Palace Capital Share Discussion Threads

[rhomboid] 10/5/2016 16:06

I've bought in this afternoon, I like the business model and am looking for yield and growth , this seems a good blend of both, I'd be interested to see any broker notes after today's RNS

Cheers

[mad foetus] 10/5/2016 12:15

here's a funny thing. I was looking at one of my core holdings just now - RMMC (River & Mercantile Micro-Cap) and I see at their last report (only available as pdf) they have PCA at 3.2% as one of their top 10 holdings. Clearly PCA has grown since then, but I regard R&M as the premier small cap analysts in the UK, so it bodes well imo.

[mad foetus] 10/5/2016 09:49

Results are out on 6 June but the increased divi indicates all will be very positive. The referendum is the complicating factor but I think regional property is much less highly rated than London property and will be less affected by the referendum result either way.

[igbertsponk] 10/5/2016 09:44

That is pretty stellar as with a 16% annual return they get their money back in just over 6 years - long before the current leases end.

[mad foetus] 10/5/2016 09:35

I had this on the radar for a while and the update reads very well. I particularly like this:

"The Board views Broad Street Plaza as a long term hold with strong covenants on long leases and the WAULT is 14 years to break. The Company intends to take advantage of historically low interest rates and has received indicative terms from a major insurance company to replace the existing short term facility with a new 10 year loan of GBP15.2m at a fixed interest rate of approximately 3.5% (including margin). This will provide Palace Capital with an initial 14.5% return on its equity investment, increasing to 16% when the fixed increases in rent take effect in July 2017. This, coupled with the fact that no capital allowances have been claimed historically, gives the Board confidence that Broad Street Plaza will provide a stellar return for the Company and its shareholders. "

Not often you see a broker agree to the use of a word like "stellar" in an RNS

[courant] 10/5/2016 09:03

A great update and have bought in this morning - looks like there is significant value here being unlocked. Complements RLE nicely as a regional property play.

[mad foetus] 10/5/2016 08:50

I've had a nibble - surprised to pick them up at 355. Looks very positive sky.

[skyship] 10/5/2016 08:05

Phenomenal update by PCA ahead of the 6th June Finals. I suspect my f/c of a 420p NAV may well be achieved; but my anticipated dividend increase has already been exceeded.

At today's improved 360p the discount is a prospective 14.2% and the Yield = 4.44%. Not massively cheap; but certainly looking good value...

[skyship] 03/5/2016 09:11

Last year's Finals were on Thursday 28th May; so could be Thursday 26th May this year - just over 3 weeks away.

Recent NAV Growth:
==================

31/03/14 - 357p
30/09/14 - 374p
31/03/15 - 396p
30/09/15 - 404p

So, 31/03/16? I'm rooting for a jump to 420p, at which level the discount @ 350p would be 16.7%. Not remarkable, but certainly good value for a still fast growing and well managed Microcap propco.

Also worth considering the dividend.

Last year a 6p Interim was followed by a 7p Final - Total 13p.

This year a 7p Interim, perhaps followed by an 8p Final - Total 15p?

If so, then the yield at 350p is a very attractive 4.3%...

[skyship] 14/3/2016 08:07

Substantial £24m acquisition today - see Header. Looks to be a good find:
==========================================================================

Neil Sinclair, Chief Executive of Palace Capital, said:

"Palace Capital is delighted to announce another significant acquisition of a major regional leisure scheme. Broad Street Plaza was chosen by The Variety Yorkshire Property Awards in 2012 as the Development of the Year. This is a well located leisure scheme with a superb quality of tenants on good leases with continuity of income for an average of at least fifteen years.

"As the cash element for this transaction has been met from our existing resources, this acquisition is very earnings enhancing. As I stated two weeks ago when we announced the acquisition of 249, Midsummer Boulevard, Milton Keynes we will only buy when we find value. Further to that, to have a yield of close to 8% next year with a WAULT of 15 years to the break is highly attractive in the current climate.

"In addition the new, larger bank facility we have entered into will provide additional resources at lower interest rates for further acquisitions and working capital for a number of asset management activities over the coming months. The Group continues to be conservatively geared with net debt at 38% and holds GBP20 million of unencumbered properties.

"We continue to seek further targets preferably off market which meet with our strict acquisition criteria."

[skyship] 25/2/2016 09:00

Today's RNS effectively puts a floor under the share price:
===========================================================

Notice of general meeting

Palace Capital, the property investment company that focuses on commercial property outside London, has today posted to shareholders a notice convening a general meeting of the Company to be held at the offices of Hamlins LLP, Roxburghe House, 273-287 Regent Street, London W1B 2AD at 10.00 a.m. on 24 March 2016 ("General Meeting").

The General Meeting is being convened for the purpose of seeking general authority for the Company to make market purchases of its own ordinary shares ("Ordinary Shares"), limited to up to 10 per cent of the Company's issued ordinary share capital (the "Share Buyback Authority"). The Share Buyback Authority, if approved, would take effect at the end of the General Meeting, and expire 15 months from the passing of the resolution.

In its half yearly report for the six months ended 30 September 2015, the Company announced a European Public Real Estate Association net asset value ("EPRA NAV") per Ordinary Share of 404 pence. As at the date of this announcement, the Company's share price is 327.5 pence per Ordinary Share, representing a 19 per cent. discount to the reported EPRA NAV per Ordinary Share. In light of the size of this discount, and in line with normal corporate practice, the Directors consider the Company should seek the Share Buyback Authority to allow the Company to purchase its Ordinary Shares at a point in the future when it would be appropriate to use the Company's financial resources to provide shareholders, who wish to realise part or all of their investment in the Company, with an opportunity to access liquidity which might not otherwise be available in the market

[eezymunny] 08/2/2016 09:58

Not too sure what this morning's news means.



I think (from memory) that building is in the last NAV at c.£9m. If they develop 139 apartments and they sell for 175k each that's c £24m. I guess a few mill to do the conversions etc but might eventually uplift NAV by £5-10m? Current discount to NAV here is c.17% and yield 4.2% so not bad value perhaps?


Had a few of these for the EEZY3 portfolio last week FWIW.

[leedsu36] 14/12/2015 04:19

A couple of friends of mine heavily researched a new buy and build that was about to begin by two experts in their field Ian Smith and Tony Weaver (Accumuli,Capita etc etc etc fame) ctp I bought into @ 0.6p they stand today @ 83p ...not a bad gamble even if I say so myself (although I did know they have a proven track record of course)

I bought into their own merchant bank MXCP @ 0.7p currently at 3.2p (terrible gamble I suppose)

I then followed them again as they moved in and invested £millions of their own cash into PINN and I got in @ 6p...it's been a long wait but my gamble has paid off PINN currently 11p

They are currently advising CSI a cash shell with £22m in cash where to go with it and we're hoping they carry on with their tech business model,there are rumours of Nasdaq listing amongst a lot of other rumours,

Anyway I'm following them again because over the last few years they've turned my gamble to close on £850,000,now admittedly I'm a gambler,but I like to think I know a good thing when I see it,now please look at your own choice of shares and their recent graphs,,

[skyship] 13/12/2015 16:53

Better prospects in the regions:

[skyship] 11/12/2015 08:49

XD the 7p divi yesterday.

[llef] 09/12/2015 12:45

SKYSHIP, I don't want to harp on, so this will be my last post on this subject... whilst I agree that this part might not be overly generous, I suspect that there will be many other parts such as:

a) basic salary
b) annual bonus
c) allowance in lieu of pension payments
d) LTIP (discussed)
e) matched purchases of shares (Helical bar do it, Great portland do it so of course we have to do it...)
f) long notice periods
g) "good leaver awards", where shares allocated in d & e above are paid out if leaver is pushed out the door for being useless, or decides he wants to to a Gap year and find himself and the other directors use their discretion to pay out.

and I agree, it would be nice to see the conditions for the LTIP to be published in the annual report... let's hope it happens

cheers

[tournesol] 09/12/2015 10:12

Skyship

I used to use the moniker TinTin but then decided I was perhaps less intrepid and more eccentric than the boy reporter so switched to Tournesol. The English translations renamed Professor Tournesol as Cuthbert Calculus but I prefer the original nomenclature. Hence my avatar on Stockopedia......

T

[skyship] 09/12/2015 09:26

Ilef - to a certain extent it is true that the total remuneration packages need to reflect management of a much larger company. Yesterday's package isn't overly generous; though they could perhaps have told us the performance conditions.

Tournesol - never thought to ask you about your chosen moniker. Do you too live down here among the tournesol in SW France; or do you just like sunflowers?

[llef] 09/12/2015 08:06

tournesal - I accept that's true, but posting my frustration here made me feel marginally better.

cheers

[skyship] 02/12/2015 14:37

Now the FD's wife opens the FD's a/c with an £8000 investment:

02 December 2015 - Palace Capital plc

Director shareholding

Palace Capital, the property investment company that focuses on commercial property outside London, announces that Hanneke Silvester, wife of Stephen Silvester, Finance Director of the Company, has today acquired 2,148 ordinary shares in the Company ("Ordinary Shares") at a price of 370p per share. Following this purchase, Stephen Silvester now has a total beneficial interest in 2,148 Ordinary Shares, equivalent to 0.008% of the Company's total issued share capital.

[skyship] 01/12/2015 09:09

Non Exec Anthony Dove invests another £10,000 into the equity @ 378p:

[skyship] 30/11/2015 13:43

David - what a great opportunity - would love to have joined you, but a bit far from SW France!

[davidosh] 30/11/2015 11:55

I will be meeting the directors for a lunch and results presentation this Friday at 12.30 and I have four places available if you would like to join me. just email me through the mellomeeting.co.uk website

David

[topvest] 30/11/2015 11:13

Yes, all pretty positive. They have done a very good job here in a short period of time. Happy to hold.