- 29 lease events add £0.6m to annual rent roll
- £12m of £30m planned non-core disposals completed or exchanged
- Sales at Hudson Quarter development in York flying
- Net debt set to be cut in half by March 2022 year-end
Palace Capital (PCA:248p), a regional commercial property Reit, has announced a robust pre-close trading update ahead of half-year results on Tuesday, 16 November 2021.
A portfolio bias towards regional offices (41 per cent portfolio weighting with no London exposure), industrial warehouses (14.4 per cent) and retail warehouses (3.3 per cent) explains why rent collection rates are so impressive even during the Covid-19 pandemic. Indeed, having collected 97 per cent of rents in the June quarter, less than 8 per cent is outstanding in the current quarter. Moreover, 29 new lettings, lease renewals and rent reviews have added £0.6m to the group’s annual rent roll since 31 March 2021, hence why the board felt confident enough to raise the dividend by 20 per cent to 3p a share earlier this year.