Palace Capital shrugs off 'uncertain times' as income jumps

26th Nov 2018 13:20

(Sharecast News) - Property firm Palace Capital insisted there would be further investment opportunities this year, despite the current "uncertain" climate, as it posted a jump in first-half income and profits.Net property income in the six months to 30 September was £8.1m, up on last year's £6.5m, while operating profits before gains on investment properties was £6.1m, up on 2017's £5m. Pre-tax profits were ahead 71% at £8.4m.Palace's portfolio was valued at £283.3m, up 2.4%, with annualised contracted rental income of £17.4m per annum. Palace specialises in UK commercial properties outside of London.Chairman Stanley Davis said the results had benefited from the firm's strategy of "active management with successful lettings, rent reviews, lease renewals and one asset sale at 30.1% above 31 March 2018 book value".Net asset value was ahead 1.4% at 421p per share. Davis said that the company's £70m equity raising, carried out earlier in the year, had diluted the NAV "somewhat".Chief executive Neil Sinclair said that finding new properties to buy during the period had been difficult. "We have been actively assessing the investment market, but remain resolute in our adherence to our investment strategy and have found it difficult to find value, where an appropriate return can be deliver in to our shareholders in the current market."But he added: "However, in these somewhat uncertain times, we believe there will be opportunities over the coming six months and, with a strong balance sheet, we are well positioned to act when the right opportunity arises."