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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.

Y/E Mar Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2017A 4.4 2.3 10.0 3.1 64.2 92.8
2018A 5.5 3.2 14.0 9.0 22.1 N/A
2019E 6.8 4.4 10.0 9.5 20.9 17.7
2020E 7.7 5.3 5.9 11.7 17.0 11.6

Last updated on 26/11/2018

Latest research

Investment summary

Share price outperformance of the sector over the past year has been driven by asset management initiatives, with leasing progress at recently completed refurbishments having a positive impact on income, valuations and NAV. In a trading statement the company said that the H119 NAV (to 30 September) again increased strongly, by 20.9% to an unaudited 278p per share (end FY18: 230p). Including dividends paid, the six-month NAV total return was a strong 26.2%. The portfolio valuation increased 12.4% from March, to £124.9m, which includes the £3.5m disposal of a mature asset, an 18.6% premium to book value. Contracted rent roll increased to £7.5m (end FY18: £6.8m). We will review our forecasts to reflect the H119 capital growth, with H119 NAV per share already ahead of our full year expectation. The growth in contracted rent roll is in line with our expectations and we look for further progress in H219. Interim results are due 30 November.

Last updated on 29/11/2018

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, and offers potential for further narrowing.

Last updated on 29/11/2018

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
United Kingdom
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