EQS-News: Edison Investment Research Limited: Edison issues initiation on Circle Property (CRC)
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EQS-News: Edison Investment Research Limited / Key word(s): Research Update London, UK, 4 September 2017 Edison issues initiation on Circle Property (CRC) Circle Property is an investor in regional UK commercial real estate, founded in 2002 and quoted on AIM since February 2016. It focuses on obtaining assets with good underlying characteristics at attractive prices, whose value can be increased through refurbishment, changes of use and other active asset management initiatives. The experienced executive team takes a hands-on approach and develops an individual management plan for each asset, minimising voids and maximising income and value. The current portfolio of £93m generates annual rents of £5.7m, supporting a c 3% prospective dividend yield, and gave an 18.1% NAV return in FY17. Other investors in regional commercial property trade at NAV on average, whereas Circle is now at a discount of c 15% to 31 March 2017 basic NAV/share of 183p. This may be in part due to perceived development risk, or illiquidity. Our base case forecasts do not include the potential uplift to rental income and NAV should newly refurbished space be let in FY18, and only allow for rents to increase by 2% per annum (below inflation), leaving considerable upside if new tenants are found. All reports published by Edison are available to download free of charge from its website About Edison: Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting. Edison is authorised and regulated by the Financial Conduct Authority. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities. For more information please contact Edison: Martyn King, +44 (0)20 3077 5745 Learn more at www.edisongroup.com and connect with Edison on: LinkedIn https://www.linkedin.com/company/edison-investment-research Twitter www.twitter.com/Edison_Inv_Res YouTube www.youtube.com/edisonitv
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606569 04-Sep-2017
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