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LONDON (Alliance News) - Palace Capital PLC said on Thursday profit is likely to be below expectations for its recently-ended financial year as it chose to refrain from letting some of its vacant space.
During the financial year, which ended on March 31, Palace Capital said it completed 37 leases and rent reviews at an average 14% ahead of estimated rental value, while it remained "conservatively" geared.
55 non-core assets were sold for GBP21.8 million in the financial year, while a property in Liverpool was acquired for GBP14.0 million.
As at March 31, the company had gross passing rent of GBP17.7 million. The estimated rental value of the company's portfolio is GBP21.5 million per year, Palace Capital added.
"Palace Capital is making substantial progress across the portfolio, notwithstanding the uncertain environment," said Chief Executive Neil Sinclair.
The company made the decision to hold back on letting some of its vacant space in order to "drive value" through refurbishments.
"While this means that our adjusted profits are likely to be slightly below expectations for the financial year ended 31 March 2019, it will enable us to further improve our portfolio of high quality, income producing properties that are let to first class tenants," said Sinclair.
He added: "We continue to be very positive about our prospects as we look to create value for shareholders and generate attractive total returns."
Shares in the company were down 1.8% at 280.00 pence on Thursday.