CRC.L Regulatory News (CRC)

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.

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.