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.
Published at Fri, 16 Oct 2020 06:35:00 +0000-Circle Property says rental collection remains strong