Offices investor CLS Holdings has posted a like-for-like decline in the value of its UK portfolio during the year ending December, which included a £30m valuation decline.
Like-for-like values in the UK fell by 2.3%, excluding acquisition costs. This was attributed to increased vacancy, offsetting 1.6% ERV growth.
Overall portfolio value at CLS, which has a circa £2.2bn portfolio in the UK, Germany and France, was up 1.4% in local currency terms.
This was driven by its Germany portfolio, up 8.6% through letting activity. Its properties in France were up 0.3%.
CLS’s portfolio is split by 52% in the UK (£1.1bn), 34% in Germany (£747.7m) and 14% in France (£309.6m).
EPRA net tangible assets per share rose by 5.8% to 345.2p in the year ending December, while its NAV per share increased by 6.3% to 350.1p.
Pretax profit fell by 39.3% to £96m, while net rental income stayed relatively flat at £109.8m.
Fredrik Widlund, chief executive of CLS, said: “Our active management approach resulted in our country teams in the UK, Germany and France delivering on leasing transactions, refurbishments and strong rent collection despite the backdrop of the pandemic.”
Widlund added that contracted annualised rent will increase to £115m after six recent acquisitions complete. Contracts on these were exchanged at the end of last year and the start of 2021.
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