Equity Analysis /
United Kingdom

GB : CLS Holdings - Strong and stable results

    Chris Spearing
    Chris Spearing

    Analyst - Real Estate

    Hugh Carrow
    Tom Musson
    25 March 2022
    Published by

    CLS’ FY21 results are in line with our expectations. Despite FX headwinds EPRA NTA is up 1.5%, reflecting underlying property values rising by 1.6%. Germany was again the star performer with values up 4.4% LfL with the UK and France +0.7% and +0.3%. Operationally CLS continues to perform well with 99% of rent collected whilst delivering a significant reduction in the cost base. The shares trade on a c.37% discount to EPRA NDV, compared to the UK real estate sector at a c.6% spot premium. In our view this is too cheap given the strong track record and outlook for the business. We reiterate our BUY rating.