(Alliance News) - CLS Holdings PLC on Wednesday said it will maintain its interim dividend after showing a resilient performance in the first half of 2020.
The Western Europe-focused property investor's pretax profit for the first half ended June 30 narrowed to GBP31.5 million from GBP84.6 million a year prior. This was due to lower investment property valuation uplift of GBP2.7 million, down from GBP36.9 million in the same period last year.
Revenue increased in the period to GBP71.1 million from GBP67.6 million year on year.
Net rental income increased by 5.0% to GBP56.5 million, compared to last year's GBP53.8 million, and was driven by net additions to the company's portfolio and operational improvements as well as higher other income.
Rent collection was high at 99% in the first half.
CLS Holdings posted an EPRA net asset value of 339.6 pence per share, up 3.2% from 329.2p per share at the end of 2019. Basic net asset value per share was higher at 301.7p per share, from 287.8p per share a year prior.
CLS Holdings' property portfolio was valued at GBP2.13 billion, GBP117.9 million higher than six months earlier. This was driven by acquisitions of GBP51.7 million, capital expenditure of GBP9.3 million, and foreign exchange gains of GBP69.2 million, offset by GBP10.2 million of disposals and a small net revaluation decline of GBP2.1 million.
Transactional activity was low in the first half due to Covid-19.
CLS Holdings will pay an interim dividend of 2.35 pence per share, which is equal to last year's.
"With the gradual easing of lockdown restrictions, the priority for the second half of the year is the conversion of our leasing enquiry pipeline to drive occupancy while continuing to maintain a high level of cash collection from the portfolio. Initial indications are that leasing enquiries are picking-up in lockstep with general economic activity and we are encouraged by recent increases in leasing activity," the company said.
CLS Holdings shares were up 1.2% at 209.46 pence each on Wednesday morning in London.
By Greg Roxburgh; firstname.lastname@example.org
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