Sign up Australia
Proactive Investors - Run By Investors For Investors

Circle Property expects regional demand for high-quality office space to continue

"This has been another successful year in which the group has achieved a 25% uplift in NAV, significant lettings successes across recently completed developments leading to a 21.49% increase in contracted rent and a strong performance across our key metrics," said the CEO, John Arnold.
Office space
Circle has a policy of buying well-located regional office stock

Commercial properties specialist Circle Property PLC (LON:CRC) hailed another successful year, with its net asset value (NAV) per share rising 25%.

The NAV per share at the end of March – the end of Circle's fiscal year – was 230p, up from 183p 12 mont's earlier.

READ: Circle Property signs 15-year lease with BE Offices for its Somerset House redevelopment in Birmingham

There was a 22.6% increase over the year in the valuation of the group's portfolio of 17 UK investment properties to £114.1mln from £93.0mln at the end of March 2017.

Annual contracted rental income rose 21.5% to £6.83mln, driven by asset management initiatives. A further £795,729 has been added to annual rent roll as a result of a letting for the entire office space at Somerset House in Birmingham following the year-end, Circle revealed.

The ongoing strong demand for regional office space is reflected in the high occupancy across the company's portfolio at 99%, excluding recently refurbished buildings.

Profit before tax rose to £13.99mln from £9.97mln the previous year.

The board has proposed a final dividend per share of 3p to bring the annual dividend to 5.6p, up 12% from the previous year's 5p.

"Since the IPO of the business two years ago, Circle has consistently delivered strong income and dividend returns for shareholders, as well as a 54% increase in NAV,” said John Arnold, the chief executive of Circle Property.

"Continued growth in shareholder returns is underpinned by our consistent strategy of investing in well located regional office assets and actively managing the portfolio to grow income and maximise returns. Furthermore, we see no sign of the trend of diminishing office supply in regional cities across the UK abating, as Permitted Development Rights continue to enable the conversion of office stock to residential. As a result, we expect the demand for high-quality office space in the regions to remain robust. Looking ahead, we continue to explore opportunities to grow the company," Arnold said.


View full CRC profile View Profile

Circle Property Timeline

Related Articles

John Arnold
September 25 2017
“We are trying to find value all of the time," John Arnold, chief executive

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use