Circle Property makes solid progress since listing on AIM

Property management company Circle Property said it had made solid progress in its maiden results for the first quarter, while it secured a significant line of debt funding.

The company listed on AIM on 16 February at £1.49 per share, which reflected the net asset value at the time, and was incorporated in December 2015.

In the period from incorporation, profit before tax was £1.1m, reflecting a basic earnings per share of 3.8p. Its maiden dividend in May was 2.4p per share.

At 31 March the market value of the investment property portfolio was £77.73m. Net assets attributable to shareholders was £43.2m, with a net asset value per share of £1.53p. The company’s borrowing facility was £39.2m.

The company said after the quarter it agreed a new £50m revolving facility with NatWest Bank for refinancing the existing facility. The new facility agreed on 21 June is on improved terms and will enable the company to pursue investment opportunities.

It let three developments in Milton Keynes and Birmingham which, when fully let, will contribute an additional £2m per year to the rent roll to show a rental return on total cost of about 10%.

Circle Property said this level of return would not have been achieved by buying those completed investments in the open market, instead of selling completed investments, they are retained and held within the investment portfolio.

Chief executive John Arnold, said: "Since listing on AIM earlier this year, we have made solid progress and remain optimistic that the economy has the strength to withstand the short term stresses and strains imposed by the prospect of leaving the European Union, and that demand will continue for good quality offices at economic rents in the right locations."

"The fundamentals for Circle Property remain attractive, given the continuing strength in provincial offices which the company holds at reversionary rents, principally let to strong covenants in prime locations and the earnings generated by the developments in progress, and we look forward to continuing to progress and source both value and income accretive opportunities for our shareholders."

Shares in Circle Property were down 1.35% to 146p at 1230 BST.