Palace Capital has reported a 2% dip in its EPRA net asset value per share and a 52% fall in profit before tax in its latest financial results
EPRA NAV per share dipped from 415p in 2018 to 407p in 2019.
Profit before tax dropped from £13.3m in 2018 to £6.4m in 2019, which chief executive Neil Sinclair said was “due to the fair value reductions compared to uplifts last year”.
The investment company also reported it had sold 50 non-core residential assets for £18.3m and made only one acquisition for the year: One Derby Square in Liverpool.
Sinclair explained the dip in NAV was due to “Stamp duty land tax on the Liverpool acquisition as well as the reduction in the share price of our listed investment”.
Following the acquisition of One Derby Square, the company’s portfolio is valued at £286.3m, compared with £276.7m in 2018.
Sinclair said: “Our portfolio structure and proactive approach to asset management has enabled us to continue to grow both income and capital values, building further on our strong track record.
“We are well positioned to take advantage of investment opportunities but remain disciplined in this regard as we believe that pricing in the market at the moment does not provide sustainable value and, therefore, doesn’t meet our strict criteria.
“Our priority is therefore to exploit our own portfolio, where there is significant reversionary potential and accretive redevelopment opportunities.
“Looking ahead to FY20, we will remain focused on growing income through lease restructuring, improving occupancy and other asset management projects including refurbishments and developments.”
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