CLS Holdings (LSE:CLI) reported weaker results for 2025, with EPRA earnings per share declining 17.4% and net rental income down 11.1%. The performance was affected by property disposals, increased vacancy levels and portfolio valuation write-downs, leading to a statutory loss of £50.3 million for the year. The value of the group’s property portfolio fell 3.8% in local currency terms, while EPRA net tangible assets per share decreased 6.7%. As a result, the company reduced its full-year dividend to 4.0p per share, though the payout remains within the parameters of its dividend policy.
Despite the weaker earnings, CLS took steps to strengthen its financial position. Net debt was reduced by £86.2 million, and the company refinanced or repaid £373.7 million of borrowings during the year. The average cost of debt remained stable at 3.8%, while the loan-to-value ratio improved slightly to 50.0%. Management is now focusing on lowering vacancy rates and reinforcing the balance sheet, with plans to dispose of £100 million to £150 million in assets during 2026. The company is also progressing the sale of its Spring Gardens redevelopment and offering an enhanced scrip dividend option to conserve cash while positioning the portfolio for a potential medium-term recovery.
The company’s outlook remains influenced by financial pressures, including relatively high leverage and recent losses. However, ongoing corporate actions and broadly stable technical indicators offer some support. CLS also maintains an elevated dividend yield that may appeal to income-focused investors, though valuation remains challenged by negative earnings.
More about CLS Holdings
CLS Holdings is a London-listed commercial property investment company focused on office real estate across the United Kingdom, Germany and France. The group manages a portfolio valued at approximately £1.7 billion and aims to act as a sustainability-focused landlord specialising in high-quality, multi-let office assets in Europe’s three largest economies. It combines active asset management with local market expertise to support long-term portfolio growth.
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