Palace Capital Share Discussion Threads

[badtime] 06/7/2020 15:15

Took a nibble first up

[nickrl] 06/7/2020 14:06

Riverman, yes but why have they not had the bounce back all the others had is the question ive asked but can't answer. On the face of it headlines from April presentation were good and thee was also a supporting Q&A session if you looked on the virtual presentation thats on there website yet they never gain traction. Personally i reckon NAV will be down 10-15% as they don't provide qtrly updates like majority of others. Also the Husdon Qtr development is potentially not going to make the GAV they project given we've had another 3mths lockdown since those sales figs were released but they may surprise us. Interestingly there retail rental collection was a lot higher than peers but i suspect this qtr they will have a bigger shortfall but they maybe temporary. Leisure is a big hole as well which won't have improved

All this said there peers are equally exposed but are faring a lot better so it does feel as though a punt has to be worthwhile if i get below 175.

[riverman77] 06/7/2020 13:21

This looks interesting purely from a trading perspective. Has fallen more than any of the other diversified REITs this year, and not yet seen any recovery. Also, has a decent track record with only around 30% in the leisure and retail sectors. Quite a lot of the portfolio is earmarked for conversion to residential which should do quite well.

[skyship] 04/7/2020 14:31

# With a 30/09/19 NAV at 391p
# With Q1/20 rent collection at 80%+
# With Debt cost at 3.2% & Maturity at 4.5yrs average
# With Hudson Quarter, York still letting well

I suspect these are now oversold at 173p; and the Finals on Tuesday should provide a measure of support. I can see these back up to the 200p level quite easily.

[scbscb] 04/7/2020 10:33

Sky at 150p this might be interesting, needs a significant discount due to inept management. HugePants I would steer clear of Edison research. It is financial pornography that is paid for by the company and is nothing more than public relations gloss to hide the nasty bits. Even worse it is paid for by shareholders so destroys value. Of course all Edison research makes the company look good it can't do anything else. The valuation depends on who is paying the valuer.

[skyship] 03/7/2020 14:44

Palace Capital (LSE: PCA), the UK REIT that has a UK regional commercial real estate portfolio with a bias towards the office and industrial sectors in carefully selected locations outside of London, will announce its full year results for the year ended 31 March 2020 on Tuesday, 07 July 2020.

On Friday 10 July 2020 at 12.30pm, Chief Executive Neil Sinclair and Finance Director Stephen Silvester will also deliver a live presentation on the full year results via the Investor Meet Company platform.

[starpukka] 01/7/2020 21:25

My bad Skyship. Could have sworn I read somewhere that PCA was meant to go ex-div tomorrow but had failed to confirm it. Must have dreamt the date.

[skyship] 01/7/2020 12:31

starpukka - posted on the wrong thread perhaps. - No divi that I can see!

[starpukka] 01/7/2020 11:42

ex-div tomorrow.

[skyship] 30/6/2020 14:14

That 170p needs to hold otherwise, new low - perhaps to 150p!?

Problem is that Sinclair is a total prat with no supporters.


free stock charts from uk.advfn.com

[hugepants] 30/6/2020 12:04

From the Edison research note;

"Debt facilities have 225%-250% interest cover covenants, which would on average
only be breached if rents fell by 40%. On an asset-by-asset basis, there are a variety
of LTV covenants. Significant value falls would take place before any loan advances
would have to begin to see PCA reducing loans on the particular asset. The large Sol
Leisure asset, we estimate, has the most exposure in the group to tenants such as
gyms and we understand this is cross-collateralised with two non-leisure assets."

[hugepants] 30/6/2020 11:58

Valued at less than half of NAV.
Reminding myself of the portfolio breakdown here-

Office: 47.3%
Leisure: 14.5%
Industrial: 13.1%
Retail: 10.0%
Development: 6.5%
Residential: 4.3%
Retail Warehouse: 4.0%
Car Parking: 0.3%

I'm guessing they may have collected zero rent from the leisure assets and perhaps 50% of the retail. No income from development either. So already that's a big chunk of NAV that is probably not currently generating much income.

I hold some but don't feel that confident topping up.

[cwa1] 24/6/2020 08:15

Morning

From The April update:-

A recommendation on the final dividend will be taken at the time of the announcement of the full year results, which is currently expected to be in early June.

How far does "early" stretch these days? Or have I missed a later update? Can we read anything in to this?

Cheers

[nickrl] 23/6/2020 19:01

SCBSCB/Bscuit given share price hasn't responded anywhere as well as others must be an indication that other supports your assessment

[bscuit] 20/6/2020 12:03

I agree. I met management at a regional meeting shortly after the rubbish portfolio purchase.

To be critical, I think that they should have stuck to the original strategy, but once they started on the dilutive placing they could not back off for fear of being taken over or losing institutional support – which was probably self-serving.

One notes with annoyance that there has been no post-March lasting bounce and even the diminutive bounce has gone.

[scbscb] 20/6/2020 11:09

Skyship, an interesting graph of some of REIT dogs. Tempted here by the big discount, but like you put off by the terrible management, PCA are good at self promotion like the placing at a discount to buy a rubbish portfolio to increase to company size at the expense of shareholders just so management have a bigger company and can boost their remuneration. Likewise the expense of moving from aim to the main market for management kudos. In fact the opposite of a successful company like Boohoo that concentrates on improving profits.
Was in here but sold after the dilutive placing. The best outcome here is a takeover or activist that replaces the current board.

[skyship] 03/6/2020 14:06

A comparison v. three others seldom observed.

Though I hate the management, I suspect PCA may be a reasonable punt for a few %age points down at 188p.


free stock charts from uk.advfn.com

[nickrl] 03/4/2020 11:13

Huge was a C19 update yesterday which said they've banked 70% of rent this qtr but as usual with PCA its not straightforward. This is the figure based on factoring in revised arrangements like monthly or deferrals so not very transparent. Other REITs have at least quoted what % they should have had and then given a separate figure based on revised rental agreements agreed for the qtr. They specifically mention two leisure units at 14.5% of rent roll but don't say if they haven't paid up

More positively the Hudson Qtr sales figures are at 45 of 127 apartments sold or under offer to the value of £12.25 million although they say two have been cancelled in recent weeks and marketing suite is closed temporarily. I believe buyers have to pay some deposit but be interesting to know what the terms are for buyers walking away as i see this as a big risk for PCA. They need to hope the construction company doesn't go under either.

Like majority of companies previously declared divi now cancelled.

Trading at sub 50% last NAV and is in the group of REITs that aren't benefiting from any modest bounce back ie SLI recovered from -60% to -20% but maybe just a thinner market. Im not enamoured with Sinclair but this is on my watch list.

[hugepants] 31/3/2020 15:49

Difficult to know how this is faring given there has been no update from the company. Are loan conveants OK given material uncertainty re commercial property valuations? Hopefully they have enough headroom.
I assume the Hudson Quarter development will be on pause at the moment. They have very little retail so that's a plus but LTV has increased to mid 30s due to Hudson.

[scillyfool] 19/3/2020 18:29

PCA has a Piotroski F-score of 8, identifying it as a quality company. When buyers return to the market quality will be the driver and PCA will be on my buying list.

[poacher45] 26/2/2020 09:07

Fear seems to have taken over the stock market.

[cwa1] 10/2/2020 07:43

Palace Capital (LSE: PCA) the Main Market listed REIT that has a diversified portfolio of UK commercial real estate in selected locations outside London, announces that it has set a record office rent in York City with the completion of a pre-let agreement with solicitors firm Knights LLP ("Knights"), part of Knights plc, at its flagship Hudson Quarter mixed-use development. It marks the first commercial agreement at Hudson Quarter, which is due to complete in the first quarter of 2021 and where 30% of the residential units are already sold or under offer.

Knights is taking 4,588 sq ft of ground floor office space on a 10 year lease at £12.50 per sq ft for the first two years, after which point the rent will rise to £25.00 per sq ft, marking a record office rent for the City of York, with an upward only rent review at five years.

Until the completion of Hudson Quarter, Palace is accommodating Knights at its newly refurbished office space at nearby Museum Street where they have taken occupation of 3,100 sq ft and where it has signed a two year lease, also at £25 per sq ft, with a break option after one year.

[ramellous] 28/12/2019 23:50

When looking at property companies it is not so much about profits and earnings but instead it is the growth of the portfolio and its potential – and there’s bags of that at Palace Capital, writes Mark Watson-Mitchell.