TIDMPCA
RNS Number : 4506P
Palace Capital PLC
19 October 2021
19 October 2021
PALACE CAPITAL PLC
("Palace Capital" or the "Company")
Trading update
Palace Capital (LSE:PCA ) the Main Market listed property
investment company that has a portfolio of UK commercial real
estate in carefully selected locations outside of London with a
focus on the office and industrial sectors, provides the following
trading update for the 6 months ended 30 September 2021, ahead of
its interim results which are expected to be announced on Tuesday
16 November 2021.
Highlights:
-- 97% of rents collected for the June quarter, with 84% of
rents due for the September quarter collected to the date of this
announcement, a higher proportion than at the equivalent stage of
the September 2020 quarter
-- 29 lease events, including 9 new lettings, concluded in the
period delivering an additional GBP0.6 million of annual rent
-- A further 28 apartments at Hudson Quarter, York sold at a
total value of GBP9.9 million, with an additional 8 currently under
offer to the value of GBP3.0 million
-- Terms agreed to let an additional 11,280 sq ft of new office space at Hudson Quarter
-- GBP26.5 million development facility from Barclays Bank for
Hudson Quarter reduced to GBP1.6 million and expected to be fully
repaid next month, ahead of schedule
-- GBP30 million disposal strategy on track with sales already
completed or exchanged to the value of GBP12 million
-- 1,592,500 shares in Circle Property plc sold at 200p per
share, delivering an 8.6% total return
-- Cash reserves of GBP13.7 million as at 30 September, with a
further GBP5.0 million available from the revolving credit
facility
-- Loan to value of c36% as at 30 September and on a downward trajectory
Rent collection levels remain high
Rent collection has remained very strong with 97% of rents
collected for the June quarter and 84.0% of rents due for the
September quarter received to the date of this announcement, 8.2%
is subject to agreed payment plans or is due monthly with 7.8%
still outstanding. Collection rates are now ahead of this time last
year, demonstrating the quality of our tenants, and asset
management capabilities thereby underpinning our dividends.
29 lease events, delivering an additional GBP0.6 million of
annual rent, were concluded in the period, comprising 9 new
lettings, 10 lease renewals and 10 rent reviews.
Hudson Quarter sales progression
Following completion of the Hudson Quarter development in April
2021, 61 of the 127 apartments have now been sold to the value of
GBP19.2m, whilst 8 are under offer at an aggregate value of GBP3.0
million. 28 apartments have been sold since the announcement of the
Company's Full Year results on 8 June 2021, at a total value of
GBP9.9 million. We are seeing increasing interest in the 58
remaining units.
Successful completion on half of the 8 apartments (by value)
under offer at Hudson Quarter should enable us to repay in full the
associated Barclays Bank Development Facility next month.
Terms have been agreed for the top two floors of the
development's stand-alone office building, HQ at Hudson Quarter,
comprising 11,280 sq ft. Completion of the letting is targeted by
the calendar year end, following which 41% of the 39,000 sq ft of
the grade A office space will have been let.
In recent weeks, Hudson Quarter has been recognised with the
Gamechanger Award at The Variety Yorkshire Property Awards in
Harrogate and the Best Residential Development of the Year for over
50 units at The Yorkshire Insider Property Awards in Leeds.
Strategic disposal programme on track
As announced on 30 September, the Company's entire 5.58% stake
in Circle Property plc was sold, delivering an 8.6% total
return.
Our disposal programme, targeting the sale of GBP30 million of
non-core properties, is on track with GBP10.3 million of sales
already completed and 1 at GBP1.7m exchanged. Proceeds will be
recycled into accretive opportunities in line with our
strategy.
Neil Sinclair, Chief Executive of Palace Capital commented:
"The first half of the year has been yet another busy period for
Palace Capital with progress achieved across the portfolio. With
rent collections continuing to be strong and sales at Hudson
Quarter progressing well alongside our disposal programme, we are
building up our cash reserves, as we continue to monitor the market
for opportunities to recycle capital in line with our regional
strategy focusing on the office and industrial sectors."
For further information please contact:
PALACE CAPITAL PLC
Neil Sinclair, Chief Executive
Matthew Simpson, Finance Director Designate
Tel. +44 (0)20 3301 8331
Broker
Numis Securities
Heraclis Economides / George Fry
Tel: +44 (0)20 7260 1000
Broker
Arden Partners plc
Corporate Finance: Paul Shackleton / Elliot Mustoe
Corporate Broking: James Reed-Daunter
Tel: +44 (0)207 614 5900
Financial PR
FTI Consulting
Claire Turvey / Katie Hughes
Tel: +44 (0)20 3727 1000
palacecapital@fticonsulting.com
About Palace Capital plc
Palace Capital plc (LSE: PCA) is a UK REIT that has a GBP273
million diversified portfolio of UK regional commercial property.
The Company maintains a disciplined investment strategy focused on
towns and cities outside of London that are characterised by
thriving local economies and strengthening fundamentals. Within
those locations the highly experienced management team select
assets that provide opportunities to drive both capital value and
long-term rental income through tailored active asset management
programmes ultimately delivering attractive shareholder
returns.
www.palacecapitalplc.com
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