EXPERTS IN REGIONAL PROPERTY
PALACE CAPITAL PLC FINAL RESULTS
Y E A R E N D E D 3 1 M A R C H 2 0 2 3
Agenda
- Key highlights
- Financial review
- Operational review
- Outlook
- Appendices
Page 1 | Palace Capital plc | Investor Presentation June 2023 | palacecapitalplc.com
OVERVIEW
Key Highlights
Good progress achieved in strategy to maximise cash returns to shareholders in difficult market conditions
- £59.0m of investment properties and £12.3m of HQ apartments completed or exchanged from 1 April 2022 to date
- Disposals facilitated gross debt reduction of £37.5m in FY 23 to £64.3m (net debt £58.8m). Post year end and by 31 July 2023 gross debt expected to reduce by c£30.3m to c. £34m and net debt from £58.8m to c. £20m
- LTV expected to reduce to c.13% by 31 July 2023, down from 31% at 31 March 2023
- Two share buyback programmes announced during FY 23, with 2.6m shares purchased for £6.7m . Since 1 April 2023 a further 0.5m shares purchased for £1.2m. Total cash returned to shareholders from the buyback programme to date is £7.9m. The Company has today announced a further share buyback programme of up to 1m shares or £2.5m
- Total dividends paid or declared for the year increased by 13.2% to 15.0p (FY 22: 13.25p)
Company remains well placed regarding timing of disposals programme including various options for returning capital to shareholders
- As evidenced by the £34m industrial portfolio disposal in May 2023 which had been paused in October 2022 demonstrating the flexibility and optionality regarding strategy execution
- Operationally the business remains robust with 99% rent collection for FY 23 and proactive asset management
- Proactive asset management generating an additional £1.1m of annualised rental income from lease activity, 11% above March 2022 ERV
- Strong income return of 7.3% led to a Total Property Return of -11.6% (FY 22: +12.5%), outperforming the MSCI UK Quarterly Property Index benchmark of -12.6% for FY 23
- Like-for-likeproperty portfolio valuation reduction of -18.6% (FY22: +3.9%) due to softening yields across the portfolio, although £43.4m of disposals, 6% ahead of book value since 31 March 2023, and an accretion of 6p per share in EPRA NTA has demonstrated that some value has been recovered and realised
Page 2 | Palace Capital plc | Investor Presentation June 2023 | palacecapitalplc.com
FY 23: FINANCIAL REVIEW
Key Financial Highlights FY 23
ADJUSTED PROFIT
BEFORE TAX
£7.6m
FY 22: £7.8m
ADJUSTED EPS
17.1p
FY 22: 16.9p
EPRA NTA
PER SHARE
296p
FY 22: 390p
DIVIDENDS PAID
OR DECLARED
15.0p
FY 22: 13.25p
GROSS DEBT
£64.3m
FY 22: £101.8m
LOAN TO VALUE
31%
FY 22: 28%
ANNUALISED COST SAVINGS
£1.4m
SHARE
BUYBACKS
£6.7m
Page 3 | Palace Capital plc | Investor Presentation June 2023 | palacecapitalplc.com
FY 23: FINANCIAL REVIEW
Financial Statement Review
INCOME STATEMENT | 31 March 23 | 31 March 22 | 31 March 23 | 31 March 22 | ||
Gross property income (excl. ECL provision) | £17.9m | £17.4m | BALANCE SHEET | |||
Property operating expenses | (£2.6m) | (£2.6m) | Portfolio value | £192.4m | £259.0m | |
ECL provision | £0.3m | £0.4m | Cash | £5.5m | £28.1m | |
Net rental income (excl. trading profit) | £15.6m | £15.2m | Drawn debt | £64.3m | £101.8m | |
Recurring admin expenditure | (£4.1m) | (£4.4m) | Net debt | £58.8m | £73.6m | |
Finance costs | (£3.9m) | (£3.0m) | IFRS net assets | £128.5m | £177.2m | |
Adjusted profit before tax | £7.6m | £7.8m | Basic NAV per share | 294p | 383p | |
Tax | £0.1m | (£0.1m) | EPRA NTA per share | 296p | 390p | |
Adjusted profit after tax | £7.7m | £7.7m | Loan to value | 31% | 28% | |
Payments to former Directors (incl. associated costs) | (£1.8m) | - | NAV gearing | 46% | 41% | |
Share based payments & development loan interest | (£0.2m) | (£0.3m) | ||||
EPRA earnings | £5.7m | £7.4m | ||||
Gain/(loss) on revaluations | (£42.9m) | £8.2m | ||||
HQ trading profit | £0.5m | £3.8m | ||||
Profit on disposal - investment properties | £0.8m | £5.0m | ||||
Other P&L movements* | £0.2m | £0.1m | ||||
IFRS earnings | (£35.7m) | £24.5m | ||||
*Other P&L movements includes changes in fair value of interest rate derivatives, debt termination costs, and loss on disposal of listed equity investments Page 4 | Palace Capital plc | Investor Presentation June 2023 | palacecapitalplc.com
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Palace Capital plc published this content on 15 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 June 2023 09:31:09 UTC.