Hopefully these will bounce off the double bottom:
free stock charts from uk.advfn.com |
ghhghh - they granted themselves massive options a few days ago - no need for them to lay out cash; just con shareholders with free options! |
Surprised zero director buying, implies they are inside on something? |
It's falling now against a stronger sector this week. |
9.2% yield now and a 66% discount to NAV. Certainly a big chunk of the fall is warranted given the significant increase in interest charges and one can't ignore the increasing vacancies in UK which don't seem to being addressed by planned disposals as they largely targeted at Germany. |
Not come across this before:
"(2) PURCHASE NOTICE
If either the local planning authority or the Secretary of State refuses permission to develop
land or grants it subject to conditions, the owner may claim that they can neither put the land
to a reasonably beneficial use in its existing state nor can they render the land capable of a
reasonably beneficial use by the carrying out of any development which has been or would
be permitted. In these circumstances, the owner may serve a purchase notice on the
Council in whose area the land is situated. This notice
will require the Council to purchase their interest in the land in accordance with the
provisions of Part VI of the Town and Country Planning Act 1990." |
See the Decision Notice 21/03/24 |
Any links, strath? and thanks |
9 Prescot Street - Change of use turned down by Tower Hamlets council. |
XD. 5.35p payable 2nd May. |
Agree, surely a tender offer or buyout by the majority shareholder is in the pipeline. |
Seems absolutely no advantage to the family having this listed and trading down at a 60%+ discount.
Buy it in OR sell it on. Then the trustees can diversify instead of having all their cash tied up in office properties. |
@m_kerr some of the vacancy is development but its the metric that i always look for in REITs and for most its pretty fragile then i look at leases on breaks/expires 12mths ahead. Yes there was time where that was seen as a positive on the reversion and probably still is in industrials but not in retail and offices. Even the odd ones who tell you they've let something above ERV fail to declare that the ERV has been hammered down over last few years furthermore you never hear about all the other lets below ERV or done with a hefty rent free period or capex contribution.
At least here there has to be a chance that the family will take it out in the end. |
Noticed Uk vacancy now up to about 16% which is a worry given that these assets nowadays absorb large amounts of capital, not including being on the hook for business rates. |
Happy to sit on it here. You'd struggle to see the catalyst for a rerating atm tho.
Take the yield until things improve. |
Hmm..I had thought this would hold a bit higher until exdiv |
Exactly - it was a 12month decline; not a 6month since Interims. Also the debt is unlike standard UK REITs; it is non-recourse attached to individual properties. Ergo c75 individual lenders, I forget the actual figure but it appears in the stats. |
Not sure why anyine buys IC anymore majority of forecasts are wrong. Yes NAV down butvwas over 12mths but not materially differrent from other pure office plays. A decent rag should really be looking at the share price decline and telling its readers what the rusks or opportunities are. |
..."its growing net debt mountain, which is now larger than its equity value."
But far, far below its GAV. The fact that the debt exceeds the MCap is a total and utter irrelevance; other than to demonstrate just how cheap CLI might well be, trading as it does on a 63% discount to EPRA NAV. |
Would never follow anything Mitchell Labiak proposes. IMO a totally useless property commentator; have always thought so, but now its personal! |
It's a view, but it's about CLI's valuation, not the poor outlook. CLI can hang on until interest rates start to fall, and some other office providers have given up the ghost.
10p EPS and £2 s/p, maybe not. 10p EPS and 93p s/p, much more interesting. |
 dated 7 March 2024, sell, FWIW
===========================================
CLS Holdings' office values continue their freefall
Investors waiting on a recovery in this property equity's fortunes should invest their time and money elsewhere
March 7, 2024
by Mitchell Labiak
Vacancy rate climbing
Earnings and dividend growth look weak
Pretty much any way you look at it, CLS Holdings (CLI) is headed in the wrong direction.
The landlord's portfolio of European office assets outside big city centres is nosediving in value even faster than last year as high interest rates and questions around post-Covid working continue. Its net asset value (NAV) has been slashed by 28.5 per cent from its 327p high point in 2021, while its shares have lost well over two-thirds of their value since a high of 311p in late 2019.
IFRS earnings per share (EPS) do not cover its flat dividend, but adjusted earnings per share (EPS) stripped of valuation changes does. However, that adjusted EPS fell from 11.6p to 10.3 because its net rental income growth failed to offset rising finance costs from its growing net debt mountain, which is now larger than its equity value. This enormous leverage makes it unique in the UK-listed property sector. Not in a good way.
Consensus forecasts are for adjusted EPS to nudge up to 10.6p by 2025 and for the dividend to hit 8.22p, but even this limited growth looks overly bullish. CLS' vacancy rate has climbed to 11 per cent from 7.4 per cent the year before, driven by its empty UK offices, where vacancy climbed from 10 per cent to 15.8 per cent. When there is so much space in your portfolio, it becomes hard to raise rents, something retail landlords know all too well. The discount to NAV might tempt some, but we believe this is a fair reflection of the strong possibility that CLS will need to offload its emptying assets into a depressed market to chip away at its debt. Sell. |
Despite a near doubling of interest charges they can still cover the dividend adequately although the margin is closing as more loans need refi but pretty well done for 2024 so not too much more upside rate exposure. Also mainly Euro denominated loans refi over next few years so with rates there looking like turning very soon should minimise future increases in finance charges. |
Register for real-time alerts, custom portfolio, and market movers
Hot Features
Premium
