Palace Capital

LN: PCA

£126m market cap

274.5p 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

Palace Capital recently reported FY19 results and announced plans to convert to REIT status, approved by shareholders at the AGM. The results showed further growth in recurring earnings and positive like-for-like valuation growth but they also reflected the deferral of some letting activity to pursue refurbishment and redevelopment opportunities. Our revised forecasts now include the impact of the Hudson Quarter development in York, which we expect to be a key driver of returns over the next two years.

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 12.9 N/A
2019A 18.8 12.4 8.9 17.3 15.9 N/A
2020E 20.9 14.9 8.2 17.1 16.1 N/A
2021E 18.3 12.3 8.4 18.2 15.1 N/A
Last updated on 25/07/2019
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. Parts of the retail sector are displaying clear signs of stress.

Last updated on 25/07/2019
Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (8.0) (3.7) (20.7)
Relative* (9.1) (4.2) (18.5)
52-week high/low 347.0p/270.0p
*% relative to local index
Key management
Neil Sinclair CEO
Stephen Silvester CFO

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