REG - Circle Property PLC - Valuation and Trading Update

Circle PropertyAnnouncement

13/04/2021 07:00

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RNS Number : 2184V  Circle Property PLC  13 April 2021

13 April 2021

Circle Property Plc

("Circle" or the "Company")

Valuation and Trading Update, Notice of Results and Dividend

 

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 announcement made on 8 March 2021.

 

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 £132.15 million as at 31 March 2021* (30 September 2020: £134.6
million*). This marginal 1.82% valuation decline can be attributed to Covid-19
related market sentiment which we hope will be reversed as the economy
recovers.

Over the twelve-month period, net asset value per share ("NAV") has decreased
by 2.8% reflecting an unaudited estimated NAV of £2.77 per share (30
September 2020: £2.83 per share).

 

Rent Collection

Since the outbreak of the Covid-19 pandemic in March 2020, we have continued
to actively engage with our tenants which has resulted in an average rent
collection for the year ended 31 March 2021 of 91.5%. Rent collection for the
current quarter ended 30 June 2021 stands at 73%.

 

Financing and Liquidity

The Company has a financing facility in place with RBS and HSBC for £100
million. The senior revolving facility is for £65 million (of which the
Company has drawn £60.5 million) with an "accordion" option for a further
£35 million. At 31 March 2021, the Company's LTV reflected 46% (excluding
cash at bank) and the Company had £5.75 million cash reflecting a net LTV of
44%.  In aggregate, the Company has £10.2 million of liquidity at its
disposal.

 

Notice of Results and Dividend

The Company's final results and report and accounts for the year ended 31
March 2021 are expected to be published in early July 2021. The Board expects
to declare a final dividend of 4p per share for the year ended 31 March 2021,
which together with the interim dividend of 2.5p per share (paid in January
2021), would bring the total annual dividend to 6.5p per share.

 

 

John Arnold, CEO of Circle Property Plc, commented:

"Our robust business model has ensured that we have been able to deliver a
sustained performance in what has been a challenging year. We look forward to
welcoming our tenants back as restrictions abate and we are encouraged by
signs of regional office demand returning, aided by our flexible investment
model which allows us to provide Covid-19-friendly office environments."

*             valuation figures stated after deducting the value
of Power House, Davy Avenue, Milton Keynes (being £3.3 million as at 31 March
2020 and £3.25 million as at 30 September 2020) which was sold by the Company
for £3.55 million in March 2021.

 

Certain of the information contained within this announcement is deemed by the
Company to constitute inside information as stipulated under the UK version of
the EU Market Abuse Regulation (2014/596) which is part of UK law by virtue of
the European Union (Withdrawal) Act 2018, as amended and supplemented from
time to time.

 

 

 Circle Property Plc                               +44 (0)207 930 8503
 John Arnold, CEO

 Edward Olins, COO

 Cenkos Securities                                +44 (0)207 397 8900
 Katy Birkin

 Mark Connelly

 Radnor Capital                                   +44 (0)203 897 1830
 Joshua Cryer

 Iain Daly

 Camarco                                          +44 (0)203 757 4992
 Ginny Pulbrook

 Oliver Head

 

 

About Circle Property Plc

Circle is the top performing quoted UK real estate company by NAV total
return (NAV growth and dividend) over the last 3 years.

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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