StockMarketWire.com - Circle Property reports a strong operational performance for the six months to the end of September driven by asset management translating to growth in portfolio valuation, NAV and rental income and leading to a proposed further increase in dividend.

Highlights:

- 11.3% increase in portfolio valuation to £103.5 million (31 March 2017: £93 million), driven primarily by the Company's ongoing asset management initiatives

- 15.3% increase in NAV per share to £2.11 (31 March 2017: £1.83) contributing to 40% growth in NAV since IPO in February 2016

- 26% increase in rental income to £2.9 million for the first six months to 30 September 2017 (30 September 2016: £2.3 million)

- 57% increase in net operating profit to £1.8 million which excludes gains on investment properties (six months to 30 September 2016: £1.1 million) leading to a 3.6% increase in profit before tax to £8.6 million (six months to 30 September 2016: £8.3 million)

- Loan to value ratio reduced to 47% (31 March 2017: 49%)

- 6.9% increase in earnings per share to 31 pence (30 September 2016: 29 pence)

- 8.3% increase in interim dividend to 2.6 pence per share (30 September 2016: 2.4 pence) reflecting the board's ongoing confidence in the Company's prospects and outlook. The dividend will be paid on 18 January 2018 to shareholders on the register on 15 December 2017, with an ex-dividend date of 14 December 2017.

- WAULT of 11.29 years to expiry, up from 7.39 years

Chief executive John Arnold said: 'Although there is some degree of caution from tenants making leasing decisions against the backdrop of Brexit uncertainty, we continue to make good leasing progress across our portfolio.

'Since our IPO in February 2016, we have achieved a 40% increase in NAV and remain confident in our ability to deliver further growth from active asset management.

'We believe the level of demand for space in our assets is a direct reflection of the location and quality of our assets, as well as the standard of our refurbishments, which places us ahead of the competition.

'Furthermore, the great majority of our assets are highly reversionary so we have the flexibility to moderate rents or incentives and offer highly attractive terms to secure the tenant, whilst at the same time providing rental income growth for our shareholders.

'We continue to look for new acquisition opportunities, whether of portfolios or single assets.

'Our appointment of Smith & Williamson with Radnor Capital is expected to generate a greater level of interest in Circle, as we consider options for enlarging the Company's shareholder base in the new year.'




Story provided by StockMarketWire.com