If it's value and recovery potential you're after, look no further than regional commercial property group Palace Capital (PCA). The shares trade at a deep discount to book value, boast an attractive 4 per cent forecast dividend yield almost twice covered by earnings, and offer potential upside from both a recovering regional property market and active management of the group's expanding portfolio.
- Deep discount to book value
- Improving regional property market
- Attractive yield
- In talks over another acquisition
- Challenging property portfolio
- Thinly traded
"We think we've got in early," says Neil Sinclair, Palace's 70-year-old chief executive officer with nearly 50 years' experience in the property sector. He is referring to the company's transformational £39m acquisition in October of a portfolio of mixed-use commercial property from Quintain Estates (QED), which sold the non-core assets to focus on the London market. "We took the view that London [prices] had grown quite a lot since 2009, but that the regions really hadn't grown at all," Mr Sinclair told us. "This is only the beginning of the regional upturn, which started last year."