CLS (LON:CLI) Issues Earnings Results

CLS (LON:CLI) released its quarterly earnings results on Friday. The company reported GBX (12.60) earnings per share (EPS) for the quarter, Digital Look Earnings reports. CLS had a negative return on equity of 7.34% and a negative net margin of 38.97%.

Here are the key takeaways from CLS’s conference call:

• Signed approximately £70m of leases (highest in seven years) with stronger leasing in H2; vacancy is 14.5% but concentrated in a few assets and management expects it to reduce as pre-lets and targeted lettings convert.
• Refinanced or repaid all of the peak 2025 maturities (~£373–400m) with no change to the average cost of debt (3.8%) and extended average debt maturity to 3.6 years, smoothing the near-term refinancing profile.
• Disposals of £144m in 2025 and planned £100–150m of 2026 sales have reduced net debt by ~£90m, but portfolio valuation falls left LTV at 50%, still above the 35–45% target.
• EPRA EPS fell 17% to 7.6p and EPRA NTA declined 7% to 200.7p; the board maintains a final dividend of 2.7p (total 4p) and offers an enhanced scrip option to preserve capital.
• Management is rebasing the business with stricter capital allocation, lower overall CapEx, a focus on pre-lets/short payback investments, and selective asset conversions (residential, hotel, life science) to drive medium‑term value.

CLS Price Performance

Shares of CLI traded down GBX 6.50 during midday trading on Friday, reaching GBX 52. The stock had a trading volume of 5,456,739 shares, compared to its average volume of 536,860. The company has a debt-to-equity ratio of 121.03, a current ratio of 0.74 and a quick ratio of 0.59. The company has a market capitalization of £207.02 million, a P/E ratio of -3.64 and a beta of 0.92. The firm’s 50 day moving average price is GBX 60.53 and its 200-day moving average price is GBX 59.47. CLS has a 52 week low of GBX 50.78 and a 52 week high of GBX 73.50.

Analyst Upgrades and Downgrades

CLI has been the subject of several research analyst reports. Berenberg Bank upped their price objective on shares of CLS from GBX 70 to GBX 80 and gave the stock a “buy” rating in a report on Monday, January 26th. Peel Hunt reissued a “hold” rating and set a GBX 70 target price on shares of CLS in a research note on Wednesday, December 3rd. One analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of GBX 75.

CLS Company Profile

We are a commercial property investment company with a £2.1bn portfolio listed on the Premium Main Market on the London Stock Exchange, specialising in future-focused office space in the UK, Germany and France. Through geographical diversification, local expertise and an active management approach, we transform office properties into sustainable, modern spaces that help our tenants’ businesses to grow.