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Palace Capital reports drop in NAV and profits

Palace Capital, which owns a diverse portfolio of property in the UK regions, has reported a drop in net asset value (NAV) per share of 3.9% during the six months to the end of September.

NAV per share fell to 391p during the period, compared to 407p at the end of March, while profit after tax fell to £2.6m, from £7.3m a year earlier.

Earnings per share fell from 15.9p in September 2018 to 5.6p at the same point last year. Adjusted earnings per share, which is based on recurring earnings before tax and any one-off items, went up from 8.0p last year to 8.5p. Dividend cover, which the board calculates using the adjusted earnings per share metric, was 90% after the company paid out a 9.5p dividend in the period.

Shareholder return swung into positive territory to 0.2% from -3.8% last year.

Neil Sinclair, chief executive of Palace Capital, said: “During the period we have stepped up our development activity, a strategy we believe is best placed to increase shareholder value in the long term by creating an even stronger portfolio that can meet the demand we are seeing outside of London for well located, fit for purpose property that delivers higher quality income and capital growth. Our commitment to a total return strategy is now starting to pay off, both in terms of income and capital growth, and should enable us to maintain our positive performance.”

PCA : Palace Capital reports drop in NAV and profits

2 thoughts on “Palace Capital reports drop in NAV and profits”

  1. Its not clear why the NAV went down… any clue? Surely if you are developing and “maintaining our positive performance” then NAVs go up… what am i missing

    1. Spending on development has not yet fully resulted in an uplift in property valuations, and therefore had an impact on NAV

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