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
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