9th Dec 2019 10:24
(Alliance News) - Office building investor Circle Property PLC on Monday upped its interim dividend as it reported a rise in rental income and net asset value.
In the six months to September 30, contracted rental income rose by 7.2% to GBP8.2 million from GBP7.6 million from March 31.
Net asset value per share edged 0.4% higher to 278.00 pence from 277.00p in March and by 1.1% year-on-year from 275.00p.
The stock was trading 1.9% lower at 201.20p each in London on Monday morning.
The firm raised its dividend by 10% to 3.3 pence per share from 3.0p last year.
Circle said its property portfolio value increased by 8.8% to GBP135.6 million from GBP124.6 million in March, helped by the GBP14.6 million purchase of Concorde Park, a business park in Maidenhead, Berkshire. It was the company's largest acquisition since its IPO.
Since the end of the first-half, Circle Property completed two lettings at the 71,500 square feet site.
FTSE 250-listed flexible office space provider IWG PLC has taken up a ten-year lease on 16,861 square feet on the first floor of two buildings, under its brand Regus.
In addition, supply chain risk management company Avetta LLC has committed to a five-year lease on the ground floor of another.
Since it was acquired in August, gross contracted rental income at the site increased by 76% to over GBP1.1 million per year.
Chief Executive John Arnold said: "In the six months ended September 30 and post-period end, we have been investing in the pipeline, increasing our rental growth and we are on track to deliver expectations for the full year.
"In the first half, the pace of lettings has increased, with over GBP950,000 of newly-contracted rents being completed to date since the start of the year. This bodes well for an uplift in valuation at the year end and we look forward to continuing our positive momentum."
By value, 99% of Circle's properties are regional offices and the firm has no exposure to the retail sector.
Circle added: "All of our properties are geographically located in favourable regions with 89% in Birmingham, Milton Keynes, Maidenhead and Bristol."
By Eric Cunha; [email protected]
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