Cls Holdings Plc · LSE:CLI
Cls — FY2024 Earnings Presentation
35 slides from Cls's earnings presentation, Apr 1, 2025
Slide 1: CLS Holdings plc
CLS Holdings plc
Slide 2: Overview, Financials & Occupiers, Portfolio, Summary & Outlook
Fredrik Widlund 3 27 Overview Appendices Fredrik Widlund 9 Financials & Occupiers Andrew Kirkman Andrew Kirkman 18 Portfolio, Sustainability Summary & Outlook Fredrik Widlund 2 CLS Holdings plc | Full Year Results 2024
Slide 3: Radius House, Watford, U.K.
Radius House, Watford, U.K. 3 CLS Holdings plc | Full Year Results 2024
Slide 4: Operational delivery continuing
Operational delivery continuing EPRA NTA (p) EPRA EPS • Strong leasing momentum generating £16.6m (2023: £15.5m) of annual 345.2 350.5 rent +7% year on year. New leases 6.8% above ERV • Net rental income up 0.9% to £114m (up 3.8% LFL) 329.6 253.0 9.2p (2023: 10.3p) • Underlying vacancy down to 10.6%
Slide 5: 7% increase in leases by value vs 2023
ANNUAL RENT FROM NEW LEASES CHANGE IN EPRA VACANCY (GROUP) £16.6m 1.9% 12.7% 11.0% 10.6% 0.2% (0.4%) 7% INCREASE IN LEASES BY VALUE VS 2023 112 DEALS SECURED, 6.8% ABOVE ERV (31 DEC 2023: £15.5m OF ANNUAL RENT FROM 130 LEASES 6.9% ABOVE ERV) 31-Dec-23 Net lettings Underlying Disposals Development &
Slide 6: United Kingdom, Germany, France leasing
United Kingdom Germany France • 5th floor at Artesian for • Ground-4th floor at The • 11,000 sq. ft, 3 floors at Cap G 12,052 sq. ft Yellow for 103,699 sq. ft • 20 year lease consolidating • 3/6/9 year lease • 10 year lease four departments of the City • Existing tenant who has been • Selected for i
Slide 7: 5.8% decrease in valuations in local currency driven by yield expansion
Group CLS valuation movement in local currency • 5.8% decrease in valuations in local currency driven by yield expansion across all markets 0.5% 0.3% -7.2% -4.4% -4.1% -2.1% -8.5% -8.4% -0.1% UK -3.6% -3.8% -3.3% -6.0% -5.0% -2.9% -1.9% • 8.3% decline, ERV down 2.4%, EY up 41bps -7.3% • Adjusting fo
Slide 8: 2024 Disposals and 2025 planned disposals
2024 Disposals 2025 exchanged and (£66.1m) planned disposals • Spring Mews UK Student, Vauxhall • Westminster Tower, unconditionally London exchanged for • Aqueous II, £101.1m Birmingham • Two other agreed • Cassini/Pascal, disposals in the UK Leatherhead and Germany for £24.2m Germany • Hansastrass
Slide 9: Technisches Rathaus, Bochum, Germany
Technisches Rathaus, Bochum, Germany 9 CLS Holdings plc | Full Year Results 2024
Slide 10: EPRA EPS 9.2p
EPRA EPS EPRA NTA per share EPRA EPS (PENCE) 9.2p 215.0p 12.2 11.3 11.6 10.3 9.2 (31 DEC 2023: 10.3p) (31 DEC 2023: 253.0p) (-10.7%) (-15.0%) 2020 2021 2022 2023 2024 PROPOSED FINAL DIVIDEND TOTAL ACCOUNTING RETURN DIVIDEND/SHARE (PENCE) 2.68p -11.9% 7.55 7.70 7.95 7.95 5.28 (31 DEC 2023: 5.35p) (31
Slide 11: Developments
Movement in net rental income (£m) Movement in EPRA EPS (pence per share) 0.3 0.4 10.3 3.8 5.7 (0.5) 117.3 1.2 (2.5) 0.9 114.0 (1.7) 9.2 113.0 (1.6) (4.8) (1.3) FX/other Indexation Developments Net rental income 2023 Expiries Disposals L-F-L & constant Student & Hotel Other income New leases & renew
Slide 12: Movement in EPRA NTA (pence per share)
Movement in EPRA NTA (pence per share) 9.2 253.0 (8.0) 215.0 (31.8) (6.5) (0.9) At 31 December EPRA EPS Dividends Property FX Other At 31 December 2023 valuation 2024 12 CLS Holdings plc | Full Year Results 2024
Slide 13: Movement in cash and cash equivalents (£m)
Movement in cash and cash equivalents (£m) 71.2 63.8 0 (41.7) (47.7) 0 70.6 (31.6) 60.5 (22.5) (1.6) At 31 December Cash from Interest/tax Dividends paid Sale of Net loan Capex Other At 31 December 2023 operations properties repayment 2024 13 CLS Holdings plc | Full Year Results 2024
Slide 14: Resilient financing strategy
Resilient financing strategy Key debt metrics • CLS uses secured, limited-recourse SPV financing and benefits from many different lending relationships • Maintain over £100m of cash and cash Drawn debt (£m) 474.9 421.2 107.3 1,003.5 equivalents and undrawn facilities, and covenant headroom Number of
Slide 15: 2024 debt – refinancings delivered on schedule
2024 debt – refinancings delivered on schedule 2025 refinancing – progressing as expected • At the start of 2024, £373.7m debt (incl. £9.6m of amortisation) was expiring • All refinancing due in 2024 completed as planned in 2025 across 12 loans and 9 lenders. We have made good progress on £342.1m: •
Slide 16: Rent collection and top tenants
1 8 7 2 RENT COLLECTION Top 15 Tenants by Contracted Rent (32%) 99% Tenant Sectors % 6 1 9 1 Government 25.5 2 Commercial 5 & 12.4 3 (31 Dec 2023: 99%) Professional Services 4 2 10 3 Information Technology 11.5 TENANT SIZE 4 Communication 8.5 26% Services 3 11 5 Consumer Discretionary 7.7 6 Health C
Slide 17: Occupiers
Occupiers United Kingdom Germany France Percentage of rental Percentage of rental Percentage of rental income index-linked 35% income index-linked income index-linked • Leases are not generally index-linked 62% 100% • Majority of leases linked to German CPI • All leases subject to annual review • Le
Slide 18: Spring Mews, Vauxhall, United Kingdom
Spring Mews, Vauxhall, United Kingdom 18 CLS Holdings plc | Full Year Results 2024
Slide 19: The Brix, Essen; The Yellow, Dortmund
The Brix, Essen The Yellow, Dortmund • Full refurbishment underway, with total remaining capex of c. £15m to • Significant refurbishment with total capex of c. £10m invested in be invested in 2025 and 2026 2025 and 2026 as space is handed over • Project will deliver ERV of €14 psqm and estimated pro
Slide 20: Debussy, Paris; Bismarckstrasse, Berlin
Debussy, Paris Bismarckstrasse, Berlin • Total capex of c. £10m to be invested from 2025 to the start of • Expected capex of c. £12m is planned to be invested in 2025 and 2027 2026 • Project will deliver ERV of €21 psqm and estimated profit on cost is • Project will deliver ERV of €32 psqm and estim
Slide 21: Citadel Place (currently Spring Gardens)
Citadel Place (currently Spring Gardens) • Zone 1 site (Vauxhall) first developed by CLS as campus-style offices in early 1990s; six interconnected buildings, comprising 211,672 sq ft 3 • 7-month lease extensions up to September 2026 agreed with current Countries occupier (NCA), adding £7.0m of rent
Slide 22: Net Zero Carbon Pathway
LIKE-FOR-LIKE DECREASE IN LIKE-FOR-LIKE DECREASE LANDLORD ENERGY IN SCOPE 1 & 2 GHG • Net Zero Carbon Pathway (NZC) total programme CONSUMPTION EMISSIONS 4.9% 6.9% spend to end of 2024 c. £17m (since 2021) o £48m estimated further capex by 2030 • 27 carbon reduction and energy efficiency projects co
Slide 23: Hansaallee, Dusseldorf, Germany
Hansaallee, Dusseldorf, Germany 23 CLS Holdings plc | Full Year Results 2024
Slide 24: Market outlook: UK, Germany, France
United Kingdom Germany France Outlook more positive. Vacancy in The election results and reform of the The supply and demand balance for London and South-East stable at 9.2% debt brake are expected to drive a more offices remains challenging in parts growth-oriented path. Vacancy for the of Paris, w
Slide 25: Focus on reducing vacancy and ERV potential
• Focus on reducing current vacancy; leases signed in 2024 at Artesian and The Coade with more progress expected in 2025 • Indexation also driving rental growth, over 50% of portfolio index-linked which captures higher rents • Near-term upside from works in progress at the Brix, Bismarckstrasse and
Slide 26: Maintaining strong leasing momentum to reduce vacancy
Net initial yield vs. cost of debt • Maintaining strong leasing momentum to reduce Net initial yield Cost of debt Equivalent yield vacancy 5.7% 5.6% • Disciplined execution of property disposals to reduce 3.8% LTV; exchanged or agreed £191m (70% of target announced in March 2024), with a further £13
Slide 27: Rosstrasse, Dusseldorf, Germany
Rosstrasse, Dusseldorf, Germany 27 CLS Holdings plc | Full Year Results 2024
Slide 28: CLS Holdings plc is a property investment company
TOTAL PORTFOLIO VALUE (%) • CLS Holdings plc is a property investment company which has been listed on the London Stock Exchange since 1994 12% 3 COUNTRIES 719 TENANTS • We are a supportive, progressive and sustainably 81 44% focused commercial landlord that specialises in owning and managing office
Slide 29: Awarded Gold in the EPRA Sustainability Best Practices
• Awarded Gold in the EPRA Sustainability Best Practices • UK EPC ratings continue to improve; 56% of the UK Recommendations portfolio is rated EPC A or B (2023: 53%) and we have reduced our EPC D rated buildings by nearly 20% • Maintained our GRESB 4 Stars rating • Fully compliant with 2024 minimum
Slide 30: Movement in property portfolio
Movement in property portfolio1 (£m) 2,062.9 21.1 (67.1) (116.1) 1,850.2 (50.6) As at 31 December Capex Disposals Revaluation Foreign exchange As at 31 December 2023 2024 ¹ Comprises investment property, PPE and properties held for sale 30 CLS Holdings plc | Full Year Results 2024
Slide 31: UK portfolio £807.0m
£807.0m 2 Harrow Uxbridge 4 44% Maidenhead 2 2 Hammersmith 10 Central London Hounslow 2 Bracknell 2 34 Staines 2 New Malden 3 Bromley Wallington 210 Leatherhead Coulsdon 18.5% Reigate Crawley 2 1.8m sq. ft 75.2% 3.5 years 31 CLS Holdings plc | Full Year Results 2024
Slide 32: Germany portfolio £815.7m
Altona Barmbek Wandsbek City Sud St Pauli Hafencity Flughafen £815.7m München Ismaning Unterföhring 3 Harburg Rudesheimer Strasse Locham 44% 2 Martinsried Altstadt Neuperlach 31 Düsseldorf 360 6.7% Herzberge Charlottenburg 3.6m sq. ft Adlershof 56.1% 5.6 years 32 CLS Holdings plc | Full Year Results
Slide 33: France portfolio £227.5m
£227.5m La Garenne-Colombes 2 2 La Défense Rueil-Malmaison Courbevoie 12% 10th Arr. Paris Boulogne-Billancourt 16 2 Malakoff 149 Villeurbanne 8.3% 6th Arr. 0.8m sq. ft Brotteaux Gare de Lyon Part-Dieu 16 62.7% La Part-Dieu 3rd Arr. 5.7 years 33 CLS Holdings plc | Full Year Results 2024
Slide 34: Portfolio summary by country
UK 807.0 (8.3%) 6.1% 6.6% 18.5% 3.5 58.6 50.1 £32.61 Germany 815.7 (3.5%) 4.5% 4.9% 6.7% 5.6 45.5 44.9 €16.23 France 227.5 (3.1%) 5.2% 5.6% 8.3% 5.7 14.9 13.9 €23.68 Total 1,850.2 (5.8%) 5.2% 5.6% 12.7% 4.7 119.0 108.9 £19.48 portfolio 34 CLS Holdings plc | Full Year Results 2024
Slide 35: Forward-looking statements
This document may contain certain ‘forward-looking statements’. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Actual outcomes and results may differ materially from those expressed or implied by such forward-looking s