Palace Capital makes 'substantial progress' in first year on main market

(Sharecast News) - Property investment outfit Palace Capital told investors on Thursday that it had made "substantial progress" in its first full year on the London Stock Exchange's main market, leaving it "very positive" about its prospects.Throughout the year, Palace disposed of 50 residential units to Barnet Council for £18.2m and acquired 1 Derby Square, Liverpool for £14m in December, producing £1m in annual income with "considerable reversionary potential".Palace also undertook 37 lease and rent reviews in the year and, as a result, now generates a total of £3.4m from rent per annum - a significant uplift on its previous passing rents of £800,000.The AIM-listed firm also inked a building contract and secured a £26.5m facility with Barclays for its Hudson Quarter development in York.Looking forward, Palace intends to use its a "strong cash position" along with unutilised debt facilities to fund its refurbishment and development projects and provide it with capacity for future acquisitions.Chief executive Neil Sinclair said: "Palace Capital is making substantial progress across the portfolio, notwithstanding the uncertain environment."During the year we took the strategic decision to hold back on letting some of our vacant space where we see the opportunity to drive value and income potential through refurbishment or redevelopment. 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."As of 1250 BST, Palace Capital shares were down 3.15% at 276.02p.