CLS (CLI) spent last year shedding UK regional offices and other non-core assets and recycling funds into properties that might deliver higher returns. The office letting and development group committed a record level of capital across 13 acquisitions, with the aim of boosting rental income through refurbishment or reducing vacancy levels.
Efforts to extract greater returns in the UK are unsurprising given estimated rental values (ERVs) rose just 1.3 per cent, while the portfolio valuation increased by just 0.3 per cent. That was in stark comparison to the German office market, where a more accentuated supply/demand imbalance led to a 5.1 per cent rise in ERVs and rent reviews, new leases and extensions were agreed at an average 6.6 per cent ahead of ERVs a year earlier.
In France, ERVs rose 2.5 per cent, although the investment yield on the portfolio was flat 5.2 per cent, with investors attracted by the relative stability of the country’s economy.
Analysts at Berenberg forecast EPRA net asset value (NAV) of 351p at the December 2020 financial year-end, rising to 373p the same time the following year.
| CLS (CLI) | ||||
| ORD PRICE: | 262p | MARKET VALUE: | £1.07bn | |
| TOUCH: | 261.5-265.5p | 12-MONTH HIGH: | 323p | LOW: 210p |
| DIVIDEND YIELD: | 2.8% | TRADING PROPERTIES: | £10.4m | |
| DISCOUNT TO NAV: | 11% | NET DEBT: | 53% | |
| INVESTMENT PROPERTIES: | £1.96bn | |||
| Year to 31 Dec | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2015 | 181 | 151 | 30.6 | nil |
| 2016 | 215 | 100 | 23.6 | 4.0 |
| 2017 | 252 | 191 | 38.5 | 6.35 |
| 2018 | 276 | 145 | 32.6 | 6.9 |
| 2019 | 295 | 159 | 33.2 | 7.4 |
| % change | +7 | +10 | +2 | +7 |
| Ex-div: | 2 Apr | |||
| Payment: | 29 Apr | |||
| *NAV and EPS adjusted for one-for-10 share split | ||||
