Palace Capital holds dividend steady as profit slips

Writer, Stock Market Wire
Tuesday, June 4, 2019 - 07:51

Property investor Palace Capital said its annual profit more than halved in its first full year as a listed company.

Pre-tax profit for the year through March fell to £6.4m, down from £13.3m on-year.

The reduction owed, in part, to stamp duty tax paid on an acquisition in Liverpool and a reduction in the share price of a listed investment.

Adjusted profit rose 4.7% to £8.9m.

The company held its annual dividend steady at 19p per share.

Palace Capital said it generated a total property return of 7.1%, outperforming the MSCI UK Quarterly Index figure of 4.6%.

Like-for-like rental value rose 1.1% to £16.4m.

'We've delivered another set of positive results against an uncertain economic backdrop, generating a total property return of 7.1% well above the UK Quarterly Property Index - testimony to our strategy of focussing on selected regions outside of London,' chairman Stanley Davis said.

'Having taken extensive independent advice, it is clear that Palace Capital has now reached a certain scale where the benefits of converting to a REIT are tangible and we are convinced that this is the best course to support our total return strategy as the company continues to grow.'

'The board is therefore recommending that the company converts to a REIT, which will also unlock new pools of capital and improve liquidity.'

Related content

Palace Capital secures £40m credit facility

Property investor Palace Capital said it had secured a new secured £40m revolving credit facility from NatWest with a maturity of five years.

The new...

Wed, 07/08/2019 - 08:00

Palace Capital says interest in York development stronger than expected

Property group Palace Capital said interest in its Hudson Quarter development in York had been stronger than expected, with 22 apartments now reserved and deposits...

Fri, 12/07/2019 - 07:22

Broker Forecast - Numis issues a broker note on Palace Capital PLC

Numis today initiates coverage of Palace Capital PLC (LON:PCA) with a buy investment rating and price target of 350p.

Broker Forecasts data provided by ...

Wed, 05/06/2019 - 09:10

Palace Capital surrenders lease in Birmingham

Palace Capital said it had contractually agreed the surrender of the occupational lease at Priory House, Gooch Street North, in Birmingham.

The tenant, Forensic Archive,...

Tue, 07/05/2019 - 07:57

Palace Capital inks 15-year lease agreement with Soo Yoga

Property investor Palace Capital said it had sealed a 15-year lease agreement with Soo Yoga Group at its Sol Northampton leisure scheme.

The agreement, for...

Tue, 19/02/2019 - 08:07