4th Nov 2019 12:12
(Alliance News) - Circle Property PLC said its contracted rental income grew in the first half and the office building developer is expecting "strong" net asset value growth in the full-year.
Contracted rental income in the six months to September 30 rose by 7.2% to GBP8.2 million from GBP7.6 million on March 31. Its portfolio has been independently valued at GBP135.6 million, up 8.8% from GBP124.6 million at the end of March.
Circle also expects to report a net asset value per share of 200.78 pence each, broadly flat from 200.77p in March. Most of its net asset value per share growth is expected to come in the second half, the company said.
Shares in the firm were 0.5% lower at 199.00 pence each in London on Monday afternoon.
During the half, Circle let 20,482 square feet of space at its K2 asset in Milton Keynes to Grand Union Housing Group Ltd. The housing provider will pay annual rent of GBP352,625.
Refurbishment of the K3 office building in Milton Keynes is on track to finish in December 2019, Circle said.
Post-period end, the company completed two lettings in Maidenhead, Berkshire, adding GBP485,234 in annual rental income.
Chief Executive John Arnold said: "During the first six months of this year we have been highly active in creating a pipeline of well located, income generating assets to complement our portfolio, which are expected to provide significant upside and deliver strong net asset value growth over the full year.
"The regional office market remains structurally strong and our active management of our property portfolio, alongside the negotiation of new existing lettings, continues to generate market-leading returns. Having established this momentum, we look forward to the full year ahead with confidence."
The company will publish its first half results on December 9.
By Eric Cunha; [email protected]
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