Cls Holdings Plc · LSE:CLI
Cls — FY2020 Earnings Presentation
35 slides from Cls's earnings presentation, March 2021
Slide 1: Well placed for the future – Full year results 2020
CLS Holdings plc Well placed for the future Full year results 2020
Slide 2: Contents
CLS Holdings plc Full year results 2020 Contents 16 Property Simon Wigzell Head of Group Property 24 Markets & Summary 03 Fredrik Widlund Chief Executive Officer Overview Fredrik Widlund Chief ExecutiveOfficer 08 Financials Andrew Kirkman Chief FinancialOfficer 27 Appendices 2
Slide 3: Overview
CLS Holdings plc Full year results 2020 Overview Fredrik Widlund Chief Executive Officer 3
Slide 4: Strong performance in a challenging market
CLS Holdings plc Full year results 2020 Overview Strong performance in a challenging market Total portfolio • CLS performed well against a challenging market backdrop 14% • High collections and net rental income Up 1.4% in local currency • EPRA NTA up 5.8% to 345.2p (31 Dec 52% 2019: 326.3p) 34% £2.
Slide 5: Strong collections, robust tenant base
CLS Holdings plc Full year results 2020 Overview Strong collections, robust tenant base Tenant industries (% contracted rent) High rent collection underpinned by: • Government and major corporation tenants (over 50% of contracted rent) • Limited exposure to retail, leisure and travel at 4% • Credit
Slide 6: Valuation increase through rental growth
CLS Holdings plc Full year results 2020 Overview Valuation increase through rental growth Valuation movement in local currency UK UK Germany France • Rental growth with ERV up 1.6% • Yields relatively flat 8.2% 3.8% • Total valuation down 2.6%, driven by 6.6% 3.8% 0.3% increased vacancy and recent a
Slide 7: Active portfolio management
CLS Holdings plc Full year results 2020 Overview Active portfolio management 2020 Acquisitions Aberdeen 2020 Disposals 6 properties & floors, £112.8m, NIY 5.9% 6 properties, £63.8m, NIY 4.1%, (6.9% reversionary), contracted rent £6.9m contracted rent £2.5m UK UK • College Road, Harrow • Dallas Court
Slide 8: Financials
CLS Holdings plc Full year results 2020 Financials Andrew Kirkman Chief Financial Officer 8
Slide 9: Resilient performance in a challenging market
CLS Holdings plc Full year results 2020 Financials Resilient performance in a challenging market EPRA EPS (pence) 13.1 12.6 12.3 12.2 EPRA NTA EPRA EPS 12.0 345.2p (31 Dec 2019: 326.3p) 12.2p (31 Dec 2019: 12.0p) Up 1.7% +5.8% +1.7% 2016 2017 2018 2019 2020 Cost of debt (%) 2.91 Cost of debt Weighte
Slide 10: Increase driven by earnings and valuation gains
CLS Holdings plc Full year results 2020 Financials Increase driven by earnings and valuation gains Movement in EPRA NTA (pence per share) 5.8% 10
Slide 11: Increased earnings through cost control and FX
CLS Holdings plc Full year results 2020 Financials Increased earnings through cost control and FX Movement in EPRA EPS (pence per share) 1.7% 11
Slide 12: Strong cash position whilst continuing to invest
CLS Holdings plc Full year results 2020 Financials Strong cash position whilst continuing to invest Movement in liquid resources (£m) 12
Slide 13: Proactive debt management
CLS Holdings plc Full year results 2020 Financials Proactive debt management Financed, refinanced or extended £261.5m debt at 2.08% UK Germany France Total • £154.3m in GBP at 2.62% and £107.2m in EUR at 1.30% Gross debt (£m) 517.3 318.4 141.3 977.0 • £231.3m fixed at 2.16% and £29.2m floating at 1.
Slide 14: Low cost and diversified debt
CLS Holdings plc Full year results 2020 Financials Low cost and diversified debt Interest cover Cost of debt Weighted debt maturity 3.3x 3.9 3.8 2.28% 4.6 years (31 Dec 2019: 2.42%) (31 Dec 2019: 3.5 years) 3.4 3.4 3.3 Number of lenders Balance sheet LTV 2016 2017 2018 2019 2020 26 (31 Dec 2019: 27)
Slide 15: Growth through acquisitions and valuation
CLS Holdings plc Full year results 2020 Financials Growth through acquisitions and valuation Movement in property portfolio¹ (£m) ² ¹Comprises investment property, PPE and properties held for sale 15 ²Includes rent free debtor of £1.9m
Slide 16: Property
CLS Holdings plc Full year results 2020 Property Simon Wigzell Head of Group Property 16
Slide 17: High quality and diversified tenant base
CLS Holdings plc Full year results 2020 Property High quality and diversified tenant base Contracted rent Average rents (£ per sq. ft) Government 18.85 25% 17.97 50% 743 17.00 Other 16.19 Tenants 15.96 25% Major corporations 2016 2017 2018 2019 2020 Top 15 tenants (33% of contracted rent) Property u
Slide 18: Securing income
CLS Holdings plc Full year results 2020 Property Securing income Estimated rental value (ERV) (£m) 116 deals secured £13.6m of annual rent 8.2% above ERV (2019: 158 deals secured £14.7m of annual rent, 3.3% above ERV) Lease extensions Like-for-like ERV 72% New leases 1.9% Vacancy movement (31 Dec 20
Slide 19: Sustainability
CLS Holdings plc Full year results 2020 Property Sustainability Capacity of installed solar PV – (kWp) 440 Renewable / low-carbon electricity Scopes 1, 2 & 3 carbon emissions 283 305 91% Proportion of total Group electricity 6% Absolute reduction in total Group Solar PV capacity 85 104 from renewabl
Slide 20: Generating additional income from existing properties
CLS Holdings plc Full year results 2020 Property Generating additional income from existing properties Technisches Rathaus, Bochum 9 Prescot Street, London Park Avenue, Lyon • Investing £12.0m 2021-2022 • Investing £20.0m capex 2021-2022 • Investing £8.5m capex 2021-2022 • Car park refurbishment • N
Slide 21: Creating new workspaces
CLS Holdings plc Full year results 2020 Property Creating new workspaces Vauxhall Walk, SE11 London Vor Dem Lauch 14, Stuttgart St Cloud Gate, Maidenhead • Planning permission for 28,500 sq. ft • Building permit received for circa • Planning permission for 38,665 sq. ft office development 141,000 sq
Slide 22: Resilient buildings
CLS Holdings plc Full year results 2020 Property 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% 119 Average number of carpark spaces 86% Access to opening windows 9 8 3% 5% 7 18% 6 16% 5 15% 4 20% 70% A
Slide 23: Reimagining the workplace
CLS Holdings plc Full year results 2020 Property Reimagining the workplace Lease flexibility Amenities Rolling break options Creative agile spaces “Office spaces need to maintain flexibility, be innovative and create environments that Lease variations mid term Showers, lockers, gyms people want to w
Slide 24: Markets & Summary
CLS Holdings plc Full year results 2020 Markets & Summary Fredrik Widlund Chief Executive Officer 24
Slide 25: CLS view
CLS Holdings plc Full year results 2020 Markets CLS view United Kingdom Germany France • Long-term fundamentals for London • Resilient economy and political • Large domestic market, impacted less and South East offices remain leadership by global economy attractive • Underlying office market fundame
Slide 26: Well placed for the future
CLS Holdings plc Full year results 2020 Summary Well placed for the future Excess net initial yield over cost of debt • EPRA NTA up 5.8% to 345.2p (31 Dec 2019: 326.3p), driven by earnings and valuation gains / Net initial yield / Cost of debt 8.0% • Valuations up 1.4% in local currency, Germany 7.0
Slide 27: Appendices
CLS Holdings plc Full year results 2020 Appendices 27
Slide 28: Overview
CLS Holdings plc Full year results 2020 Appendices Overview Diversified portfolio • CLS Holdings plc is a FTSE 250 property investment company which has been 14% 3 listed on the London Stock Exchange Countries since 1994 52% • We specialise in owning and managing 26 97 34% Lenders Properties office
Slide 29: EPRA metrics
CLS Holdings plc Full year results 2020 Appendices EPRA metrics EPRA metrics • In October 2019 EPRA published new £m EPRA Net Asset Value metrics to be Basic net assets at 31 December 2020 Goodwill as a result of deferred tax on acquisitions 1,270.6 (1.1) adopted for accounting periods starting Fair
Slide 30: Consistent and strong returns
CLS Holdings plc Full year results 2020 Appendices Consistent and strong returns Total shareholder return Portfolio value (£bn) / CLS / FTSE 350 / FTSE RE SS 700 2.2 2.0 600 1.9 1.8 500 1.6 1.5 1.3 400 1.1 0.9 0.9 300 200 100 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 2012 2013 2014 20
Slide 31: United Kingdom
CLS Holdings plc Full year results 2020 Appendices United Kingdom Number of properties Number of tenants 47 256 Value of properties Lettable space £1,125.7m 2.2m sq. ft Contracted rent Vacancy £57.2m 5.3% UK Properties Government and major Percentage of Group’s property London 35 corporations intere
Slide 32: Germany
CLS Holdings plc Full year results 2020 Appendices Germany German Properties Hamburg 9 Number of properties Number of tenants Munich 7 Stuttgart Berlin Dusseldorf 3 2 2 29 311 Dortmund 2 Cologne 1 Nuremberg 1 Wiesbaden 1 Value of properties Lettable space Bochum 1 29 £747.7m 3.0m sq. ft Contracted r
Slide 33: France
CLS Holdings plc Full year results 2020 Appendices France French Properties Paris 13 Number of properties Number of tenants Lyon 5 Lille 3 21 21 176 Value of properties Lettable space £309.6m 0.9m sq. ft Contracted rent Vacancy £16.0m 5.1% Government and major Percentage of Group’s property corporat
Slide 34: Group statistics
CLS Holdings plc Full year results 2020 Appendices Group statistics At Valuation¹ Valuation EPRA NIY² EPRA ‘topped- Vacancy by Weighted ERV of Contracted Contracted 31 December (£m) increase (local up’ NIY³ rent average lettable space rent rent 2020 currency) unexpired (£m) (£m) (£/sq. ft) lease ter
Slide 35: Disclaimer
CLS Holdings plc Full year results 2020 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 t