Palace Capital (PCA) H1 2026 earnings summary

Executive summary

• Continued execution of capital return strategy, including £10.0m HQ Office, York disposal and £20.8m cash returned via oversubscribed tender offer in September 2025.

• Over £160m of assets sold, all bank debt repaid, and £64m+ cash returned to shareholders since July 2022.

• Only five investment properties remain, valued at £41.3m as of 30 September 2025; three are being marketed for sale.

• Company is debt free with an unencumbered portfolio, providing flexibility for further disposals and capital returns.

Financial highlights

• Adjusted profit before tax: £1.1m (down 47.6% year-over-year); IFRS profit before tax: £0.3m (vs. £0.9m loss prior year).

• Adjusted EPS: 3.9p (down 36.1% year-over-year); basic EPS: 1.0p (vs. -2.8p prior year).

• Dividends paid: 7.5p per share, unchanged year-over-year.

• EPRA NTA per share: 244p (down 2.8% from March 2025), mainly due to non-recurring costs and uncovered dividends.

• Net asset value: £49.4m (down 31.9% from March 2025); cash at period end: £4.6m.

• Like-for-like portfolio valuation increased 0.8% since March 2025.

Outlook and guidance

• Further cash returns to shareholders anticipated in Q1 2026, contingent on completion of current property sales.

• Market conditions for leisure assets have improved, supporting ongoing disposal strategy.

• FY26 year end extended by six months to 30 September 2026 to enhance strategic flexibility and reduce costs.