To understand what has happened here, Google search ADVFN PCA chat.
Basically the management cheesed off shareholders big time through a deeply discounted rights issue. You can take this one of two ways; get angry or try to make some money. I've tried the latter; so far I'm down a good bit, but I'm hoping that this one could yet come right. It all depends upon whether or not the last property acquisition was a good one or a Fred Goodwin moment. Time will tell.....but if you are fortunate enough to be a late arrival, you could make a few bob.
300% up on a "coin" holding this was part of a switch from something very difficult to undersand - I also switched some of the proceeds into BCT after the recent sell off - to something much easier to take a view on.
Healthy discount, nice yield, ambitious team and few years of postive history!
Any weakness I'll add more.
As usual, I'll be buying in stages over a period of time.
I dont think there is anything to worry about looking at the statement below
Sinclair sold to fund a tax bill related to a LTIP award and the other sale was so small as to be of no consequence
The Board of Palace Capital was notified today that Neil Sinclair, Chief Executive of the Company, has sold 20,000 ordinary shares of 10 pence each in the Company ("Ordinary Shares") at a price of 337 pence per Ordinary Share. Mr Sinclair has sold these shares in order to fund a personal tax bill relating to 39,811 shares having been awarded under the Company's 2014 Long Term Incentive Plan. As a result of this transaction Mr Sinclair's holding in the Company is 212,761 Ordinary Shares, which represents approximately 0.46 per cent. of the voting rights over the Company's share capital.
In addition, David Kaye, Company Secretary and a PDMR, has sold 6,635 Ordinary Shares at a price of 335 pence per Ordinary Share. These shares were awarded to Mr Kaye under the Company's 2014 Long Term Incentive Plan. Following this sale Mr Kaye no longer has a holding in the Company.
Topped up with a few more today. PCA have cheesed off a few investors with the recent discounted rights issue. I'm a bit more sanguine. By my reckoning the NAV post rights is around £3.85 before PCA start selling off bits of the acquisition (which they will).
So you're getting a discount of about 12% of NAV, which will do me fine, with a yield of around 5.6%.
To my mind these guys have to keep going until they are decent sized and well into a FTSE main list index.
Good value as long as we don't get a sterling crisis and a big kick up in interest rates, which is always a Brexit induced possibility. REITs are inverse earners to interest rates.
Take a look at the instituional investor list on the Palace Capital investor relations link. A bunch of really serious, steady growth, investors.......the director clearly have friends in the City......
Agree with Greyinvestor except that the record since 2010 is anything but boring, almost a bit too impressive, but have added it to my commercial property holdings today at 350p, thanks for pointing it out. Even if progress is a lot less rapid from here, the 5% yield means one is happy to sit and wait. The discount to nav also helps.
Palace Capital (LON:PCA), Neil Sinclair (CEO) presents with Stephen Silvester (FD) and Richard Starr (Exec Dir).
Palace Capital was founded in 2010. Here, the management outline the history through to today. Of course, 2016 was marked by Brexit, and investors negative sentiment to real estate, although PCA have noticed no impact.
Palace Capital focus on commercial (mainly offices) and residential real estate outside London. They seek opportunities with the possibility to add value, to generate higher rental income and higher asset value; many examples of sites and rational are given throughout the presentation.
Neil Sinclair is obviously a highly experienced property man. PCA are highly selective in purchases, with much due diligence, management personally inspecting properties and speaking to locals to suss out the opportunity. Obviously location is key, and proximity to rail stations is one criteria. They often identify distress sales, which at face value might not appear distressed. Sometimes they purchase the whole company purely to acquire the property assets, as a way around stamp duty. They often benefit by timing negotiations seasonally. It appears to culminate in shrewd acquisitions.
Since this was filmed, PCA H1 results 21.11.16 have been released, with updated NAV.
took this from Arden Partner's note out earlier today on research tree:
"The company has announced that it has exchanged contracts for the purchase of the freehold of Boulton House, Chorlton Street, Manchester for a consideration of £10.95m, subject to a downward adjustment of up to £0.4m for rent guarantees and other costs. Completion is set for 30 September 2016. The acquisition is being funded by a new debt facility from one of Palace Capitals existing lenders."
Well its a good company and share price will only go up over time in my view.Directors doing all the right things and doing them very well. So a good solid choice in what will be a lively market this year.
Quick ratio of > 1.0 but preferably > Yes 1.72
Dividend (a nice to have) Yes
Lastest outlook statement must be positive Yes
27-Nov-14 Looking ahead, we believe the prospects for the company are excellent.
Investors Chronicle latest view - 16th Jan-15
Palace Capital (PCA) has completed a refurbishment of two buildings in Milton Keynes and renewed the lease to Rockwell Automation for 12 years. We keep our buy rating.
Does not have even 2 years of continual growth which can be a combination of historic & forecast growth.
The only reason I bought a few (0.6% of my portfolio) was solely based on the purchase by Slater Investments, which was only an increase of 15,000 shares
See what made me buy this share at
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