Circle Property

LN: CRC

£58.5m market cap

205p last close

Circle Property is an AIM-quoted property investment company that actively manages its assets, placing an emphasis on total returns rather than maximising short-term income. It targets the acquisition of well-located regional office properties where it has identified a clear opportunity to add value.

Investment summary

Circle has issued a trading update ahead of interim results (9 December 2019) detailing continuing leasing progress with existing and recently acquired regional office assets. Active asset management has driven annual accounting returns of more than 20% in each of the three full years since IPO in February 2016. With the outlook for regional offices remaining positive, and with material further asset management opportunities, management expresses confidence for the full year outlook.

Y/E Mar
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2018A 5.5 N/A 14.0 9.0 22.8 N/A
2019A 6.5 N/A 15.2 6.6 31.1 N/A
2020E 7.1 N/A 4.9 6.7 30.6 N/A
2021E 7.7 N/A 4.5 9.1 22.5 N/A
Industry outlook

The supply demand balance for regional office and industrial property remains generally firm and a positive yield spread between the regions and London offers potential for further narrowing. Rents and capital values in the retail sector have continued to weaken.

Last updated on 19/11/2019
Share price graph
Balance sheet
Forecast net debt (£m) 45.9
Forecast gearing ratio (%) 58
Price performance
%
1m
3m
12m
Actual 4.1 7.9 4.1
Relative* 2.0 4.1 (0.9)
52-week high/low 206.0p/182.5p
*% relative to local index
Key management
Edward Olins Chief Operating Officer
John Arnold Chief Executive