Palace Capital Share Discussion Threads

[gary1966] 01/9/2016 18:48

The spread, quoted and real. Been trying to buy myself over the last week but the spread is way too wide to interest me at the moment.

Gary

[wirralowl] 01/9/2016 09:21

A couple of deals in August, but PCA seems to have been left behind by the other Prop CO's recently, who've all largely recovered their Brexit blips.. Anyone know why PCA might be lagging?

[mad foetus] 29/7/2016 11:38

So they are having a capital markets day, showing people around their properties. I would have thought there are some big regional IFAs that might be interested in PCA as a local yield play. At sub £100m, this is still a minnow in a niche with lots of room for growth imo. ANd with the recent divi, we're not too far off pre-Brexit highs, which is heartening. Could see myself holding this for a long time.

[mad foetus] 07/7/2016 07:23

And a 16.8% return on the property. That means after 6 years the property has been paid for. Plus capital allowances! What a purchase that property has been.

[skyship] 07/7/2016 07:08

"Palace Capital is in strong financial health and the Company has already taken advantage of the recent uncertainty in the commercial property market following the June EU Referendum result by putting in place this loan facility. Our portfolio is performing well and we will continue with our strategy to improve the properties we own and recycling our capital into those assets that offer the best potential performance over the medium to long-term."

[mad foetus] 06/7/2016 11:14

AGM this morning, would have gone if I'd been in London, will be interested to see if chairman has any comments about post-Brexit environment.

[mad foetus] 21/6/2016 07:22

And more today, shows the board think the share price is a significant discount to NAV.

[skyship] 20/6/2016 07:17

PCA mops up the loose stock @ 360p:
==================================

20 June 2016

Palace Capital PLC

Transaction in own shares

Palace Capital PLC announces that on 17 June 2016 it purchased 91,587 of its own ordinary shares of 10p each ("ordinary shares") at an average price of 360 pence per ordinary share. All of the purchased shares are to be held as treasury shares.

[mad foetus] 14/6/2016 13:38

Business goes on:

"Palace Capital PLC, the property investment company that focuses on commercial property outside London, announces that it has exchanged contracts to acquire the freehold of Boulton House, Chorlton Street, Manchester for a consideration of GBP10.95 million. This is potentially subject to a downward adjustment of up to GBP0.4 million for rent guarantees and other costs. Completion is set for 30 September 2016. The acquisition is being funded by a new debt facility from one of Palace Capital's existing lenders and credit committee approval has been received.

Boulton House is a 75,000 sq ft multi-let 1970s office building in the centre of Manchester in the popular Portland Street corridor. This sits within the Midtown district of Manchester within a few minutes' walk of Manchester Piccadilly Station. The building is in an area where considerable regeneration is underway and the Company view Boulton House as a medium term development opportunity.

The property is situated on a large corner site with a site area of approximately 26,000 sq ft and is currently producing a net income, after all deductions, of circa GBP625,000 per annum. This represents an initial net yield of 5.5% after deductions for empty rates, service charge and insurance shortfall on 13,500 sq ft which is currently vacant. There are currently leases with rent free periods in place which will increase the net rental income to approximately GBP775,000 per annum in the short term representing a yield of 6.9%. The Company will be instructing agents to let the 13,500 sq ft of empty space which will give the Company the opportunity to increase further the net income per annum and the net yield.

Bilfinger GVA represented Palace Capital and CBRE represented the vendors.

Neil Sinclair, the Chief Executive of Palace Capital, commented:

"This acquisition continues our strategy of purchasing assets in growth locations. We have been interested in Manchester for some time but up until now we were not able to secure a property which fulfilled our acquisitions criteria and rental return. We believe Boulton House will respond to our brand of asset management to maximise the value of this property. Initially this will be achieved by letting the vacant space whilst in the medium term there is considerable development potential."

[rhomboid] 06/6/2016 09:01

Hi Skyship

The RNS covers this very topic;

"
VALUATION GAINS & PROFITS ON DISPOSAL

The movement in the values of our investment properties can make a significant impact on our profit before tax, as demonstrated last year when we saw £9.8m uplift on the portfolio. This year £3.6m gains were achieved, however this should be combined with the £3.0m surrender premium received from Gala Casinos due to the direct impact the loss of income has on the Sol Central property valuation in the short-term, results in a £6.6m overall gain.

The portfolio has almost doubled in the past year and therefore the impact of like for like uplift in values is diminished as the initial absorption of purchase costs and stamp duty are taken into account this year. The 1% increase in stamp duty for commercial properties valued over £250,000 to 5% has had a one-off impact on the net valuations performed by the Independent Valuers this year. Despite this, we continue to see the impact of our asset management and capex initiatives particularly at our strategic properties such as Hudson House, York where we received approvals in the year and we have seen a significant uplift in value with this property now valued at £14.9m."

I have this as a core hold as their modus operandi is well suited to a fast changing property landscape and gives me a 4% plus and growing income stream .

[mad foetus] 06/6/2016 08:51

by coincidence, an article on trustnet about the most rated boutique fund managers - top of the list, SVM. Which, like R&M, holds PCA:

"IBOSS has used FE Alpha Manager Margaret Lawson’s five crown-rated SVM UK Growth fund for several years and deems it to be one of its favourite funds within the UK space.

“It’s a small boutique, she’s the most passionate manager we’ve ever met,” Metcalfe said.

“The numbers themselves are fantastic but we like the fact it’s a small boutique and that she’s there with Colin, her husband.”

“We just can’t see her ever leaving and we don’t think she’s going to be distracted by somebody else coming in and trying to get her to go and work somewhere else, I just can’t see it happening.”

The manager founded SVM alongside husband Colin McLean since 1990.

The £147m SVM UK Growth fund aims to provide long-term growth through investing in stocks across the market cap spectrum. These are divided into three buckets: Core, which makes up 48.8 per cent of the portfolio, Tactical, which is a further 48 per cent of the fund and Alpha Kicker, which accounts for the remaining 6.1 per cent of the fund.

The Core bucket, which holds higher quality long-term stocks, includes the likes of Ryanair, Paddy Power Betfair and Irish investment firm DCC. The shorter term Tactical bucket, which is set to utilise broader market conditions, holds ITV, British American Tobacco and BT while the higher-risk Alpha Kicker bucket holds stocks such as Ladbrokes, Synthomer and commercial property firm Palace Capital.

In total, the fund currently consists of 28 holdings.

This concentrated ‘three bucket’ approach has stood the fund in good stead as it has provided a top-decile total return over one, three, five and 10 years, comfortably doubling its sector average and benchmark over the last decade."

[skyship] 06/6/2016 07:29

FINALS - All very positive, though initially disappointed at the headline NAV of 414p. Still, Broad Street Plaza (Halifax) would appear already to be taking that figure well past my 420p target.

Off to look into the detail, though presumably all covered in the recent Update...

[mad foetus] 02/6/2016 08:53

results on 6 June, should be interesting given the minimal volumes here and some of the comments in the trading update.

[skyship] 11/5/2016 10:13

MF - always been rather limited marketability - in the past I've had to deal in a series of 1000s; though all usually at the same price...

[mad foetus] 11/5/2016 09:30

Can't even buy £10,000 online this morning.
One thing to note is the small market cap - once it goes above £100m it will become available to a much wider range of institutional investors. In about a month's time I reckon.

[bscuit] 10/5/2016 23:31

Double post.

[bscuit] 10/5/2016 23:30

I bought a few last Friday.....nice timing. Thanks to Sky.

[skyship] 10/5/2016 18:42

Well, seems as though we've all bought PCA for the same reasons; and I'm happy to be in the same camp as many of those who've posted here - mad & stupid they're not!

Also pleased to read that the well-respected RMMC have a good holding here.

PCA is perhaps the most "below the radar" listed propco; so may take some time before the wider investing community catches on. Happily though the oxygen of publicity will surely follow the Finals on 6th June - certainly the IC will cover those stats as it is one of their past TIPs.

In the meantime, I too was pleasantly surprised that I was able to add today at sub-360p; so now hold as one of my MAX 10% allocations.

[stupidboypike] 10/5/2016 16:11

I've bought too for exactly the same reasons as rhomboid. Looks a good combination here. Best regards SBP

[rhomboid] 10/5/2016 16:06

I've bought in this afternoon, I like the business model and am looking for yield and growth , this seems a good blend of both, I'd be interested to see any broker notes after today's RNS

Cheers

[mad foetus] 10/5/2016 12:15

here's a funny thing. I was looking at one of my core holdings just now - RMMC (River & Mercantile Micro-Cap) and I see at their last report (only available as pdf) they have PCA at 3.2% as one of their top 10 holdings. Clearly PCA has grown since then, but I regard R&M as the premier small cap analysts in the UK, so it bodes well imo.

[mad foetus] 10/5/2016 09:49

Results are out on 6 June but the increased divi indicates all will be very positive. The referendum is the complicating factor but I think regional property is much less highly rated than London property and will be less affected by the referendum result either way.