Commercial landlord CLS fails to keep up with pandemic pre-tax profit
Office space and commercial landlord CLS had its pre-tax profit dwindle over the past year, as it slipped below pandemic earnings.
The London-listed group, which has a portfolio worth around £2.3bn, had its profit before tax dip more than five per cent to £91.5m in the year to 31 December.
The group, operating across UK, Germany and France, has however, rewarded shareholders with a dividends bump.
Dividend per share rose from 7.55p to 7.7p in the 12-month period, after the landlord “faced headwinds from the strengthening of sterling and the impact of pandemic restrictions,” CEO Fredrik Widlund said in a statement.
The pandemic temporarily reduced occupancy levels for the group, and swathes of other office and commercial landlords in the UK, amid work from home measures and businesses falling into administration.
“We have seen significant positive momentum in lettings in recent months and have more than 30 ongoing refurbishment and developments that will drive strong growth going forwards,” the CEO assured investors this morning.
“These results show that our well-located, high quality and flexible offices with great amenities in modern, sustainable buildings are meeting the needs of our customers.”
While the group’s overall rental income of £108m also failed to surpass 2020’s figure, due to redevelopment and leasing expiries and foreign exchange reductions, the group bolstered its portfolio with six fresh acquisitions.
The new properties, bought for £164.8m, consist of one the UK and the rest in Germany.