Palace Capital has shrunk its debt pile after offloading some smaller properties in its portfolio.
The REIT has reduced its gross debt by 10.6% to £79.3m as at 21 December, down from the half-year mark at the end of September. Cash reserves totalled £12.9m, resulting in net debt of £66.4m, down from £75.8m in September.
Proforma loan to value ratio has reduced to 29.6% as at today’s date, from 32.2% in September.
Since the half-year report, which published last month, the REIT has completed £7.6m of disposals. Those transacted at an aggregate 3% premium to March book values, according to the owner.
The sales included 127 Above Bar Street, a leisure property in Southampton, which was offloaded for nearly £3.8m. The deal reflected a 21% premium to March book values.
It also sold Staple House, an office building in Winchester, for just over £3.5m, although this transacted for 10% below March book value.
Steven Owen, interim executive chairman, said: “The company continues to make steady progress with smaller asset disposals being achieved in a difficult environment.
“The board is mindful of the potential for further instability, including interest rate rises, and therefore continues to monitor the timing of significant property disposals for the time being. In the meantime, the focus on disposal of smaller assets, active asset management and debt repayment continues.”
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