Palace Capital posted its annual results for the year ended 31 March 2019. Adjusted PBT and EPS stood at £8.9m and 17.3p, respectively. The dividend was maintained at 19.0p, net assets decreased 1.6% to £180.3m and EPRA NAV stood at 407p. LTV of 34% was within the target range and the average cost of debt reduced to 3.3%.
Total property return of 7.1% is well above the MSCI UK Quarterly Index figure of 4.6%. Like-for-like (LFL) valuation increased 0.5% compared to MSCI growth in UK capital values of 0.1%. LFL rental value rose 1.1% to £16.4m with 37 new leases completed at an average of 14% above ERV. Occupancy stood at 87% with tactical vacancies held for accretive asset management.
The company achieved significant progress towards Hudson Quarter York development with demolition and site preparation completed in the year. The scheme is set to launch in June 2019.
The board proposed REIT conversion to support the total return strategy following extensive professional and independent advice. The conversion is expected on 1 August 2019.
Neil Sinclair, Palace Capital’s CEO, commented: “Looking ahead to FY20, we will remain focused on growing income through lease restructuring, improving occupancy and other asset management projects including refurbishments and developments.”