UPDATE 2-Property firm CLS NAV rises, shares up

* Adj NAV per share up 11 pct in 6 months to end-June

* Cash at end-June fell 46 pct to 105 mln stg

* H1 underlying pretax profit 15.3 mln stg vs 12.2 mln

* Shares rise as much as 8 pct

(Adds details, share price, analyst comment)

LONDON Aug 25 (Reuters) - Shares in British property investor CLS Holdings Plc (CLSH.L) jumped as much as 8 percent on Tuesday morning after it posted an 11 percent rise in net asset value (NAV) per share, underscored by a strong balance sheet that was bolstered by a sell-off of UK properties last year.

The company's portfolio dropped in value by 4 percent to 767 million pounds ($1.26 billion) over the six months to end-June, but, with less shares in issue following a recent buyback, net assets per share rose to 719 pence from 647.

The company also knocked 6.6 percent off its debts and chalked up a rise in underlying profit to 15.3 million pounds from 12.2 million.

CLS, whose portfolio includes properties in the UK but is increasingly weighted to the rest of Europe, said property values could continue to fall in the second half in France and Germany, but the strong cash flow in those countries would again prove resilient to market conditions.

Analysts KBC Peel Hunt upgraded CLS shares to "Buy" from "Hold" and praised the firm's decision a year ago to sell some properties and pay off debts.

"(This) has undoubtedly been the right strategy and has seen the majority-owned family company fare better than most during the repricing of commercial property. CLS is only the second company this year to record an NAV per share increase," said the broker in a note.

At 10:16 GMT CLS shares were up 6.57 percent at 435 pence.

(Reporting by Kumar Alagappan in Bangalore and Paul Adrian Raymond in London; Editing by Gopakumar Warrier and Rosalba O'Brien)