RNS announcement

19 March 2026                                                                                                                              LEI: 2138009JDFQOXJFCJQ05

Palace Capital PLC

 ("Palace Capital" or the "Company")

Declaration of Dividend

The Board of Directors (the "Board") of Palace Capital has reviewed the detail behind the dividends paid historically by the Company and notes that the Company was declaring dividends each quarter which were typically in excess of the Company's EPRA earnings per share. To the extent that such dividends were not covered by profits earned, they resulted in shareholders effectively receiving a prepayment of the net asset value of their shares which the Board does not consider to be in shareholders' best interests.

In addition, the Company had previously mistakenly paid some dividends as a Non-Property Income Distribution ("Non-PID") even though these should have been paid as a Property Income Distribution ("PID"). Due to the mistake, the Company has a historic balance of approximately £2.7m[1] of property rental business profits that it must, at some point, pay to shareholders as a PID.

The Company has already distributed all of its property rental business profits for the financial year ended 31 March 2025 and more than its estimated property rental business profits for the nine months ended 31 December 2025.

While the Board of Palace Capital has decided not to pay uncovered dividends in the future, it today announces that it has declared a dividend of 3.75 pence per ordinary share which will be paid as a PID. This dividend is in line with previous distributions and reduces the balance of unpaid property rental business profits further.

The dividend is payable to shareholders on the register of members at the close of business on the Record Date.

The dividend timetable is as follows:

•     Ex-Dividend Date: Thursday 26 March 2026

•     Record Date: Friday 27 March 2026

•     Payment Date: Tuesday 21 April 2026

The dividend will be paid net of 20% tax unless a shareholder is eligible for payment of a gross dividend and has completed and lodged the relevant form with the Company's Registrar, Equiniti.

Enquiries:

Palace Capital plc
Christian Kappelhoff-Wulff, Non-Executive Chairman
ckw@palacecapitalplc.com

Financial PR

FTI Consulting
Dido Laurimore / Andrew Davis

Tel: 44 (0)20 3727 1000

palacecapital@fticonsulting.com

Broker

Cavendish

Matt Lewis, Head of Corporate Broking
Tel: 44 (0)20 7397 1920
mlewis@cavendish.com

This announcement contains inside information for the purposes of Article 7 of the UK version of the Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended.