Business
Dividend Policy Update
Dividend Policy Update.
About this update from Cls Holdings Plc
[{"type":"text","content":"\n \n \n \n \n \n Release date: 11 May 2022\n \n \n Embargoed until: 07:00 am\n \n \n \n \n \n \n \n \n \n \n \n CLS Holdings plc (\"CLS\" or the \"Group\")\n \n \n \n \n Updated Dividend Policy, Proposed Tender Offer and Trading Update\n \n \n \n \n \n \n CLS, a leading FTSE250 office space specialist with a £2.3 billion portfolio in the UK, Germany and France, today announces an updated dividend policy, a proposed tender offer following the publication of the Group's half yearly financial results on 10 August 2022 and a trading update.\n \n \n \n \n \n \n Updated Dividend Policy\n \n \n \n Following the conversion of its UK business to a REIT, CLS has updated its dividend policy for the 2022 financial year onwards. The company will maintain a progressive dividend policy, with a dividend cover of 1.2 to 1.6 times EPRA earnings (previously 1.5 to 2.0 times). It is expected that FY2022 dividend cover will be around the middle of the new range.\n \n \n \n \n \n \n Proposed Tender Offer\n \n \n \n CLS remains committed to its strategy and business model to drive long-term value including its planned 2022 disposals, which to date have been at or above valuations. Nevertheless, the Board of CLS believes the share price discount to its net tangible assets (\"NTA\") is unjustified and believes that it is in the best interests of all shareholders to take steps to reduce this discount. \n \n \n \n \n \n Subject to the completion of a number of property sales by the end of the first half of 2022, and the significant share price discount to NTA persisting, CLS intends to undertake a tender offer of its ordinary shares, the terms of which will be announced following the publication of the Group's half yearly financial results on 10 August 2022. The quantum of any tender offer will be scaled to ensure the Group's loan-to-value is still within an acceptable level by the year-end.\n \n \n \n \n \n \n \n \n Trading Update\n \n \n \n CLS continues to trade in line with market expectations.\n \n \n \n \n \n \n \n \n Fredrik Widlund, Chief Executive Officer of CLS, commented:\n \n \n \n \n \n \n \"I am pleased to announce an enhancement to our dividend policy following the conversion of our UK business to a REIT, which will be applied to all future divid...