7th Dec 2016 08:17
LONDON (Alliance News) - Circle Property PLC on Wednesday said its net asset value per share rose 17% over its first half, boosted by conditions in the English regions in which it specialises continuing to be favourable.
The specialist regional UK property investment company said its net asset value per share at the end of September was 179.00 pence, up from 153.00p at the end of March.
The group's portfolio valuation increased to GBP90.4 million from GBP77.7 million over the same period, and Circle said it had a "very active first six months of the year" in terms of asset management.
Circle signalled to its "very long new" lease agreement with catering giant Compass Group which it signed earlier this year, involving Compass agreeing to surrender the 7 years remaining on its lease and agreeing a new 25-year lease with fixed 3.0% annual uplifts throughout the term. Under the terms of the new lease, rent for the site commences at GBP1.5 million, representing a 71% increase over the previous rental level.
The group's net rental income for the six month period was GBP2.0 million,up from GBP1.1 million for the six months to the end of March.
Circle said it continues to intend to grow its portfolio because, despite uncertainties caused by the Brexit vote, the economy continued to grow "with many global corporates re-stating their commitment to the United Kingdom".
Circle said there is "enough confidence" in the UK regional markets for decision markers to "justify taking space at the right rental level". Around 49% of Circle's portfolio value is located in the south east of the UK and London, around 21% in the south west, 16% in the west Midlands and 8.4% in the east Midlands.
Circle said its occupancy levels declined slightly over the six-month period to 81% at the end of September from 89% at the end of March. However, Circle said this was due to the strategic take back of 46,000 square feet of space at Somerset House and 59,600 square feet of other space being refurbished across the portfolio.
Circle maintained its interim dividend at 2.40p per share.
Shares in Circle were up 0.4% at 148.60p on Wednesday morning.
By Hannah Boland; [email protected]; @Hannaheboland
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