Cls Holdings Plc · LSE:CLI
Cls — H1 2021 Earnings Presentation
36 slides from Cls's earnings presentation, Aug 11, 2021
Slide 1: Well placed for the future – H1 2021 results
CLS Holdings plc Well placed for the future H1 2021 results
Slide 2: Contents
CLS Holdings plc H1 2021 results Contents 16 Portfolio, Markets & Outlook Fredrik Widlund Chief ExecutiveOfficer 03 Overview Fredrik Widlund Chief Executive Officer 07 Financials & Occupiers Andrew Kirkman 25 Chief Financial Officer Appendices 2
Slide 3: Overview
CLS Holdings plc H1 2021 results Overview Fredrik Widlund Chief Executive Officer Hansaallee, Düsseldorf 3
Slide 4: First half 2021 results shaped by the pandemic
CLS Holdings plc H1 2021 results Overview First half 2021 results shaped by the pandemic Total portfolio • High collection rate of 99% and cash from diversified, high quality tenant base 13% • Net rental income impacted by vacancy and FX, 49% Portfolio increased to £2.3bn resulting in EPRA EPS down
Slide 5: Like-for-like valuation up 0.2%
CLS Holdings plc H1 2021 results Overview Like-for-like valuation up 0.2% Total valuation movement in local currency UK 3.7% • ERV increased 0.3% 3.0% 1.4% 3.8% • NIY down 21 bps to 5.0% 3.8% 0.3% • Total valuation down 0.6%, driven by increased 9.3% 8.4% 8.6% 0.0% vacancy 0.7% 0.5% Germany -0.3% -2
Slide 6: Active portfolio management
CLS Holdings plc H1 2021 results Overview Active portfolio management Acquisitions Aberdeen Disposals 6 properties, £164.8m, NIY 3.9% 4 properties, £15.5m, NIY 5.5%, (6.1% reversionary), contracted contracted rent £1.1m rent £7.1m UK UK • Atholl House, Aberdeen(S) • Radius House, Watford • Quest Hou
Slide 7: Financials & Occupiers
CLS Holdings plc H1 2021 results Financials & Occupiers Andrew Kirkman Chief Financial Officer 7
Slide 8: 2021 performance impacted by FX and lower occupancy
CLS Holdings plc H1 2021 results Financials 2021 performance impacted by FX and lower occupancy EPRA EPS (pence) EPRA NTA EPRA EPS 12.6 13.1 12.0 12.2 337.2p (31 Dec 2020: 345.2p) 5.4p (30 Jun 2020: 7.0p) Down 22.9% 5.4 -2.3% -22.9% 2017 2018 2019 2020 H1 2021 Cost of debt (%) 2.51 2.43 2.42 Cost of
Slide 9: Decrease driven by the strengthening of sterling
CLS Holdings plc H1 2021 results Financials Decrease driven by the strengthening of sterling Movement in EPRA NTA (pence per share) 9
Slide 10: Stable performance impacted by FX
CLS Holdings plc H1 2021 results Financials Stable performance impacted by FX Movement in EPRA EPS (pence per share) 10
Slide 11: Strong cash position whilst continuing to invest
CLS Holdings plc H1 2021 results Financials Strong cash position whilst continuing to invest Movement in liquid resources (£m) 11
Slide 12: Sustainable debt management
CLS Holdings plc H1 2021 results Financials Sustainable debt management Financed or refinanced £143.6m of debt fixed at 1.76% UK Germany France Total • £61.7m in GBP at 2.65% and £81.9m in EUR at 1.10% Drawn debt (£m) 543.7 383.9 129.6 1,057.2 • Portfolio has 86% fixed and 14% floating debt Number o
Slide 13: Growth through acquisitions and investment
CLS Holdings plc H1 2021 results Financials Growth through acquisitions and investment Movement in property portfolio¹ (£m) ² ¹Comprises investment property, PPE and properties held for sale 13 ²Includes movement in rent free debtor of £0.8m and depreciation of £0.1m
Slide 14: High quality and diversified tenant base
CLS Holdings plc H1 2021 results Occupiers High quality and diversified tenant base Rent collection statistics Contracted rent Business Segment H1 2021 Q3 2021¹ Government 24% UK 98% 96% Germany 99% 99% Other 49% 785 Tenants France 98% 99% 27% Group 99% 97% Major corporations ¹Adjusted for tenants o
Slide 15: Securing income
CLS Holdings plc H1 2021 results Occupiers Securing income Estimated rental value (ERV) (£m) 53 deals secured £5.2m of annual rent 3.4% below ERV (30 Jun 2020: 52 deals secured £7.8m of annual rent, 4.0% above ERV) Lease extensions 59% Like-for-like ERV New leases -0.2% Average rents (£ per sq. ft)
Slide 16: Portfolio
CLS Holdings plc H1 2021 results Portfolio Fredrik Widlund Chief Executive Officer Lichthof development, Stuttgart (CGI) 16
Slide 17: Focus on office occupancy
CLS Holdings plc H1 2021 results Portfolio Focus on office occupancy • Most of our office tenants have continued to Historical vacancy¹ successfully operate and pay the rent Acquired vacancy 7.7% • The vacancy increase is driven by acquisitions 5.7% 5.1% in Germany and slower take-up in the UK 3.7%
Slide 18: Generating future income from major projects
CLS Holdings plc H1 2021 results Portfolio Generating future income from major projects 9 Prescot Street, London Vauxhall Walk, London Vor Dem Lauch 14, “Lichtof” Stuttgart • Investing £22.0m capex 2021-2023 • Planning permission for 28,500 sq. ft • Building permit received for circa office developm
Slide 19: Student and Hotel starting to rebound
CLS Holdings plc H1 2021 results Portfolio Student and Hotel starting to rebound • Vauxhall student accommodation and long-stay Student accommodation occupancy¹ hotel operated under management agreements 100% 100% 100% as part of mixed use scheme 85% • Bookings increasing rapidly from Q2 for 46% 202
Slide 20: Sustainability 2021 progress to date
CLS Holdings plc H1 2021 results Portfolio Sustainability 2021 progress to date Capacity of installed solar PV – (kWp) Publish our Net Zero Carbon 653 A positive strategy aligned to a science- environmental based carbon reduction target Solar PV capacity impact COMPLETE 48% 2016 2017 2018 2019 2020
Slide 21: Estimated capital expenditure
CLS Holdings plc H1 2021 results Portfolio Estimated capital expenditure Annual capex (£m) 80 76 70 66 “Our Net Zero Carbon 60 Pathway includes £58m of capital commitment 50 until 2030” 48 40 36 36 32 30 23 22 21 20 10 0 2016 2017 2018 2019 2020 2021 2022 2023 2024 Maintenance Major refurbishments/d
Slide 22: Markets & Outlook
CLS Holdings plc H1 2021 results Markets & Outlook Fredrik Widlund Chief Executive Officer FleXion, Berlin 22
Slide 23: CLS view
CLS Holdings plc H1 2021 results Markets CLS view United Kingdom Germany France • Confidence and deal activity returning • Supported by favourable supply and • Paris CBD and Lyon strong, suburban as economic activity resumes demand dynamics, vacancy in top 7 Paris challenging with supply cities arou
Slide 24: Well placed for the future
CLS Holdings plc H1 2021 results Outlook Well placed for the future • Leasing activity and enquiries improving as Excess net initial yield over cost of debt economic activity resumes, 50% of German vacancy in advanced negotiations / Net initial yield / Cost of debt 8.0% • Recent acquisitions in Germ
Slide 25: Appendices
CLS Holdings plc H1 2021 results Appendices Rhône-Alpes, Lyon 25
Slide 26: Overview – Diversified portfolio
CLS Holdings plc H1 2021 results Appendices Overview Diversified portfolio • CLS Holdings plc is a FTSE 250 property investment company which has been listed on 13% 3 the London Stock Exchange since 1994 Countries 49% • We specialise in owning and managing office 25 Lenders 98 Properties 38% buildin
Slide 27: Consistent and strong returns
CLS Holdings plc H1 2021 results Appendices Consistent and strong returns Total shareholder return Portfolio value (£bn) / CLS / FTSE 350 / FTSE RE SS 700 2.3 2.2 2.0 600 1.9 1.8 500 1.5 1.6 400 1.3 1.1 300 0.9 200 100 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 H1 2021 EPRA NAV (pence) Distribut
Slide 28: Extract from CLS Sustainability strategy
CLS Holdings plc H1 2021 results Appendices Extract from CLS Sustainability strategy 28
Slide 29: Extract from CLS Sustainability strategy – Net Zero Carbon
CLS Holdings plc H1 2021 results Appendices Extract from CLS Sustainability strategy – Net Zero Carbon 29
Slide 30: Base Offices
CLS Holdings plc H1 2021 results Appendices Base Offices Our flexible solution • Flexible office space allowing businesses to scale up or down by offering managed space • Plug and play, all inclusive modern office space in larger multi-let CLS buildings • +3 month to 3-year leases at 25-50% premium
Slide 31: Resilient buildings
CLS Holdings plc H1 2021 results Appendices Resilient buildings Number of floors in CLS buildings 6 76% 18 1% 16 3% Average number of floors Access to cycle storage 15 1% 12 2% 11 1% 10 2% 120 Average number of carpark spaces 87% Access to opening windows 9 8 4% 4% 7 16% 6 18% 5 16% 4 19% 71% Access
Slide 32: United Kingdom
CLS Holdings plc H1 2021 results Appendices United Kingdom Number of properties Number of tenants 45 243 Value of properties Lettable space £1,143.1m 2.1m sq. ft Contracted rent Vacancy £55.8m 7.3% UK Properties Government and major Percentage of Group’s property London 34 corporations interest Sout
Slide 33: Germany
CLS Holdings plc H1 2021 results Appendices Germany German Properties Hamburg 9 Number of properties Number of tenants Munich 7 Berlin Stuttgart Dusseldorf 4 3 3 33 369 Dortmund 2 Cologne 1 Nuremberg 1 Wiesbaden 1 Value of properties Lettable space Essen 1 Bochum 1 33 £880.2m 3.6m sq. ft Contracted
Slide 34: France
CLS Holdings plc H1 2021 results Appendices France French Properties Paris 12 Number of properties Number of tenants Lyon 5 Lille 3 20 20 173 Value of properties Lettable space £294.3m 0.8m sq. ft Contracted rent Vacancy £14.4m 4.0% Government and major Percentage of Group’s property corporations in
Slide 35: Group statistics
CLS Holdings plc H1 2021 results Appendices Group statistics At 30 June Valuation¹ Valuation EPRA NIY² EPRA ‘topped- EPRA Weighted ERV of Contracted Contracted 2021 (£m) increase (local up’ NIY³ vacancy average lettable space rent rent currency) unexpired (£m) (£m) (£/sq. ft) lease term (years) UK 1
Slide 36: Disclaimer
CLS Holdings plc H1 2021 results Disclaimer 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 ex