FTSE 250 property investment company CLS Holdings PLC (LON:CLI) saw its net asset value (NAV) per share rise 3.3% in the first half of 2018.
At the end of June, NAV per share stood at 260.2p, up from 252p at the end of 2017. Using the European Public Real Estate (EPRA) measurement of NAV, the NAV per share climbed 3% to 294.7p from 286.0p at the end of 2017.
Profit before tax tumbled to £64.9mln in the first half of the year from £119.4mln the year before, when results were flatted by a large gain on the disposal of its Vauxhall Square asset.
Rental income for the six month period of £49.9mln was up on the £45.3mln in the same period of 2017, mainly because of acquisitions.
EPRA earnings per share advanced 15.1% to 6.1p from 5.3p.
Delivering on its strategy
“We have delivered on our strategy of refocusing our portfolio with acquisitions at attractive yields and the disposal of properties which no longer meet our return targets,” said Henry Klotz, the executive chairman of CLS.
“The strength of our results for the first six months of 2018 underlines the benefits of our geographical diversification across Europe's three largest economies: the UK, Germany and France. Over the period, the group has produced underlying earnings and valuation gains across all regions in which we operate, which has resulted in solid growth in NA,” he added.
“We have locally established management teams and are well positioned to enhance and grow our business. With our proven strategy of owning and managing high-yielding office properties across our three core markets, and our progressive dividend policy, I am confident we will continue to deliver value for our shareholders," Klotz said.
Liberum Capital Markets' property team said CLS had delivered good first-half returns, aided by the group's European diversity and income-focused approach.
“H1 [first half] NAV +3% to 295p was in line with our forecast, supported by retained earnings and positive valuation gain across Germany, France and the UK. Progress is starting to be made reducing vacancy on acquired assets and the portfolio continues to be steadily repositioned towards higher growth properties with asset management potential,” said Liberum, which rates the shares a 'buy' and has a target price of 300p for the stock.
CLS shares were up a penny at 236.5p in early deals.