(Sharecast News) - Shares in CLS Holdings rose on Wednesday after the office-focused property investment firm said that economic headwinds affecting the office sector were "moderating", with leasing activity increasing "substantially" in the third quarter.
the company, with properties across the UK, France and Germany, said it signed 24 leasing deals worth £2.4m in annual rent in the three months to 30 September, up 50% year-on-year and 6.2% above estimated rental value (ERV).
Notable deals included a 10-year lease with Hays Recruitment at Apex Tower and a lease extension with the Borough of Hammersmith and Fulham at the Clockwork Building, both in the UK.
That took the total number of deals over the first three quarters to 93, securing £10.2m in annual rent, which was a 70% jump on the same period in 2022 at 9.1% above ERV.
"Our business is trading well, and we are making good progress on our strategic priorities," said chief executive Fredrik Widlund. "The group is also benefiting from its high proportion of index-linked leases and a strong performance in our student and hotel operations. Underlying vacancy is stable. Consequently, the board remains confident that the group will meet its earnings expectations for the full year."
"We are seeing an improving lettings market and some early signs that the economic headwinds impacting the office sector are moderating. CLS is well positioned to continue to execute its operational and asset management initiatives and deliver long term shareholder value."
The stock jumped as much as 5.6% to 106p in early deals on Wednesday, before pulling back to 100.8p by 1039 GMT, up 0.8% on the day.
CLS Holdings (CLI)