Palace Capital (PCA) H2 2025 earnings summary

Executive summary

• Strategy focused on returning capital to shareholders via asset disposals, share buybacks, and dividends, with over £43m returned since July 2022 and £21.7m via a tender offer in July 2024.

• Company is now debt free, with all assets unencumbered and a strong cash position of £22.2m at year-end, rising to £30.3m post year-end.

• Portfolio reduced to five investment properties and one residential property, valued at £39.0m and £4.3m respectively as at 31 March 2025.

• Administrative expenses reduced by £1.1m in FY25, with further cost reductions and headcount halved planned for H2 2025.

• Dividends of 15.0p per share paid or declared for FY25, matching the prior year.

Financial highlights

• Net asset value: £72.5m; EPRA NTA per share: 251p (down 4.2% year-over-year).

• Adjusted profit before tax: £3.5m (2024: £5.4m); IFRS profit before tax: £1.4m (2024: £9.3m loss).

• Net cash: £22.2m; total gross debt: nil.

• Property portfolio: £53.2m; contractual rental income: £6.1m; EPRA occupancy: 84.8%.

• Total shareholder return: 0.4%; basic EPS: 4.5p; adjusted EPS: 11.3p.

Outlook and guidance

• Further cash returns to shareholders anticipated via a tender offer after the Leamington Spa sale, expected July 2025.

• Asset sales for leisure properties deferred until market conditions improve; market liquidity expected to benefit from recent interest rate cuts.

• Ongoing asset management to prepare remaining properties for sale; discussions with shareholders on timing and strategy for remaining assets.