Circle Property


£55.1m market cap

193p 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

In a trading statement ahead of reporting full year results to 31 March 2019 (FY19) in June, Circle reports further strong valuation and NAV growth. The end-FY19 independent valuation of the regional office portfolio was £124.6m (+9.2% y-o-y) and the unaudited NAV per share was 277p (+20.4% y-o-y). The company’s ability to create value by acquiring and asset managing well located assets is demonstrated by a strong NAV total return of c 95% since IPO in February 2016, 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 FY19 comments and further letting progress appear consistent with our forecasts to end-FY20 and we will review these with the full year results. Management plans to replenish the refurbishment pipeline with accretive investment represents potential upside to our forecasts.

Y/E Mar
Revenue (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2017A 4.4 2.3 10.0 3.14 61.5 N/A
2018A 5.5 3.2 14.0 8.99 21.5 17.2
2019E 7.0 4.5 16.3 9.37 20.6 17.8
2020E 7.5 5.0 5.1 10.96 17.6 10.6
Last updated on 18/07/2019
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. Parts of the retail sector are displaying clear signs of stress.

Last updated on 18/07/2019
Share price graph
Balance sheet
Forecast net debt (£m) 45.9
Forecast gearing ratio (%) 58
Price performance
Actual (5.4) (2.0) (16.1)
Relative* (6.0) (2.1) (13.3)
52-week high/low 230.0p/182.5p
*% relative to local index
Key management
Edward Olins Chief Operating Officer
John Arnold Chief Executive