Circle Property PLC says rental collection remains strong
On a per-share basis, the group’s net asset value (NAV) at end-September 2020 was 283p compared to 285p at the end of March.
() has said rent collections for the final quarter of 2020 are now at 75%, with the September quarter at 80% including agreed monthly payments.
The strong collection rate reflected its focus on UK regional offices and minimal retail exposure, the property group added in a trading update.
Rent collection for the March and June 2020 quarters had also improved since last reported, Circle said, and now stands at 93% and 89%, respectively with further improvement expected.
The independent valuation of the portfolio at September 30, 2020, was £137.9mln (2019: £139.5mln) with the dip the result of £1.6mln refurbishment of two assets in Milton Keynes and Bristol.
On a per-share basis, Circle’s net asset value (NAV) at end-September 2020 was 283p compared to 285p at the end of March.
In the statement, John Arnold, Circle’s chief executive, said: “We have continued to work closely with our tenants and this has resulted in strong levels of rent collection. Despite the disruption caused by the COVID-19 pandemic, our focus on regional offices and our notable lack of exposure to retail property has allowed us to maintain a strong portfolio valuation of £137.85 mln.”
At end September, the AIM-listed company had £7.2 mln of immediate liquidity with gearing of 43.8% though Circle said it intends to reduce its borrowing ratio through sales of assets with secure tenants and where it has added value through redevelopment.
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