Palace Capital Share Discussion Threads

[alders15] 07/3/2023 13:24

Nickl You are being a little unfair on the former management. I had a quick look at the results announced last June. They sold 14 buildings at a profit of £5m, made a development profit at Hudson Quarter of £3.8m, sold 80 apartments at York, paid off the bank and accumulated £30m in cash and reduced the LTV to 28%. Sorry but those people took the right decisions and more than paid for themselves. Looking back not pleased that they have gone. Selling assets in a downturn is not good business as there are a shortage of buyers who are not bargain hunters.

[nickrl] 04/3/2023 17:59

The big London centric propcos are holding their own with lettings and managing void rates although most look like they've put on hold anymore new capex unless they have a substantial pre let.

Anyhow PCA have diminishing NRI due to asset sales and whilst they've knocked debt down too much of it is floating at SONIA+2% so i doubt they can afford a divi rise but at least the recurring 1.4m paid to Sinclair and co wont repeat this year. Should get a trading update in next month and we can see how HQ sales are going as everyone is free cash now which can be applied to one of the expensive loans freely.

Be 3mths before we see finals based on last year so reckon NAV 250-270 most likely so current share price is pretty reasonable based on other reits discounts currently.

[spectoacc] 04/3/2023 12:50

Lol @konradpuss.

Agree with your office comments. I doubt valuers are yet cutting them enough.

[konradpuss] 04/3/2023 09:31

poacher now calm down.

What I am saying is I have not looked in detail in respect of that building.

My comments have been general in respect of offices - EPC ratings, structural obsolescence and the type of buildings occupiers what post pandemic.

I might no nothing, however unfortunately I am a valuation surveyor - non practicing thank God!

[poacher45] 04/3/2023 08:56

So in other words after criticizing palace you now admit to knowing absolutely nothing. Just like the other idiot who wanted to slash the prices of the flats so they could all have been sold in 6 months. Palace has a lot of good properties and is sitting well below its asset value paying a good dividend which is set to increase.

[konradpuss] 03/3/2023 17:47

poacher, I really do not know enough to value the offices at Hudson Quarter. No expert me!

[jbarcroftr] 03/3/2023 11:42

In my days in Leeds Park place was 100% prime

[poacher45] 03/3/2023 11:37

konradpusss That is just one project it perhaps was a mistake but then the Directors did not know about Covid and the Ukraine war. As you are an expert perhaps you would like to give us a valuation on Hudson Quarter. The office block is now almost all rented out and despite somebody on here wanting the flats to be sold off at a discount they are selling at full price.

[alders15] 03/3/2023 10:58

Konradpuss. I go to Leeds regularly. Forget the existing building. It has planning for a refurbishment and extension. On new space, rents now exceed £40.00 psf and this will continue to rise in the months ahead.

Great opportunity here so if this property is sold close to its valuation of £5.3m the buyer will be getting a bargain.

[konradpuss] 02/3/2023 21:32

Alders, rising rents? Well you are very optimistic. What is the current EPC rating of said building? My guess D.

I think you should take a train to Leeds and have a good look at the building and the Leeds office market in general.

Old Chinese proverb says:- "He who gets out and looks around sees more clearly".

[alders15] 02/3/2023 21:19

Not at all. It has planning for refurb and extension. With rising rents on new space, it is a matter of time before the proposed scheme will be viable.

[konradpuss] 02/3/2023 19:25

Alders, from a quick search on line there seems like truck loads of office space available in Leeds. Not all prime mind.

I have said it before, the office market generally is currently a slow motion train crash.

[alders15] 02/3/2023 13:54

The writedown of £5m notwithstanding the cladding is quite ridiculous. I visit Leeds often and there is an underlying shortage of prime office space which is why rents are rising.

[baner] 20/2/2023 11:30

Bank house has been significantly written down in the latest valuation. There are also a number of good assets in PC, let´s keep this balanced. And York has indeed sold rather well and also received a good rent for the Office space let so far.

[balcony] 19/2/2023 12:19

Catabrit-Palace put in plans in July to extend Bank House.

[spectoacc] 18/2/2023 19:43

Thanks @Catabrit. Agree re REITs unfortunately - there's plenty of good stuff, but then some remarkably bad/iffy stuff where they basically seem to have had money that needed spending, and have spent it like it isn't their own (which of course, it isn't).

[konradpuss] 17/2/2023 18:34

The Bank House purchase was probably agreed by Sinclair in a lush Mayfair wine bar.

I wonder if he ever viewed it.

The best C.E.O's crawl all over a potential purchase - perhaps he did.

[baner] 14/2/2023 10:27

The strategy is not the same Nickrl - PC will be liquidated in an orderly manner and proceeds paid out to shareholders - based on latest NAV there will be 50%+ more than the current share price distributed plus the current dividend - so u have better hurry up if you like a ride on this train !!

[nickrl] 14/2/2023 10:08

@baner i baled out a long time back but with Sinclair gone i wanted to wait and see how the new brooms were getting on - largely same strategy but at least it aint costing as much to run albeit shareholders had to pay Sinclair et al off - still on the fence and was waiting on next results. Mind you im starting to feel that the modest good news that trickles out about the economy means i might get left behind.

[baner] 14/2/2023 09:59

Total agreement, nickrl! NAV could well be 300p+ also after recent decline in property values. With strong cash flow and low gearing this makes the shares rather attractive.

[nickrl] 14/2/2023 09:51

@baner small sale but given massive move down on industrials over Q4 pretty good going.

[baner] 14/2/2023 09:12

A further, albeit small, step in the right direction announced by Palace today. If they can now commence their buy back program at c 200p/share, they should ”earn” c 100p/share they get hold of and eventually cancel. A licence to print money !

[m_kerr] 08/2/2023 21:13

all very logical.

sell assets at high prices and use proceeds to reduce debt, and once debt levels are comfortable, buy back shares at a hefty discount to NAV.

[spectoacc] 06/2/2023 15:50

Yes definitely, not do it for every couple of million. Maybe every £10m raised.