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Palace Capital plc

Palace Capital plc is a UK Real Estate Investment Trust (REIT) listed on the Main Market of the London Stock Exchange that owns and asset-manages a portfolio of UK commercial (office and leisure) and residential property. Since July 2022 its strategy has been to dispose of the investment and residential portfolio in an orderly way and return the net proceeds to shareholders via dividends, share buybacks and tender offers rather than to grow or reinvest. At 31 March 2025 the portfolio comprised seven properties (five investment properties plus Hudson Quarter residential/commercial in York), the Group was debt-free with a net cash position, and it continued to sell assets after the year end.

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FY2025 in sixty seconds

year to 31 Mar 2025 · approved 4 Jun 2025 · 93 pages · Companies House

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Palace Capital plc, a property company selling its offices, leisure sites and flats and handing the money back to shareholders, saw revenue fall to £13.2m in the year to 31 March 2025, from £19.6m the year before. It made a profit before tax of £1.4m, against a loss of £9.3m a year earlier.

Revenue fell mainly because properties already sold no longer bring in rent, while running costs have shrunk more slowly. Profit was held back by one-off costs, chiefly a staff bonus scheme linked to property sales and a cut in the value of its unsold York flats.

The company repaid all its borrowings and ended the year with £22.2m in cash and no debt. It spent £22.1m buying back its own shares and kept the dividend at 15p a share. Management expects to hand back more cash through an offer to buy shares from investors in July 2025, once its Leamington Spa property is sold. It is waiting for better prices before selling its leisure sites. The auditor raised no concerns, and the biggest risk the report names is falling property values.

From the reportevery line sits on the page it names
What drove revenue

Gross rental income from the remaining office and leisure investment portfolio

Gross rental income £6,450,000 (2024: £11,603,000); gross property income £6,929,000 (2024: £12,114,000)

page 65
What moved the marginheadwind

Net income lost through disposals reducing the rental base while fixed costs remain

EPRA cost ratio rose to 72.1% (46.8% excluding property operating expenses) from 53.4% (33.0%) as gross property income nearly halved while overheads were only partly reduced

page 66
What management said

The Company anticipates it will return further cash to Shareholders by way of a Tender Offer, expected in July 2025, once the disposal of its property at Leamington Spa has been completed.

page 4
The dividend

Dividends of 15.0 pence per share paid or declared for FY25 (2024: 15.0p), including a proposed final/Q4 interim dividend of 3.75p payable 14 July 2025; dividends are paid as Property Income Distributions (PIDs) reflecting REIT status

page 4

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Key figures

11 years on one page · FY2015–FY2025

The share price over the full statements

LineFY2015lockedFY2016lockedFY2017lockedFY2018lockedFY2019lockedFY2020lockedFY2021lockedFY2022lockedFY202303/23FY202403/24FY202503/25
Revenue
Operating profit
Profit for the year
Basic EPS
Dividend per share—
Free cash flow
Net debt (negative = net cash)
Shares in issue
Operating margin
Return on capital employed

GBP millions, negatives in brackets. Per-share lines in pence. Share counts in millions. Margins and returns as percentages, calculated from the filed figures. later is what a following report restated the figure to; vs is a second reading that disagrees. The figure shown is the one the original filing printed, and both readings are kept. Click any figure: opens the report page it was read from, highlighted; shows how it was calculated.

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2 figures restated in a later report

Every figure is read again from the following year’s report: 301 confirmed, 13 differ, 2 restated.

No figure has been restated: every figure a later report printed again, it printed the same.

2 more figures were restated in FY2015 to FY2022, which a free account opens.