Circle Property PLC (LON:CRC) has reported an increase in pre-tax profits for the first half as its net asset value (NAV) was lifted by around 30%.
The office property investor reported that its NAV had risen 30.3% to £2.75 per share compared to £2.11 a year ago.
Pre-tax profits for the period were at £13.8mln, up from £8.6mln previously while total income (excluding gains from investment properties) rose to £3.8mln from £3mln.
The interim dividend was maintained at 3p per share.
Circle added that the value of its portfolio had increased 12.4% to £124.8mln from £111.1mln a year ago.
In its outlook, the company said a slowdown in the wider lettings market meant that it did not expect a return to normal levels until the Brexit process was “clarified”.
However, the firm added that it had a less than 8% vacancy rate in its portfolio and would “continue to look for acquisition opportunities”.
Circle also said that post-period end in November it had let the remaining 13,500 square feet on the ground floor of the K2 Kents Hill Business Park in Milton Keynes to Deutsche Telekom subsidiary, T-Systems Ltd, at £214,582 per annum on a 10-year term.
John Arnold, chief executive of Circle Property, said that the company had delivered “strong portfolio valuation growth” in the first half despite “increased levels of hesitation in signing new tenancies”, believed to be resulting from “nervousness created by extended uncertainty surrounding Brexit negotiations”.
He added that the company had also managed to dispose of non-core assets at or above valuation; including a petrol filling station for £3.5mln in July, 18.6% higher than valuation, and two shops for £1.35mln in November in line with valuation.
In lunchtime trading Monday, Circle shares were steady around 195p.
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