Palace Capital (PCA.L) provided a strategic update following the sale of £35 million in assets during FY25, achieving a 6% premium over March 2024 valuations.
These disposals supported a £21.7 million capital return via a July 2024 tender offer, contributing 2.0p per share to EPRA NTA. Since July 2022, the company has returned over £43 million to shareholders and sold £145.6 million in investment properties (£160.3 million including residential units).
As of April 2025, Palace Capital is debt-free, having repaid an £8 million loan to Scottish Widows and holding £30.9 million in cash. It now holds five investment properties valued at £39 million and ten apartments at Hudson Quarter, York, valued at £4.3 million. The company is continuing to manage and dispose of remaining assets, including Broad Street Plaza (Halifax), Sol (Northampton), St James' Gate (Newcastle), Imperial Court (Leamington Spa), and The Forum (Exeter), based on market conditions.
Asset management initiatives in FY25 generated £0.7 million in additional rental income and reduced property costs. Key lettings and lease restructures were completed at Leamington Spa and Northampton, significantly improving occupancy and extending lease terms. Cost-saving measures are underway, including a reduction in headcount and expected annual administrative savings of £0.9 million.
Steven Owen, Executive Chairman, noted that Palace Capital's disposal strategy has left it debt-free with a strong cash position. The company now has greater flexibility regarding the timing of remaining asset sales and intends to return further cash to shareholders via a tender offer. He added that discussions with shareholders will soon begin to determine the strategy for liquidating the rest of the portfolio.
Wednesday PCA.L closed at £222, or 0.45% higher on the LSE.
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