CLS (CLI) H1 2026 earnings summary

Executive summary

• Near-term earnings are under pressure due to over £200 million of property disposals since 2025 and slower-than-expected leasing activity, with updated guidance reflecting these challenges.

• No interim dividend will be paid; a single final dividend will be considered based on full-year earnings and leverage reduction progress.

• Strategic focus remains on reducing vacancy, executing asset sales to lower leverage, completing refinancing of debt maturities, and investing in portfolio improvements.

• Vacancy rate stable at 14.5% as of 30 June 2026, with strong leasing activity in France and steady performance in the UK and Germany.

• Over £56.8 million of asset sales completed in H1 2026, with further disposals exchanged for H2 at book value.

Financial highlights

• EPRA earnings per share fell 32.5% year-over-year to 2.7p, mainly due to disposals and tenant departures.

• EPRA NTA per share declined 11.5% to 177.7p, reflecting a 4.6% portfolio valuation drop and dividend payment.

• Net rental income declined 13.1% year-over-year to £46.3 million, driven by lease expiries, property sales, and tenant departures.

• Loan-to-value (LTV) ratio increased to 51.6%, above the 35%-45% target, due to valuation declines.

• Total property portfolio valued at £1.6 billion, down from £1.7 billion at year-end 2025, reflecting disposals and a 4.6% decline in value.

Outlook and guidance

• Full-year 2026 EPRA EPS expected in the range of 4.6–5.5p per share, reflecting pressure from asset sales and major tenant departure.

• Targeting around £100 million of disposals for 2026; £75.7 million completed or exchanged to date.

• Leasing pipeline for H2 is encouraging, with £1.9 million of leases signed in July.

• Focus on capturing vacancy to increase rental income, with 30% of vacancy concentrated in three buildings.

• Medium-term opportunities include Central London developments and conversions in the UK and Berlin.