Circle Property has increased its interim dividend by 10% as the value of its portfolio continues to grow.
In its results for the six months ended 30 September, the firm announced an interim dividend of 3.3p, up from 3p in March.
Its property portfolio valuation increased to £135.6m, up by 8% from £124.6m, largely due to the company’s largest acquisition to date: the £14.6m purchase of Concorde Park in Maidenhead, Berkshire.
The firm’s NAV per share was £2.78, broadly unchanged from £2.75 six months ago but representing an 87% increase since Circle Property’s initial public offering in February 2016.
John Arnold, chief executive of Circle Property, said: “Circle’s portfolio now comprises 99% (by value) regional offices, which is highly reversionary, and has no exposure to retail property. Our focus on ‘added value’ rather than initial yield continues to reap rewards, with income generation arising from judicious capital expenditure.
“In the six months ended 30 September and post period end, we have been investing in the pipeline, increasing our rental growth and we are on track to deliver expectations for the full year. In the first half, the pace of lettings has increased, with over £950,000 of newly-contracted rents being completed to date since the start of the year. This bodes well for an uplift in valuation at the year end and we look forward to continuing our positive momentum.”
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