CLS Holdings plcLSE: CLI

CLS Announces Expected Exit from UK REIT Regime

Oct 26, 2026 at 3:01 AM EDT · Issued by CLS Holdings plc via RNS

Summary by 6ix AI

CLS Holdings plc expects to leave the UK Real Estate Investment Trust (REIT) regime, a tax status under which the Group is exempt from UK corporation tax on its rental profits and property sales, effective December 31, 2026. It says recent share ownership changes, outside its control, mean it is now a "close company", which a REIT must not be.

Key details

The "close company" test is as defined in the relevant legislation; CLS says it no longer meets this specific requirement.
From January 1, 2027, the Group will no longer be exempt from UK corporation tax on its rental profits or property sales, and these profits will be taxed at the standard UK corporation tax rate.
CLS says the change relates strictly to the tax status of the Company and its UK subsidiaries, and its property management and investment strategy remain unaffected.
Future dividends will generally be paid as ordinary dividends, except the final 2026 dividend, which is expected to be paid in whole or part as a "Property Income Distribution" (PID) to meet the conditions that apply before leaving the REIT regime.

What’s still pending

The exit from the REIT regime is expected, not yet effective, with an expected effective date of December 31, 2026.
The final 2026 dividend is expected, not confirmed, to be paid in whole or part as a Property Income Distribution.

6ix AI wrote this summary from the release below and checked it against the release.

On 6ix: 6ix.com/news/cls-announces-expected-exit-from-uk-reit-regime

Watch CLS' latest callCLS Holdings (LSE:CLI) — Investor Presentation · Replay · Apr 11, 2024 Read the transcript of CLS Holdings (LSE:CLI) — Investor Presentation

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16 Tinworth Street, London

SE11 5AL, UK

Tel : +44 (0)20 7582 7766

E : [email protected]

www.clsholdings.com

CLS Holdings plc

("CLS", the "Company" or the "Group")

Notice of expected exit from the UK Real Estate Investment Trust (REIT) Regime

Company announces that it expects to leave the UK Real Estate Investment Trust (REIT) regime, effective 31 December 2026.

To remain a REIT, the Company must meet specific legislative conditions and in particular must not be a "close company" as defined in the relevant legislation. Following recent changes in the Company's share ownership, which is outside of the control of the Company, CLS no longer meets this specific requirement and accordingly expects to exit the REIT regime on 31 December 2026.

Key changes:

Strategy: This change relates strictly to the tax status of the Company and its UK subsidiaries. The property management and investment strategy for the group remain unaffected.
Company Tax: From 1 January 2027, the Group will no longer be exempt from UK corporation tax on its rental profits or property sales. These profits will now be taxed at the standard UK corporation tax rate.
Dividends: Future dividends will generally be paid as ordinary dividends other than the final 2026 dividend. The latter is expected to be paid as a "Property Income Distribution" (PID) in whole or part to meet the pre exit REIT conditions.

Further Information

Shareholders are advised to consult their own professional tax advisers regarding the implications of this change on their individual positions.

Fredrik Widlund, CEO of CLS commented:

"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."

- ENDS -

For further information, please contact:

CLS Holdings plc

(LEI: 213800A357TKB2TD9U78)

www.clsholdings.com

Fredrik Widlund, Chief Executive Officer

Patrick Symons, Chief Financial Officer

+44 (0)20 7582 7766

Panmure Liberum

Jamie Richards

David Watkins

+44 (0)20 3100 2000