CLS Holdings has announced that it expects to leave the UK real estate investment trust (REIT) regime, effective 31 December 2026.
To remain a REIT, companies must meet specific legislative conditions and in particular must not be a ‘close company’. Following recent changes in the company’s share ownership, CLS no longer meets this requirement and accordingly expects to exit the REIT regime.
CLS said the property management and investment strategy for the group remain unaffected with future dividends generally paid as ordinary dividends other than the final 2026 dividend. The latter is expected to be paid as a property income distribution in whole or part to meet the pre-exit REIT conditions.
Fredrik Widlund, CEO of CLS, said: “This is an event that is outside of the control of CLS. Nevertheless, we continue to focus on our key strategic objectives to reduce vacancy and improve earnings growth; reduce debt through targeted asset sales; refinance or repay debt maturities; and invest selectively in our portfolio to unlock additional value.”
