Circle Property

Investment summary

Circle Property’s ability to create value by acquiring and asset managing well located assets is demonstrated by continuing strong NAV growth. In FY19, NAV per share increased 20% to 277p, driven by the successful letting of recently refurbished assets, with contracted annualised rental income up 12%. Total dividends for the year increased 12.5% to 6.3p. Including dividends paid the NAV total return was 23%, taking the aggregate total return since IPO in February 2016 to c 95%, or a compound annual average of c 26%. Since end-FY19, the letting of the remaining space at Kents Hill Business Park, at above ERV (estimated rental value), has added more than £350k to rent roll and will support valuations further. The acquisition for £14.6m of a well-located business park in Maidenhead, part-funded by drawing on the recently agreed £100m financing facility, provides an additional asset management opportunity and the company continues to target further acquisitions. Our forecasts are under review.