Cls Share Discussion Threads

[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.

[boozey] 05/6/2023 18:39

Massive Director buying in recent times.

[hindsight] 05/6/2023 18:27

Hopefully nickrl

[nickrl] 05/6/2023 17:55

another chunky buy into the family trusts

[nickrl] 30/5/2023 16:41

Its one of the family trusts. Given discount here wonder if family musing a full buyout?

[boozey] 30/5/2023 16:18

Another huge Director purchase.

[spectoacc] 12/5/2023 17:19

There's quite a few threatening to break lows now, several on the third retest. I expect them all to go through, but plenty of upside if you're of the opposite view & they find support here. API another, HLCL a more convincing 3rd (not a holder of those either, but good luck those who are).

[nickrl] 12/5/2023 17:00

CEO stuck is hand in for 46k purchase but should have waited till today as it makes nigh on a 10 year low. I make that 61% below NAV at a 6.2% yield which is currently well covered but debt costs will be creeping up with each refi.

[m_kerr] 24/4/2023 22:23

a major advantage of CLS vs most other REITs is that the properties are mostly held in individual or small portfolio SPVs: '36 SPVs, eight portfolios' with non recourse debt to the holding company. risk is therefore isolated to each SPV, rather than risking taking the group down. LTV is relatively high, but the underlying discount to property value is about 30%, which goes a long way to compensating for the increased risk.

i make it roughly 6% portfolio NIY, which although a bit low, does seem to reflect higher quality assets including EPC, and relatively high government tenancy.