Business
Trading update and dividend increase
Trading update and dividend increase.
About this update from Palace Capital Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 3866H\n Palace Capital PLC\n 06 April 2022\n \n \n \n 6 April 2022\n \n Palace Capital plc\n \n \n (\"Palace Capital\" or the \"Company\")\n \n \n Trading update and dividend increase \n \n \n Palace Capital (LSE: PCA), the Main Market property investment company that has a diversified portfolio of UK commercial real estate in carefully selected locations outside of London with a focus on the office & industrial sectors, announces a trading update for the period ended 31 March 2022 together with an increase in dividend.\n Strategy Overview\n The Directors anticipate that, subject to audit, EPRA earnings* and Adjusted PBT** for the year to 31 March 2022 will be ahead of market expectations. This is underpinned by the positive impact of asset management successes, lease activity and acquisitions.\n The Company is well positioned for the future with:\n 1) The disposal strategy ahead of target;\n 2) The balance sheet considerably strengthened with £28.1 million of cash at year end;\n 3) Improved portfolio income with solid rent collection; and\n 4) Progressive dividend growth.\n Following the success of Palace Capital's disposal strategy, which to date has realised gross proceeds of £31.5 million, and the significant pick-up in sales of residential units at Hudson Quarter, York, the Directors remain mindful of how and when these proceeds are deployed. As announced with our interim results on 16 November 2021, the Board is committed to maximising value for shareholders and closing the current share price discount to NAV. Accordingly, in consultation with shareholders, the Board is considering a range of strategic options, including a return of capital, to unlock further value in the business.\n In addition to considering a range of strategic options, the Board will assess property investment opportunities. The Board is focused on acquiring high quality, income producing assets with attractive rental growth prospects and strong ESG credentials, that will enhance the Group's earnings and dividend payout.\n Such investment opportunities will reposition the portfolio for growth in income and capital value, by pivoting the weighting towards higher quality assets. The intention is to use our core assets to provide a bedrock of sustainable income. This allows a balance for hig...