Palace Capital Share Discussion Threads

[ntv] 26/11/2018 17:42

topvest
they were sold £1.23m not £5m, a bit of wishful thinking ;-)

[topvest] 26/11/2018 16:39

They have already realised £23m for the residential element (£5m earlier for 3 properties) - so they have retained 2 and have another 10 to sell, so not bad overall.
Looks like they have paid an illegal dividend. Not a disaster, but a tad embarrassing. Unfortunately, an all too common procedural error and a number of PLCs have fallen foul of this. Overall, they are doing OK.

[hugepants] 26/11/2018 16:21

Ive not done the arithmetic but net LTV must be down to 25% (or less) with the sale of the 50 houses. At 290p discount is now 30% and yield is 6.5% so possibly the best value out there in the regional property sector.

[ntv] 26/11/2018 16:18

more likely some sort of deal with circle, maybe to try and boost things
Yet to see the amazing returns from the portfolio
They are going to have to spend some money on Hudson house as well

[ntv] 26/11/2018 16:16

they probably won't cut unless the rest of the sector does
Plenty of cash from housing sale

[markyjacob123] 26/11/2018 16:10

SKYSHIP26 Nov '18 - 11:34 - 507 of 507

All about the Sinclair ego; and nothing at all to do with shareholder value...


The total return of 4% says it all. The dividend is 3% of that! Where's the portfolio growth..?!?!

Now I am concerned that the dividend could be cut, as it is uncovered.

[markyjacob123] 26/11/2018 11:04

Can anybody help me here. Note 15 of the results is making me worried. It is the very last note. I think Palace unlawfully overpaid dividends.

"Palace Capital plc paid out dividends of 4.75p per share in July 2018 and a further dividend in October 2018 of 4.75p per share on the basis of its last annual accounts for the year ended 31 March 2018. Although the parent company had distributable reserves in excess of those needed to pay such dividends, even after adjusting for the unlawful dividend received, in view of the above, the 31 March 2018 accounts produced by the parent company did not constitute relevant accounts as prescribed by Companies Act 2006 to justify these dividends."

[peterjw] 26/11/2018 10:37

That's my understan6din too.65 properties with 50 just sold, 3 sold before the current 50, 2 held back by PCA, and 10 still to be sold before their Y.E.I believe.

[poacher45] 26/11/2018 10:33

The way I read it is that the residential portfolio was valued at £23 million for 65 properties. They have just sold 50 properties for £18.2 million. Is that right?

[hugepants] 26/11/2018 09:41

Results look OK. NAV up a few % and dividend maintained for the forseeable, although currently not covered. I think the shares should be at least 10% higher.

I think they over-egged the RT Warren acquisition though!

[trogerswinning] 26/11/2018 09:37

topvest:

I had a look this weekend.

The residential portfolio was valued at £23,342,500 in the RT Warren portfolio they acquired. You can view it in the prospectus here (page 22):

hxxps://www.palacecapitalplc.com/wp-content/uploads/RFI_72089_Project_Lombard_Circular_P06_WEB.pdf

They just sold it for £18.2m.

They sold it at a loss so I do not think you are missing anything!!

[topvest] 25/11/2018 21:26

I thought the portfolio was one of the most exciting buys that they had seen for a long time, and they sell the residential element at book value. Where was the value then...am I missing something?
Circle Property is certainly of interest - it's on my watch list as well.

[jombaston] 23/11/2018 12:12

Yes, good news on shifting those 50 properties as they don't form part of the strategy and weren't yielding that much. With only 10 left - its only c.£3m tied up and they should be easier to shift or could even be sold piecemeal. With these sold close to book value, the NAV announced on Monday will be pretty accurate.

If they don't comment about the stake in Circle I will ask them next week.

[hugepants] 23/11/2018 10:37

Happy enough with that. The small loss on book value is peanuts compared to the NAV. And now they have significant cash available for acquisitions. Results out on Monday.

[ntv] 23/11/2018 08:14

the amount is better than i thought they would get but they haven't stated the costs
Maybe they have seen something in the circle property holding that looks to be worth far in excess of current valuation
Only hold a couple in the sector now and they both trade at huge discounts

[cwa1] 23/11/2018 07:18

23 November 2018

Palace Capital PLC

("Palace Capital" or the "Company")

Contracts exchanged for the sale of 50 residential properties for GBP18.2m

Palace Capital (LSE: PCA), the property investment company that focuses on commercial property outside London, is pleased to announce that it has exchanged contracts to sell 50 residential units for a total consideration of GBP18.2 million, reflecting 97% of their book value, to the London Borough of Barnet.

The units are part of the 65 residential units acquired as part of the RT Warren (Investments) Ltd portfolio in October 2017, of which three were sold in February 2018 for GBP1.25 million. The 50 residential units, which are all debt free and uncharged, currently produce a gross income of GBP0.62 million per annum.

Completion for each respective unit sold will take place when they become vacant with all the properties expected to be sold on or before 31 March 2019. The funds from the sales will be added to the Company's cash reserves to be ultimately deployed towards new acquisitions that meet the Company's selective acquisition criteria.

Neil Sinclair, Chief Executive of Palace Capital, commented: "We have found an excellent buyer and achieved a very satisfactory price within 3% of our book value. We intend to market the remaining 10 units separately in early 2019. The sale of these units has always been one of our key action points on the Warren Portfolio and we are pleased to have succeeded in this regard."

The West End office of Allsop acted for Palace Capital.

[peterjw] 22/11/2018 14:12

Sue 1, mushy peas
Thanks for your posts thats clearer now. I read quickly and misunderstood! Seemed the wrong way round!

[advfn_sales] 22/11/2018 12:27

Here is the chance to meet with Palace Capital:

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Tickets are normally priced at £99 for two days and £79 for one.

Type in ADVFN25 as the discount code.

Many Thanks and take advantage of this premium offer.

See you there.

[mushypeas] 22/11/2018 11:42

Thanks S1. Yes PCA now has circa £2.8M stake in CRC?

[sue1alan] 22/11/2018 11:00

Palace has the 5% stake in Circle.

[peterjw] 22/11/2018 10:41

Yes I saw that earlier this week. I'm not sure what the significance of that is. I wonder if anyone can help?

[mushypeas] 22/11/2018 09:59

Circle Properties takes 5% stake?

[mushypeas] 06/11/2018 07:22

A full list of the properties included in the sale is available on the Allsop site - registration required.