Palace Capital Share Discussion Threads

[baner] 29/11/2021 08:46

It seems Sinclair is under pressure…̷0;……R30;…looks rather desperate.

[cwa1] 29/11/2021 07:23

announces that it has sold 24 Blackwater Way, Aldershot to a private property company for £2.44 million.

This reflects a 14% premium to book value and a more than 200% premium to the original investment at acquisition, equating to a 514% total return.

Palace Capital acquired part of the property from Quintain in 2013 and subsequently purchased the adjoining long leasehold, applying its active asset management skills which resulted in a 20% increase in the annual rental income with an extended lease term.

Neil Sinclair, Chief Executive commented: "This is one of the 15 mature buildings we earmarked for sale last summer under our strategic disposal plan, which aims to raise £30 million for redeployment into properties with stronger growth potential.

"The transaction takes the total sales so far under the plan to £21.3 million, with additional properties under offer, as we seek to reposition our portfolio and to recycle the capital into regional office and industrial properties that meet our criteria."

[spectoacc] 29/11/2021 06:55

A positive write-up about how great Mr Sinclair is, and how PCA will likely consolidate in the sector in the next "..few months".

Didn't believe a word of it.

[pdosullivan] 28/11/2021 18:31

Tipped as a buy in The Sunday Times today

[cwa1] 17/11/2021 15:29

17 November 2021

Palace Capital PLC

("Palace Capital" or the "Company")

INVESTOR PRESENTATION

Palace Capital plc (PCA: LSE) is pleased to announce that Neil Sinclair, Chief Executive, Matthew Simpson, Chief Financial Officer & Richard Starr, Executive Property Director will be making a presentation in respect of the half-year results for the period ended 30 September 2021, on the Investor Meet Platform on Tuesday 23 November 2021 at 10.30am GMT.

The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via the Investor Meet Company dashboard up until 9am GMT the day before the meeting or at any time during the live presentation.

Analysts and investors can register with Investor Meet Company for the Palace Capital presentation via:

[konradpuss] 17/11/2021 05:00

A takeover to then liquidate would be even better in my humble opinion. There is no added value or USP here.

[chinre] 16/11/2021 21:07

I'm struggling to see why this is an investable stock. They have capitalised on one good portfolio bought from Quintain (that was an incredible acquisition and should be given the plaudits it deserved), but every other acquisition has either been full or over-priced. Outside of Mickola Wilson, who within the management team and Board has genuine real estate fund management acumen and experience? It's a real estate company. A takeover with a solid group of real estate professionals would pay dividends.

[baner] 16/11/2021 11:16

nickrl

good summary - thanks! and no doubt they will be taken over by a successful entity, unless they better look after the best interest of all shareholders. the performance of the PC BOD and management has been really mediocre in recent years and there is not much they can say to defend themselves would Picton or similar quality player make an approach.

[nickrl] 16/11/2021 10:45

Reasonable HY report with over Hudson Hse sold but not exactly flown off the shelves but total income will benefit from house price increase in the long run. So this may explain the statement

"While it is not our favoured route, we have not disregarded a share buyback programme and may consider it further, particularly if we continue to have a surplus of capital without the right accretive investment opportunities into which we can redeploy the capital."

along with punting out the for sale sign to PCTN!!

"However, we are well aware of the necessity for consolidation in the sector and this is an avenue we have under constant review"

Hudson sale income confuses the picture but basic rental income down marginally which given asset sales ain't bad and they are keeping admin costs under control although bound to be a big charge for the directors bonus scheme come year end! Be nice to know exactly what they have sold.

Divi at 3.25p/qtr is covered and at this rate gives a running yield of 5.6% on current share price

So another one I have had in the past but sold out of when it topped 230p but with Peter G dabbling and their comment about consolidation might get taken out?

[baner] 16/11/2021 08:13

PC is in good shape - however long term historical performance does not impress what so ever. On the basis of this, PC should of course hand back its capital to those to which it belongs - the shareholders. Sinclair has taken £3.5m out of the company sinne 2014 - for doing what ???

[cwa1] 16/11/2021 07:32

tanley Davis, Chairman of Palace Capital said:

"We are making strong progress across the business and the focus we have been able to put towards implementing our strategy as we have emerged from the pandemic is clearly reflected in the numbers we are reporting today. Our rent collection levels are high, we are achieving strong sales at Hudson Quarter, including two, three bedroom apartments at £1.20 million and £1.05 million. Our £30 million disposal programme is on track and our balance sheet is in good health. This is enabling us to look at potential investments, both direct property and corporate opportunities, as we seek to recycle capital with one acquisition in legals.

"Since the end of the half year the letting market has further improved and we are seeing increased activity at our office holdings as the regions see a return to normal working activity. Avison Young in their Q3 update of regional activity in the Big Nine Regional Cities state that "Occupier confidence across the Big Nine office markets has reached its highest level since the pandemic started which is reflected in the strongest take up for two years. Increasing confidence has released pent up demand and requirements that have been on hold during the past 18 months. As such there has been a depth to the number and size of deals this quarter, including some exceptional lettings." We have holdings in the city centres of Leeds, Manchester, Liverpool and Newcastle, four of the Big Nine.

"Finally, I am due to stand down as Chairman at the end of this calendar year. It has been the most wonderful journey since Neil Sinclair and I started working together at Palace in 2010. I never expected to face a pandemic, but the Board and the Management Team have responded magnificently, and I see nothing other than an exciting future for Palace Capital."

[konradpuss] 14/11/2021 18:55

I think a good new job for Sinclair is a restaurant critic!

He, I guess spends much time in such places (especially in Mayfair) so it would be a logical 'next job'. Not sure he would like the vast pay cut.

I am out however might go back in now Peter has increased his stake.

[baner] 12/11/2021 13:17

it seems mr Sinclair will have to look for a new job soon.........

[cwa1] 12/11/2021 11:59

Good to see PG has lifted his holding...

[jbarcroftr] 27/10/2021 11:44

Hopefully the new chairman will sort out the board remuneration and the investment strategy.As Hudson Quarter is sold off there should be a decent amount of capital to reinvest

[shaker44] 27/10/2021 11:36

Yep, IC and ST do ramp some odd companies. Maybe pressure of having to publish picks every day rather than having the cajones to say 'nothing worthwhile on the radar today' ST also seems to have a blindspot with Boards that put their own interests way ahead of other shareholders. Add to that, IC's clunky IT, and it's no longer worth the money imo.

[hugepants] 27/10/2021 11:18

Agree its a bit rampy. I do buy into their argument regarding offices though. I think town centre offices will hold their value more than ones in out of town business parks.

[nickrl] 26/10/2021 22:53

Huge not exactly sure Hudson apts are flying Sinclair been saying that since they first started marketing them. Actually the whole thing reads like a promo not an impartial review thats why i stopped even looking at IC in Smiths at the station decades ago. That said i can't ignore them and grateful for posters bring them to our attention although hasn't helped PCA over the last week.

[hugepants] 26/10/2021 11:00

Just testing. Here it is.



SMALL COMPANIES
Reit time to back a value property play
A regional commercial property Reit is making disposals, slashed borrowings and raised the dividend, but is trading on an unwarranted ratings discount to peers
October 20, 2021
By Simon Thompson


29 lease events add £0.6m to annual rent roll
£12m of £30m planned non-core disposals completed or exchanged
Sales at Hudson Quarter development in York flying
Net debt set to be cut in half by March 2022 year-end
Palace Capital (PCA:248p), a regional commercial property Reit, has announced a robust pre-close trading update ahead of half-year results on Tuesday, 16 November 2021.

A portfolio bias towards regional offices (41 per cent portfolio weighting with no London exposure), industrial warehouses (14.4 per cent) and retail warehouses (3.3 per cent) explains why rent collection rates are so impressive even during the Covid-19 pandemic. Indeed, having collected 97 per cent of rents in the June quarter, less than 8 per cent is outstanding in the current quarter. Moreover, 29 new lettings, lease renewals and rent reviews have added £0.6m to the group’s annual rent roll since 31 March 2021, hence why the board felt confident enough to raise the dividend by 20 per cent to 3p a share earlier this year...

...The broker also expects European Public Real Estate Association (EPRA) net tangible asset value per share to rise from 350p to 365p, and pencils in an annual dividend of 12p a share. On this basis, the shares are rated on a 32 per cent discount to forward NAV, and offer a 4.8 per cent prospective dividend yield. By comparison, Liberum Capital’s peer group of 19 UK commercial property companies trade on an average discount of 4.2 per cent to NAV and offer a lower dividend yield of 4.6 per cent.

[hugepants] 25/10/2021 19:54

shaker, Can you post a link? I cant find anything.

[baner] 21/10/2021 08:18

As long as Sinclair is ”running”; the company at excessive costs, the discount will be there.