Palace Capital

LN: PCA

£131m market cap

285.5p last close

Palace Capital is a UK property investment company. It is not sector-specific and looks for opportunities where it can enhance long-term income and capital value through asset management and strategic capital development in locations outside London.

Investment summary

During H120, Palace stepped up its refurbishment and development activity aimed at improving the quality of the portfolio and enhancing its income and valuation potential over the longer term. The flagship Hudson Quarter development is making good progress and the initial tranche of the apartments offered for sale in June has been well received. Although refurbishment and redevelopment activity is dampening current income, DPS is being maintained in anticipation of future income growth and represents an attractive yield.

Y/E Mar
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2018A 16.7 10.7 8.5 21.2 13.5 N/A
2019A 18.8 12.4 8.9 17.3 16.5 N/A
2020E 20.7 14.1 8.0 16.7 17.1 N/A
2021E 18.1 11.7 8.1 17.6 16.2 N/A
Industry outlook

The supply demand balance for regional office and industrial property remains generally firm, and a positive yield spread between the regions and London offers potential for further narrowing. Rents and capital values in the retail sector have continued to weaken.

Last updated on 04/12/2019
Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (5.2) 2.9 (0.2)
Relative* (3.6) 3.3 (4.0)
52-week high/low 328.0p/265.0p
*% relative to local index
Key management
Neil Sinclair CEO
Stephen Silvester CFO

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