Share Name Share Symbol Market Type Share ISIN Share Description
Circle Property Plc LSE:CRC London Ordinary Share JE00BYP0CK63 ORD NPV
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 161.50 155.00 168.00 161.50 161.50 161.50 0.00 08:00:02
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Real Estate Investment Trusts 9.6 5.2 0.1 1,345.8 45

Circle Property PLC Trading and Valuation Update

16/10/2020 7:00am

UK Regulatory (RNS & others)

Circle Property (LSE:CRC)
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RNS Number : 2680C

Circle Property PLC

16 October 2020

16 October 2020

Circle Property Plc

("Circle" or the "Company")

Trading and Valuation Update

Circle Property Plc (AIM: CRC), which invests in, develops and actively manages well-located regional office assets, is pleased to provide the following update further to the announcements on 14 July and 25 September 2020.

Rent collection

Since the outbreak of the COVID-19 pandemic in March 2020, we have continued to focus on rent collection and we are pleased with our performance to date. As at the date of this announcement, the Company is pleased to report 75% rent collection for the quarter to December 2020 reflecting both the lack of exposure to retail and the strength of our covenants. Taking into account agreed monthly payments, the September quarterly rent collection stands at 80% of rent due.

Rent collection for the March and June 2020 quarters has improved since last reported and now stands at 93% and 89%, respectively. The Company remains in constant and constructive dialogue with all tenants, adopting a flexible approach to the payment of arrears according to need, and anticipates these rent collection numbers will continue to increase further.

Valuation update

The Company's investment and development portfolio, which is almost entirely focused in the regional office sector with no exposure to retail (other than two public houses and one restaurant in Birmingham), has been independently valued at GBP137.85 million as at 30 September 2020* (31 March 2020: GBP139.45 million). This marginal valuation decline is due to the earmarked strategic investment of approximately GBP1.6 million to refurbish two assets (K3 in Kents Hill, Milton Keynes and 135 Aztec West, Bristol), rather than negative market movement.

Over the six-month period, net asset value per share ("NAV") has decreased by 1% reflecting an unaudited estimated NAV of GBP2.83 per share (31 March 2020: GBP2.85 per share).

Financing and liquidity

The Company has a financing facility in place with RBS and HSBC for GBP100 million. The senior revolving facility is for GBP65 million (of which the Company has drawn GBP62.3 million) with an 'accordion' option for a further GBP35 million. As at 30 September 2020, the Company had GBP4.5 million cash on balance, reflecting a gross LTV of 43.77%. In aggregate, the Company has GBP7.2 million of immediate liquidity at its disposal.

As previously announced, with all of the challenges arising from COVID-19, and the likely implications for the economy, the Board considers it prudent to reduce gearing from the current level. We have a number of assets that have benefited from our active management approach and where we have added considerable value following redevelopment, lease restructures or renewals. We believe these investments, with secure tenants and long-term income attached, will be highly sought after as investors look to secure income in an uncertain and low yielding macroeconomic environment.

John Arnold, CEO of Circle Property Plc, commented:

"We have continued to work closely with our tenants and this has resulted in strong levels of rent collection. Despite the disruption caused by the COVID-19 pandemic, our focus on regional offices and our notable lack of exposure to retail property has allowed us to maintain a strong portfolio valuation of GBP137.85 million. We continue to actively manage our portfolio and we look forward to updating investors further on the progress made at our Interim Results in due course."

* taking into account the impact of Covid-19 and the Company's valuers' inclusion of a 'material uncertainty clause' on the independent valuations (in accordance with VPS3 and VPGA 10 of the RICS valuation - Global Standards)

This announcement is inside information for the purposes of Article 7 of EU Regulation 596/2014.

                         +44 (0)207 930 
 Circle Property Plc      8503 
 John Arnold, CEO 
  Edward Olins, COO 
                        +44 (0)207 397 
 Cenkos Securities       8900 
 Katy Birkin 
  Mark Connelly 
                        +44 (0)203 897 
 Radnor Capital          1830 
 Joshua Cryer 
  Iain Daly 
                        +44 (0)203 757 
 Camarco                 4992 
 Ginny Pulbrook 
  Oliver Head 

About Circle Property Plc

Circle is amongst the best performing quoted UK real estate companies by NAV total return (NAV growth and dividend) having delivered consistent returns with 101% NAV growth since IPO in 2016 in absolute terms.

Circle focusses on acquiring assets in regional cities, many of which have significant office supply constraints, and on office assets with active management potential (refurbishment opportunities, under-rented or vacant properties or short leases), rather than just maximising initial rental yields.

Circle is not a Real Estate Investment Trust (REIT) and can actively recycle proceeds from asset sales into its refurbishment and redevelopment pipeline, as well as future investment opportunities, therefore targeting a broader range of returns for shareholders, which are primarily driven by NAV growth.

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(END) Dow Jones Newswires

October 16, 2020 02:00 ET (06:00 GMT)

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