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(Alliance News) - CLS Holdings PLC on Wednesday said its performance continued to be affected by the pandemic as revenue and profit fell in the first half of 2021.
London-based CLS is a commercial landlord focused on offices, with a GBP2.3 billion portfolio of properties in the UK, Germany and France.
In the first half, pretax profit totalled GBP24.7 million, down 22% from GBP31.5 million the year before.
Revenue also decreased, falling 4.8% to GBP67.7 million from GBP71.1 million.
Net rental income dropped 7.4% to GBP52.3 million from GBP56.6 million as a result of foreign exchange reductions and lower income from hotels and student accommodation as pandemic restrictions continue, the company said.
Rent collection remained high, CLS noted, with 99% of first-half rent collected and 97% of third-quarter contracted rent also collected to date.
The landlord continued to expand its portfolio in the first half, completing six acquisitions for GBP165 million, including five in Germany and one in the UK.
At June 30, the company's property portfolio totalled GBP2.32 billion, up GBP134.6 million since the end of 2020.
Despite its reduced income the company maintained an interim dividend of 2.35p in 2021, the same as the year prior.
CLS said it anticipates a pronounced pick-up in activity as lockdown measures ease.
Chief Executive Fredrik Widlund commented: "We are hopeful we will see some improvements in the second half of the year as people continue to return to the office and our recent increased level of enquiries translates into letting deals. Our focus remains on delivering our value enhancement opportunities to ensure continued growth over the long-term."
The company said it expects to continue selective disposals of smaller properties or those with less growth potential in the second half.
Also on Wednesday, CLS announced plans to reach net zero by 2030. The company's targets include a 42% decrease in emissions from 2020 levels and a 20% reduction in water consumption compared to 2019 levels.
"It is estimated that the investment needed to deliver the pathway totals GBP58 million over 9 years," the company added.
Shares in CLS were trading up 0.6% at 256.00 pence each in London on Wednesday.
By Scarlett Butler; scarlettbutler@alliancenews.com
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