(Alliance News) - Palace Capital PLC on Tuesday said it expects to maintain its "positive" performance despite a swing to loss in the first half of its current financial year.
The UK regional commercial real estate firm reported net asset value per share as at September 30 of 391 pence, down by 3.9% from 407p recorded on March 31.
Palace Capital said it swung to loss in the six months to the end of September of GBP1.2 million from GBP8.4 million profit a year ago, due to a GBP6.2 million loss on revaluation of investment properties versus GBP3.9 million gain the year earlier.
Net property income, meanwhile, increased to GBP10.7 million from GBP8.1 million year-on-year.
"During the period we have stepped up our development activity, a strategy we believe is best placed to increase shareholder value in the long term by creating an even stronger portfolio that can meet the demand we are seeing outside of London for well located, fit for purpose property that delivers higher quality income and capital growth," said Chief Executive Neil Sinclair.
"Our commitment to a total return strategy is now starting to pay off, both in terms of income and capital growth, and should enable us to maintain our positive performance," added Sinclair.
Palace Capital shares were trading 0.7% higher in London on Tuesday around midday at 287.00p each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Palace Capital (PCA)