FTSE investor CLS Holdings strikes confident tone as occupancy rates improve

Commercial investor CLS Holdings posted a fall in vacancy rates this morning, striking an upbeat tone in the wake of new leases and lower debt costs.

The FTSE 250 firm said that the vacancy rate across its markets fell from 5.7 per cent to 4.3 per cent during the trading period between July and November.

Shares edged up one per cent in morning trading, hitting 203p.

Nearly 500,000 square feet of space was leased out during the company’s third quarter, including 23,000 sq ft to office space provider IWG in Bromley.

Boss Fredik Widlund said: “In the second half of 2018 we have seen a robust performance across each of our markets in the UK, Germany and France.”

He added: “We remain confident that our results will be in line with market expectations for the full year, notwithstanding the current political and economic uncertainties. Our cost of debt is at a historical low, we have a strong balance sheet with substantial liquid resources and are well positioned to take advantage of opportunities as they arise.”

CLS, which is valued at roughly £820m, has just over half its portfolio in the UK and a further 32 per cent and 16 per cent in Germany and France respectively.