CLS Holdings, a commercial-property investor listed on the FTSE-250, announced on Wednesday that it had swung to a pretax loss of £106.4 million ($135.7 million) for the first half of the year. This is compared to a pretax profit of £21.3 million in the same period last year.
The company attributed the loss to higher revaluation losses and costs. It reported a net revaluation movement on investment property of £132.9 million, in contrast to £5.1 million the previous year. Despite this, revenue increased to £72.3 million from £68.3 million.
CLS Holdings saw a 12% fall in statutory net asset value per share, which now stands at 271.5 pence. Contracted rent also fell by 1.5% to £108.7 million. However, net rental income rose by 5.3% to £55.6 million due to increased income from German acquisitions indexation and improved performance from its hotel and student operations.
The company's board declared an interim dividend of 2.60 pence per share, unchanged from the previous year.
While CLS Holdings acknowledged the challenging economic backdrop for the property market, it remains confident in its long-term approach and active asset management. The company believes it has significant opportunities to increase rental income by reducing vacancy rates in the coming years and compensating for higher interest costs.
As of 0801 GMT, shares were down 6.6% at 134 pence.