CLS Holdings has posted a 3% increase in net asset value to 983.1p a share in its full-year results.
The investment and development company said its NAV was adversely affected by 53.5p through its decision to take the one-off cost of closing a long-term interest rate swap.
Its EPRA earnings per share were up 53% to 64.9p.
The group, which has major holdings in London’s Vauxhall and on the continent, said its portfolio was valued at £902.1m as at the end of December 2011, up 2.1% in local currencies.
Rental income across the group is up 2.6% to £66.2m, while profit after tax fell substantially from £60m to £38.8m.
It said its interest rate swap termination provides flexibility and is likely to produce a cost saving of more than £10.7m over three years and break even after seven years.
There was an associated reduction in weighted average cost of debt to 4.1%.
It has £140.4m of liquid resources available for new investments.
CLS said its proposed distribution is up 10.1% to £7.9m by way of tender offer buy-back: 1 in 42 at 735p, equivalent to 17.5p per share
Executive chairman Sten Mortstedt, said: “We have made significant progress in our core business with a robust performance in letting, financing and development. The group is solidly placed, with a strong balance sheet, a very healthy cash flow, and a high level of liquid resources for investment when we see the right opportunities. We continue to attract new tenants, maintain low vacancy and progress added value development plans, and, therefore, I am optimistic that we can continue to deliver for shareholders.”
bridget.o’connell@estatesgazette.com
