REG - CLS Holdings PLC - Dividend Policy Update

CLS HoldingsAnnouncement

11/05/2022 07:00

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RNS Number : 0247L  CLS Holdings PLC  11 May 2022

 

Release date:                11 May 2022

Embargoed until:           07:00 am

 

 

CLS Holdings plc ("CLS" or the "Group")

Updated Dividend Policy, Proposed Tender Offer and Trading Update

 

CLS, a leading FTSE250 office space specialist with a £2.3 billion portfolio
in the UK, Germany and France, today announces an updated dividend policy, a
proposed tender offer following the publication of the Group's half yearly
financial results on 10 August 2022 and a trading update.

 

Updated Dividend Policy

Following the conversion of its UK business to a REIT, CLS has updated its
dividend policy for the 2022 financial year onwards. The company will maintain
a progressive dividend policy, with a dividend cover of 1.2 to 1.6 times EPRA
earnings (previously 1.5 to 2.0 times). It is expected that FY2022 dividend
cover will be around the middle of the new range.

 

Proposed Tender Offer

CLS remains committed to its strategy and business model to drive long-term
value including its planned 2022 disposals, which to date have been at or
above valuations.  Nevertheless, the Board of CLS believes the share price
discount to its net tangible assets ("NTA") is unjustified and believes that
it is in the best interests of all shareholders to take steps to reduce this
discount.

 

Subject to the completion of a number of property sales by the end of the
first half of 2022, and the significant share price discount to NTA
persisting, CLS intends to undertake a tender offer of its ordinary shares,
the terms of which will be announced following the publication of the Group's
half yearly financial results on 10 August 2022.  The quantum of any tender
offer will be scaled to ensure the Group's loan-to-value is still within an
acceptable level by the year-end.

 

Trading Update

CLS continues to trade in line with market expectations.

 

 

Fredrik Widlund, Chief Executive Officer of CLS, commented:

 

"I am pleased to announce an enhancement to our dividend policy following the
conversion of our UK business to a REIT, which will be applied to all future
dividends until further notice.

 

"The Board is clear that the current share price discount to NTA is
unjustified given that we are in the process of disposing of a number of
properties at or above 31 December 2021 valuations and the quality of our
portfolio is proving resilient in a challenging macro environment.
Consequently, CLS intends to undertake a tender offer following the 2022 half
yearly financial results."

 

This announcement contains inside information.

-ends-

 

For further information, please contact:

 

CLS Holdings plc

(LEI: 213800A357TKB2TD9U78)

www.clsholdings.com (http://www.clsholdings.com/)

Fredrik Widlund, Chief Executive Officer

Andrew Kirkman, Chief Financial Officer

+44 (0)20 7582 7766

 

Liberum Capital
Richard Crawley

Jamie Richards

+44 (0)20 3100 2222

 

Panmure Gordon

Hugh Rich

+44 (0)20 7886 2733

 

Berenberg

Matthew Armitt

Richard Bootle

+44 (0)20 3207 7800

 

Edelman Smithfield (Financial PR)

Alex Simmons

Hastings Tarrant

+44 (0)20 3047 2000

 

 

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