Cls Share Discussion Threads

[contrarian joe] 12/8/2022 17:37

Nickrl,are you saying if the two biggest shareholders participate they will have preferential treatment over smaller shareholders?. Serling/Euro 0.85 looks in a downtrend to 0.83,can make a nice mark on profits,10% increase in divi bringing yield up to around 4% with inflation eroding capital in bank & a 40% discount to boot with a nice looking chart up to 230, "that'll do for me".

[nickrl] 12/8/2022 10:37

Finally got to catch up on CLS H1 results. NTA movement was slightly down but neutralised by a decline in £/E rate giving favourable FX conversion. That rate has part reversed in H2. The 10.6% increase in divi is nice but i guess is partly from REIT conversion so is it a one off. Vacancy has a modest improvement since Q1 and in Q&A they said rather let a property than chase the ERV too much.

They reckon debt renewal will cost them 200bp on recent historic lows but will still leave them below 3% overall cost by end 2023.

Interesting that proportion of indexation of rents in France (100%) in Germany (65%) is much higher than UK (30%) and the mechanism look far more favourable than what we see in UK. Germany has delivered 6.3% on indexed linked rents and 2.8% in France. Although the stellar property is at Spring Gardens in the UK at 10.8% where the rent is linked to RPIX (they weren't well advised!!).

Finally they reckon tender off is far better approach than dabbling in the market for months on buybacks but with two biggest shareholders going to participate isn't much chance of getting much back to really load up.

[skyship] 10/8/2022 10:53

Taken the turn - small, but every 5% adds up!

[sphere25] 10/8/2022 10:08

Picked a few up here.

Trying to play this technical break above both the 50 and 200 day moving average to a possible move toward resistance at 230p. The move early today was indecisive but buyers have appeared now providing support in size at 214p and the intraday chart shows that.

The market just pinged a tad higher on exhausting sellers there so just curious to see if the algos start to jump over the offer to higher levels now. There were blocks of 25k, a 50k and 100k exchanged around 215p with no weakness in price so a possible sign the price might remain strong.

Unless some lazy late seller is to come in (order book is well bid with the offer very thin at present), stick my stop under 214p and see if the momentum can build from here as a short term play.

All imo
DYOR

[its the oxman] 10/8/2022 07:36

Current general market woes seem to be preventing any proper valuation recovery at present , but tender offer highlights how cheap cls really is. Suggests scope for more tender offers to come and scope for a bounce now if some up days return.

[contrarian joe] 10/8/2022 07:01

Was hoping to top up this morning,3% of mkt cap is disappointing,divi increase & future tenders bright spots though!!.

[skyship] 10/8/2022 06:28

Yes 1 for 40 @ 250p. V. disappointed with that; though pleased to read that further tenders will follow.

Pleased that the NAV has held up; and in fact slightly increased to 352.8p.

[rthak] 10/8/2022 06:23

Sorry my fat fingers!

[sammu] 10/8/2022 06:17

1 in every 40 Ordinary Shares, at 250 pence per Ordinary Share.
An "initial" one, so maybe more to come if surplus capital and share price continues to lag.

[rthak] 10/8/2022 06:08

Tender of £25.5m at 260p!

[contrarian joe] 04/8/2022 12:10

Well spotted Stathroyal,they certainly like to keep you on your toes.

[strathroyal] 04/8/2022 09:41

contrarian Joe - RNS said those sales were 3.7% above book so doesn't that suggest these are the same properties? £38.4M x 1.037 = £39.82M

[contrarian joe] 03/8/2022 20:49

Last financials stated £38.4m disposals to be completed q1 2022,then latest disposals £39.8m= £78.2m,i stand corrected if I've misread.

[skyship] 03/8/2022 15:54

As posted earlier, I'm more optimistic on the Tender front.

They've always run quite a high LTV, but that 38% is at a rate of just 2.28%. So why not!

[essentialinvestor] 03/8/2022 15:48

* my understanding is pressure from some institutional investors
who wanted dividend income. It has definitely crimped NAV performance.

Nice close.

[strathroyal] 03/8/2022 15:39

EI - Do you happen to know why thy stopped regular tenders as I agree that it did seem to benefit share price/ shareholders considerably?

They have now raised £50M+ from property sales over the last few months. Depending on the tender price (250?), they can tender for around 20 -25M shares. TVR are 407M so anticipating around 1 in 20. If I was a long term holder I would probably be interested at that with a view to buying back those tendered after the price drops back, but generally I like to sell my holding when tenders happen so, for me, remains one to leave.

[essentialinvestor] 03/8/2022 08:45

Although demand patterns may change the death of the office looks overstated,
Google just the latest company to complain about recent falls in worker productivity.

[sammu] 03/8/2022 08:21

I think they used to do them at the useful premium to the current share price but not anywhere near NAV.

[sammu] 03/8/2022 08:20

These sales will help fund the tender which maybe Something like 1 for 13

[essentialinvestor] 03/8/2022 06:41

They created huge value through regular tender offers which helped drive exceptional performance before switching to focus on divi payments.

[strathroyal] 02/8/2022 15:43

Re my previous post, and to offer a more balanced view, I would add that they did a far larger buyback in 2008 as a 2 for 9, at that time their cash balances were around £200M, market cap £192M and the tender cost £48M.

[strathroyal] 01/8/2022 17:41

Personally not getting involved here as CLS undertook regular small tenders a few years back (03/14 1 in 66, cost £10M; 08/15 1 in 162, cost £5.7M) so buying and holding may pay off if they are returning to regular tenders.

Not expecting this particular tender to be for a large amount as my reading of that RNS was that the size depends on the level of property sales (generally selling off their smaller properties) but only aware of the 2 sales mentioned in the annual report (£10.1M).

Wouldn't argue however that the shares appear cheap.

[nickrl] 01/8/2022 13:34

Sky will they really try and buy back that close to par. Would have thought they would just let current holders indicate what they are prepared to sell for so they can hoover up as many shares as possible.

[skyship] 01/8/2022 12:58

As per RNS of 11th May:

"The quantum of any tender offer will be scaled to ensure the Group's loan-to-value is still within an acceptable level by the year-end."

Hopefully they will keep it simple - unlike the appalling Tender made by CNE 3 months ago.

They already operate on quite a high LTV compared to wholly UK REITs. So I suspect no more than a 15% Tender - perhaps at c320p.