HIGHLIGHTS
Financial Highlights
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Interim dividend (as announced on 30 November 2017) – up 5.6% to 9.5p (H1 2017: 9p) |
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NAV per share – up 1.8% to 451p (March 2017: 443p) |
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Portfolio valuation at 30 September 2017 (prior to the acquisition of RT Warren (Investments) Ltd portfolio, independently valued at £71.8m): £202.8m up 10.7% including an uplift of 1.5% on a like-for like basis (March 2017: £183.2m) |
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Profit before tax of £4.9m – up 25.6% (H1 2017: £3.9m) |
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Adjusted EPS*: 12.8p – up 18.5% (H1 2017: 10.8p) |
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Average cost of debt 2.9% (March 2017: 2.9%) |
*Adjusted EPS is recurring earnings per share, excluding one-off exceptional items and fair value movements
Operational Highlights
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Contracts exchanged on 18 September 2017 for the £68m acquisition of RT Warren (Investments) Ltd (including retained debt of £14.5m). This transaction completed post period end on 9 October 2017 |
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Corporate acquisition of St James Gate, Newcastle-upon-Tyne for £20m, showing 8.6% net initial yield |
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Planning consent secured at the 2-acre Hudson House site, Toft Green, York for 127 apartments, 34,000 sq ft offices, 5,000 sq ft retail & car parking |
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Annualised contracted rental income £14.1m – up 11% (March 2017: £12.7m) |
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Refinancing of £27.0m debt facility for 5 years with Santander UK, secured on Boulton House Manchester, Sol Central Northampton & St James Gate Newcastle-upon-Tyne |
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Application to join the premium listing segment of the Official List of the London Stock Exchange expected in 2018 |
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Overall occupancy (excluding Hudson House) is 89% (March 2017: 91%) |
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WAULT of 5.2 years to break (March 2017: 5.8 years) |
The Company has built a high-quality portfolio of properties. This is down to careful stock selection, taking advantage of corporate opportunities and selling those properties which have limited or no prospect for growth or are too small for the Company's stated criteria. This active management programme continues to support the Company's progressive dividend policy.
Stanley Davis, Chairman of Palace Capital, said:
“I am very pleased to report that Palace Capital shows increasing growth, both in income and capital value. Our NAV per share as at the half year was 451p, although this has been affected by the equity raise undertaken by the Company in October of this year. Our NAV on our readmission in October 2013 was 218p so we have made tremendous progress.
“We are making headway on some of our strategic assets and, with the completion of the acquisition of the high-quality RT Warren portfolio in early October, we remain very positive about our future.”