Proactiveinvestors Australia Circle Property PLC Proactiveinvestors Australia Circle Property PLC RSS feed en Wed, 19 Jun 2019 23:02:44 +1000 Genera CMS (Proactiveinvestors) (Proactiveinvestors) <![CDATA[RNS press release - Holding(s) in Company ]]> Thu, 30 May 2019 20:30:11 +1000 <![CDATA[RNS press release - VALUATION AND TRADING UPDATE ]]> Thu, 16 May 2019 16:00:03 +1000 <![CDATA[RNS press release - Kents Hill Park Update ]]> Mon, 08 Apr 2019 16:00:06 +1000 <![CDATA[RNS press release - Director/PDMR Shareholding ]]> Tue, 12 Mar 2019 02:46:56 +1100 <![CDATA[RNS press release - CIRCLE COMPLETES £100 MILLION BANK REFINANCING ]]> Thu, 14 Feb 2019 02:06:46 +1100 <![CDATA[RNS press release - AIM Rule 17 Disclosure Schedule Two (g) Update ]]> Mon, 17 Dec 2018 18:01:04 +1100 <![CDATA[RNS press release - Interim Results ]]> Mon, 17 Dec 2018 18:00:04 +1100 <![CDATA[RNS press release - Change of Adviser ]]> Wed, 12 Dec 2018 18:00:04 +1100 <![CDATA[RNS press release - Directorate Change ]]> Wed, 12 Dec 2018 01:24:57 +1100 <![CDATA[RNS press release - Notice of Results ]]> Sat, 08 Dec 2018 03:15:57 +1100 <![CDATA[RNS press release - Holding(s) in Company ]]> Tue, 20 Nov 2018 23:34:53 +1100 <![CDATA[RNS press release - Valuation and Trading Update and Disposal ]]> Thu, 11 Oct 2018 17:00:05 +1100 <![CDATA[RNS press release - Holding(s) in Company ]]> Thu, 04 Oct 2018 20:25:45 +1000 <![CDATA[RNS press release - Successful lease regear ]]> Tue, 02 Oct 2018 21:00:01 +1000 <![CDATA[RNS press release - Holding(s) in Company ]]> Wed, 29 Aug 2018 16:00:06 +1000 <![CDATA[RNS press release - Result of AGM ]]> Thu, 26 Jul 2018 00:47:36 +1000 <![CDATA[RNS press release - Edison issues outlook on Circle Property (CRC) ]]> Mon, 09 Jul 2018 21:00:17 +1000 <![CDATA[RNS press release - Posting of Annual Report ]]> Sat, 07 Jul 2018 01:10:34 +1000 <![CDATA[Media files - 'The future is in provincial offices' - Circle Property CEO John Arnold ]]> Mon, 02 Jul 2018 08:20:00 +1000 <![CDATA[RNS press release - Final Results and Notice of AGM ]]> Thu, 28 Jun 2018 16:00:07 +1000 <![CDATA[News - Circle Property expects regional demand for high-quality office space to continue ]]> 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.


Thu, 28 Jun 2018 07:34:00 +1000
<![CDATA[RNS press release - Somerset House Letting ]]> Mon, 14 May 2018 16:00:07 +1000 <![CDATA[News - Circle Property signs 15-year lease with BE Offices for its Somerset House redevelopment in Birmingham ]]> Circle Property PLC (LON:CRC)  has agreed a new 15-year lease with BE Offices at its recently completed Somerset House redevelopment on Temple Street in Birmingham city centre.

The AIM-listed firm said the agreement follows the recent letting of both ground floor restaurant units and means the property is now at 100% occupancy, five months after the redevelopment completed.

READ: Circle Property buoyed by demand for good commercial property

The company said BE Offices, UK’s leading shared and flexible office space provider, has agreed to take the entire 36,300sq feet of office space over six floors at the property.

Circle Property added that this new letting increases its contracted rent roll by 11.6% and means that the property will generate a total rental income of £1.2mln per annum, with upwards only five-year rent reviews.   

Circle Property acquired Somerset House in 2016 and undertook a full refurbishment of the property, which led to company agreeing long leases with popular Latin American restaurant chain, Las Iguanus, and with Camerons Brewery's 'The Head of Steam' pub concept.

John Arnold, CEO of Circle Property, commented: “Our strategy was to create a high-quality product, well placed to capitalise on tenant demand in Birmingham, while adding much needed leisure usage to Temple Street.”

He added: “Somerset House is a perfect case study for Circle’s strategy, demonstrating our ability to generate income and value by identifying compelling investment opportunities in strong regional locations.”

Mon, 14 May 2018 08:05:00 +1000
<![CDATA[Media files - 'There's more in the locker', says Circle Property CEO after another strong year ]]> Fri, 04 May 2018 15:03:00 +1000 <![CDATA[RNS press release - Valuation and Trading Update and Acquisition ]]> Thu, 26 Apr 2018 16:00:05 +1000 <![CDATA[News - Circle Property buoyed by demand for good commercial property ]]> More offices being converted into flats helped Circle Property PLC’s (LON:CRC) property values and rental income rise sharply over the past year.

The AIM-listed group specialises in acquiring commercial properties that need a bit of TLC/refurbishment and demand for space in good locations in regional cities remains buoyant said John Arnold, chief executive.

WATCH: All good news for Circle Property as demand for provincial office space remains strong

“Supply continues to diminish as more offices convert to residential. Indeed, in Bristol the office supply has shrunk by 17% over the last year,” he said.

 An independent valuation at end-March valued the portfolio at £114mln or up 22.6% year-on-year and by 54% since it listed on AIM in February 2016.

Occupancy in the developed portfolio was 99%.

Rental income rose by 21.5% to £6.83mln, half of which stemmed from refurbished properties and 21% to lease renewals.

Reversionary rents up 12.5%

On a reversionary basis, Circle estimates annual rental income currently is £9.93mln or a12.5% rise year-on-year.

The company has just bought units 710 and 720 in the Aztec business park in Bristol, a development where it already owns one unit.

Both properties are fully let with a weighted unexpired lease term of 4.85 years and generate a total passing rent of £351,573 per annum, a yield of 7.9%.

“Aztec West provides us with another high-quality asset from which we believe we can create additional value,” said Arnold.

Elsewhere, the ground floor restaurant section of Somerset House in Birmingham has been let on a 20-year lease to Cameron Brewery.

Shares rose 1% to 157.5p.

Thu, 26 Apr 2018 09:49:00 +1000
<![CDATA[Media files - All good news for Circle Property as demand for provincial office space remains strong ]]> Tue, 12 Dec 2017 08:33:00 +1100 <![CDATA[RNS press release - Interim Results ]]> Thu, 07 Dec 2017 18:00:03 +1100 <![CDATA[News - Circle Property assets climb as refurbishments and locations prove worth ]]> Commercial property group Circle Property PLC (LON:CRC) shrugged off Brexit uncertainty to record another six months of strong rental growth and rising asset values.

On a per share basis, assets rose by 15.3% to 211p, making a 40% uplift since the company joined AIM in February 2016.

READ: Circle Property's hand-picked portfolio proves its worth

Rental income rose by 26% to £2.9mln with the interim dividend 8% higher at 2.6p.

Over the half, Circle negotiated rent increases worth £379,000 or 7.2%.

That included a new 20-year lease with restaurant chain Las Iguanas at £220,000 per annum for one of two newly refurbished units at Somerset House, Temple Street in Birmingham. 

Topps Tiles, meanwhile, has taken space at Baildon Bridge retail park in Shipley, while the Powerhouse in Milton Keynes is now fully let after Toyota dealer Stephen Eagell moved in.

Going forward, the second of the two restaurant units at Somerset House, is now under offer, while at One Castlepark in Bristol, a 10-year lease renewal has been agreed at £22 per sq ft, compared to the previous average for the building of £13.

John Arnold, chief executive, said Brexit was still causing some uncertainty but the location, quality and standard of Circle’s refurbishments meant demand was still strong.

READ: Circle Property encouraging occupancy through competitive rents

“Furthermore, the great majority of our assets are highly reversionary so we have the flexibility to moderate rents or incentives and offer highly attractive terms to secure the tenant.

“Our appointment of Smith & Williamson with Radnor Capital is expected to generate a greater level of interest in Circle, as we consider options for enlarging the company's shareholder base in the New Year." 

Thu, 07 Dec 2017 10:41:00 +1100
<![CDATA[RNS press release - Change of Advisers ]]> Wed, 01 Nov 2017 18:00:06 +1100 <![CDATA[RNS press release - Circle delivers 11% growth in portfolio value ]]> Wed, 04 Oct 2017 17:00:04 +1100 <![CDATA[News - Circle Property's hand-picked portfolio proves its worth ]]> Property investment is all about location.

So for investors in Circle Property PLC (LON:CRC), it must be reassuring that management reckon they know every major commercial location in the UK’s major towns and cities.

WATCH: Circle Property encouraging occupancy through competitive rents

“I know all of the towns, all of the streets and probably most of the buildings as do my colleagues Edward Olins (COO) and Ian Henderson (chairman),“ says John Arnold, chief executive.

Straightaway, that in-depth knowledge means out of 100 calls from agents with offers of properties, 90 can be dismissed.

“We can knock most of these out by location, just where it is”

The remaining ten warrant a bit more attention and on average, out of the original 100, Circle may end up with one gem.

Eye for a bargain

The story does not end there though.

Circle has started to specialise in offices, but otherwise there is no criteria for a property.

“We are an agent’s nightmare,” says Arnold, a 30-year plus property veteran.

No town, no set size, just the management team’s eye for a bargain that with a bit of TLC can be rejuvenated.

As an example of how Circle operates, Arnold points to One Castlepark in Bristol, an 80,000 sq ft ‘giant of a building.’

The office market was not great at the time it was bought, he says. Only two-thirds of the building was let and there was a chance that might drop to one third.

“But at just over £4 million it was cheap and if we only got £5 a square foot, that would still have been a 10% yield.”

The building now is valued at about four times more than we paid for it, with £13 per sq ft the average rent.

On a reversionary basis, ie what the rent would be to a new tenant, Arnold says the property’s value is nearer £20mln.

NAV climbing

It is that kind of appreciation that has propelled the value of the portfolio over the past few years.

Results for the year to March demonstrated the point. The portfolio’s value rose by nearly 20% to £93mln, net assets per share increased to 183p from 153p and rental income jumped by 19% to £5.6mln.

Across the whole portfolio on a reversionary basis, rental income would be over £9mln.

Growth like that is more akin to a tech company than a commercial property group and Arnold agrees the performance currently is ‘pretty good’.

Unit trust background

So why do the shares, currently 159p and yielding 3.1%, trade at a discount to NAV.

Partly that stems from the history, which saw it set up as a unit trust in Jersey more than a decade ago.

All of the unit holders converted to shares when Circle become a company but very few have any interest in selling, says Arnold, which means even though the company is worth close to £50mln, trading is minimal.

Another reason, by management’s own choice, is that Circle’s performance has been under the radar since it joined AIM in 2016.

But Arnold believes it is time for that to change and to make more people aware of what Circle is achieving.

He admits Brexit uncertainty has made life harder in the property market, with the way forward for companies like Circle to understand the needs of their tenants in terms of size and flexiblity.

Having pulled in FTSE 100 giant Compass for one unit at the Kent’s Hill Conference Centre, a key site in Milton Keynes, and in doing so already returning a profit on the asset, a second unit has been strategically split up to provide the space that smaller companies need.

Even so, patience is one of Circle’s virtues. It has been happy to stick with a property in London’s Moorgate area through the hugely disruptive work on the new Crossrail link, confident that rents will climb once all of the construction is completed.

Currently, 80% of the total portfolio is let and income producing, and it is this which makes up the investment side of the portfolio.

The remainder is held within a development portfolio of three office buildings, two of which have been refurbished with Somerset House in Birmingham scheduled for completion soon.

Larger Circle the ambition

Arnold admits he would like Circle to be larger.

Debt is around £48mln and some additional equity would help this ambition and loosen up the liquidity, as he is confident the management team will continue to find plenty of opportunities.

“We are trying to find value all of the time. If the building is right, the situation is right and the location justifies the risk – that’s the key.

“In those situations it is worth us getting involved and getting our hands dirty in order to unlock the hidden value of the asset.”

Mon, 25 Sep 2017 10:43:00 +1000
<![CDATA[RNS press release - Results of the AGM and Change of Director ]]> Fri, 22 Sep 2017 01:10:55 +1000 <![CDATA[Media files - Circle Property encouraging occupancy through competitive rents ]]> Fri, 15 Sep 2017 15:19:00 +1000 <![CDATA[RNS press release - Notice of AGM ]]> Sat, 02 Sep 2017 01:28:39 +1000 <![CDATA[RNS press release - Dividend Declaration - Confirmation of Date ]]> Wed, 16 Aug 2017 17:28:22 +1000 <![CDATA[RNS press release - Results for the year ended 31 March 2017 ]]> Thu, 10 Aug 2017 16:00:03 +1000 <![CDATA[RNS press release - Half-year Report ]]> Wed, 07 Dec 2016 18:00:08 +1100 <![CDATA[RNS press release - Agreement of new lease with Compass Group ]]> Mon, 03 Oct 2016 17:00:09 +1100 <![CDATA[RNS press release - Result of AGM ]]> Thu, 22 Sep 2016 22:27:37 +1000 <![CDATA[RNS press release - Notice of AGM ]]> Fri, 26 Aug 2016 16:00:09 +1000 <![CDATA[RNS press release - Results for the four months to 31 March 2016 ]]> Tue, 23 Aug 2016 16:00:06 +1000 <![CDATA[RNS press release - Agreement of £50 million facility with RBS ]]> Mon, 27 Jun 2016 21:04:01 +1000 <![CDATA[RNS press release - Trading Update and Dividend Declaration ]]> Thu, 12 May 2016 16:00:08 +1000 <![CDATA[RNS press release - Admission of ordinary shares ]]> Mon, 14 Mar 2016 20:35:06 +1100 <![CDATA[RNS press release - Admission to AIM and First Day of Dealings ]]> Tue, 16 Feb 2016 18:00:07 +1100 <![CDATA[RNS press release - Circular re General Meeting ]]> Tue, 10 Feb 2009 18:00:00 +1100 <![CDATA[RNS press release - Mining Title Licence Review ]]> Fri, 06 Feb 2009 21:50:00 +1100 <![CDATA[RNS press release - Statement re Financial and Operational Update ]]> Fri, 06 Feb 2009 18:00:00 +1100