Palace Capital Share Discussion Threads

[hugepants] 09/1/2019 09:26

re overpaying the dividends, how can they make a mistake like this with no-one noticing?

[davebowler] 04/1/2019 14:04

That building is in a great spot -close to the Merseyrail station, shops and the business centre of Liverpool.Good yield too.

[cwa1] 04/1/2019 10:31

Edison research:-



Following the agreed £18.2m sale of most of the non-core residential assets acquired with the RT Warren portfolio last year, Palace Capital (PCA) has acquired a quality, mostly office building, in the heart of Liverpool for c £14m. The transactions represent a significantly positive yield arbitrage, enhancing existing strong reversionary potential. Further opportunities reposition and grow the portfolio, including the Hudson Quarter development in York, and are positive indicators for future growth.

[ntv] 01/1/2019 09:29

jack up to divi payment reinvestment

[peterjw] 22/12/2018 16:02

Tomps2

Thanks for the link .. very interesting. Any thoughts about the share price movement taking place in the last few days?

[tomps2] 22/12/2018 12:58

PCA presentation at Mello London, November 2018

By Neil Sinclair, Chief Executive
Stephen Silvester, Finance Director
Richard Starr, Executive Director



Comprehensive overview of the strategy and market background, the financials and the portfolio.

[peterjw] 19/12/2018 08:11

HugePants

I can't find anything to have caused the price/volume increase. The trading started at about 2pm yesterday and was very untypical. maybe some news afoot?

[hugepants] 18/12/2018 21:41

Zoomed up a bit today. Was it tipped?

[trogerswinning] 06/12/2018 12:50

Did some more hunting last night about Circle Property and found this which is helpful:

hxxp://www.circleproperty.co.uk/~/media/Files/C/Circle-Property/reports-and-presentation/circle-property-returns-analysis-july-2018.pdf

In there it has Palace returns against Circle returns and others.

[igbertsponk] 06/12/2018 10:23

I hate companies that presume they know how to invest their owners cash in other companies better than the owners.
Give the money back and let the shareholders decide what to invest in!!!

[peterjw] 06/12/2018 08:48

markyjacob123

Thanks for your comments. You might well be right but my thinking was as follows;

The 65 residential properties were valued at £23,342,500, an average of £359k per property. 3 had been sold earlier for £1.25m and the 50 have been sold for £18.2m So 53 properties will return £19.45m. If the further 10 can be sold for circa £3.6m (guesswork!), 63 properties would yield £23.05m, which is circa 98% of book value with 2 properties held back for 'strategic reasons', but I don't know what that means!


Caveats are that I'm just using averages and assuming the future 10 are of similar value to those sold already, and no costs are factored in. However to sell 83% of the remainder to be sold in one tranche I would have thought a good thing and should return capital to be put to work creating a higher return more quickly.

That was my logic but let me know if it's flawed.

AS for buying Circle shares I don't know why that was done and if they are using capital to buy shares why not buyback their own to improve our shareholder return?

[trogerswinning] 05/12/2018 16:00

Thanks for the feedback dangersimpson and Jombatson. I still don't get what is the point in buying a 5% stake in Circle Property?

If it was because Sinclair thought it was cheap, isnt that Sinclair just admitting PCA cannot use the cash better elsewhere... like on there own portfolio

[markyjacob123] 05/12/2018 13:26

peterjw28 Nov '18 - 14:32 - 526 of 528

if the final 10 properties from R T Warren sell ok then the residential sale has gone well.

I don't know how you can say by selling the majority of RT Warren residential below book value has 'gone well'? The book value should been ultra-conservative already, so this is poor result.

[2wild] 04/12/2018 19:54

Picked up some today at 289p. 6.6% Dividend 31% discount to NAV and modest 30% Loan to asset value.

[cwa1] 03/12/2018 09:05

Edison research:-

[peterjw] 28/11/2018 14:32

Yes finance for Hudson house appears arranged and they say they will input a small amount of cash also.some such phrasing. HQ looks exciting but has to come on stream..but the logic around York etc and the station seems sound.if the final 10 properties from R T Warren sell ok then the residential sale has gone well.

[jombaston] 28/11/2018 14:01

You are right peterjw it is pretty clear in the results announcement. They were just reiterating this.

It looks as if they are close to tying something up. Obviously, its not signed yet so could still fall through. Should be a big income improvement on the 3-3.5% yield on the properties just sold.

The Hudson House development finance is already arranged separately so there is money to go.

[peterjw] 28/11/2018 13:45

Jombaston. Thank you for the update.interesting. The half year results suggested a purchase may be coming soon.presumably this came from his presentation?

[jombaston] 28/11/2018 12:59

The message is that Circle operate in similar sectors to Palace and the stake can be sold when they need the money.

There are ongoing asset management initiatives but I also sense that we can expect some sort of purchase before too long. The £18m raised is for redeployment and while they want to remain conservative in terms of gearing they would go higher (I'm guessing 40% LTV).

They believe in the regional office sector will continue to perform well, given the lack of capacity expansion in recent years with developers focusing on residential new build and office to residential conversion.

[dangersimpson2] 28/11/2018 11:51

I agree, although it's fairly small, in the same field, on the same sort of discount and shouldn't have any impact on their ability to develop their own portfolio given their low gearing so it's not really a big issue for me personally. If they start taking stakes in companies in other sectors, or overpaying that is when I'd start to to be worried.

[bscuit] 27/11/2018 21:37

Don't see the logic of a stake with probably no influence. perhaps just doing a mate a favour - not long since they were much cheaper. Money would have been better spent on accelerating own portfolio IMV.

[dangersimpson2] 27/11/2018 20:46

Discount pretty similar, company thinks buying their own shares would give the impression that they have run out of ambition to take the company forward. I disagree but that's their thinking.

[dendria] 27/11/2018 15:36

I asked ADVFN to update their database on CRC (previously Copper Resources). They've updated it & I've put on a new thread for CRC - called... Circle Property.

[mushypeas] 27/11/2018 11:15

So PCA shares on a bigger discount aren't?

[dangersimpson2] 27/11/2018 10:40

Chatted to Sinclair - Circle property stake not strategic, just looked too cheap in a sector they know really well.