Business
COVID-19 and dividend update
COVID-19 and dividend update.
About this update from Palace Capital Plc
[{"type":"text","content":"\n \n \n RNS Number : 4994I\n Palace Capital PLC\n 02 April 2020\n \n \n \n \n 2 April 2020\n \n \n PALACE CAPITAL PLC\n \n \n (\"Palace Capital\" or the Company)\n \n \n \n \n \n COVID-19 and dividend update\n \n \n \n \n \n Palace Capital today provides an update on the impact of the evolving global COVID-19 pandemic on the business.\n \n \n In this period of unprecedented disruption, our priority is and will remain the health and wellbeing of our colleagues and tenants, whilst protecting the long-term value of the Company.\n \n \n In these circumstances, we believe we should support our occupiers, particularly smaller and independent brands that are less resilient to the enforced closure of their space. Fortunately, we have limited retail exposure and only two leisure centres, with the latter comprising 14.5% of our portfolio. We have received a variety of requests for rent deferrals, monthly payments, and waivers, which we are reviewing on a case-by-case basis, taking into account the business model and risk profile of the occupier, alongside the aid being made available by the government.\n \n \n Across our portfolio, we continue to follow and implement the latest government advice and we have taken the appropriate steps to mitigate the spread of the virus. \n \n \n Update on current trading\n \n \n Underlying earnings for the year ending 31 March 2020 are currently expected to be broadly in line with previous expectations, however the independent valuation of our assets as at 31 March 2020 will include a statement from the valuers highlighting material uncertainty as a result of COVID-19. \n \n \n Overall, as at the close of business on 01 April 2020 and as adjusted for rent deferred, switched to monthly payment, and a nominal proportion waived, we have received 70% of rent due. We expect this figure to increase as temporary agreements are implemented and further rent is collected.\n \n \n The Company's primary focus is to maximise the rent collection, whilst having regard to the short-term difficulties faced by some tenants. This means the Company needs to take a pragmatic view. Until there is clarity on the full impact of the economic fallout from this crisis and global response, the Board is unable to comment further on the outlook for FY2021.\n \n \n Hudson Quarter\n \n \n Notwithstanding the effect o...