CLS (LON:CLI) Announces Earnings Results

CLS (LON:CLI) announced its 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 Trading Down 11.1%

CLI opened at GBX 52 on Friday. The stock has a market capitalization of £207.02 million, a price-to-earnings ratio of -3.64 and a beta of 0.92. The company has a quick ratio of 0.59, a current ratio of 0.74 and a debt-to-equity ratio of 121.03. CLS has a twelve month low of GBX 50.78 and a twelve month high of GBX 73.50. The company has a 50-day simple moving average of GBX 60.36 and a 200 day simple moving average of GBX 59.38.

Analysts Set New Price Targets

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