Palace Capital PLC AGM Trading Update (1665H)
26 Julio 2023 - 1:00AM
UK Regulatory
TIDMPCA
RNS Number : 1665H
Palace Capital PLC
26 July 2023
26 July 2023
Palace Capital plc
("Palace Capital" or the "Company")
AGM Trading Update
Palace Capital provides a trading update ahead of its Annual
General Meeting to be held later today.
Disposals
-- Since 1 April 2023, the Company has disposed of eleven
investment properties for GBP57.9 million, 6.4% ahead of the 31
March 2023 book value. Following the Preliminary Announcement on 15
June 2023, three properties have been sold for GBP16.8 million, the
largest being a top five asset at 1 Derby Square, Liverpool, a city
centre office and retail property which was sold to one of its
tenants, Medicash Health Benefits Ltd, for GBP12.0m, 10.1% ahead of
the March 2023 book value.
-- At Hudson Quarter, York, the Company has completed on five
apartments for a total of GBP2.2 million since 1 April 2023.
Currently, one apartment is under offer with 18 units
remaining.
Portfolio update
-- Since 1 April 2023, three new lettings, three lease renewals
and two rent reviews have been completed across 45,000 sq ft of
space generating GBP0.5 million of additional annualised contracted
rent, 2% ahead of 31 March 2023 ERV, which demonstrates the strong
reversionary potential within the portfolio.
-- The key letting during the period was at 2 St James' Gate,
Newcastle where Orega, a premium, flexible, serviced office
workspace provider, has entered into a 15 year management agreement
to take the second and third floors totalling 22,500 sq ft of the
seven-storey, 82,500 sq ft building. Following a comprehensive
refurbishment to be undertaken over this Summer the operation will
open in the Autumn, providing c.400 workstations. This letting
significantly increases the occupancy at the property from 64.8% as
at 31 March 2023 to 87.5% and, together with the letting to Softcat
plc in December 2022, are the first two major lettings at St James'
Gate since the property was acquired in 2017.
-- The Company achieved 99% rent collection for the 3 months to 30 June 2023.
Debt position
-- As at 24 July 2023, gross debt was GBP24.0 million and cash
reserves totalled GBP16.9 million, resulting in net debt of GBP7.1
million: equating to a proforma LTV of 5.2%.
-- The weighted average maturity of debt facilities is 2.1 years
(March 2023 2.0 years) with the earliest facility not due to expire
until June 2024.
Shareholder distributions
-- The Company acquired 2.6 million shares for GBP6.7 million
under its share buyback programme in the year ended 31 March 2023
contributing 8 pence to EPRA NTA. Since the year end, the Company
has purchased a further 1.9 million shares for GBP4.4 million
contributing an additional 2.8 pence to EPRA NTA. Since July 2022,
cash returned to shareholders from the share buyback programmes to
date totals GBP11.1 million.
-- The Company announced on 3 July 2023 an extension to the
share buyback programme and intends, subject to shareholder
approval at the AGM, to further extend the buyback programme to
return cash to shareholders.
-- The Company is reviewing its options for returning further
cash to shareholders later in the year. The timing of this will
depend on completion of future sales. A further update will be
provided on cash and net debt as major disposals are completed.
Commenting on today's update, Steven Owen, Interim Executive
Chairman said:
"The disposals in the current financial year to date, including
the majority of the Company's industrial portfolio and one of the
top five assets by value at Derby Square, Liverpool, are a
significant step forward in further reducing debt and leverage and
demonstrate continuing progress in our strategy of maximising cash
returns to shareholders. The Company is in a strong financial
position and its low leverage provides it with the flexibility and
optionality regarding the timing of further disposals and other
strategic initiatives. The combination of the surpluses realised on
the disposal of properties together with the accretion from share
buybacks in the financial year to date totals c.8 pence per share
equating to a proforma EPRA NTA of 304 pence per share.
"At an operational level, the Company continues to make good
progress with its asset management activities notwithstanding the
difficult and uncertain conditions in financial and property
markets. We remain focused on maximising returns to shareholders
through active asset management and the orderly, selective, and
timely disposal of properties."
Palace Capital plc
Steven Owen, Interim Executive Chairman / Matthew Simpson, Chief
Financial Officer
info@palacecapitalplc.com
Financial PR
FTI Consulting
Dido Laurimore / Giles Barrie
Tel: +44 (0)20 3727 1000
palacecapital@fticonsulting.com
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END
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