StockMarketWire.com - Circle Property reports strong growth in profit and net asset value in the six months to the end of September.

The board has declared an interim dividend of 2.4 pence per share, which maintains the level of dividend paid for the previous reporting period. This dividend will be paid on 18 January to shareholders on the register on 16 December with an ex-dividend date of 15 December.

Highlights:

- 16.3% increase in value of the Group's portfolio of 16 UK investment properties to £90.425 million (31 March 2016: £77.735 million) resulting primarily from the Group's successful asset management initiatives.

- 17% growth in Net Asset Value per share to £1.79 per share (31 March 2016: £1.53 per share).

- An operating profit to £1.15 million, compared with £0.84 million for the almost four month period from 4 December 2015 to 31 March 2016 contributing to a pre-tax profit of £8.27 million and an increase in earnings per share to 29.0 pence per share from 3.8 pence for the previous period.

- Net rental income for the six month period to 30 September was £2.0 million compared with £1.1 million for the period to 31 March 2016.

- Annualised rental income as at 30 September 2016 was £5.7 million compared with £5.9 million at 31 March 2016, despite a loss of £0.8 million of annualised rent resulting from the Group strategically vacating Somerset House in Birmingham to facilitate a refurbishment of the building.

- An additional c£2.3 million of annualised rent is obtainable by the end of 2018 upon the letting of the completed refurbishments at current ERVs.

- The weighted average unexpired lease term to break is now 7.81 years (5.6 years at 31 March 2016) and 11.53 years to expiry (6.85 years at 31 March 2016).

- Based upon the September valuation of £90.425m the portfolio reflects a net initial yield of 6% and a reversionary yield of 9.15%.

- In June 2016, Circle signed a new £50 million revolving facility with RBS which facilitated the refinancing of £39 million of existing facilities at a lower cost, and provides capital for further acquisitions. Following this transaction and as at 30 September the Group's secured debt amounts to £44.0 million with a weighted average term to expiry of 4.4 years and a weighted average cost of 2.44% secured on the Company's investment property portfolio.

Chief executive John Arnold said: "At the time of IPO we set out a clear objective to deliver attractive returns by investing in and managing value from regional offices which are often overlooked by other investors. With strong growth across all key metrics and significant lettings successes these results not only demonstrate our team's ability to do just that, but also show that there is plenty of growth to be had in the regions, where Brexit has had little or no impact thus far. We will now look to progress our current pipeline of asset management opportunities, whilst also exploring ways to undertake new acquisitions and grow our portfolio."






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