CLS (CLI) H2 2011 earnings summary

Executive summary

• Achieved highest total shareholder return in peer group since 2008, with 64.9% over four years and 11.1% in 2011.

• Profit after tax was £38.8m (2010: £60.1m); EPRA earnings per share rose 53% to 64.9p (2010: 42.5p).

• EPRA net asset value increased to 983.1p per share (2010: 952.9p); net assets rose to £367.5m.

• Portfolio value grew to £902.1m, with a like-for-like increase of 2.1% in local currencies.

• Maintained low vacancy rate at 3.9% and strong tenant base, with 40% of income from government tenants.

Financial highlights

• EPRA earnings per share up 53% to 64.9p; basic EPS 82.0p (2010: 127.1p).

• Net assets per share up 7% to 817.5p; net assets up 3% to £367.5m.

• Profit after tax £38.8m (2010: £60.1m); recurring interest cover 2.6x (2010: 3.2x).

• Portfolio value £902.1m, up 2.1% in local currencies; liquid resources £140.4m.

• Proposed shareholder distribution of £7.9m via tender offer buy-back.

Outlook and guidance

• Strong balance sheet and high liquidity position the group to seize future investment opportunities.

• Cautious optimism for continued delivery to shareholders despite macroeconomic uncertainty, especially in the Eurozone.