Property investment group CLS Holdings swung into the black in 2009 and increased net asset value by 19%, impressing analysts along the way.

There was a profit before tax of £18.5m compared with a £142.1m loss the year before when numbers were hit by a £103m write-down on the value of property.

Adjusted net asset value rose to 767.5p a share from 647.2p in 2008 and increased by 7% from 719.2p at 30 June.

The value of the portfolio grew 6% in the second half to £813m, although that was only fractionally higher than the £799m year-on-year figure. A 7.5% increase in the underlying valuation for the UK offset a 5.6% decline in Europe.

"CLS has weathered the downturn impressively," says KBC Peel Hunt, managing to avoid raising equity, unlike many of its peers. Today it announced it is returning £6m to shareholders via a share buyback.

"The dominant c.60% family holding of chairman Sten Mortstedt continues to depress liquidity and price; however with a history of buybacks above market price and a discount to NAV of 40%, CLS is a strong Buy," says KBC.

Last year's success revealed the defensive benefits of well-let properties, Mortstedt claimed Thursday.

"The fundamentals of our business remain sound. We have the resources available to take advantage of opportunities as they arise and I am delighted to report that we face the challenges ahead from a position of strength and confidence."

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CLS Holdings (CLI) share price