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Palace Capital

EdisonTV | Property | 25/10/2017

Executive interview - Palace Capital

Palace Capital is an AIM-listed UK commercial property investment company. It is sector-agnostic and seeks opportunities where it can enhance the long-term income and capital value through asset management and strategic capital development in locations outside London. In this interview FD Stephen Silvester discusses Palace’s strategy, the strong track record of value creation and the prospects for the most recently completed portfolio acquisition and capital raising. The latter provides significant further opportunities for asset management and scale economies, and lifts the company’s market capitalisation above £150m. Palace will now seek a Main Market listing.

Executive interview - Palace Capital

Executive interview - Palace Capital

Palace Capital is an AIM-listed UK commercial property investment company. It is sector-agnostic and seeks opportunities where it can enhance the long-term income and capital value through asset management and strategic capital development in locations outside London. In this interview FD Stephen Silvester discusses Palace's strategy, the strong track record of value creation and the prospects for the most recently completed portfolio acquisition and capital raising. The latter provides significant further opportunities for asset management and scale economies, and lifts the company's market capitalisation above £150m. Palace will now seek a Main Market listing.
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25/10/2017 | Palace Capital

Executive interview - Target Healthcare REIT

Executive interview - Target Healthcare REIT

Kenneth MacKenzie is the managing partner of Target Advisers, which manages Target Healthcare REIT, the UK’s only listed investor in modern, purpose-built care homes. In this interview he gives some background to the REIT, its investment strategy and the drivers underlying the care sector.
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31/07/2017 | Target Healthcare REIT

Executive interview - Custodian REIT

Executive interview - Custodian REIT

Richard Shepherd-Cross, managing director of Custodian Capital, discusses the recent FY17 results, which showed a 2% increase in NAV and a 48% rise in earnings. Richard discusses the main drivers of the increases in earnings and NAV during the year. He looks at how the 25 acquisitions in the year have maintained the geographical and sectoral focus of the portfolio. He goes on to talk about whether there are still opportunities to acquire properties at yields in line with its targets and the financial resources the company has to continue building the portfolio. He then discusses the potential for rental growth across the regions over the next two years. Finally, he covers dividend growth and the aim to maintain a covered dividend this year and beyond.
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31/07/2017 | Custodian REIT

Executive interview - Regional REIT

Executive interview - Regional REIT

Regional REIT owns a commercial property portfolio of predominantly offices and light industrial units located in the regional centres of the UK. The recently published FY16 results covered the first full year of trading since the IPO in November 2015 and showed good progress on portfolio and rent roll growth, rebalancing the portfolio (towards England and Wales and to the office and industrial sectors), debt reduction and the delivery of attractive returns. The c 8.1% prospective dividend yield is the highest in the sector, supported by rents from a portfolio of c £630m following the acquisition of a portfolio from Conygar after the year end.
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04/04/2017 | Regional REIT

Executive Interview - Regional REIT

Executive Interview - Regional REIT

RGL has an active asset management strategy, built on detailed plans for each property and targeting a 10-15% pa return to shareholders, including a 7-8% pa dividend return on the IPO price of 100p. The existing portfolio assets are relatively high yielding (H116 net initial yield 7.1%), capable of supporting a fully covered 2016e dividend yield of 7.3%, and well-diversified by property, region and tenant. The asset manager, LSI, brings a well-resourced and dedicated team, with cross-cycle experience, essential to exploit the opportunity provided by significant lease breaks and expiries over the next three years to grow income and valuation.
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25/10/2016 | Regional REIT

Executive Interview - Secure Income REIT

Executive Interview - Secure Income REIT

Nick Leslau is the Chairman of Secure Income REIT’s investment advisor, Prestbury Investments, and has long experience in the UK commercial property sector. Here he discusses Secure Income’s unique portfolio and the highly predictable long-term returns it will generate. He also explains how the long leases are beneficial to tenants as well as Secure Income and covers the recent acquisition of 55 Travelodge hotels.
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19/10/2016 | Secure Income REIT

Executive Interview - Adler Real Estate AG

Executive Interview - Adler Real Estate AG

2014 saw considerable progress in Adler’s plans to increase the scale of its residential investment portfolio, funded in part by disposals of non-core real estate. In 2015, Adler has kept up the pace of development, including the completion of the acquisition of 6,750 units in Wilhelmshaven, followed by the pre-agreed bid for listed competitor, Westgrund AG. Assuming completion, the combined entity will have a portfolio of c 52,000 residential units, achieving the intermediate scale target that was planned to be reached by the end of 2016. Adler had targeted this level as being consistent with achieving operational and financing efficiency. The latter includes better access and terms in debt funding, and an increased equity market capitalisation to support improved liquidity and access to capital. With increasing earnings and cash flow potential, we would expect Adler to turn its attention to shareholder distributions and further gearing reduction, as well as further portfolio growth once Westgrund is integrated. Preliminary figures show that in 2014, Adler increased the scale of its completed, income-generating portfolio from fewer than 8,000 units to c 24,000. The Wilhelmshaven assets were notarised at year end and have since completed. Gross rental income increased more than three times to c €84m, although the year-end run rate was higher still, even before the inclusion of the Wilhelmshaven assets. Fair value gains of c €133m were mostly generated in the first half, representing special situation portfolio acquisitions at below-market valuation levels. Non-core property asset sales of c €70m contributed towards an increase from c €2m to c €57m in revenues from the sale of property (the balance reflecting investment asset disposals not taken through the P&L). Net profits increased to c €112m from €47m in 2013 and net equity reached €311m (including c €21m of equity raised), an equity ratio of 22%. In addition to greater portfolio scale and earnings potential, Adler expects that a combination with Westgrund will generate c €20m of synergy over three years, lower the cost of debt and reduce LTV to c 67%. Adler estimates a pro forma EPRA NAV per share of c €14.60, with a market capitalisation likely to exceed €700m.
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24/03/2015 | Adler Real Estate