Palace Capital Share Discussion Threads

[nickrl] 31/1/2021 09:22

This article is authored by him

hxxps://www.egi.co.uk/news/root-and-branch-reform-of-rics-would-appear-to-be-long-overdue/

I also discovered he has own webpage to promote himself!

hxxp://www.neilsinclair.com/index.html

it looks a bit dated though you can get the measure of the personality

[skyship] 31/1/2021 09:01

?....DO you perhaps have a link to that letter?

[konradpuss] 31/1/2021 08:17

Sinclair wrote a long letter he made public last week to the RICS saying how useless they are.

I hope he is 'squeaky clean' as the powers that be at the RICS usually take their revenge.

Perhaps he should be devoting all his time and efforts to the company rather than writing letters to the RICS?

Liquidate the portfolio and then he can write letters all day long......

[nickrl] 29/1/2021 09:38

Doesn't tell us much like how are sales at Hudson Qtr but at least is clear about what is actually collected and whats still to come unlike some of the others. I baled out of these when they ran up late 220's a while back but may have a nother bite as the divi should be assured at these levels but doubt it will go up.

Is it only the fund managed REITs that need to provide NAV updates? Do other REITs just have to do it six monthly?

[spectoacc] 29/1/2021 07:40

"This is our rent collection % - if you ignore a couple of the leisure assets".

Good old Sinclair.

Still long, for cheapness.

[spectoacc] 19/1/2021 06:50

Rent collection should be interesting - and probably not that sparkling.

Hudson Qtr - not sure how to monitor it? Housing market still great, if they're continuing to struggle at high-value Hudson Qtr, then agree not necessarily good.

But balanced against all that - it's so cheap..

(Agree Sinclair).

[nickrl] 18/1/2021 21:38

I got these at 175 last year and they drifted for months then had a sudden run up to 230 without any obvious reason so I got out. Waiting to see how well Hudson Qtr is doing before dipping my toes again. Sinclair talks a good job but never sticks his hand in his pocket and invests though. They don't do qtrly NAV updates (some REITs do some don't - why?) so could be May/June before they say anything although they may do a rent update.

[spectoacc] 18/1/2021 16:01

With no great confidence, bought again today, just under 196p.

[baner] 18/12/2020 08:55

they are absolutely worth significantly more than the prevailing share price - at least if liquidated! the problem is the management team seems not to care about shareholders and the share price and that is the real problem with this company. they clearly need a new BOD.

[hugepants] 16/12/2020 16:22

Still you'd think has to be worth more than this. On a 42% discount to NAV and a 5%ish yield. And Gyllenhammar recently bought 4%

[baner] 14/12/2020 14:18

sounds like a wise strategy, nickrl! this board needs to be replaced by people concerned about the best interest of all shareholders, not all managers! i am sure this will happen soon unless they change their attitude soon!

[nickrl] 12/12/2020 10:44

banner i let mine go at 227 recently deciding that BoDs here rarely up there stakes because they have a tasty share scheme that still seems to manage to award shares even when the shareholders are having to take the pain. If they drop below 180 might have reconsider my principles though!

[baner] 12/12/2020 10:17

it is interesting to see that since the PC management had their latest road show, the shares are sliding down and now trade at maybe 55-60% of the NAV. this is the market´s expression of mistrust in the motives of the BOD/Management - giving priority to "growth" per se, over "growth in shareholder value". given that the PC ownership structure is so open, it is only a matter of time before this company will be bid for and the team ousted. i doubt shareholders would decline 250p on the table.

[cwa1] 25/11/2020 16:47

Edison research:-



Palace Capital’s (PCA) H121 performance was robust and ahead of our
central expectations. We have slightly increased FY21 earnings forecasts
and introduced FY22–23 estimates, with growth driven by Hudson Quarter
completion, on track for March 2021. Significant additional reversionary
potential and development/refurbishment represent significant value
creation potential.

[2wild] 21/11/2020 11:25

Housing market is very strong for houses with gardens, flats week. Lots of publicity regarding problems with unlimited service charges on flats with dodgy cladding and providing evidence even when safe.

[spectoacc] 20/11/2020 12:09

Thanks @nickrl. Interesting comment re HK'ers - the Chinese (as they now are!) love York, so he could be on to something there.

On the flipside, the property market is still gangbusters, so if they can't shift them in this market...

[nickrl] 20/11/2020 12:08

PCA presentation today

Dangling a potential uplift in dividend if rental collection carries on at current rate

Interesting slide show who is paying what amongst there top 20 tenants - others like to keep that close.

Acknowledging Hudson Qtr is going slow but they ain't going to cut price and Sinclair reckons the Hong Kongers are coming in force once the air corridor is reopened!. My estimate is they need another 40 sales to covers the Barclays loan by Jan 22.

Not keen on sharebuy backs there more interested in picking off private propcos in distress.

Peter Gyllenhammar looked at lots of REITs but picked PCA - lets hope he gets a bit more active.

Sinclair indicated been a few lowball offers for PCA

[baner] 17/11/2020 18:45

the room for divi would increase substantially if the BOD acknowledge the fact that the stock market "instruct" Palace to stop growing, as a £ invested in their business is only valued at just over 50p in the stock market. accordingly the BOD should now significantly cut the overhead expenses, sell properties at their full market value and use the net proceeds to buy back shares at this steep discount to the NAV. this will lead to an increasing NAV for the remaining shares, and also a much larger room per share to pay a divi.

[nickrl] 17/11/2020 18:01

No real new info since the NAV report on assets but I continue to wonder about Hudson Qtr residential sales being slow progress given they have the benefit of stamp duty holiday. There is acknowledgement to this and it may impact on having capital to recycle. The main loan on the development only runs to Jan 22 although no doubt Barclays will extend it as its 3.3% so need to keep an eye.

Current dividend level is more than covered by current levels of NRI so presumably as a REIT they will have to payout more in due course.

Lets see what Sinclair has to say on Fridays presentation.

[cwa1] 17/11/2020 08:50

I'd have thought that with Gyllenhammar on board their minds would be pretty focussed now! If not they certainly should be.

[baner] 17/11/2020 08:33

if they want to grow they need to make shareholders - not only themselves - happy. if they do not, they will soon be eaten up. the ownership structure is wide open and most large shareholders came in at way over 300p and thus hardly impressed.

[spectoacc] 17/11/2020 08:13

LTV restricts room for manoeuvre; they always seem to want to grow.

[baner] 17/11/2020 08:11

It is a very clear sign that neither the CEO nor the Chairman comments on the very Steep discount to the NAV.

[spectoacc] 17/11/2020 07:57

They talk a good game but had 250p in mind too when I read it :) Key will be when NAV starts turning back up, & on recent disposals (& vaccine) that may not be so far away.

[baner] 17/11/2020 07:50

This company Will soon be bid for unless they commence to better look after their shareholders. 250p will most likely be too tempting for shareholders to resist, while being highly attractive for a predator.