Like its peers in the commercial property sphere, shares in office specialist CLS (CLS) are trading at a steep discount to net asset value (NAV), reflecting jitters about the health of the UK economy. However, where CLS differs from UK-listed rivals is that about half of its property income comes from Germany and France. In recent years, Germany has been the jewel in CLS's crown, posting a 9 per cent uplift in valuation last year alone thanks to a shortage of office space in cities with solidly growing populations.
IC TIP:
Buy
at
227p
Tip style
Value
Risk rating
High
Timescale
Medium Term
Bull points
Shares trade at sharp NAV discount
Falling vacancy rates
Future rental growth potential
Rising like-for-like rents
Bear points
Flat UK yield
Total return growth slowing