Palace Capital’s chief financial officer (CFO) Matthew Simpson is stepping down as a director and from the board of the REIT at the end of this month.
In its interim results for the six months ended 30 September 2023, the company said the cancellation of its bank facilities and reduced portfolio size mean the CFO role is “significantly reduced and therefore no longer requires the level of expertise and skillset that Matthew contributes”.
The REIT said that going forward the financial operations of the company would be managed by the financial controller and financial planning analyst with “operational oversight” by executive chairman Steven Owen and by the audit and risk committee on behalf of the board.
Simpson said: “After eight years, the last two years of which were as CFO, the timing is now right for me to explore new opportunities and pursue a fresh challenge. I leave Palace Capital in a robust financial position, having deleveraged the balance sheet with debt and LTV significantly reduced and the company is well placed to deliver on its strategy of maximising cash returns to shareholders. I have enjoyed working with the current board and the wider team over the last two years and wish them all the best for the future.”
In its interim results, Palace Capital reported a fall in adjusted profit before tax of £2.3m (September 2022: £3.5m) and the valuation of its portfolio fell by 4.4% on a like-for-like basis.
Owen said: “We continue to make good progress in achieving disposals at values ahead of book enabling us to further reduce debt and leverage as we deliver on our strategy of maximising cash returns to shareholders. Proactive balance sheet management ensures Palace Capital is in a strong financial position, with net debt currently at £7.7m and leverage at 6.5%, both having been reduced since the period end. This provides the company with the flexibility and optionality regarding the timing of future disposals and other strategic initiatives, including various options for returning capital to shareholders.
“At an operational level, the company continues to make good progress with its asset management activities notwithstanding the difficult and uncertain conditions in financial and property markets. Since July 2022, we have returned £21.9m of capital to shareholders through share buybacks. It is expected that further progress regarding disposals and options for returning capital, including a potential tender offer, will be announced in a trading update during the first quarter of 2024.”
