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CLS Holdings plc Half Year Results 2026 CLS
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CLS Holdings plc Half Year Results 20262 Contents 03 Overview Fredrik Widlund Chief Executive Officer 05 Financial Review Patrick Symons Chief Financial Officer 14 Portfolio & Outlook Fredrik Widlund Chief Executive Officer 23 Appendices Fredrik Widlund Chief Executive Officer Patrick Symons Chief Financial Officer Patrick Symons Chief Financial Officer
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3 CLS Holdings plc Half Year Results 2026 Overview Near-term earnings pressure as outlined in updated guidance 4 August 2026 Trading Update H1 2026 2.7p EPRA EPS H1 2025: 4.0p 4.6–5.5p EPRA EPS • The disposal programme is reducing near -term income • While leasing activity is steady, it is slower than expected • The tenant at Spring Gardens will no longer seek to extend their lease beyond September • These factors are reflected in the H1 result and revised full-year earnings guidance FY 2026 guidance Focus now turns to actions within our control and execution against our strategic priorities Revised on 4 August 2026 Interim dividend • Given the importance of reducing leverage and completing the disposal programme, the Board concluded that it is appropriate to determine the level of distribution once the full-year earnings are known taking into account our dividend policy to be covered 1.5-3.0x by EPRA earnings and UK REIT distribution requirements • No interim dividend will be paid
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4 CLS Holdings plc Half Year Results 2026 Overview Progressing our four strategic priorities Focus continues on execution against our strategic priorities Strategic priority Progress to date Reduce vacancy and improve earnings 57 transactions securing £5.7m annualised rent; £1.9m of additional leases signed in July. Cost actions executed Execute sales to reduce LTV to our target range of 35-45% Sales of £75.7m completed or exchanged with a further £22.5 million under offer. LTV 51.6% from valuation decline Complete all refinancings due in the financial year 89% of refinancings completed, credit approved or agreed, progressing with remaining 11% Investing in our properties to unlock value within the portfolio £12.5m consisting of £6.6m of tenant fit-outs and £5.9m capex invested in the portfolio in H1
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Financial Review Patrick Symons Chief Financial Officer CLS Holdings plc Half Year Results 20265 Fetter Lane, London
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6 CLS Holdings plc Half Year Results 2026 Financial review Financial Headlines Apex Tower, New Malden EPRA EPS 2.7p (H1 2025: 4.0p) EPRA NTA per share 177.7p (Dec 2025: 200.7p) Weighted average debt maturity 3.2 years (Dec 2025: 3.6 years) Total Accounting Return (9.5)% (H1 2025: (1.3)%) Average cost of debt 3.9% (Dec 2025: 3.8%) Loan to Value ratio 51.6% (Dec 2025: 50.0%)
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Financial Review Earnings impacted by disposals and 2025 tenant departures, offset by cost actions 7 Expenses decreased due to cost mitigation actions and a more focused portfolio Lower net finance costs as debt fell by c.£80m since H1 2025 CLS Holdings plc Half Year Results 2026 EPRA earnings H1 2026 £m H1 2025 £m Change % Revenue 64.3 71.9 (10.6) Service charges and similar expenses (18.0) (18.6) (3.2) Net rental income 46.3 53.3 (13.1) Administration expenses (7.8) (8.5) (8.2) Other property expenses (7.9) (8.8) (10.2) Profit before interest & tax 30.6 36.0 (15.0) Net finance costs (18.5) (19.2) (3.6) Foreign exchange gain/(loss) (0.1) 0.2 Nm1 Profit before tax 12.0 17.0 (29.4) Taxation expense (1.1) (0.9) Nm1 Profit after tax 10.9 16.1 (32.3) EPRA earnings per share 2.7p 4.0p (32.5) ¹ Not meaningful Net rental income impacted by over £200m of disposals since the start of 2025, New Printing House Square block expiries and German tenant insolvencies
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8 CLS Holdings plc Half Year Results 2026 Financial Review Sales and 2025 tenant departures impacting Net Rental Income Movement in Net Rental Income (£m) (2.6) (2.5) 2.1 0.5 50.8 (4.6) 0.1 46.3 53.3
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9 CLS Holdings plc Half Year Results 2026 Movement in cash and cash equivalents (£m) (18.4) (7.3) 56.6 (52.7) (10.3) (0.4) 35.3 49.4 At 31 December 2025 Cash from operations Interest/tax Dividend paid Sale of properties Net loan repayments Capex Other At 30 June 2026 Undrawn facilities were £44.1m at 30 June 2026 (£38.0m at 31 December 2025) 0 0 25.5 (7.1) Tenant incentives 18.4 Financial Review Sales strengthen balance sheet with sustained investment 87.4 79.4
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10 CLS Holdings plc Half Year Results 2026 Financial Review Valuations impacted by yield expansion (3.8%) (4.6%) (4.6%) (7.2%) (2.7%) (2.5%) (4.5%) (3.7%) 2025 H1 2026 2025 H1 2026 2025 H1 2026 2025 H1 2026 Group (£1.6bn) UK (£0.7bn) Germany (£0.7bn) France (£0.2bn) Like-for-like valuation change by geography (%) Equivalent yield 6.4% (FY 2025: 6.1%) LFL ERV growth (1.8)% (FY 2025: (0.1)%) H1: (2.2%) H2: (2.3%) H1: (1.6%) H2: (2.4%) H1: (0.5%) H2: (2.2%) H2: (1.0%) H1: (3.5%) +55 bps +10 bps +16 bpsYield shift +27 bps
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11 CLS Holdings plc Half Year Results 2026 Financial Review Debt strategy focused on refinancing and de-gearing • Debt mainly secured on individual assets or asset pools • Targetbalance sheet LTV ratio of between 35% and 45% • High level of fixed-rate debt with some floating exposure to allow cost-efficient early repayments on sales • Aim to spread debt maturity profile through refinancing activity Weighted average cost of debt 3.9% (Dec 2025: 3.8%) Interest cover 1.6x (H1 2025: 1.9x) Weighted average debt maturity 3.2 years (Dec 2025: 3.6 years) LTV ratio 51.6% (Dec 2025: 50.0%) Malakoff, Paris
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12 CLS Holdings plc Half Year Results 2026 Financial Review Well-progressed on 2026 maturities H1 2026 financing activity • Refinanced or repaid £113.6m of debt out of £199.3m • Net debt fell by £44.2m to £808.3m, mainly driven by disposals • LTV increased to 51.6% as HY valuation decline more than offset sales • Cost of debt increased from 3.8% to 3.9% • Interest cover reduced from 1.9x at HY 2025 to 1.6x, driven by lower earnings H2 2026 financing activity • £84.4m due for refinancing • Received credit approval or agreed terms for £62.3m • Remaining £22.1m is well progressed with lenders • Total of £100m of disposals targeted to complete in 2026 to reduce gearing towards our target range of 35-45% Debt maturity (£m) 0 50 100 150 200 250 2026 2027 2028 2029 2030 2031 2032 2033 2034-39 GBP EUR Repaid/refinanced New debt maturity £113.6m repaid or refinanced
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13 CLS Holdings plc Half Year Results 2026 Financial Review Financial summary The Yellow, Dortmund • Near-term earnings impacted by disposals and 2025 tenant departures • Successful execution of sales has strengthened the balance sheet • Yield expansion in all markets has driven valuation falls • Majority of 2026 financings complete with 2027 financings underway • Single full year dividend to be determined based on full year earnings
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Portfolio & Outlook Fredrik Widlund Chief Executive Officer CLS Holdings plc Half Year Results 202614 Artesian, London
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• Political developments and interest rate expectations continue to create market unpredictability • Commercial property transactions volume low in H1 • London leasing take -up stable while supply of new prime offices very limited • Occupiers increasingly accept ongoing uncertainty • Modest economic growth, but business sentiment improving • Commercial property transaction volumes have increased and signs that momentum is building • Leasing take-up with low new supply shifting demand to non-prime locations • Market vacancy expected to peak in 2026 • Uncertain Presidential election in May 2027 • Short-term supply imbalances driving vacancy but healthy demand for small - medium-size space • Commercial property volume growing in Q2 from large transactions • Leasing take-up muted and declined further in 2026 15 CLS Holdings plc Half Year Results 2026 Portfolio Market update United Kingdom Germany France
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CLS Holdings plc Half Year Results 202616 Portfolio Diversified tenant base supports income resilience 666 tenants 1 2 34 5 6 7 8 9 10 11 Tenant diversity % 1 Government 29.3 2 Commercial & Professional Services 12.5 3 Information Technology 10.1 4 Consumer Services 8.0 5 Consumer Discretionary 7.4 6 Industrials 7.0 7 Other 6.5 8 Health Care 6.5 9 Financials 5.2 10 Consumer Staples 4.1 11 Real Estate 3.4 Rent collection 98% (FY 2025: 99%) Top 10 tenants 29% Government 35% Large corporates 14% Medium-sized corporates 22% Other Tenant size Expiring Sept 2026
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17 CLS Holdings plc Half Year Results 2026 Portfolio Leasing activity maintained stable vacancy JUNE 2026 EPRA VACANCY (BY COUNTRY) ANNUAL RENT FROM NEW DEALS £5.7m 57 DEALS SECURED 8.9% BELOW ERV UK GERMANY FRANCE GROUP 17.7% 12.5% 7.7% 14.5% (0.3%) +1.4% (4.4%) stable 2,303 sqm at Harman House, London 5,913 sqm at Georg-Elser- Straße, Nürnberg 1,047 sqm lease at Rhone Alpes, Lyon LFL CONTRACTED RENT (1.0)% LFL ERV (1.8)% CONTRACTED RENT SECURED IN THE YEAR (£m) 12.9 8.2 15.5 16.6 7.5 5.7 9.5 2021 2022 2023 2024 2025 HY 2026 (0.2%) 0.7% (0.5%) 14.5%14.5% Dec-25 UK Germany France Jun-26 CONTRIBUTION TO EPRA VACANCY SIGNIFICANT LEASES SIGNED IN 2026 17.0 July: +£1.9m vs Dec 2025
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CLS Holdings plc Half Year Results 202618 Portfolio Completed on £57m of sales at book value H1 2026 disposals: UK • Four residential flats, London completed in March, May and June Germany • The Brix, Essen completed in May France • Rhone Alpes, 5th floor, Lyon completed in May H2 2026 disposals: • Completed on the sale of Columbia in July and exchanged on Clockwork, with completion in October, for a total of £18.9m • £22.5m under offer and expected to complete in Q4 2026 • Other property disposals being pursued £56.8m Completed at book value £100m targeted to complete in 2026
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Current 19 CLS Holdings plc Half Year Results 2026 Portfolio Disciplined investments in our portfolio Near-term Medium-term Gotic Haus, Dortmund • Additional €1.6m of tenant-funded works agreed • Tenant occupation expected in Q1 2027 New Printing House Square, London • Residential pre-planning applications submitted for 18,300 sqm Central London property • Additional self-storage opportunity for basement Other UK projects • Planning approval received to convert standalone student flats into serviced apartments • Pre-planning application submitted for 7,500 sqm of self-storage at Gateway and 1,800 sqm residential conversion at CI Tower The Yellow, Dortmund • Phase 2 handed over to City of Dortmund in April • Further phase agreed for 1,000 sqm of additional space Citadel Place (Spring Gardens), London • Planning application for 522 units (35% affordable) validated before conditional sale • Planning Committee in September 2026 Maximilianforum, Munich • Reconfiguration of ex-Medigen space to co-lab completed (5,300 sqm) with other space on-going • Strong interest from biotech firms looking for dual office and co-lab offering
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100.4 15.9 109.9 15.6 125.5 Contracted rent 30 June 2026 Portfolio vacancy Over-rented Lettable ERV Development stock Potential portfolio ERV Potential long-term developments Outlook Unlocking value within our portfolio • Focus on capturing vacancy to increase rental income; 30% of vacancy concentrated in three buildings • Significant near-term upside from repositioning space to adapt to occupier demand or pursue alternative use opportunities • Medium-term, larger development opportunities in Central London, conversion opportunities in the UK and a hotel conversion in Berlin 20 CLS Holdings plc Half Year Results 2026 ERV potential of the portfolio before indexation (£m) ¹ Not a profit forecast, for illustrative purposes only. Does not include prospective acquisitions, disposals or indexation • Artesian • The Coade • New Printing House Square 30% of vacancy • New Printing House Square • UK residential conversions • Bismarckstrasse • Maximilianforum • Apex Tower • Gateway House • Debussy (6.4)
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21 CLS Holdings plc Half Year Results 2026 Outlook Continued delivery of our strategic priorities Focus continues on execution against our strategic priorities Strategic priority Recent activity and planned actions Reduce vacancy and improve earnings Pipeline encouraging, £1.9m of additional leases signed in July, with a continued focus on leasing largest vacancies Execute sales to reduce LTV to our target range of 35-45% Sales of £75.7m completed or exchanged with a further £22.5 million under offer; on track to meet £100m sales target for 2026 Complete all refinancings due in the financial year 89% of refinancings completed, credit approved or agreed, progress with remaining 11% Investing in our properties to unlock value within the portfolio Disciplined capital allocation prioritising pre-lets to generate near-term earnings and selective conversion opportunities to create medium-term value Actions to refocus portfolio for operational efficiency, financial flexibility and position the business for sustainable long-term growth
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Appendices CLS Holdings plc Half Year Results 202622 Jean Jaures, Paris
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• CLS Holdings plc is a property investment company which has been listed on the London Stock Exchange since 1994 • We are a supportive, progressive and sustainably focused commercial landlord that specialises in owning and managing office buildings, with a range of lease lengths, in order to achieve stable cash flows • We operate in London and the South-East of the UK, and in the larger cities in Germany and France • Our investments are based on our long-term vision, continuously modernising our portfolio into viable, future-focused and sustainable properties • Our UK business has been a REIT since 2022 23 CLS Holdings plc Half Year Results 2026 Appendices Company overview 3 Countries 25 Lenders 76 Properties 666 Tenants
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• In-house, customer-focused asset management platform • Presence across the UK’s, Germany’s and France’s largest office markets • Multi-let office expertise is a key differentiator • Maximising value through selective conversion to alternative uses Appendices Creating competitive advantage CLS Holdings plc Half Year Results 202524 A fully integrated and scalable pan-European operating platform 10 Asset Management clusters Integrated teams 76 properties
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25 CLS Holdings plc Half Year Results 2026 Appendices NTA decrease due to property valuation declines Movement in EPRA NTA (pence per share) 2.7 (2.3) (1.7) (20.7) (0.3) (0.7) 177.7 200.7 At 31 Dec 2025 EPRA EPS Cash dividend Scrip dividend Property valuation Loss on sales of properties Other FX At 30 Jun 2026
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26 CLS Holdings plc Half Year Results 2026 Appendices Progress in 2026: energy & carbon • T o support the delivery of our Net Zero Carbon Pathway, c.£2m of investment is expected in 2026. T o date, c.£19.5m has already been invested (from an estimated £65m of total programme costs) • Several carbon reduction and energy efficiency projects are due to complete before year end. These projects will achieve savings of approximately 300 tonnes CO2e¹ (tCO2e) per annum • One of our largest projects, involving the replacement of a gas boiler with a ground source heat pump in Germany, will achieve savings of c.80 tCO2e per annum whilst the installation is expected to reduce the building’s annual energy demand by c.30% • 99% of Group electricity supply is from carbon-free sources • Smart metering covers over 80% of our total Group utility supplies whilst meter upgrades are ongoing across all regions to further improve our smart meter coverage EPC (UK) ratings evolution Like-for-like decrease in Scope 1 & 2 GHG EMISSIONS 8.3% Like-for-like decrease in landlord energy consumption 3% 0% 20% 40% 60% 80% 100% 2031 2029 2026 2023 A B C D E
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27 CLS Holdings plc Half Year Results 2026 Appendices Developing leading sustainability credentials • Expect to maintain our Gold EPRA Sustainability Best Practices Recommendations award • The whole of the managed portfolio is BREEAM In-Use Version 6 (or equivalent) certified with 85% rated “Good” or above • Retained our UK Living Wage Employer accreditation • Over half of our UK portfolio is either EPC A or B whilst plans are in place to upgrade any lower rated buildings and ensure compliance with MEES regulations • 85% of our French portfolio (by number) is already compliant with Décret T ertiaire energy efficiency targets UK - EPC1 FRANCE - DPE3 BREEAM In-UseGERMANY - EnEV2 C: 32%A: 12% D: 12%B: 44% Yellow: 41% Amber: 2% Green: 57% A-C: 75% D-F: 25% Very Good Excellent In certification Good Certified under different scheme ¹EPC Energy Performance Certificate rating building energy efficiency by carbon dioxide emissions (A-G). Where there are ratings for individual units in a single building, these have been averaged. 2Energieausweis (EnEV) Energy intensity performance rating (Green, Yellow, Amber, Red) 3Diagnostic de performance énergétique (DPE) Energy intensity performance rating (A-I) In development Not rated
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28 CLS Holdings plc Half Year Results 2026 United Kingdom Value of property portfolio £628.2m Percentage of Group’s property interests 40.1% Number of properties 33 Number of tenants 202 Vacancy rate 17.7% Lettable space 144.7k sqm Government and major corporates 69.4% Weighted average lease length to end 3.5 years UK properties London 25 South East 8 Total 33 London & South East 10 Bracknell 22 2 2 2 Harrow Uxbridge Hammersmith 2 TeddingtonStaines New Malden Leatherhead Reigate Crawley Sutton Bromley Central London Richmond Acton Chelmsford Watford Reading Appendices
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Munich Hamburg Germany 29 CLS Holdings plc Half Year Results 2026 Value of property portfolio £725.2m Percentage of Group’s property interests 46.3% Number of properties 28 Number of tenants 307 Vacancy rate 12.5% Lettable space 304.3k sqm Government and major corporates 45.9% Weighted average lease length to end 6.0 years German properties Hamburg 7 Munich 5 Berlin 4 Düsseldorf 4 Stuttgart 3 Dortmund 2 Bochum 1 Nurnberg 1 Cologne 1 Total 28 St Pauli Hafencity City Sud Wandsbek Barmbek 3 Harburg Martinsried Altstadt Rudesheimer Strasse Unterföhring Ismaning Flughafen München Neuperlach Charlottenburg Aldershof Herzberge Düsseldorf Berlin Düsseldorf Appendices
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30 CLS Holdings plc Half Year Results 2026 France Value of property portfolio £212.5m Percentage of Group’s property interests 13.6% Number of properties 15 Number of tenants 157 Vacancy rate 7.7% Lettable space 62.9k sqm Government and major corporates 57.0% Weighted average lease length to end 5.0 years Paris Lyon French properties Paris 10 Lyon 5 Total 15 2 La Garenne-Colombes 2 Boulogne-Billancourt La Défense Rueil-Malmaison 10th Arr. Paris 2 Malakoff Part-Dieu Villeurbanne Gare de Lyon 6th Arr. Brotteaux 3rd Arr. La Part-Dieu Courbevoie Appendices
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31 CLS Holdings plc Half Year Results 2026 Appendices Portfolio statistics 1. Excludes developments; calculations based on passing rents. 2. Excludes developments; calculations based on contracted rents. At 30 June 2026 Valuation (£m) Valuation change (%) EPRA NIY (%)1 EPRA ‘topped-up’ NIY (%)2 EPRA Vacancy (%) Weighted average unexpired lease term (years) ERV of lettable space (£m) Contracted rent (£m) Contracted rent (£/sqm) UK 628.2 (7.2%) 6.0.% 6.8% 17.7% 3.5 53.1 46.1 381.6 Germany 725.2 (2.5%) 4.4% 5.0% 12.5% 6.0 42.8 41.0 156.8 France 212.5 (3.7%) 5.1% 5.8% 7.7% 5.0 14.0 13.3 227.1 Total portfolio 1,565.9 (4.6%) 5.1% 5.8% 14.5% 4.7 109.9 100.4 227.7
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This document may contain certain ‘forward-looking statements’. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Actual outcomes and results may differ materially from those expressed or implied by such forward-looking statements. Any forward-looking statements made by or on behalf of CLS speak only as of the date they are made and no representation or warranty is given in relation to them, including as to their completeness or accuracy or the basis on which they were prepared. Except as required by its legal or statutory obligations, the Company does not undertake to update forward-looking statements to reflect any changes in its expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based. Information contained in this document relating to the Comp any or its share price, or the yield on its shares, should not be relied upon as an indicator of future performance. All numbers provided are as at 30 June 2026 unless otherwise stated. 32 CLS Holdings plc Half Year Results 2026 Disclaimer