results on 12 August 2020.
Since 8 April, there have been 25 deals securing GBP3.2 million
of annual rent 3.7% above ERV. Notable transactions include a lease
renewal at Front de Parc in Lyon for 14,381 sq. ft (1,336 sqm) on a
3/6/9 year lease with BNP Paribas, as well as a lease renewal to
LOCON Logistik & Consulting at Adlershofer Tor in Berlin for
9,020 sq. ft (838 sqm) for a further 7 years.
Liquid resources and financing
The Group's balance sheet remains well-capitalised and robust.
As at 30 June 2020, CLS had cash of over GBP190 million, giving a
Loan to Value of 34.4% based on 31 December 2019 portfolio
valuation (31 December 2019: 31.4%), with a further GBP50 million
in undrawn facilities. The cash position has reduced as a result of
the payment of the 2019 final dividend, debt repayment and the
equity element of the Nuremberg acquisition.
In 2020, the Group has GBP114.5 million of debt, across 9 loans,
due to be refinanced and we are on track to repay or refinance all
of them. Five loans (GBP90.4 million) have been extended or have
approved terms for a refinancing or an extension and one loan
(GBP5.1 million) has been repaid as the property, Park Avenue in
Lyon, is shortly to undergo a substantial refurbishment. We are in
advanced discussions for the remaining three loans (GBP24.1
million).
Acquisition
On 1 June 2020, we announced the acquisition of
Georg-Elser-Strasse 7, Nuremberg for GBP16.5 million excluding
costs. It is a modern, four-storey office building comprising
63,647 sq. ft (5,913 sqm) of space fully let to Deutsche Telekom.
The asset has a WAULT of 7 years to breaks with GBP1.0 million net
rent per annum, reflecting a net initial yield of 5.8%.
The associated financing has now been completed with Sparkasse N
ürnberg, a new lender to the Group. The 7-year, 70% LTV financing
is at an all-in fixed rate of 0.96% including costs.
Developments
A resolution to grant planning permission for a new 29,000 sq.
ft (2,694 sqm) office development at Vauxhall Walk next to our
Spring Mews property was granted in May. Detailed design and site
investigations are ongoing, alongside office market assessments,
before an anticipated construction start at the beginning of 2021.
In May, we also secured building permission for our Vor dem Lauch
building in Stuttgart. The permission is for a new office
development of c.141,000 sq. ft (13,099 sqm) of lettable space and
we are now starting to market the building before making a decision
as to how to proceed.
-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
Whitman Howard
Hugh Rich
+44 (0)20 7659 1261
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
TSTSSWFMWESSEEW
(END) Dow Jones Newswires
July 08, 2020 02:00 ET (06:00 GMT)
Cls (LSE:CLI)
Historical Stock Chart
From May 2024 to Jun 2024
Cls (LSE:CLI)
Historical Stock Chart
From Jun 2023 to Jun 2024