Cls Share Discussion Threads

[ghhghh] 15/10/2022 16:04

If there were any solvency issues the directors would not have bought £600K of shares this last few weeks?

Also what discount to NAV are Euro property companies trading at? Bearing in mind 10 year Euro gilts are half UK.

[nickrl] 14/10/2022 23:26

Looking at H1 results they have 186m to refinance over the next 12mths although they did have 110m of cash on the books but some of thats gone on the tender offer.

[skyship] 13/10/2022 16:16

Hmmm - pretty small transaction though BT. They need to be selling 20% of the portfolio to bring the LTV down to sensible levels!

[badtime] 13/10/2022 14:09

..and still they slide

[cwa1] 13/10/2022 07:28

13 October 2022

PRESS RELEASE

Release date: 13 October 2022
Embargoed until: 07:00 am
CLS Holdings plc ("CLS" or the "Group")

CLS announces the sale of Sentinel House for GBP7.0 million, 4.5% above valuation

CLS announces that it has simultaneously exchanged and completed on the sale of Sentinel House in Coulsdon, Greater London, for GBP7.0 million excluding costs.

Sentinel House was acquired by CLS in 2012 and consists of 3,211 sqm (36,711 sq. ft) of office space over 3 floors with ancillary car parking. Throughout our ownership the asset has been let on an FRI basis to IHS Global Limited which will expire at the end of 2022.

The sale, at a price 4.5% above the 30 June 2022 valuation, allows CLS to crystallise the returns on the asset while releasing capital to strengthen its liquid resources.

Fredrik Widlund, Chief Executive Officer of CLS, commented:

"The sale of Sentinel House is in line with CLS' asset management strategy and secures a significant return on the asset, capturing value for investors while increasing financial flexibility for the Group. The Group remains convinced of the attractions of well-located, high-quality offices in non-prime locations whilst continually assessing whether to hold or sell properties in-line with CLS' business model."

[ghhghh] 12/10/2022 22:32

EI

It’s still a vote of confidence, must be getting on for £600K!

nick

But valuations are a function of gilt yields, German and French investments won’t be taking the same hit? 10 yr is 4.5% UK, 2.4% Eurozone.

Italy is 4.8%!

[nickrl] 12/10/2022 20:51

@ghhghh fair viewpoint but Germany has a more adverse economic output than we do, well did before the Truss/Kwarteng duo got to work, although the german side did secure some very low rate loans for its recent purchases so reasonably well protected. Current half will benefit from pound drop but could easily snap back or increase if BoE go large at next rate rise means the Euro element has a degree of variability over it.

[essentialinvestor] 12/10/2022 20:13

Not sure that's a valid observation as the buys are fractions of the shares they
recently tendered?.

[ghhghh] 12/10/2022 20:11

To what extent does CLS’s 50% euro exposure cushion it from UK gilts fall out? Euro looks a basket case but at least 10 year nearly half the UK?

Only REIT with heavy director buying. Bit of buying in Derwent yesterday

[bigbertie1] 12/10/2022 19:51

From the Times 11 OCT.
"More than £100m was withdrawn from UK property funds tracked by Calastone.....in the ten days after the chancellor's mini-budget...."
The funds must have been big sellers of property stocks - probably including CLS?
Hopefully this will end now, leading to a rebound to a more realistic level

[cwa1] 12/10/2022 17:25

The Company announces that it was notified on 11 October 2022 that Lennart
Sten, Non-Executive Chairman of the Company, purchased 28,000 ordinary shares
of 2.5 pence each in the Company ("Ordinary Shares") at a price of 137.8 pence
per Ordinary Share on 11 October 2022.

[cwa1] 11/10/2022 17:21

Director share purchase:-

[strathroyal] 11/10/2022 12:48

Decided to catch a falling knife!

[nickrl] 06/10/2022 21:56

Nice to see some of the directors recycling their cash from the tender offer.

[ammons] 06/10/2022 21:43

Some serious director buying going on here. After hours RNS today.

"The Company announces that it was notified on 5 October 2022 that Bengt Mortstedt, Non-Executive Director of the Company, purchased 200,000 ordinary shares of 2.5 pence each in the Company ("Ordinary Shares") at a price of 147.6 pence per Ordinary Share on 5 October 2022."

Thats around £300k for this purchase alone. Well under water myself but I will hang on for the divis and maybe another tender offer.

[ammons] 05/10/2022 21:17

Another hefty director buy announced today, just under 44,000 shares at 146p = £64,000 squids. How much would the discount to (likely) NAV here be now?

[my retirement fund] 05/10/2022 17:02

Yes a sign of value

[nickrl] 05/10/2022 09:44

Andrew Kirkman, CFO bought 110,175 shares yesterday. Now thats the sort of director buying i like.

[shieldbug] 28/9/2022 15:41

I would be worried about this one except that all REITs are in freefall. The market clearly fears 2008 repeating itself.

[nickrl] 26/9/2022 09:00

ghhghh surely its the E/£ rate that matters here and the rate has moved well outside its trading range over the last couple of years so that will benefit on translation if thats where it now stays. Mind you with the way things are playing out across the EU I suspect it could easily retreat back. Also Germany is under some pressure so could easily see offices running back further than the UK.

Anyhow 57% discount now.

[ghhghh] 26/9/2022 07:37

To what extent is CLS a £/$ hedge if half the portfolio denominated in Euros

[nickrl] 23/9/2022 15:11

Sky one discount that has reduced is the share price down about 50p or 25% since the tender offer was announced it!! Anyhow the family could of course use the proceeds they have received this week from the tender offer to buy back about 25% more of the company!!

[skyship] 23/9/2022 14:46

Family rather stupid IMO. They have allowed the managers to maintain a 38% LTV in the face of an emerging recession.

The founder must be twirling in his grave at the total incompetence. Low interest rate on the debt and arguably a quality portfolio; but they should have been selling properties throughout this year; not just the 3 minimal ones actually sold for a total of less than £50m.

Then the naivety of thinking that a 2.5% Tender will reduce the discount!

The family should be seeking an exit; otherwise with these managers they risk losing their inheritance.

[nickrl] 23/9/2022 09:22

55% discount and yield now above 5% you would have thought the family would just buy it up and if they won't surely PE going to before long.

[cwa1] 23/9/2022 08:33

3.6% at iDealing, mildly disappointing but not ridiculous I suppose