Palace Capital Share Discussion Threads

[konradpuss] 03/2/2024 11:05

To cheer all of the investment folk up on this board you will be pleased to hear that Sinclair has recently bought into a 'cash shell'. He intends to have the "same ambitions" as to what he did at Palace Capital.

Just in case anyone wants to invest, I believe it is called More Acquisitions Plc.

My advice to him would be to retire and become one of those old type you see at 'Spoons' ordering two pints at a time.

[spectoacc] 31/1/2024 15:58

I do think he'll stick a REIT in, but not sure which one. Perhaps CLI over PCA.

[jbarcroftr] 31/1/2024 15:45

ST of investors Chronicle will soon be publishing his Bargain shares portfolio.It wouldn’t be a surprise to see PCA included

[solarno lopez] 26/1/2024 13:40

Thank you both

[nickrl] 26/1/2024 13:34

PCA would have been a better target for PCTN

[makinbuks] 26/1/2024 10:04

Well, its been quiet for the last three months. I'm not aware of any specific reasons for the share price fall in that time. Generally the property market outlook has improved slightly in that timeframe so I would say yes. Personally I see no reason why we shouldn't push the £2.50 mark again at some point this year

[solarno lopez] 26/1/2024 08:39

At this price level and nav of 295p per share are these shares cheap ?

[nickrl] 15/11/2023 20:58

Peter G has added to his holding a tad

[nickrl] 15/11/2023 14:15

@makinbuks good spot they've offloaded that basket case.

[makinbuks] 15/11/2023 09:57

Interesting that Bank House is one of the post period end disposals. That was the subject of some debate here back in February, notably some detailed knowledge from Catabrit P1169. Perhaps indicating that they are not just selling the good properties

[baner] 15/11/2023 09:57

Nickrl

U r absolutely right however the number of shares is coming down, mitigating the reduction in divi per share. Well done to the BOD who quickly took gearing down to next to nil, so that Palace will weather any possible storm in the market.

[nickrl] 15/11/2023 09:48

Also noted post year end they've further reduced debt so LTV now 6.5%. However, thats being achieved through disposals driving down the contracted rent so they need profit on disposals to cover the deficit to the dividend currently. I would say there is a veiled warning that divi is at risk from hereon.

Hudson Qtr still hanging with 16 units still to go but its free cash on everyone of them so helps cover divi deficit.

[pdosullivan] 15/11/2023 07:32

Reassuring results from PCA today. Better than book value disposals and share buybacks at a discount to NAV result in an end-September NTA of 294p a share. A tender is under consideration.

[alders15] 03/10/2023 10:17

Simple. Poor management that does not have the confidence of the market. Three accountants on the board and no property expertise. Funny really; I thought this was a property company.

[skyship] 23/9/2023 20:04

Been very quiet here. PCA again looking good value; but why are we back to 235p? Any ideas?

[cwa1] 15/8/2023 12:13

Hi balcony

No actual "adding", just percentage going up on existing holding due to buybacks

[balcony] 15/8/2023 11:53

Interesting -Two funds adding including our Swedish shareholder.

[baner] 15/8/2023 06:30

If you look at the shareholder structure i very much doubt these investors will not stay in for the grand final - 350p or so. Why give the upside away to someone else? I have no Idea who has been selling recently - probably someone needing the money.

[makinbuks] 14/8/2023 16:33

baner, the company has just managed to buy 3.5m in the open market at £2.50. Who do you think is selling? The 4.3m buy back may well be over this week and they won't have spent the whole amount set aside.

Lets say you're right about the potential being £3.50. My logic is someone might buy it out for £2.80 giving them the chance of a 25% uplift. That's a realistic prospect to me and not a bad deal for current holders. Assuming its a public company that makes the offer you can always stay with it if you prefer

[baner] 14/8/2023 12:52

I doubt major shareholders would be interested at 2.80 - when they see 350p around the former and get a good divi until then.

[makinbuks] 14/8/2023 10:19

I agree, a crash in the market is not in the control of the team. Dilema to me is whether they accept a bid at (say) £2.80 or hold on for the £3 + which does appear possible but involves more risk and time.

[baner] 14/8/2023 10:05

sullivan

you are absolutely right. however assuming property values stay where they are, this is a no brainer and very well managed by the new BOD. if the property market goes south, it will not be their fault - in fact we should then be grateful they have sold so much hitherto. but again - with a flat market there will be way north of 300p coming out of this. and the fact is, the market could also go north......

[pdosullivan] 14/8/2023 08:54

I can see merit in the arguments that both yourself and Alders15 are making. I am long PCA and hope the better than book value buybacks plus a stabilisation in UK commercial real estate prices mean a final distribution well above 300p. But if PCA is selling off its remaining Crown Jewels and other sales are sub book value and/or UK commercial real estate values crater then the current price makes sense. It is a binary call.

[nickrl] 14/8/2023 08:32

@baner it was a pretty hefty buy as well this time wonder if from a single seller.

[baner] 14/8/2023 07:28

Further buy back = further increase in the pro forma NAV - should now be 320p or better. These transactions are highly profitable and attractive for those shareholders who stay in. The great thing here is that shareholders know the NAV will eventually be paid out as cash to all shareholders remaining.