StockMarketWire.com - Property investor Palace Capital said its annual profit more than halved in its first full year as a listed company.

Pre-tax profit for the year through March fell to £6.4m, down from £13.3m on-year.

The reduction owed, in part, to stamp duty tax paid on an acquisition in Liverpool and a reduction in the share price of a listed investment.

Adjusted profit rose 4.7% to £8.9m.

The company held its annual dividend steady at 19p per share.

Palace Capital said it generated a total property return of 7.1%, outperforming the MSCI UK Quarterly Index figure of 4.6%.

Like-for-like rental value rose 1.1% to £16.4m.

'We've delivered another set of positive results against an uncertain economic backdrop, generating a total property return of 7.1% well above the UK Quarterly Property Index - testimony to our strategy of focussing on selected regions outside of London,' chairman Stanley Davis said.

'Having taken extensive independent advice, it is clear that Palace Capital has now reached a certain scale where the benefits of converting to a REIT are tangible and we are convinced that this is the best course to support our total return strategy as the company continues to grow.'

'The board is therefore recommending that the company converts to a REIT, which will also unlock new pools of capital and improve liquidity.'




Story provided by StockMarketWire.com