CLS Holdings (LSE:CLS), the office-focused property investor, warned that slower leasing activity and the loss of its largest tenant at Spring Gardens will weigh on earnings through the rest of the year.
The board now expects full-year EPRA earnings per share of 4.6 to 5.5p, against current analyst consensus of 6.8p, with the shortfall concentrated in the second half.
Leasing transactions in the first half were steady but slower than anticipated, leaving vacancy broadly unchanged at 14.5%. The Group's largest tenant at Spring Gardens will not seek a short-term extension when its lease expires on 28 September, though the property has already been sold subject to planning, limiting further valuation impact at year-end.
First-half EPRA earnings per share are expected to come in at 2.7p, with EPRA net tangible assets of 177.7p per share as at 30 June, down mainly on a 4.6% fall in local-currency valuations driven by property yield expansion across all its markets.
The disposal programme aimed at reducing debt is on track, with £62 million of sales completed against a £100 million year-end target. More than half of the £190 million in 2026 refinancings due has also been completed.
"While near-term earnings are under pressure, we continue to make progress against our strategic priorities", the company said, citing its local teams and portfolio positioning.
CLS Holdings will report half-year results on 12 August.
News Intelligence what this means for the company
CLS Holdings has slashed its 2026 EPS guidance to 4.6–5.5p, well below the 6.8p analyst consensus, citing slower leasing and the departure of its largest tenant at Spring Gardens when that lease expires on 28 September. The miss is concentrated in H2, and property valuations have already fallen 4.6% due to yield expansion across its markets, though the Spring Gardens sale subject to planning will limit further year-end impact.
The earnings downgrade—32% below consensus at the midpoint—signals material headwinds in the office leasing market and tenant retention. While the company is on track with its £100 million disposal programme and refinancing, the combination of 14.5% vacancy, a major tenant loss, and valuation pressure undermines near-term earnings visibility and raises questions about portfolio quality in a weakening office environment.
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