CLS Holdings’ EPRA net asset value per share rose by 8.5% to 309.8p at the end of December, up from 285.6p at the end of 2017, off the back of an uplift in the valuation of its investment property.
The value of the portfolio, of which 51% was in the UK, 33% in Germany and 16% in France, was £1.9bn, boosted by a 9.3% uplift in Germany.
CLS Holdings also reported a 9.9% increase in rental income to £103m for the year ended 31 December 2018, up from £103.8m in 2017.
The business reduced its vacancy rate during the year to 3.8%, down from 5.8% at the end of 2017.
EPRA earnings per share rose by 4% to 13.1p and profit before tax from continuing operations was £144.9m, down from £190.5 in 2017, which was boosted by the sale of Vauxhall Square, SW8. CLS’s balance sheet loan-to-value ratio stood at 36.7% and gross debt fell by £34.4m to £842.3m.
Contracted rents rose by 5.6% to £109.6m and 57% of this was from governments and major corporations, CLS said.
Fredrik Widlund, chief executive at CLS Holdings, said: “The group continues to benefit from its geographical diversification, with both Germany and France likely to offset future challenges in the UK from Brexit.
“However, despite recent uncertainty, our UK portfolio continues to deliver a resilient performance due to its lower exposure to the prime locations which are likely to be more affected by Brexit.
“We are strong believers in the long-term prospects for Greater London, and with increased infrastructure spending and clarity on Brexit, we believe the current market sentiment will turn to a more balanced view. Economic growth has slowed globally but the resilience of the German economy and the lack of new office space supply in both Germany and France are creating good opportunities over time.”
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