CLS (CLI) Trading Update summary

Operational performance

• Secured 81 leasing deals in the first nine months, generating £10.1 million annual rent at 5.5% above ERV, with 23 deals in Q3 alone at 4.8% above ERV and over 50% higher rent than last year.

• High occupancy in student and hotel accommodation, with student units fully let and hotel achieving record revenues.

• Vacancy rate fell to 10.5% (excluding refurbishments/disposals), but total vacancy rose slightly to 13.3% due to completed refurbishments and slower lettings.

• Two-thirds of vacant space is EPC A or B, positioning for future lettings.

Financial and capital management

• Disposals progressing: preferred bidder for Spring Mews student property, further UK disposals agreed (£16.6m), and two German properties for sale (£50.5m combined).

• Pro-forma LTV could fall to 44.6% if all disposals complete, from 49.6% at 30 September.

• Cash exceeds £62 million, with £50 million undrawn RCFs and a £10 million overdraft.

• Average cost of debt reduced to 3.75%, with 84% of debt fixed or capped.

• 2024 refinancing nearly complete; 2025 refinancing underway with £161 million provisionally agreed.

Rent collection and leasing trends

• 96% of Q4 contractual rents and 99% of rents for the first three quarters collected.

• Index-linked lease increases: 3.9% in Germany, 5.0% in France, 2.6% at Spring Gardens (UK).

• Lease renewals for the period were 1.4% below previously contracted rent.