Palace Capital

LN: PCA

Market Cap£122.1m

Last Close 265p

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.

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Investment summary

Palace Capital’s (PCA) FY21 results were robust, with a clear improvement in the second half. With a good level of rent collection continuing, Q421 DPS was increased by 20%, to a level that management hopes to at least maintain through FY22. Importantly, the flagship Hudson Quarter (HQ) development in York completed in April, on budget. We expect HQ to be a significant driver of forecast increasing returns and deleveraging.

Y/E Mar
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2020A 21.1 14.6 8.0 17.5 15.1 7.8
2021A 17.3 10.6 7.5 16.4 16.2 10.8
2022E 16.7 9.8 6.6 14.3 18.5 14.0
2023E 17.4 10.6 7.5 16.4 16.2 11.5
Industry outlook

The commercial property market is cyclical, historically exhibiting substantial swings in capital values through cycles while income returns have been more stable. The pandemic and Brexit have created significant economic and market uncertainty during the past year, but GDP is forecast to rebound strongly as the lockdown eases and interest rates remain low maintain a significant commercial property yield premium.

Last updated on 21/06/2021
Content on Palace Capital
Palace Capital – Hudson Quarter completion
Real Estate | Update | 20 April 2021
birmingham-3479596
Palace Capital – COVID-19 impacts actively managed
Real Estate | Outlook | 25 November 2020
birmingham-3479596
View more
Share price graph
Balance sheet
Forecast net debt (£m) 67.1
Forecast gearing ratio (%) 41
Price performance
%
1m
3m
12m
Actual 7.9 15.2 51.4
Relative* 7.3 9.4 31.1
52-week high/low 268.0p/171.2p
*% relative to local index
Key management
Neil Sinclair CEO
Stephen Silvester CFO