CLS (CLI) H1 2026 earnings summary

Executive summary

• Near-term earnings are under pressure due to property disposals exceeding GBP 200 million since 2025 and slower-than-expected leasing activity, with updated guidance reflecting these challenges.

• No interim dividend will be paid; a single final dividend will be considered based on full-year earnings and leverage reduction progress.

• Strategic focus on reducing vacancy, executing property sales to lower leverage, completing refinancing, and investing in value-enhancing projects.

• Vacancy rate stable at 14.5% as of 30 June 2026, with strong leasing activity in France and steady performance in the UK and Germany.

• Over GBP 113 million of debt refinanced or repaid in H1 2026; 89% of 2026 maturities completed, credit approved, or agreed.

Financial highlights

• EPRA earnings per share fell 32.5% year-over-year to GBP 0.027 (2.7p), reflecting the impact of disposals.

• EPRA NTA per share declined 11.5% to GBP 1.777 (177.7p), mainly due to a 4.6% portfolio valuation drop and dividend payment.

• Net rental income declined 13.1% year-over-year to GBP 46.3 million, mainly due to disposals and tenant departures.

• Cash and cash equivalents plus undrawn facilities stood at GBP 79.4 million as of June 30, with undrawn facilities of GBP 44.1 million.

• Total property portfolio valued at GBP 1.6 billion, down from GBP 1.7 billion at year-end 2025, reflecting disposals and a 4.6% decline in value.

Outlook and guidance

• 2026 full-year EPRA earnings expected in the range of GBP 0.046–GBP 0.055 (4.6–5.5p) per share.

• On track to deliver GBP 100 million of property sales for the year, supporting leverage reduction.

• Leasing pipeline for H2 is encouraging, with GBP 1.9 million of leases signed in July.

• Focus on capturing vacancy to increase rental income, with 30% of vacancy concentrated in three buildings.

• Medium-term opportunities include Central London developments and conversions in the UK and Berlin.