CLS shares decline amid dividend cut on lower EPRA earnings

CLS Holdings PLC on Friday said it expects ‘continued progress’ in 2026, as it declared a lower total dividend amid softer EPRA earnings.

Shares in the commercial property investment company fell 12% to 51.69 pence on Friday morning in London.

CLS reported a pretax loss of £61.9 million for 2025, narrowed from £97.4 million in 2024. Revenue however fell 8.0% to £139.7 million from £151.9 million.

Net rental income was down 11% at £101.3 million from £114.0 million.

London-based CLS reported EPRA earnings per share of 7.6 pence for 2025, down 17% from 9.2p. EPRA earnings were £30.2 million, falling from £36.4 million.

CLS said the EPRA earnings fall reflected the loss of rent from disposals, coupled with an above-target vacancy rate. It added that this was offset in part by reduced finance and administration costs.

The company declared a final dividend of 2.70 pence, up 0.7% from 2.68p in 2024. This brought its total dividend for the year to 4.0p, down 24% from 5.28p.

CLS said this reflects its policy that dividends should be 1.5 to 3.0 times covered by EPRA earnings.

EPRA net tangible assets per share fell 6.7% to 200.7p from 215.0p, with this owed primarily to a decline in property values.

‘In 2025, CLS has focused on achieving its strategic priorities, concentrating on what is within our control and continuing to navigate a prolonged downturn in the property cycle amid significant domestic and international economic and political uncertainty,’ said Chief Executive Fredrik Widlund.

‘We are clear on what we need to do to refocus the business and drive operational efficiency, strengthen our balance sheet and position our assets for long-term growth: we made good progress in 2025 and expect that to continue in 2026.’

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