Cls Share Discussion Threads

[bigbertie] 16/3/2022 10:59

Yes results look excellent given Covid problems, their strategy still looks appropriate and they are still at a surprisingly big discount to NAV. I hope to see some further re-rating in next few days.

[its the oxman] 16/3/2022 08:29

Decent results today. Just massively out of favour.

[essentialinvestor] 10/3/2022 17:22

2 UK assets marked for sale as granted permission for residential developments.

More of that to come?.


Nick. most things have a price?. Question is does the NAV discount allow for this,
although I can't answer that, can say it now appears to discount a lot of bad news.

[ghhghh] 10/3/2022 16:12

I’ve been buying heavily since discount to NAV over 45% and Russia aside, set to increase. Director dealing and recent RNS were positive insomuch as Company still acquiring, hence no liquidity or valuation concerns.

My guess is that Putin now wants a deal and is ruthlessly destroying Ukraine to force concessions. Hence we may get a deal in the near future with Germany benefiting more than most.

The mid term fall out is the big unknown, however that 45% discount covers a lot of bad news.

Also been buying cashed up house builders at 15 months lows and Redrow, Crest trading at discounts to NAV, despite buoyant current trading. Vistry’s CEO told an analyst that his shares ridiculously cheap baring all out war!

[nickrl] 09/3/2022 21:58

EI the big German element could act as a negative pull given Germany has most to do to divest itself off Russian Oil&Gas which is bound to see Germany lose out on trade with Russia so a recessions seems all but inevitable. Positive pull from UK especially as its going to put that part into a REIT maybe offsets that to a degree.

[essentialinvestor] 09/3/2022 15:23

Thanks for that, cautious on wider equity markets atm, but as an extreme contra
sentiment idea I've bought a very small amount.

[strathroyal] 09/3/2022 15:13

Results due next Wednesday

[strathroyal] 09/3/2022 12:21

EI - Yes, dipped in twice today at around £1.90.

[essentialinvestor] 09/3/2022 10:28

Anyone feeling brave?, tempted.

[skyship] 04/3/2022 20:57

# Germany - bad
# Euro - bad
# Offices - bad

44% discount - suggests oversold and a possible trade.

Family must be hoping that a white knight appears - time for Private Equity to take advantage of distressed circumstances and a possible willing seller of a 45% stake.

[nickrl] 04/3/2022 19:19

discount now 45% and yield above 4%.

OK Germany probably has much to lose from sanctions here that will seriously damage its GDP so a recession likely but this looks like a possible entry point but taking my lead from specto thought it was unwise to load up before the weekend!

[nickrl] 24/2/2022 22:46

Huge my sentiment as well but a 40% discount feels like i should dabble. Divi is 3.8% by my calculation and is well covered so could easily get above 4% at next results.

[hugepants] 24/2/2022 22:21

nick The discount is great but its the low 3.5% yield puts me right off. If buying an office reit at the moment I'd be wanting an above average yield to offset the poor outlook for this sector.

[nickrl] 24/2/2022 21:53

OK Germany maybe a lot nearer than us to but discount now at over 40% on my calculation.

[shieldbug] 10/2/2022 10:45

So with this new UK REIT status, they get a tax break, they have to return a % of UK income to shareholders but all of the income from France and Germany can be used for funding growth. Interesting.

[playful] 10/1/2022 10:04

It is so cheap could not resist a smigen more.

[steve3sandal] 01/1/2022 19:15

Well, I missed the recent bottom but was windy about the new variant and potential impact on office life. I just took a c1% of my portfolio position at 217.7p. Can't complain as I nearly paid 20p more last April when the relative CLI cheapness was flagged by Skyship. 35% discount, next generation majority shareholder, partial REIT conversion should juice the dividend, lots of management levers seem to be connected to improving returns. Tick, tick, tick.I did hold and sold c20 years ago and I recall there was a 10 for 1 or similar so I'll be sure to hodl this time.

[george stobbart] 29/12/2021 13:36

UK REIT Conversion to add 4.5p to NAV which is currently at ~343p

[playful] 29/12/2021 13:32

UK REIT status confirmed.

[nickrl] 21/12/2021 18:46

CEO has stuck is hand in his pocket and purchased 49,801 @ 207p yesterday. Knows when its at a good price.

[cwa1] 16/12/2021 08:39

Solid enough news this morning:-

CLS Holdings plc ("CLS" or the "Group")

CLS leases 91,865 sq. ft (8,535 sqm) across five new leases in Germany

CLS announces that it has secured five significant leases in the last three weeks across Germany, amounting to 91,865 sq. ft (8,535 sqm), in Cologne, Essen, Berlin and Munich.

[nickrl] 13/12/2021 10:30

In my limited contact with family, friends and former work colleagues, who were largely office based staff, there largely being told that they will have more flexibility over not having to work all week but none have said their employees will just have them wfh. Of course how an employer sizes space needs im not sure. My former employer went down hot desking policy and created a lot of animosity amongst staff and unnecessary tension in the office but might work if there was less frequent visits.

Im inclined to support the theory that there will be some fallout from this but conversely businesses are also on the hunt for good ESG offices as well so the likes of CLS will be more insulated in the long run.

Anyhow as its dropped back looking like an opportunity for a nibble.

[skyship] 13/12/2021 09:41

Fidelity’s Alex Wright: making money out of turnaround stories
Alex Wright explains how he achieves a 60 per cent success rate by backing turnaround stories
December 10, 2021 – IC Online - Mary McDougall

“2021 has offered some reprieve for UK value investors, who have been operating in the unloved areas of an unloved market for much of the past decade. This has led to Fidelity Special Values (FSV) having the best net asset value (NAV) performance in Winterflood’s UK All Companies sector for the 12 months to 8 December and its shares trading at a premium of 2 per cent to NAV.”

Etcetcetc….then this:

The biggest pandemic era sale has been CLS (CLI), which has delivered a return of about 70 per cent over the past five years. Wright thinks its business model of being an office landlord faces structural challenges, given that more people will choose to work from home. “We've made a point of talking to all the companies we invest in, probably over 250 to 300 meetings over the last 18 months,” Wright says. “And every company, without exception, says they're going to need less office space, they're just not sure how much less.”

[ptolemy] 01/12/2021 13:52

Sky,
Appreciated! I hold AIRE and will take a closer look at the others.

[skyship] 01/12/2021 07:19

P - Dropped into the SHA thread this morning. The thread starts where I last finished; so saw this from you on 9th Nov.:

"Sky, Whilst you're looking in could I ask: If I wish to hold a single PropCo for the next 5-years which PropCo in your view combines the highest quality assets (residential, retail or specialist) with long, inflation protected leases."

VERY difficult question, especially for me as my time horizon is so different.

Firstly, from the outset, I wouldn't plump for one. Split your proposed sector allocation across 3 contenders.

As I have frequently posted, I wouldn't go for any propco trading at or near premium NAV; so that rules out quite a few.

Also I wouldn't opt for any specialists as fashions / circumstances change. So go for generalist players.

On balance for me: AIRE, SLI & SREI.

Perhaps pose the same question on the CP+ thread - would be interesting to read the responses.