Palace Capital Share Discussion Threads

[skyship] 07/3/2017 13:50

Simon Thompson has today revisited his IC online tip for PCA and uprated his target from 380p to 400p.

Closing Para:
"Trading on a 17 per cent discount to net asset value forecasts, the high-yielding shares look an attractive investment proposition for a company whose management team has delivered net asset value per share growth of 92 per cent over the past three years, and is garnering a shrewd reputation for buying off-market and adding value to assets through active property asset management and refurbishments."

[skyship] 07/3/2017 11:46

Started a PCA thread over at The Lemon Fool.....TMF's replacement:

[ntv] 06/3/2017 08:28

surely a bit of extra effort on the part of the board could have raised the price somewhat.
surely selling on an exit ratio of 8.5% would not have been that difficult
i think they have rushed the sale because the property was uncharged to raise funds for a new purchase maybe ?
the only other thing is Rockwell could be thinking of moving out on first break so that might justify selling
1st break was 2020

[skyship] 06/3/2017 08:27

Also view NTV's comment as a valid one; however an unsolicited offer delivering a 66% increase on book value sure must have been tempting!

With the prospective 425p NAV mentioned in my 227 above now looking more like 430p, I decided to make a small top-up this morning at 352p.

[spectoacc] 06/3/2017 08:13

The CEO comment seems fairly clear, but fair point re 10% yield:

"Following on from our sales announced on 24 February 2017, this is another example of our brand of active management enabling us to recycle our capital and to create significant value for our shareholders. This property had limited potential and, being uncharged, it enables us to invest the monies to be received in more suitable and strategic income producing opportunities."

[ntv] 06/3/2017 07:59

the disposals made in February were good ones
realising £3.7m in funds but effectively gaining about £12.5k in rental income if you calculate saving on empty property with rental income

todays asset sale is different
why did they need to lose a blue chip client who had just renewed a ten year lease
and sell on a yield of just under 10%
surely they could have got a lot more than that?
seems mighty strange to me give the boards record here

[mad foetus] 06/3/2017 07:19

Another disposal at well above book value. Surely this is massively undervalued and a rerating will happen one day soon.

[skyship] 24/2/2017 10:51

Topped up with a few @ 355p. At that level the yield is a prospective 5.0% on the likely 18p total dividend; and the NAV discount would be 16.5% to a prospective 425p NAV compared with the 419p as at 30th Sept'16.

As we all know, PCA is extremely well-managed and operates in the regions rather than the over-stretched South; so I'm confident that this will make reasonable progress leading up to the June Finals.

[mad foetus] 24/2/2017 08:23

I've got KWE, PCA and UAI. There doesn't seem to be a great deal of logic in how the share price relates to the NAV, yield or LTV across the sector.

[spectoacc] 24/2/2017 08:21

Does seem a good co, though not in it myself currently - holding far too many property co's already & is a struggle choosing between them. Eg got FCRE, KWE, PILR, SREI, AEWU, TRY.

[mad foetus] 24/2/2017 08:05

Two decent pieces of news, neither earth shattering but this company appears well managed and due a rerating, though not sure what the catalyst will be. When it does move I suspect it will move quickly.

[spectoacc] 24/2/2017 07:29

Only small, but a good deal:

"Palace Capital plc, the property investment company that focuses on commercial property outside London, today announces that the Company has sold its long leasehold interest in Warwick House, Wade Lane, Leeds to a private investment group for GBP2.15 million, GBP0.75 million above book value. "

[speedsgh] 31/1/2017 11:09

Edison initiates coverage on PCA...

Income and capital growth outside London -

Unrecognised Strength
Given the potential to beat our estimates and to deliver both solid earnings and
NAV growth, we believe Palace’s current discount to EPRA NAV (c 18%) is high,
especially compared with a regional peer group that trades at a premium to NAV on
average. The 6.3% portfolio net initial yield and low cost of debt support a dividend
yield of c 5%, similar to REIT peers, with the added prospect of NAV growth.

[tomps2] 30/12/2016 12:31

VIDEO of CEO, FD and Director presenting at ShareSoc Richmond, November 2016



Following Brexit PCA share price suffered, but NAV hasn't been affected. Management talk through the history, the business model, and future plans.

Since this was filmed, H1 results have been released.

[ntv] 08/12/2016 08:05

xd today for 9p

[steve3sandal] 01/12/2016 20:02

HL have these as sells at 355p....share price is unchanged...not sure if this is good news or not. I hold, like, but MMS will have to find other buyers...let's hope no overhang.
Anyone anything to report from Sharesoc presentations last month?

[ntv] 01/12/2016 18:10

big trades today for pca

[davidosh] 24/11/2016 14:42

Palace Capital Plc (PCA) are presenting at the first ShareSoc Supper in Manchester.

Hear from the Directors of Palace Capital following their half yearly results and enjoy a 3 course meal with fellow investors.

Date: Wednesday 30th November
Time: 6.30pm arrival for 7pm start
Venue: DoubleTree by Hilton at Manchester Piccadilly
Cost: £22.50 for 3 course meal.

To register visit

[ntv] 23/11/2016 22:20

yield still 5% even at current price
probably won't go much higher until there is major news
rental income still improving
so final dividend could still be increased
borrowing costs are probably one of the lowest in the sector

[amctomney] 22/11/2016 13:12

Palace Capital Plc (PCA) are presenting at the first ShareSoc Supper in Manchester.

Hear from the Directors of Palace Capital following their half yearly results and enjoy a 3 course meal with fellow investors.

Date: Wednesday 30th November
Time: 6.30pm arrival for 7pm start
Venue: DoubleTree by Hilton at Manchester Piccadilly
Cost: £22.50 for 3 course meal.

To register visit

[topvest] 21/11/2016 19:39

Nice update.

[spectoacc] 21/11/2016 07:28

NAV +1.2% to 419p. See above!

[spectoacc] 03/11/2016 07:44

Thanks @strathroyal. Almost feels like they put the t/s out in response to Tommo! A sort of "hold your horses, don't get too carried away just yet" RNS.

[strathroyal] 02/11/2016 16:54

SpectoAcc - Agree that the update was a definite curate's egg. I thought the initial comment about short term profits being affected was something of a profit warning but happily the market didn't seem to view it this way. Longer term the uplift in value on Hudson House will be beneficial to NAV but looks like the share price will continue flat at best for now as there is nothing to give it impetus.