Palace Capital Share Discussion Threads

[spectoacc] 15/5/2022 18:34

I don't see PCA in the same light as the other REITs, I see them more as a developer/punter. My "small REITs" list would be PCTN, BREI, BCPT, SLI, UKCM, SREI, EPIC, perhaps a couple of others like AEWU. But RGL, NRR, RLE others I'd not include, rightly or wrongly.

Arbitrary really, based on whether they seem like broad property investors, or property traders/developers.

Perhaps also on whether they seem like somebody's plaything, like Bassi & the FD at RLE, or Sinclair at PCA. NRR & RLE also got "names" in charge.

[nickrl] 14/5/2022 17:34

Forward yield curve hasn't moved that much currently and PCA are benefitting from the Hudson Qtr sales income to keep eroding the debt pile. They have 25m due Aug 22 although given on balance they seem happy selling assets currently they will probably have enough in the bank to redeem it without replacement.

[spectoacc] 14/5/2022 17:08

Agree on 3% - it's the new 6%.

But most, if not all, the small REITs have no impending debt maturities - they're locked in at low rates for the foreseeable.

And real rates must be amongst the lowest - if not the lowest - in history right now. 9% inflation, 1% rates, = -8%.

[m_kerr] 13/5/2022 22:25

the way interest rates are heading, i'd be wary of buying even a moderately geared reit at the moment. the expected 28-30% LTV is conservative under normal circumstances, and probably strikes an appropriate balance.

IMV interest rates will need to be minimum 2%, if not 3%, to tackle inflation. the BoE have played their part in what is a slow motion car crash unfolding before our eyes. think they need to look at updating this part of their website:

'Quantitative easing is when we buy bonds to lower the interest rates on savings and loans. That helps us to keep inflation low and stable.'

oops. printing money will not make us richer.

[m_kerr] 10/5/2022 16:24

anyone else noticed that acquisition / disposal activity in the commercial property sector has virtually ground to a halt since the UKR conflict / cost of living crisis ?

IMV a degree of caution is appropriate. banks are not as gung ho about lending as they were prior to the conflict.

[cwa1] 08/4/2022 14:09

Edison Update...

[hpcg] 07/4/2022 00:27

The capital raise was in 2017. I, on the other hand have been a shareholder since July 2021. So though I am happy to take notice of the caution it isn't a key part of my decision making here. That said it is under 1% of my portfolio and I could liquidate very quickly with minimal loss if need be; I'm in the money but events that would cause me to sell would have others selling too). Progress looks OK at this time.

[nickrl] 06/4/2022 18:47

Huge even when the shares crashed he still earn't a bonus and accumulated free shares in the long term incentive plan. Problem is he's not the only director upto the same tricks and guess you have to just accept it if you want to have a piece if the cake as well.

[spectoacc] 06/4/2022 11:45

I'm with the Sinclair bashers, but let's hope PG has shaken things up.

As for RLE... It's two of them, not one, and the discount is entirely warranted.

[baner] 06/4/2022 11:38

Sinclair raised substantial funds at 340p years ago. NAV as well as dividends has been in steady decline since then, however his own remuneration has gone the other way. very good reasons for "bashing" mr Sinclair. as simple as that!

[riverman77] 06/4/2022 11:07

Yes looks very positive update to me. Agree, seems very strange this constant bashing of Sinclair - the portfolio performing pretty well so he is clearly not incompetent as some are suggesting.

[hugepants] 06/4/2022 11:03

Really positive update imo. The fact they have mentioned a return of capital makes this low risk and good upside from here. Probably PG applying some pressure and with the directors having such low shareholdings they can't really object.
I've no idea why people are obsessed with Sinclair (or similarly big Shirley over at RLE).

[konradpuss] 06/4/2022 10:48

nickrl, I too sold out on the last run up.

I am more positive now as Peter G has upped his stake.

I could well be tempted back in.

[nickrl] 06/4/2022 10:11

A lot of the trading statement is really a restatement of what has already been reported previously. Anyhow that said they have made good progress with Hudson Qtr with a significant uplift in sales. Its annoying they've chosen not to report what income has been forgone with sales although part of me now feels they maybe making a good move on reducing office assets and many have been at book premia. However, the statement that

"An additional £1.9 million of annualised net rental income gained in the year through asset management lease activity, acquisitions, and reduction in non-recoverable property costs. This takes into account income lost through disposals, lease expiries and lease breaks"

implies NRI will have increased by over 10% thus the ability to support a higher qtrly dividend rate of 3.25p seems reasonable assured. Discount has closed to 20% and yield down to 4.8% on 3.25p/qtr annualised.

I sold out last time it had a run up but im afraid the Sinclair factor made me too hesitant to get abck in when it dropped back.

[konradpuss] 06/4/2022 09:20

Simple, the board are his puppets.

[baner] 06/4/2022 08:32

But on what basis can this incompetent man, with no meaningful shareholding and a lousy performance, control the Board ???

[konradpuss] 06/4/2022 08:21

Baner, he controls the board unfortunately.

It's all about control.

[baner] 06/4/2022 08:18

Sinclair has lost very significant sums for investors who supported him at their latest fund raisings - why on Earth is he not ousted by the BOD ? It is so obvious that as long as this man is allowed to play around with the company´s money, the shares will continue to trade at a significant discount to the NAV. No doubt he is a HUGE liability.

[konradpuss] 06/4/2022 07:50

Probably dictated to a 'leggy' secretary in a lush Mayfair wine bar. Are there any wine bars left in Mayfair?

[baner] 29/3/2022 08:06

Interesting news re McKay this morning - it can only be a matter of time before Palace becomes the target of a predator - given the significant discount to NAV, the low gearing and the open shareholder structure - with some strong professional investors having increased their stakes recently.

[nickrl] 27/3/2022 20:33

Huge that will be the directors that never dipped their toe in when price was nearly halved - but why would they with the extravagant remuneration schemes they are on.

[hugepants] 27/3/2022 17:48

It certainly perked up a bit here on Friday. I wonder if Gyllenhammar was buying more. He's almost the top shareholder now with 9.24% fractionally below Premier Miton Group who have 9.4%.



Compare with the directors who hold 1.24% in total.

[poacher45] 25/3/2022 10:00

At last people are beginning to realise the value of Palace assets. Tonight they have another marketing event at Hudson quarter where all the one bedroomed flats have been sold.
hxxps://hudsonquarteryork.com/2022/03/17/landlord-information-evening-at-hq