CLS Holdings to pay final dividend
By Frank Prenesti
Date: Thursday 16 Apr 2020
(Sharecast News) - Property developer CLS Holdings said it would pay a dividend, despite the impact of the Covid-19, citing strong cash reserves.
The FTSE 250 property investment company said its balance sheet was "well-capitalised", with a loan-to-value ratio of 31.8%, compared to 31.4% at the end of December and cash of more than ?235m, with a further ?50m in undrawn facilities.
CLS said given its "resilient" tenant base it remained appropriate to pay the final dividend of 5.05p per share.
By the close on 7 April, CLS said it had received 84% of contractual rents due, or 87% taking into account those tenants it was supporting by switching to monthly rents, which compared to 96% on 7 April 2019.
"We are engaging with tenants whose businesses are impacted by short-term cash flow issues and, as a consequence, we are in advanced discussions with a further 5% of our tenants by rent around payment options and asset management initiatives," the CLS said on Wednesday.
On the financing front, the group said it had ?114.5m of debt across nine loans, due to be refinanced in 2020. Three loans, totalling ?25.6m, had already been extended by between six and 18 months, and a term sheet was agreed on the largest refinancing, for a new seven-year loan. Discussions were said to be progressing "well" on the remaining loans to be financed this year.
The board said that, until market conditions stabilised and the form had more clarity on the medium-to-long term impact from the current situation, evaluation of any significant acquisitions was on hold.
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