leadf
logo-loader
viewCircle Property PLC
(
AIM:CRC
)

Circle Property collects over 90% of rents in first quarter of 2020

The firm also said despite disruption from the pandemic it expects that its rent collection numbers will “continue to increase”

Circle Property PLC - Circle Property collects over 90% of rents in first quarter of 2020
Circle's Concorde Park property in Maidenhead

Circle Property PLC (LON:CRC) said it has collected 91% of rents in the quarter to March 2020 despite the impact of the coronavirus pandemic.

In a trading update, the property firm focused on regional offices said current rent collection for the June 2020 quarter currently stands at 77%, but with agreed monthly payments that figure has increased to 91% of rent due.

WATCH: Circle Property's John Arnold says rent collection's healthy with recoveries 'ahead of competition'

The company also said it is in “constant and constructive dialogue” with its tenants and anticipates its rent collection numbers will “continue to increase”.

Circle also said it has remained active across its portfolio in the period, completing a new letting in Northampton to a consulting firm on a 10-year lease at £34,000 per year. Meanwhile, the firm said tenant interest at its newest asset, Concorde Park in Maidenhead, “continues to build pleasingly” with vacancies at the site falling to 33% from 63% since last August.

“Whilst letting activity continues in our regions, albeit at a slower pace, we expect this to pick up as workforces gradually return to places of work”, the company said, adding that heading into the pandemic it has been “benefiting from both structural demand growth and supply constraints in its chosen regional centres”.

“Whilst disruptive in the short-term, we see no evidence that [coronavirus] will fundamentally alter these underlying dynamics. In this respect, we remain positive that small, regional offices will continue to be attractive venues for work”, Circle added.

Looking ahead, the firm said it is “not yet in a position” to provide guidance for the year ending March 31, 2021, although it currently expects that a final dividend for the year ended March 31, 2020, will be paid, however, a final decision has not yet been made.

"Our ability to deliver a solid performance in current market conditions demonstrates not only the strong and constructive relationships we have with our tenants, but also the benefits of the size and flexibility of our space”, Circle chief executive John Arnold said in the trading statement.

"We continue to believe in the long-term market opportunity in regional offices despite a change in short-term working patterns and our team has been working tirelessly through this uncertain time in order to protect the value of our commercial properties and income attached. As lockdown eases, we expect workers to return to offices and we remain confident in the long-term demand for regional office space and the Group's prospects over the months and years ahead", he added.

The company's shares were up 1.6% at 157.5p in mid-morning trading on Tuesday.

--Adds share price--

Quick facts: Circle Property PLC

Follow
AIM:CRC

Price: 207 GBX

Market Cap: £59.1 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of named herein, including the promotion by the Company of in any Content on the Site, the Company receives from said issuer annual cash...

FOR OUR FULL DISCLAIMER CLICK HERE

Circle Property's John Arnold hoping for another year of NAV growth

Circle Property PLC's (LON:CRC) John Arnold speaks to Proactive after announcing they've recorded their fourth successive year of growth in its net asset value (NAV). The regional offices specialist revealed that its NAV per share rose by 3% to 285p at the end of March 2020 from 277p a year...

on 25/9/20

3 min read