After a friend raised CLS Holdings (and property companies in general) down the pub over the weekend, and having looked through the recent RNS announcements, I decided to buy back into CLS Holdings on Monday at 133.2p. Not a big holding but enough to have some decent skin in the game (about 1.1% of my portfolio) as I’m very overweight in property companies (particular American REITs).
The key factor was that CLS sold a building last week for 4.5% more than its most recent NAV (as of 30th June 2022 in the half yearly results). Link below:
"The sale, at a price 4.5% above the 30 June 2022 valuation, allows CLS to crystallise the returns on the asset while releasing capital to strengthen its liquid resources"https://www.investegate.co.uk/cls-holdings-plc/rns/disposal/202210130700027074C/The building that was sold is Sentinel House in Coulsdon, Surrey. I’ve never been to Coulsdon, (the closest I’ve been is Epsom for the horse racing at Sandown Park), but from what I’ve read and seen on Google Street view Coulsdon is a fairly upmarket area (as is typical for Surrey).
Anyway, whilst it is only one building the price is similar to many other reported property sales in London and the South East, that NAVs in this part of the world are holding up much better than feared. Given that the 30th June 2022 NAV per share was 352.8p, at the current price the discount to NAV is just over 60%
Some directors have also been buying fairly sizeable amounts. Whilst some sold shares under the recent tender, there has been much more buying than selling by directors.