Palace Capital Share Discussion Threads

[ntv] 21/9/2017 11:53

going to be interesting with the very highly geared REITS where the dividend has hardly any cover when it comes to interest rate rises(those with no fied rates on term loans
hopefully the first will be before the end of the year
COULD BRING SOME BARGIN PURCHASES for those companies with good cash flow

[ntv] 21/9/2017 11:19

doesn't state costs for unlet units

[ntv] 21/9/2017 11:12

As at 31 March 2017, RT Warren had net assets of GBP58.9 million, principally represented by property assets of GBP77.0 million and the Barclays Loan of GBP14.5 million. Rental income for the year ended 31 March 2017 was GBP3.6 million and profit after tax was GBP5.3 million, after administrative costs of GBP0.6 million, which are not expected to continue after completion of the Acquisition.

so they are only getting a 5% return before any asset growth
cost of dividends on the shares exceed the return on the assets bought so where is the logic in the purchase unless there is something they are not telling us
the cost of dividends is exaggerated in the first year is the new holders get a chunk of dividend early
agree with skyship it is all about the ego instead of slow steady growth.
that is why a lot of real estate are just standing still
most need busting up just look at BLAND
share price hardly moved for years for long term holders divi 5% big discount
small is better
lean and mean property machine is what you need
hope bassi don't change things at rle

[igbertsponk] 21/9/2017 09:33

Check out INL guys - massive untapped value if you like slightly unusual property plays.

[mad foetus] 21/9/2017 09:29

I agree with all that Sky. I'm pleased you have recovered your sharpness and hope physically you are healing.I sold out of PCA a couple of months ago but I am not convinced about the whole property development sector: it just seems to me that there are too many companies that look great on paper but which struggle to translate that into shareholder returns (UAI and LXB spring to mind). They are great for the managers, who charge a hefty percentage based on AUM, but the gains that should arise rarely seem to trickle down to the hoi polloi. So I'm out.

[davebowler] 20/9/2017 14:42

Very poor treatment of us existing shareholders.

[topvest] 19/9/2017 18:16

Yes, disappointing price of 340p and think the open offer element should have been much higher as we have been diluted. I will give them the benefit of the doubt this time as it sounds a good deal and the full listing is the next step. Think we need to flag our unhappiness though. Loyal holders will dump their shares if they don't have confidence in management doing the right thing.

[steve3sandal] 19/9/2017 17:49

340p. Not at all impressed. I will make my feelings clear to the Board. I do know that they will take no notice. They tend to be active in PI presentations like Mello and Share Soc so anything up north will attract the relevant advice and at least we can be heard.

[igbertsponk] 19/9/2017 16:21

Directors a decent bunch, why I follow this share. They run the Props Awards, lovely lunch I've been to several times (sat near Miss World there this year!).

[llef] 19/9/2017 16:18

yep, raised 20m in may 2015 at 360p and now raising more cash at a lower price of 340p.
hell-bent on getting bigger.
Bigger companies pay directors more i guess.....

from may 2015
The fundraising, which along with the acquisition is conditional on shareholder approval, will consist of the placing of 5.6 million new shares at 360 pence each.

[eezymunny] 19/9/2017 15:21

340p it is. All seems rather odd!

[steve3sandal] 19/9/2017 12:17

I sort of agree with NTV, not the first time they have done this type of discounted placing - I assume we will get the details at the end of the day....guess 350/360. Not thrilled about a large NAV dilution but one day maybe growth steps can be funded by more debt and less equity.
The open offer seems designed to tick the inclusion box but is otherwise disingenuous in my view at 1:20. However, they are good at what they do.....look how far we have come....and a Hudson House JV would be useful news sometime soon. I will top up with with the change in my pocket and have little doubt that there will be lots of levers they can pull on this portfolio. Read back about Halifax - this will pay for itself in c10 years if I recall correctly, great IRR. I'm told the Home Counties is nice too!
S3s

[igbertsponk] 19/9/2017 12:08

Buying the resi as that comes with the package. Will be tax efficient for seller to sell the lot in one go. Then Palace will sell the resi - either individually or to a large landlord.
The commercial bits are 90% in the Home Counties.

[trogerswinning] 19/9/2017 11:57

Why is a regional commercial property company buying residential London property?

No thank you!!!

[ntv] 19/9/2017 11:32

capital growth here or profits from sales are now irrelevant as it appears it is now much equity it can raise so it can get to to the ftse250
hopefully this will narrow the spread at last so it can more easily traded
can more points that way to try to get back the lost gains
last placing was at 360 in may 2015. not much capital growth for any of those buyers !!
2 years in a booming market with no growth
very poor returns

[igbertsponk] 19/9/2017 09:28

Problem is they want to grow this company massively. So will always be trying to raise capital. And each time will have to lower the price to make it attractive.
Great company with good prospects and decent asset-spotting.
But until it gets to a decent size where it can use borrowings more than equity for acquisitions, any gains will be shared with new shareholders as well as existing ones.

[spob] 19/9/2017 08:43

open offer is tiny relevant to the placing

not keen myself

sold mine

will reconsider when all is done and dusted

[spectoacc] 19/9/2017 07:21

Know nothing about what they're buying, but will be very interesting to see where the Open Offer gets priced.

[ntv] 24/8/2017 19:05

sale of leasehold property at nett asset value is good after loss of tennant
BB closing down offices left, right and centre in an effort to cut costs

[skyship] 22/8/2017 15:13

Simon Thompson (IC Online) makes a convincing case for the value of Hudson House post development. Finishes with these two paras:
================================================

So, although analysts at both Arden and Edison Investment Research have held their full-year net asset value estimates at 445p and 449p, respectively, I would be very surprised if we don’t see a decent valuation uplift on this development when the company reports its interim results later this year. I would also point out that the Hudson House development is unencumbered, so the directors have the flexibility of either putting it into a joint venture if a partner can be found, or alternatively redevelop the scheme themselves using Palace Capital’s lowly geared balance sheet. Either way, there is upside potential here for a company which had a last reported net asset value of £110m.

Ahead of the first half results to end September 2017 which will be announced in November, I continue to rate shares in Palace Capital attractively. Please note that I initiated coverage last autumn at 335p ('A royal investment', 17 Oct 2016), since when the board has declared dividends of 18.5p a share for the 2016/17 financial year, with prospects for a 19p a share payout this year, according to analysts from both firms. Trading on a 12 per cent discount to conservative looking net asset value estimates, and offering a solid looking 4.8 per cent prospective dividend yield, I continue to rate the shares a buy.

[skyship] 18/8/2017 17:09

Hmm - personally happy to buy it without paying that damned Stamp Duty!