CLS Holdings plc ("CLS", the "Company" or the "Group") Announces its Full Year Financial Report for the 12 Months to 31 December 2016

Strong Results in an Uncertain Market

PR Newswire

LONDON, March 08, 2017

LONDON, March 08, 2017 /PRNewswire/ --

CLS is a FTSE 250 property investment company with a £1.57bn portfolio in the UK, Germany and France offering geographical diversification with local presence and knowledge.

FINANCIAL HIGHLIGHTS

• EPRA net assets per share: up 17.9% to 2,456 pence (2015: 2,083 pence)
• Basic NAV per share increased by 18.8% to 2,151 pence (2015: 1,810 pence)
• EPRA earnings per share up 45.2% to 123.0 pence (2015: 84.7 pence)
• Net rents rose by 8.2% for the year to £107.1 million (2015: £99.0 million)
• Profit after tax of £97.8 million (2015: £129.9 million) included a property revaluation uplift of £36.1 million (2015: £98.0 million)
• Increase in distributions to shareholders of 23% for the full year, with a proposed final dividend of 40 pence per share which will be paid on 28 April 2017 to shareholders on the register at 17 March 2017

OPERATIONAL HIGHLIGHTS

Investment Property Portfolio:

• 634,349 sq ft (58,933 sqm) of new lettings and lease renewals and 639,225 sq ft (59,386 sqm) of expiries
• Vacancy rate reduced to lowest ever of 2.9% (2015: 3.1%)
• 4 properties acquired for £45.7 million at an average net initial yield of 6.9%
• 4 properties sold for £85.5 million at an average net initial yield of 5.6%
• 5 further acquisitions since the year end for £31.4 million and at a net initial field of 8.0%

Developments:

• Obtained enhanced planning consent on Vauxhall Square, SW8, and began demolition of Wendle Court
• Began development of Phase 2 of Spring Mews, SE11 and progressed Ateliers Victoires in Paris

Financing:

• 14 new loans or refinancings completed with a value of £177 million and at an average all-in annual rate of 1.90%
• Repositioned the loan portfolio to 63% at fixed rates (2015: 51%)
• Reduced the weighted average cost of debt by 49 bps to 2.91%, our lowest ever (2015: 3.40%), 270 bps below our net initial yield of 5.6%

Henry Klotz, Executive Chairman of CLS, commented:

"Our record results illustrate the benefits of our diversified business: investing in high-yielding properties in major cities across our core markets, with a broad tenant base and diversified sources of funding.
In changing to paying a progressive dividend, we intend to offer a more attractive investment proposition for shareholders, to improve liquidity in the Group's shares and broaden our shareholder base.
With our proven and successful business model, a strong balance sheet and ample liquid resources, we are well positioned to benefit from any challenges and opportunities which lie ahead."

CLS will be presenting to analysts at 9.00am on Wednesday, 8 March 2017, at Smithfield Consultants, 10 Aldersgate Street, London, EC1A 4HJ.

Conference call dial-in numbers as follows:

Participant telephone number: [phone]
Confirmation code: 4959351

Please dial in at least 5 minutes prior to the start of the meeting and quote the above confirmation code when prompted.

An interview with Fredrik Widlund, CEO, looking at CLS's performance and strategy can be found here:

For further information, please contact:

CLS Holdings plc
[phone]
www.clsholdings.com
Henry Klotz, Executive Chairman
Fredrik Widlund, Chief Executive Officer
John Whiteley, Chief Financial Officer
Sten Mortstedt, Executive Director

Liberum Capital Limited
[phone]
Richard Crawley
Jamie Richards

Panmure Gordon (UK) Limited
[phone]
Dominic Morley
Andrew Potts

Elm Square Advisers Limited
[phone]
Jonathan Gray

Smithfield Consultants (Financial PR)
[phone]
Alex Simmons