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

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: Regional offices holding up in lockdown says Circle Property CEO

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 strRead More – Source