**Summary of CLS Holdings PLC Annual Financial Results for the Year Ended 31 December 2025**
CLS Holdings PLC, a leading office space specialist and commercial landlord, reported its annual financial results for the year ended 31 December 2025, highlighting progress in achieving strategic priorities despite a prolonged downturn in the property cycle and significant economic and political uncertainties.
**Financial Highlights**
**EPRA Earnings**Fell by 17.0% to £30.2 million, primarily due to loss of rent from disposals and increased vacancy rates, partially offset by reduced finance and administration costs.
**Statutory Loss After Tax**Increased to £50.3 million from £93.6 million in 2024, mainly due to a £79.2 million net valuation decline on investment properties.
**EPRA Earnings Per Share (EPS)**Decreased by 17.4% to 7.6 pence.
**Dividend Per Share**Reduced to 4.0 pence from 5.28 pence, reflecting the companys dividend policy.
**EPRA Net Tangible Assets (NTA) Per Share**: Fell by 6.7% to 200.7 pence, primarily due to property value declines.
**Net Debt**Decreased by £86.2 million to £852.5 million, reflecting disposal activity.
**Loan-to-Value (LTV) Ratio**Improved slightly to 50.0% from 50.7%.
**Operational Highlights**
**Net Rental Income**Declined by 11.1% to £101.3 million due to increased vacancy and disposals.
**Disposals**Completed £144.2 million in disposals, including the sale of Spring Mews Student, Vauxhall.
**New Lettings and Renewals**Secured £17.0 million in annual rent across 99 new lettings and renewals, with leases signed at 6.3% above estimated rental values.
**Vacancy Rate**Increased to 14.5% from 12.7%, largely due to anticipated lease expiries and unforeseen tenant insolvencies.
**Sustainability**Achieved a 5.8% reduction in like-for-like landlord energy usage and improved Energy Performance Certificate ratings.
**Strategic Priorities and Outlook**
**Focus on Reducing Vacancy**Aiming to reduce the vacancy rate towards the long-term target of 5%, with encouraging letting interest in 2026.
**Strengthening Balance Sheet**Planning to dispose of £100-£150 million in assets in 2026 to reduce leverage towards the target LTV range of 35%-45%.
**Investment in Properties**Continuing to invest in properties to unlock additional value and improve sustainability credentials.
**Refinancing and Debt Management**Successfully refinanced or repaid £373.7 million of debt in 2025, with a focus on smoothing future maturity profiles.
**Enhanced Scrip Dividend Scheme**Proposing an optional enhanced scrip dividend scheme to allow shareholders to opt for new shares instead of cash, enhancing investment capacity.
**CEO Commentary**
Fredrik Widlund, CEO, emphasized the companys focus on strategic priorities, operational efficiency, and balance sheet strengthening. He noted progress in 2025 and expressed confidence in continuing this momentum in 2026, despite challenging market conditions.
**Dividend and Shareholder Information**
**Final Dividend**Proposed at 2.7 pence per share, resulting in a full-year dividend of 4.0 pence per share.
**Ex-Dividend Date**9 April 2026.
**Payment Date**22 May 2026.
**Results Presentation**
A presentation for analysts and investors will be held on 13 March 2026, available both in-person and via webcast.
**Conclusion**
CLS Holdings PLC demonstrated resilience in a challenging market, making progress on its strategic priorities while navigating economic uncertainties. The company remains focused on reducing vacancy, strengthening its balance sheet, and investing in its portfolio to drive long-term growth and shareholder value.