Palace Capital returns to profit

Palace Capital has returned to profit in its latest half-year results. Pretax profit for the six months to 30 September stood at £8m, compared to a £7.2m loss a year ago, with the REIT pointing to development profit, leasing activity, property valuation lifts and profit on disposals as driving the turnaround. Net tangible assets per share of 362p were up 3.6% quarter on quarter. The company has increased its minimum quarterly dividend by 8.3% to 3.25p a share. Palace has continued to pile up new capital for reinvestment, with 64 apartments at its Hudson Quarter scheme in York now sold for a combined £21m and eight more under offer for a total of £3m. The company has also sold or exchanged on almost £19m of disposals from a £30m sale pipeline. Chairman Stanley Davis said: “We are making strong progress across the business and the focus we have been able to put towards implementing our strategy as we have emerged from the pandemic is clearly reflected in the numbers we are reporting today. “Our £30m disposal programme is on track and our balance sheet is in good health. This is enabling us to look at potential investments, both direct property and corporate opportunities, as we seek to recycle capital with one acquisition in legals.” To send feedback, e-mail tim.burke@eg.co.uk or tweet @_tim_burke or @EGPropertyNews Photo © Palace Capital