Palace Capital Share Discussion Threads

[ntv] 09/5/2017 18:35

interesting purchase on the way as a £20m building outside london must be a rarity.
They are going need some real blue chip tennants to justify the price tag

[eeza] 04/5/2017 07:52

Holdings RNS

Schroders reduced.

[ntv] 04/5/2017 07:39

i don't understand why the management never released an RNS for some of the other sales that were carried out during the latest half year but kept on about how fantastic the York development is
not sure what it is valued at in the accounts but it seems to be taking along time to come to fruition a plus probably another year til it is sold

[eeza] 03/5/2017 11:49

Yes, agree a large seller(s) has been looking for the door - but the MM's already know that because they've been given the stock to distribute.

[ntv] 03/5/2017 11:40

i think some more larger sales to come, probably from the two larger institutions selling down their holding as they have been doing so over the last 6 months plus

[spob] 02/5/2017 13:49

bought some more today whilst still cheap

[skyship] 02/5/2017 13:17

EDISON update following today's RNS:

Palace Capital (Palace) has released a positive portfolio and trading update detailing disposals made in FY17, significant ongoing projects at ten properties and the possible acquisition of a fully let office building for c £20m, which would more than replace rents at properties sold in the year. These developments demonstrate Palace’s ability to add shareholder value through active management and to recycle capital efficiently. We have revised our estimates and note that management expects the March 2017 NAV to beat market expectations.



Year end Rev
(£m) Adjusted EPRA earnings
(£m) Adjusted EPRA EPS (p) EPRA NAV/
share (p) DPS
(p) Yield
(%)
03/15 8.6 4.8 28.3 396 13.0 3.7
03/16 14.6 4.6 18.9 414 16.0 4.5
03/17e 14.0 5.0 21.0 431 18.0 5.1
03/18e 13.7 5.6 22.2 437 18.0 5.1
03/19e 14.7 6.9 27.5 447 18.0 5.1

Asset management adding value
Thirteen disposals were made in the year to 31 March 2017 for a total consideration of £12.6m, which is a £3.4m (37%) gain on the book value of the properties (£9.2m), equivalent to c 13p per share before tax. These disposals have helped reduce net LTV to 39% of the September 2016 portfolio valuation. LTV may be lower still vs the March 2017 NAV, which Palace has stated is likely to beat market expectations. The portfolio update also detailed ten property management projects, most significantly one at Hudson House in York where a new planning application has been submitted to replace the existing building with 127 apartments, 34,000sqft of offices and 5,000sqft of commercial space. Full details of all the projects are available here, and while we have increased our FY17 forecasts we expect these initiatives may still have contributed to a portfolio valuation in excess of our new EPRA NAV estimate of 431p per share (previously 430p).

Reinvestment to enhance income
Although the disposals have reduced the contracted rent roll to £12.8m pa at 31 March 2017 (£10.9m net of head rent and void costs), Palace has also agreed terms for the corporate acquisition of a fully let office building for c £20m. It is reported that if completed, this would more than replace income lost through disposals. We have assumed the acquisition is made with 5% purchaser’s costs, at a 7.5% net initial yield and 50% LTV with debt costs in line with existing debt: our FY18 EPRA EPS forecasts have risen to 22.2p and to 27.5p in FY19.

Valuation: more NAV gains likely
With the potential acquisition likely to mean that rental income levels are sustained and the probability of a NAV uplift beating market expectations, there is significant potential for the shares to appreciate. Regional peers tend to trade at premiums to reported EPRA NAV averaging c 4% and the completion of the acquisition and/or the FY17 results could be catalysts for Palace’s c 18% discount to narrow.

[jombaston] 02/5/2017 12:18

I think the expectation was around 430p so might be a little higher now. The dividend is expected to be 18p (full year). Great to see they have lined up another acquisition. With the regional market hotting up my concern was that they would struggle to buy. Now they are replacing the rental income perhaps they could increase the dividend but it wouldn't harm to hold back some cash for development.

Looks good to me!

[skyship] 02/5/2017 11:38

free stock charts from uk.advfn.com

[mad foetus] 02/5/2017 09:13

Well, I've read the announcement in full and it looks great to me. A real long term hold imo, they seem to be able to consistently buy property that they can rent out at a return many times that of the interest on their borrowings.

[skyship] 02/5/2017 07:30

NAV ahead of Market expectations sounds good. I expect on 6th June we will also find the dividend ahead of Market expectations...

[spectoacc] 02/5/2017 07:20

Headlines look very positive - not read it all.

[ntv] 12/4/2017 20:14

New lease for print factory bringing in £282k per annum but not sure if still trading as web site but supposed to have backing of a hedge fund
big rise in rent to come in theory in 10 months time if it hasn't gone bust by then!
tried to access website but it didn.t work
so might bring an improved valuation
also The forum, Exeter was let in Novemebr and that comes on stream in early May generating a large increase in income especially as the company is already saving on empty rates
voids cot £110k per annum
rental income is £81k

[ntv] 12/4/2017 20:08

not sure what above all means

[skyship] 12/4/2017 08:11

Hm...I thought that too! Still, one can't fault the performance, indeed the outperformance versus ALL peers. Also the laudable dividend policy.

[speedsgh] 11/4/2017 20:38

It's purely superficial, I know, but the CEO doesn't come across as particularly likeable imo.

[steve3sandal] 11/4/2017 12:18

Bscuit, I was thinking the same, Halifax, Northampton...no offence intended to either of those fine towns. I am not knocking either acquisition Halifax particularly good for shareholders, and a happy accumulator of the share.

[bscuit] 11/4/2017 11:06

Sinclair's last comment is fatuous. Any CEO would say that...

[skyship] 11/4/2017 08:09

Thnx for that speedsgh - looks as though the upcoming NAV declaration may even exceed 430p...

[speedsgh] 10/4/2017 20:39

New Stocktube video interview with CEO Neil Sinclair...

'We're still a bit under the radar', says Palace Capital's Neil Sinclair (10/4/17) -

Neil Sinclair, chief executive of Palace Capital Plc (LON:PCA) tells Proactive's Andrew Scott: ''We feel the regions, particularly Manchester, Leeds and Liverpool and ultimately Newcastle … are going to grow and will continue to grow''.

Sinclair says their portfolio at the moment is worth around £180mln with debt of around £70mln giving them a net asset value of close to £110mln.

''We're conservative, we don't buy very often but when we do we really go for it'', Sinclair adds.

''We think we're unique because we only buy properties in the right towns and in the right places in the right towns''.

[skyship] 07/4/2017 12:56

07 April 2017

Palace Capital plc

Director/PDMR shareholding

Palace Capital plc, the property investment company focusing on property outside London, has been informed today that the Sinclair Goldsmith Executive Pension Scheme, of which Neil Sinclair, Chief Executive, is the sole beneficiary, has yesterday and today acquired a total of 10,000 ordinary shares of 10p each in the Company ("Ordinary Shares") for an average price of 365p per Ordinary Share.

Following this purchase, Mr Sinclair's notifiable interest is 183,767 Ordinary Shares, equivalent to 0.73 per cent. of the Company's voting rights.

[ntv] 07/4/2017 12:07

recent sales here, highlighted by an RNS and I presume will be in the final accounts
are
Stockport £1.55m reducing empty costs of £185,000
Leeds £2.15m loss of £173,000 pa of income
Maldon £3.9m loss of £375,000 pa of income


Total sales of £7.6m for a loss of £363,000 pa of income

[ntv] 07/4/2017 11:41

I am good at that too SpectroACC
been watching FDBK but turned it down thinking they needed cash ,now look!!

nice to a directors buy here
nice yield and expecting an increase in final dividend
maybe some news on recent planning application and maybe a sale to go with it.
could release a serious amount of cash to reinvest in income producing assets.
first income from Dartford this month along with Exeter next month bodes well for rental income