Circle Property (CRC)

Business description

Circle Property is an AIM-quoted property investment company focused on UK office buildings outside London. It seeks to increase capital value by refurbishing and re-leasing assets in areas with high demand, and has a progressive dividend policy.

Stock data

Market cap.£44.5m
Last close156.00p
High / Low (52 weeks)167.5p / 153.5p
Stock market listingLN
Forecast net debt (£m)44.3
Forecast gearing ratio (%)73
TeamInvestment Companies
SectorInvestment Companies

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Company news

Y/E Mar Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2016A 1.1 N/A 1.1 2.30 67.8 72.8
2017A 4.4 N/A 10.0 3.14 49.7 N/A
2018E 5.2 N/A 10.2 7.03 22.2 17.4
2019E 5.9 N/A 6.5 8.57 18.2 11.1

Last updated on 25/03/2018

Investment summary

Interim results for the six months ended 30 September 2017 showed asset management initiatives continuing to drive operational progress, delivering strong growth in rental income and cash earnings, and lifting portfolio valuations. H118 net rental income increased 30% on H117 and 11% on H217, and the 11.3% gain in the portfolio value to £103.5m supported NAV per share growth to 212p. The statement showed letting progress continuing in H218, including at recently refurbished assets, with significant reversionary potential remaining, while capital values remain low. Faster letting of refurbished assets than we have assumed remains an area of potential upside to our forecasts but, even before that, the shares trade at a significant discount to FY18e NAV with a yield of more than 3%.

Last updated on 06/04/2018

Industry outlook

Regional occupier demand is generally firm, driven by continuing economic growth and business relocation away from London, while new supply remains limited. Meanwhile, the yield spread between the regions and London remains historically wide, representing a clear potential for narrowing.

Last updated on 06/04/2018

Key management

John Arnold, Chief Executive
Edward Olins , Chief Operating Officer

Company address

c/o Consortia Partnership Limited
Standard Bank House, 47-49 La Motte Street, Jersey
JE2 4SZ
United Kingdom
02079308503
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