Cls Share Discussion Threads

[shieldbug] 09/8/2023 12:34

"Our weighted average cost of debt increased to 3.32% (31 December 2022 2.69%) principally as a result of an increase in the UK base rate impacting UK floating rate debt and refinancings completed during the year at a higher all-in cost. Only one loan for £24.7 million remains to be refinanced in 2023."

[shieldbug] 09/8/2023 10:45

"We will use the disposal proceeds to reduce the Group's loan to value and continue investing to improve the quality of the portfolio."

Loan-to-value at 45.1%

[boozey] 01/8/2023 14:44

Results 8 days away.

[shieldbug] 27/7/2023 19:42

Tender offer might enrich some shareholders but does nothing to improve the company.

[strathroyal] 03/7/2023 20:40

Returning to the subject of buybacks and following Anna Seeley's latest purchase, I roughly calculate that she sold 5.2M shares in the tender offer and raised £13.1M. Her share purchases since then have totalled 8.91M and cost £12M, and her stake in CLS is up the best part of 2% (held via CVI). I think that's two of us in favour of another tender!!

[shieldbug] 28/6/2023 11:10

In any case it is good to see that they have sold Westminster Tower. I have been keeping an eye on it for a while and it looks to have had a number of empty floors. Albert Embankment has rapidly transitioned from commercial to residential.

[nickrl] 27/6/2023 17:53

@shieldbug they will get refinancing but at considerably increased rates as they have some of the lowest debt in the sector particularly for the European assets. So free cash is going to be eroded but fortunately they have one of the better dividend coverage levels so can absorb it for several quarters.

[shieldbug] 27/6/2023 12:57

The Tender Offer directly increased LTV at a time of increasing interest rates. It was a bad allocation of capital. The reason the share price is so low is that there is a strong market narrative against office plus the company is seen as vulnerable to problems refinancing. It doesn't matter if it is true or not about the refinancing. It is unnecessary risk.

[strathroyal] 27/6/2023 11:25

Last year's 1-40 tender cost CLS £25.5M. Today's reported property sales have raised
£49M and the latest accounts for those properties show loans of £20.2M so I'm still optimistic.

[strathroyal] 23/6/2023 21:58

shieldbug - why a fiasco? The directors sold pro rata in the tender and have since bought back generally in the £1.30s, indeed the majority shareholder has increased their stake overall. The drop in the share price is due more to CLS continuing to buy property, particularly in Germany, which has led to an increase in the LTV.

However no one appears to know which properties have been sold from the UK portfolio this year (apart from Maidenhead) so we don't know if they've addressed the borrowing position at all.

[spectoacc] 23/6/2023 17:24

You do wonder where it would be without the vast family buys - isn't the only one in that position, some also with buy backs.

Incidentally I rate director buying, but they're sometimes the most blind to circumstance. HMV in the old days, BOOM more recently. Director bought on every dip, profit-warned to be 90% off highs this morning.

[nickrl] 23/6/2023 17:16

family buys another 1M although timed it badly at 1.34 yesterday as it makes a 10yr low

[shieldbug] 21/6/2023 12:13

I should remind people that when they announced the tender offer on 10th August the share price was 213p. The share price tanked in the following 6 weeks to 133p.

Why on earth would they announce another tender offer after that fiasco?

[skyship] 19/6/2023 10:44

Their sales are just tinkering around the edges.

I suppose the problem is what are the true valuations of large office tower blocks. Certainly not many buyers around for those!

Still, you would have thought a 60% NAV discount would allow for most circumstances.

[hindsight] 19/6/2023 10:04

Should only consider a tender if sell some assets

[strathroyal] 19/6/2023 10:01

EI - Largely depends on the value of the properties that have been sold. The other 3 properties seem to be around central/south London.

[essentialinvestor] 18/6/2023 15:31

Given LTV another tender offer might be unwise, although get the logic with the
current share price

[strathroyal] 16/6/2023 19:32

These do look something of a bargain and there must be a decent chance of another tender offer. From what I can see they have sold 4 of their UK properties this financial year although I have not been able to identify all, has anyone here been keeping watch?

Here is the latest sale:

hxxps://www.hanovergreen.co.uk/cls-holdings-sells-st-cloud-gate-in-maidenhead-to-private-investor

[boozey] 16/6/2023 10:50

Who is selling at this lowly price to give them this amount of stock?

For me all this buying underpins the price of recent times.

[nickrl] 15/6/2023 22:17

and again another hefty family buy

[nickrl] 14/6/2023 22:09

@m_kerr CLS have never paid out that much of their FFO although now they are a reit presumably the payout will now improve.

[m_kerr] 14/6/2023 16:27

agree. £43m of FFO, so they could be paying out 8% on this share price. if they were doing what many other reits are doing and over distributing, the share price would likely be higher.

[its the oxman] 10/6/2023 06:20

Thought we were finding a bit of form but here we are back at 131p. Total bargain.