Palace Capital PLC on Thursday said it will return a ‘significant amount’ to shareholders after its disposal strategy allowed the company to repay its debts.

The London-based commercial real estate investment trust has so far returned £21.9 million to shareholders after initiating a share buyback programme in July 2022.

A total of 8.8 million shares at an average price of 248.00 pence each have been repurchased.

Palace announced it had unconditionally exchanged or completed the sale of five properties across England for a combined total of £15.3 million, which after adjusting for rent incentives, falls 3.7% below September’s valuations.

This forms part of a wider disposal programme with 23 investment properties sold since April 2023. These sales have generated £103.4 million, which is 3.1% ahead of March 2023 valuations.

Executive Chair Steven Owen said: ‘Notwithstanding challenging property and financial markets, we have continued to progress our disposal strategy with the result that the company is now in a substantial net cash position. We expect to announce a significant return of capital to shareholders, likely through a tender offer, in due course.’

Over the last year the company has repaid £56.0 million of debt, and the latest sales move Palace into a net cash position of £19.5 million once the interim dividend of 3.75p per share is paid on April 19.

Additional properties are now under offer which will provide further cash to the company on completion.

Palace shares were up 3.1% to 235.00 pence each in London on Thursday morning.

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