Cls Share Discussion Threads

[essentialinvestor] 28/2/2024 10:56

DLN updated today fwiw and sound relatively positive - all be it they are highly geographically focussed, London, West End in particular.

[cwa1] 28/2/2024 09:56

Just taken the tiniest toehold's worth at 89.44p. Didn't think I'd buy in here but the amount of bad news built in to the price LOOKS too much to me now. Hopefully the dividend will be held and equally hopefully the NAV doesn't decrease by TOO much at the finals announcement. Fingers all crossed

[skyship] 28/2/2024 09:50

Well, hopefully they will hold the 5.35p final.

[panshanger1] 28/2/2024 09:14

Any thoughts on the final dividend here ?

[skyship] 28/2/2024 08:48

Unfortunately back down to 90p again! Finals on 6th March, a week today - so not long to wait now.

[spectoacc] 28/2/2024 08:39

Sneaked some more at 89p, but starting to feel like it wants to join everything else in retesting the lows.

Too much value to ignore tho.

[skyship] 21/2/2024 13:25

Well WShak - you've initiated a steadier tone having taken out the relentless seller.

Hopefully gone for good rather than an iceberg...

[essentialinvestor] 16/2/2024 12:48

If you find CLI iliquid you must be dealing in large quantities.

Taken private the end game?, but would age of founders be against this?. Would they want the responsibility..

Still may be a reasonable bet.

[wshak] 16/2/2024 10:20

Hi Skyship,

I'm in for the long haul with CLI.

With a lot of these ITs, REITS, property companies, etc, I just want to see what prices look like when interest rates come down in 12 months, and clip divis whilst I wait.

I haven't gone mad on CLI but have a chunk that I wouldn't want to lose.

Main thing holding me back from investing more seriously is an investment that went badly wrong in Speymill Deutsche back in the day when there was also a ridiculous discount to NAV. Debt was much higher there, however.

[skyship] 16/2/2024 09:56

WShak - re CLI - are you looking for an end game here or just a trade?

As stated before, I think the anti-office sentiment has been way, way overdone with CLI, perhaps exacerbated by the fact that 60% is held by the Mortstedts.

The upcoming Prelims (8th March last year) should clarify matters somewhat, ie, just how bad a write-down will we see on the German assets.

IMO however you cut it, the sell-down here is overdone; and then some!

[skyship] 16/2/2024 08:57

For me:

# API - now a cheap way into the oversold bidder CREI

# CLI - hoping the family will see sense and seek out a buyer

# EBOX - well, why wouldn't you! Absurdly cheap for a logistics play

# SERE - just on value grounds

& now, looking for yet another swing back up - AEWU

[wshak] 15/2/2024 23:12

Hope so.I've been investing heavily into REITS and ITs recently.GABI, GCP, SEIT, DGI9(unfortunately), EBOX, SUPR, and now CLI.

[skyship] 15/2/2024 20:14

WShak - long time since we were on the same side of a play. hopefully this will work out well for us.

[wshak] 15/2/2024 18:32

FWIW, I was told I'd cleared out a single seller.Had to pay above offer price at the time in order to get size.Highly illiquid share due to so many being in the hands of the family trust.

[aishah] 15/2/2024 15:02

Seller may have cleared:

[holts] 15/2/2024 12:56

Kiss of death , bought a few.

[wapping67] 12/2/2024 14:51

With 10 gilt yields spiking to nearly 4.10% from 3.60% it’s easy to understand why CLS and other property stocks /reits have weakened over the last few weeks. Personally I believe this yield spike will be relatively short lived.

[skyship] 12/2/2024 14:37

CLI has many properties in inner & outer London; one of the gems their newly refurbished "City" property - The Artesian - see marketing link in the Header. A great HQ for someone consolidating onto one site.

[riverman77] 12/2/2024 11:11

Take somewhere like Croydon - might be attractive for people who live close by, but you'll have a much smaller pool of potential staff to draw from. Central London can draw from all the home counties as well from inner London. I guess for non specialist staff then a regional office can make sense, but definitely not for a big law firm or investment bank

[raj k] 12/2/2024 10:05

I thought office locations that are a reasonable distance for a commute are attractive. I can imagine those right in the center of london involve people communting for longer? Those in the outer areas are more accessible?

[riverman77] 12/2/2024 07:55

I really don't believe that - companies increasingly need a good central location to attract the best staff back to the office. I think they'd pay up rather then get something cheaper in the suburbs - would be very hard to attract the best staff out in the sticks.

[meanreverter] 11/2/2024 19:47

If demand for property in central London surges beyond what can be supplied, then rents will rise there. Customers who cannot afford such rents will consequently look elsewhere — in outer London or even outside London.

[riverman77] 11/2/2024 18:09

I think the demand is in the City and West End. CLI mainly outer London isn't it, which I suspect is becoming a lot less attractive.

[skyship] 11/2/2024 16:46

Would be nice to see some of the below rub off on CLI:

London office requirements hit 10-year high

Strong demand ”should continue to support London’s recovery”, says Knight Frank.
By Jamie Bennett-Ness Mon 5 February 2024

London office requirements have hit their highest level in 10 years, with businesses hunting for close to 12m sq ft of office space, according to a report from Knight Frank.

According to the property consultancy, office requirements in the capital have risen 34% compared to last year, and 40 of these requirements involve firms seeking more than 50,000 sq ft. Around 80% of firms with requirements are looking to upsize or match their current office footprint, the firm added. Knight Frank said the figures promised strong growth in leasing volumes and prime rents over the coming years. London office take-up is forecast to increase 12% year-on-year due to high active requirements, lease expiries and competition to secure new or newly refurbished space. Philip Hobley, head of London offices at Knight Frank, said:

“London’s occupational market remains robust as the bifurcation in demand and transition to office-first work policies continue to crystalise. “While vacancy rates have increased in older, secondary buildings, prime rents in best-in-class offices have continued to rise. “The future pipeline cannot satisfy demand, even at current levels, which is something we haven’t witnessed in previous similar recovery cycles through macroeconomic turbulence. “These structural trends should continue to support London’s recovery, particularly in the investment market, with stabilising interest rates making prime office yields more debt accretive.”

The report analysed transactions over 20,000 sq ft since 2021 and overall shows a net increase of 1.1m sq ft in the amount occupiers have leased compared to their previous occupancy. Knight Frank’s data also reveals that prime office rents in the capital are still rising, with a constrained future supply pipeline and vacancies tight for best-in-class buildings.

There have been 25 leasing deals at prices exceeding £90/sq ft in the City of London over the past two years, compared to just six in the preceding four years.

The West End recorded 142 deals over £100/ sq ft in the last year alone, more than the 112 in the four years prior. Total office take-up for 2023 stood at 10.7m sq ft against a long-term average of 12m sq ft, even with a late surge in deals in which 3.9m sq ft was leased. Knight Frank forecasts office take up will hit 12m sq ft this year, 12% higher than last year, driven by higher levels of active requirements, lease breaks and further occupier flight to newer, better-quality offices.

The development pipeline falls well short of meeting average levels of new and refurbished take-up, the firm added, with consented schemes that have a 50% to 75% probability of being completed only adding a further 2.7m sq ft. Knight Frank predicted that the pipeline of office space due for completion by 2026 would be 5.3m sq ft below average take-up levels for new and refurbished space during that period.

[badtime] 09/2/2024 16:22

Hmmm..continued weakness