CLS Holdings H1 2026 earnings fall on weak sales
Revenue decline drives half-year profit drop as property portfolio weighs on performance. Company flags ongoing market challenges.
CLS Holdings reported a decline in first-half 2026 earnings as sales weakened, citing pressure across its property portfolio.
The real estate investment trust said half-year profit fell amid a broader slowdown in transaction volumes and rental growth. Management attributed the drop to macroeconomic headwinds, including elevated financing costs and subdued occupier demand.
Total revenue for the six months to June 30 declined by 8.2% year-over-year to £42.7 million, while adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) decreased by 11.5% to £28.3 million. The company’s occupancy rate edged down to 91.4% from 92.7% in the same period last year.
Chief Executive Officer Jonathan Hunt noted that while the operating environment remains challenging, CLS Holdings is focusing on asset recycling and cost discipline to preserve liquidity. The REIT has sold £15.6 million of non-core assets since January, with proceeds earmarked for debt reduction.
Dividends for the period were cut by 20% to 3.2p per share, reflecting the earnings pressure. The company maintained its full-year guidance for adjusted EBITDA of £52-55 million, though Hunt cautioned that visibility remains limited.
Shares in CLS Holdings closed 1.8% lower in London trading on Tuesday.
Priya covers listed equities and corporate earnings, reading quarterly results and guidance for what they signal about sector health and forward valuations.
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