Palace Capital Share Discussion Threads

[baner] 09/8/2023 06:07

No not at all me.

[konradpuss] 08/8/2023 19:07

Banner, was it you buying today?

Share price up circa 20p.

[baner] 08/8/2023 14:17

Alders

You are a sad person. And you will be a very surprised but still as sad person in 18 months time.

[makinbuks] 08/8/2023 09:33

Looks like they're going to use buybacks to the maximum permitted. Makes sense

[alders15] 07/8/2023 16:45

Baner

Oh! I see. You think we will get 350p+. Well the market does not think so with the shares at 233p nor the 23% of shareholders who voted against the re-election of the Chairman. What was that line from John Cleese in the dead parrot sketch. " Wake up Polly"

[baner] 07/8/2023 07:41

Alders

Your comments are rather uninteresting. Let us look at the future. NAV is clearly higher than the 296p you refer to - since then they have sold above valuation and also bought back shares at a good discount to the true NAV. So we are probably at 310p+ now, possibly 320p. With a debt free balance sheet, lowered costs and strong cash flow, buy backs can be accelerated while a good divi is paid out. The buy backs will enhance NAV pro forma and there is every chance the patient shareholders will see 350p+ in their pockets within 18-24 months. The Chairman and his BOD colleagues are doing a most honorable job handing back the value of the company to those to which this belong - shareholders. If you prefer Sinclair running your money, i am sure he is interested to have you invest in his new venture. But do not expect to be able to exit from this at anything near NAV.

[alders15] 05/8/2023 22:47

Baner What are you smoking? Get your facts right.

Yes the shares dropped to 180p but that was when the lockdown started, Only a few weeks before Sinclair left, the shares went to 297p when the NAV was 356p a discount of 17% not 50% On the day he left the NAV declared was 390p

The shares are now 242p with NAV at 296p and buildings being sold off cheaply. So we are better off?

As Lincoln said " You can fool some of the people some of the time"

[spectoacc] 04/8/2023 19:20

@Alders15 - yes, Leslau (who's been involved with something of a fiasco at SIR/LXI) did say that about offices. He also said "not yet", implying further to fall.

[proof1] 04/8/2023 18:13

@konradpuss your comment sounds like clear and simple antisemitism. very sad to see that here.

[proof1] 04/8/2023 18:03

poor sale price after poor sale price of the portfolio of late by a useless new chairman. current board are useless.

[konradpuss] 04/8/2023 16:17

There is a great saying. "Offices are to be traded not held". It's the structural obsolescence that done it!

[poacher45] 04/8/2023 08:48

Maidenhead was a poor sale price:-

Market House in Maidenhead, by contrast, failed to sell – with some bids thought to have come in well under half the £39m that Tesco’s pension fund paid to buy the building in 2014. Even though the property is only 13 years old, investors were factoring in significant investment to bring the building up to modern standards.

[baner] 03/8/2023 13:44

Alders - when Sinclair was in charge the shares were 180p with claimed NAV double that number………..so ”Sinclair plus 360p NAV” was valued at 180p - in other words the stock market had a very very negative view on Sinclair. Once he was ousted things have improved considerably - significant cost cuts, debts eliminated, properties sold above valuation, - and the shares are performing really well. There is every chance shareholders who stay in will get 350p+ in cash, in less than 18 months. I strongly prefer two intelligent and prudent Accountants running the company for the best interest of all shareholders, before having ”Mr 50% discount Sinclair” running the show.

[konradpuss] 03/8/2023 13:25

Alders, I have a great respect for that fellow. I will. I always keep an open mind.

[alders15] 03/8/2023 13:05

konradpuss. Look at the interview with Nick Leslau in the Sunday Times about a month ago. One of the most successful property entrepreneurs makes the case for regional offices.

[konradpuss] 03/8/2023 11:35

Alders, do you know that Blackstone have only one percent of their portfolio now in offices.

This really says it all.

To buy into an investment class you need growth. Now where is that growth coming from?

There are really only two areas that are currently growth positive in the property market, student and some last mile logistics (so I am told).

[makinbuks] 03/8/2023 11:30

Agreed but hopeful of £3. Also agree on the return to the office. Canary wharf and Central London are a special case but in the regions there will be significant additional demand. The business I work for for example came out of a lease in the midlands and took a new one for 1/3rd the space. In South West London commuter belt they took a flexible arrangement for 12 desks but there are 50+ employees. For years we did occupancy audits and found 50% - 66.7% utilisation of desks yet culturally it was near impossible to get people to desk share. Now we have the opposite

[alders15] 03/8/2023 11:14

£3.40 at this rate is for the birds. If there was any prospect of that the shares would not be £2.44.The buildings are being sold off much too cheaply. Remember the Board are accountants not property people. They might get an offer for a building above book but do not have the expertise as to whether they can get more. They thus have to take advice, whilst property people can make their own judgement. Interesting that on the day Sinclair left, the company announced that they had sold 14 buildings at 20% above book value. If he had listened to all the advice, this probably would not have happened.

You may not be aware but there is a return to the office as employees now have less clout.

As for Canary Wharf, yes HSBC and Clifford Chance are leaving but it is so well connected that McLaren are moving there and it could become a Life Sciences hub.

As Mark Twain said rumours of my demise are greatly exaggerated.

To reiterate £3.40 is for the birds.

[makinbuks] 03/8/2023 10:49

The past is the past. In January pre COVID this was £3.40, when the pandemic hit it went to £1.85. The path of disposal and distribution is now set. The question is how close to the £3.40 can we realise with what we have today, irrespective of why we have it or what price we acquired it at?

[konradpuss] 03/8/2023 09:00

Alders, you might be right, however I think that post COVID the office market in general is a slow train crash. I have said this before here.

Just look at Canary Wharf and many other office locations.

I think office occupation will eventually drop by 50% from pre COVID levels.

Do you know there is over a million square feet vacant in Hammersmith?

O.K. it is not on the Elizabeth line however it is very well located.

Why would a company want to be officed in Maidenhead? O.K. it is a reasonable place, not great mind.

[alders15] 03/8/2023 08:24

Well baner, never heard that one. Maidenhead has seen huge benefits from the Elizabeth Line with a strong office market as well as neighbouring Windsor. In my view this was a strategic buy and I note from the Annual Results that the tenant's lease has been extended to 2034. Selling for £9m net is just ridiculous and assets like this and Liverpool have been sold much too cheaply. Yes salary costs have been reduced to maybe save £1m but shareholders have lost millions with a Board that are all accountants two of whom failed shareholders at their former companies. In time it will all come out in the wash. Remember you saw it here.

[baner] 03/8/2023 06:42

It was a Sinclair-purchase230;………………absolutely stupid but he was keen to burn cash not to become a take over target too soon. The whole Palace BOD then was terrible and not considering the best interest of shareholders.

[konradpuss] 02/8/2023 19:53

Well they sold that Maidenhead office building Sinclair purchased for £10.25 million for £9.6 million today.

With the yield expansion since purchase, probably not bad.

I said at the time on this board it was a stupid purchase.

[baner] 02/8/2023 12:51

Nickrl

Buy back shares at an implicit yield of maybe 10% is highly attractive. So better use cash for that than for amortazing debt. However ideally PC will continue to sell assets to finance accelerated buy backs - increasing the NAV further. Excellent strategy in order to look after the best interest of shareholders. More companies should consider this.