Palace Capital Share Discussion Threads

[nickrl] 07/11/2022 22:21

@m_kerr its looking better than it was and might be getting into interesting territory again. I certainly applaud the savings they've made by bailing out of Sinclairs expensive Mayfair emporium - he costs the shareholders a fortune with that unnecessary office to play to his vanity.

Interims maybe next week.

[m_kerr] 07/11/2022 21:18

they have a good spread of assets. also been deleveraging over the past year, mainly by getting rid of their lower quality or obsolete offices at a premium to book value. i like that they've now got a stated intention to maximise cash returns which can only be a positive for shareholders.

looks like one of the lower risk property opportunities out there.

[cwa1] 20/10/2022 12:47

Director Dealing

Palace Capital announces that Matthew Simpson, Chief Financial Officer, today purchased 8,471 ordinary shares of 10p each at 236.094p per share.

[konradpuss] 19/10/2022 19:30

Except when it comes to fire fighting companies! Assetco Plc......

I would rather see Peter upping his stake.

[baner] 19/10/2022 19:02

Excellent news - Harwood are AAA competent investors.

[cwa1] 18/10/2022 17:19

Increase in holding by Harwood:-

[2wild] 12/10/2022 20:32

Unfortunately I now own a shedload of UKCM. The increased, barely covered, 3.4p annualised dividend is below 3.1% of latest NAV. 5 to 30-year UK gilts yields increased from below 1% to 5% within a year. In hindsight it's hardly surprising low yielding REITs in particular have been totally crushed. Oh well I suppose I could have brought bitcoin at over 60k.

[spectoacc] 12/10/2022 15:07

The council tax on the vacant ones will start to bite - or have they a way out of that, eg claiming they're not finished?

@baner - I think that applied before today's RNS. Now I think it could be several years before large disposals, and then at significant discounts.

But horses for courses, and good luck. The economy seems particularly ropey & difficult to get a handle on atm.

PCA is arguably like my own REIT holdings - too late to sell, too soon to buy.

[makinbuks] 12/10/2022 15:00

If we're sitting tight for a while maybe we should rent some of them out. Bring them back to market gradually as tenants vacate

[pdosullivan] 12/10/2022 13:50

Not selling the Hudson apartments as a single lot to an institutional buy to let player was a real missed opportunity.

[baner] 12/10/2022 10:34

specto - i understand your concerns and agree one should benchmark with other REITs too. the good thing with PC though, is that they are liquidating the company over time, handing back funds to those to whom they belong! meanwhile you have a good divi coming out of the company - not a bad concept.

[spectoacc] 12/10/2022 09:33

There's Opportunity Cost to consider too - is eg PCA really a better bet than say UKCM on an over-50% discount, very low gearing, and mostly decent assets?

The vacancy rate, lettings, ERV are all historic - I'd be much more concerned going forwards.

Agree a 40% decline in values is possible - more so in some sectors than others. We'll have gone from 0.1% base rates to 5% in not much more than a year (if the futures market is right).

I hold too many REITs (tho not PCA) & am increasingly nervous - I don't think the market has got it wrong, and only want to add when I think it has.

[nickrl] 12/10/2022 09:30

@Specto at least the new board have got rid of Sinclairs Mayfair pad and are saying they will reduce admin expenses by 1.2m as a result of this and other actions which will help nett cash generated. Every update Hudson House is going to come good but at least they've paid off the development loan so every sale is cash in the bank to offset the loans but I would be dropping the prices now to get the lot away they will still make a decent profit.

Had it not been for mkt chaos i might have been tempted to get back in again but have too much in the smaller REITs already thats burnt me so will just keep watching for time being.

[solarno lopez] 12/10/2022 08:50

Thank you Baner

[baner] 12/10/2022 08:45

They indicate an Updated NAV of ca 350p. Cash flow strong with clearly lowered Admin costs. LTV should be conservative. So with the shares at 60% of the underlying NAV they are exceptionally cheap, assuming the property values does not collapse from here. But even with a continue strong reduction in property values, the shares will trade at a discount to this NAV, so the risk reward appears very sound: if they can work out the current NAV you will almost double your money and meanwhile receive a sound dividend stream. Also, it is likely the company will buy back more shares, increasing the NAV further.

[solarno lopez] 12/10/2022 08:34

With the latest announcement is this stock cheap or dear...I have no idea ?

[konradpuss] 18/9/2022 13:02

As long as the corporate H.Q. overheads don't go bananas.

Sack the lot and put the remaining investments into auction.

As to the Hudson Quarter, put one bod on site and cut the prices.

Then get on with returning the proceeds and winding up the Co. if there are no takers for the shell.

[2wild] 18/9/2022 12:25

First 80 HQ sales averaged £342,500. Latest 7 averaged 428,571. Of 40 remaining 8 are under offer at average £487,500. With Hudson Q loan fully repaid sometime ago, no reason not to return proceeds quickly.

[nickrl] 17/9/2022 23:45

Sclerotic progress with sales at Hudson Qtr every update infers good news to come with units under offer only to find at the next update many have clearly fallen through. Lucky for them they've managed to secure higher prices due to the momentum in the market so at least they are on top with the development.

[baner] 15/9/2022 10:47

Good news from Palace - LTV coming down further - strange they do not use cash to buy back more shares at a 30% discount to the stated NAV ?

[cwa1] 15/9/2022 07:24

5 September 2022

Palace Capital PLC

("Palace Capital" or the "Company")

Dividend Declaration

Palace Capital (LSE: PCA), the Main Market property investment company that owns a diversified portfolio of UK commercial real estate in carefully selected locations outside of London, is pleased to announce that it will pay a quarterly dividend, in respect of the three months ended 30 June 2022, of 3.75 pence per ordinary share. The entire dividend will be paid as a Property Income Distribution.

The dividend will be paid on 14 October 2022 to shareholders on the register as at 23 September 2022. The ex-dividend date will be 22 September 2022.

Disposals update

Apartment sales at Hudson Quarter, York have continued to progress, despite the uncertain economic backdrop. A further seven apartments have been sold in the period for a total of GBP3.0m, with aggregate proceeds of the 87 units sold totalling GBP30.4m. A further eight units are under offer to the value of GBP3.9m, leaving 32 units remaining.

The Company has completed four non-core property disposals in the period for a total of GBP4.8m. We will provide a further update on the disposal strategy in the trading update for the 6 month period ending 30 September 2022 expected to be announced on Wednesday 12th October. The Company will report its interim results in November 2022.

[nickrl] 12/8/2022 20:33

konradpuss they just need an engraved sign for the registered address rest can be done wfh!!

[konradpuss] 12/8/2022 19:14

What they require is a part time secretary, a property manager and a book keeper plus a deal maker to sell the whole portfolio one by one or as a whole.

This can all be done from 500 sq.ft in Slough.

Business cards? they are all eventually going to be out of a job.