Slide 1: Preliminary Results for the financial year to 31 March 2023
Preliminary Results for the financial year to 31 March 2023 First Property Group plc 22 June 2023 Email jeremy.barkes@fprop.com Phone +44 20 7340 0270
Slide 2: Contents
First Property Group plc Contents Company Description and Structure 3-4 APPENDIX 62-70 Investment Approach 63-64 Preliminary Results 5-16 Shareholders >5% 65 Highlights 6-10 Share Statistics 66 NAV 11-12 Plc Management Team 67-68 Dividend 13 Awards 69 Outlook 14-16 Disclaimer 70 Markets 17-19 Invest
Slide 3: Company Description
First Property Group plc Company Description First Property Group plc (AIM: FPO) is an award winning property fund manager and investor with operations in the United Kingdom and Central Europe. Its earnings are derived from: ➢ Fund Management - via its FCA regulated and AIFMD approved subsidiary, Fi
Slide 4: Group Structure
First Property Group plc Group Structure Market Capitalisation at 27p per share: £30m Fund Management Division Group Properties Division (FPAM) ▪ 12 funds; 7 directly owned properties ▪ 53 properties; ▪ 6 in Poland, 1 in Romania; ▪ Invested across the UK, Poland & ▪ Gross properties at market value:
Slide 5: Preliminary Results
First Property Group plc Preliminary Results Preliminary Results Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 5
Slide 6: Highlights since Interim Results
First Property Group plc Highlights since Interim Results ➢ Sold two directly owned supermarkets in Poland for £5.50 million, generating a profit on disposal of £0.68 million; ➢ 5th Property Trading Ltd (5PT), a fund in which the Group gained a controlling interest following the purchase of an addit
Slide 7: Highlights
First Property Group plc Highlights ➢ Third party AUM: £400 million (31 March 2022: £517 million); ➢ Total AUM: £454 million (31 March 2022: £559 million); ➢ Weighted average unexpired fund management contract term: 2 years, 9 months (31 March 2022: 3 years 7 months ➢ 2nd interim dividend (final div
Slide 8: Income Statement
First Property Group plc Income Statement Year to 31 March 2023 Year to 31 March 2022 Income Statement Percentage change (unaudited) (audited) Statutory profit before tax £2.49m £7.08m -64.83% Diluted earnings per share 1.70p 6.01p -71.71% Total dividend per share 0.50p 0.50p -% Average €/£ exchange
Slide 9: Financial Position at year end
First Property Group plc Financial Position at year end Statement of Financial Position 31 March 2023 31 March 2022 Percentage change Investment properties and Inventories at book £47.01m £36.20m +29.9% value Investment properties and Inventories at £53.97m £42.24m +27.8% market value Associates and
Slide 10: Financial Position at year end
First Property Group plc Financial Position at year end Statement of Financial Position 31 March 2023 31 March 2022 Percentage change Gross debt (including deferred consideration) £29.66m £23.66m +25.4% Net debt £22.00m £17.24m +27.6% Gearing ratio at book value 40.57% 35.62% - Gearing ratio at mark
Slide 11: NAV per share 2007-2023
First Property Group plc NAV per share 2007-2023 (excluding any value attributable to FPAM) 70 EPRA NAV Book NAV • NAV per share at 60 Cash book value: 39.18p 50 (31 March 2022: Restated 38.74p) Pence per share 40 • EPRA NAV per 30 share: 46.50p (31 March 2022: 20 46.07p) 10 • Cash per share: 6.82p
Slide 12: Adjusted NAV Bridge
First Property Group plc Adjusted NAV Bridge Adjusted NAV breakdown 31 Mar 2023 Associates and 18.34p £20.73m Investments Cash 6.77p £7.65m 7 directly owned 18.64p £21.06m properties less loans FPAM - - Other working capital 2.75p £ 3.10m Total 46.50p £52.54m Adjusted NAV breakdown 31 March 2022 Ass
Slide 13: Dividend
First Property Group plc Dividend Dividend History Interim dividend: 1.8 FY23: 0.25p 1.6 (FY22: 0.25p) 1.4 1.2 2nd interim Dividend: 1 FY23: 0.25p (FY22: Final 0.25p) 0.8 0.6 Total for FY 2023: 0.50p 0.4 (FY2022: 0.50p) 0.2 0 Interim Final Total Dividend Email jeremy.barkes@fprop.com Phone +44 2
Slide 14: New product: senior loans for commercial property
First Property Group plc New product: senior loans for commercial property New product: senior loans secured against commercial property ➢ With interest rates increasing and banks retreating from lending to commercial property, the returns available in making relatively safe loans are potentially mo
Slide 15: CEO Comment
First Property Group plc CEO Comment Commenting on the results, Ben Habib, Chief Executive of First Property Group, said: ➢ “These are a creditable set of results in extremely challenging times. ➢ “The end of lockdowns should have ushered in a more normal trading environment. Instead, we are experie
Slide 16: Why invest in Fprop plc?
First Property Group plc Why invest in Fprop plc? 1. Expertise: ▪ Experienced, nimble management team; ▪ Excellent investment track record: c20% p.a. growth in adjusted net assets, including dividends paid since 2006. 2. Diversified earnings: ▪ From Group Properties and from fund management fees; ▪
Slide 17: Markets
Markets Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 17
Slide 18: Investment Markets Poland
Investment Markets Poland Poland: ➢ The rate of growth in Poland’s GDP is expected to slow from a rate of 5.1% in 2022 to 1.5% in 2023, compared to a pre-pandemic 10-year average of 3.6% per annum, amidst high inflation, which peaked at over 17% per annum, and tighter monetary conditions. The rate o
Slide 19: Investment Markets United Kingdom
Investment Markets United Kingdom UK: ➢ Economic growth in the United Kingdom is barely perceptible, compared to growth rates of 1-3% per annum in the years leading up to the pandemic. Inflation is the highest in the G7 group of developed nations, running at over 8% on an annualised basis. This in t
Slide 20: Segmental Analysis
Segmental Analysis Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 20
Slide 21: Fund Management (FPAM)
Fund Management (FPAM) Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 21
Slide 22: Fund Management Summary
Segmental Analysis: Fund Management Summary Fund • Third party AUM: £400m ➢ Revenue: £2.52m (31 Mar 2022: £517m); (FY 2022: £4.04m); Management • 12 funds invested across UK, Poland & ➢ Contribution to PBT Romania; prior to deduction of unallocated central • Weighted average fund management overhead
Slide 23: Typical Fund Management Fees / Selection of Clients
First Property Group plc Typical Fund Management Fees / Selection of Clients Typical fees in UK: Typical fees in Poland & Romania: Selection of clients: • Management: 0.6-1% of GAV p.a.; • Management: 1% of GAV p.a.; • Outperformance: 20% of excess returns • Outperformance: 20% of excess >IRR equiva
Slide 24: Revenue and AUM
Segmental Analysis: Fund Management Revenue and AUM FPAM Revenue 10 700 Performance Fee 9 3rd Party AUM 600 Annualised fee 8 income: £2.55m 7 500 (31 Mar 2022: Revenue (£ Million) AUM (£ Million) £2.66m) 6 400 NB. EXCLUDES 5 performance fees 300 and the profit 4 share from Fprop 3 Offices LP. 200 2
Slide 25: Reconciliation of movement in funds under management
Segmental Analysis: Fund Management Reconciliation of movement in funds under management Funds managed for third parties (including funds in which the Group is a minority shareholder) UK CEE Total No. of prop’s £m. £m. £m. As at 1 April 2022 345.5 171.0 516.5 62 Purchases 6.2 - 6.2 1 Property sales/
Slide 26: Third Party funds under management
Segmental Analysis: Fund Management Third Party funds under management Assets Under Assets Under % of Total Third- Management at Market Management at Fund Country of Investment Fund Expiry Value at No. of Properties Party Assets Under Market Value at Management 31 March 2023 31 March 2022 SAM & DHOW
Slide 27: AUM by geography, by sector, by fund
Segmental Analysis: Fund Management AUM by geography, by sector, by asset class FGC 6% FKR Supermarkets/ 4% FCL supermarket led 2% 10% OFFICES 21% Shopping FPL Poland Centres 12% 13% 38% By Geography By By UK Sector Fund 60% Retail/Retail Office FOP Warehousing 61% SIPS 16% 16% 26% Romania 2% UKPPP
Slide 28: Split of third-party funds managed by asset class
Segmental Analysis: Fund Management Split of third-party funds managed by asset class UK Poland Romania TOTALS % of Total Offices £150.5m £85.9m £8.7m £245.1m 61.2% Retail warehousing £62.3m - - £62.3m 15.6% Supermarkets £28.6m £12.6m - £41.2m 10.3% Shopping centres - £51.8m - £51.8m 12.9% TOTALS £2
Slide 29: FPAM Track Record - Existing Funds
First Property Group plc FPAM Track Record - Existing Funds 30% IRR pa - Implied ROE pa - since inception ROE FY 2022/23 on original equity 20% 10% 0% 5PT UK PPP OFFICES SIPS FOP FGC SPEC OPPS FKR FCL FPL FUL -10% -20% -30% -40% -50% ▪ Implied IRR’s: assumed sale price = NAVs as at 31 March 2023; ▪
Slide 30: FPAM Track Record - Closed Funds
First Property Group plc FPAM Track Record - Closed Funds IRR pa - Actual 120% 100% 80% 60% 40% 20% 0% 1PT 2PT 3PT USS PDR RPT FRS -20% Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 30
Slide 31: Group Properties
Group Properties Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 31
Slide 32: Group Properties Overview
Segmental Analysis: Group Properties Overview Group 1. 7 directly owned properties (6 in ➢ Contribution to PBT prior to deduction Properties Poland valued at £50.10m, 1 in of unallocated central overheads: Romania valued at £3.87m): £3.43m (FY 2022: £8.60m), of which: o Gross asset value: £53.97m (M
Slide 33: Contribution to PBT from directly owned properties and Associates
Segmental Analysis: Group Properties Contribution to PBT from the 7 directly owned properties and the 9 Associates and Investments Contribution to PBT Corresponding net equity invested (prior to deduction of unallocated central overheads) £ Millions 14,000 12,000 10,000 8,000 6,000 Directly owned 4,
Slide 34: 7 directly owned properties
7 directly owned properties Contributed £2.56m (FY 2022: £7.48m) to Group PBT prior to the deduction of unallocated central overheads. Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 34
Slide 35: 7 directly owned properties at financial year-end
Segmental Analysis: Group Properties 7 directly owned properties at financial year-end Blue Tower, Warsaw Gdynia, Poland Dr Felix Strada, Bucharest, Romania (Fprop 80% share: c18,000 m2) (c13,500 m2) (2,845 m2) MV: £24.20m MV: £14.20m (€16m) MV: £3.87m E&S Estates Ltd: consolidated 5th Property Trad
Slide 36: Directly owned properties by geography, asset class, property
Segmental Analysis: Group Properties 7 directly owned properties by geography, by asset class, by property Romania, Dr Felix, 7% Supermarkets/ 5PT: Bucharest, supermarket led Mokotaw, Romania Warsaw 7% 16% 5PT: Blonie, 5% Warsaw Gdynia, 5% Poland 5PT: Tulipan, 27% Poznan 5% By Geography By Sector E&
Slide 37: Directly owned properties: activity in the year
Segmental Analysis: Group Properties 7 directly owned properties ➢ Contributed £2.56m (31 March 2022: £7.48m) to Group PBT (prior to the deduction of unallocated central overheads); ➢ Book value: £47.01m, Market value: £53.97m; ➢ Activity in the year: ▪ Purchased additional 32% of Blue Tower, Warsaw
Slide 38: Warehouse, Tureni, Romania
Segmental Analysis: Group Properties Warehouse (8,319m2), Tureni, Romania ➢ Feb 2022: agreed 10 year lease extension with tenant; ➢ Aug 2022: sold for €3.60 million (£3.11 million); ➢ Cash released: €706,000 (£598,000); ➢ Profit on sale: £1.10m. Email jeremy.barkes@fprop.com Phone +44 20 7340 02
Slide 39: Sold Properties: E&S Estates Limited
Segmental Analysis: Group Sold Properties E&S Estates Limited (consolidated undertaking, 88.5% shareholding) Wawer, Warsaw (2,038m2), Retail Lodz, 1,348m2 Supermarket ➢ Dec 2022: sold 2 properties for €6.20 million (£5.50 million): 1. Wawer: redeveloped in 2021, anchored by a mini supermarket on a n
Slide 40: 7 directly owned properties
Segmental Analysis: Group Properties 7 directly owned properties No. of Book value at 31 Market value at 31 *Contribution to Group *Contribution to Group Location Asset class properties March 2023 March 2023 PBT 31 March 2023 PBT 31 March 2022 Poland, Gdynia Offices 1 £14.20m £14.50m (£0.39m) (£0.86
Slide 41: Directly owned properties: debt and LTV
Segmental Analysis: Group Properties 7 directly owned properties 31 March 2023 31 March 2022 Book value £47.01m £36.21m Market value £53.97m £42.24m Gross debt (including £17.02m of non-interest £29.66m £23.66m bearing deferred consideration) LTV at book value % 63.09% 65.34% LTV at market value % 5
Slide 42: Office Building, Gdynia, Poland
Segmental Analysis: Group Properties Office Building (13,403 m2), Gdynia, Poland ➢ Prime location in Gdynia city centre/CBD; ➢ Purchase price (and carried value): €16 million (€1,193 per m2 / £111 per ft2); ➢ Equity invested: €4 million; ➢ Leverage: ▪ Bank debt: nil ▪ Deferred consideration: €12m (d
Slide 43: Blue Tower, Warsaw
Segmental Analysis: Group Properties Blue Tower (23,550 m2 over 24 floors of offices), Warsaw ➢ Prime location in Warsaw’s CBD above a subway station and at the main junction of the city’s bus and tram network. ➢ The Group owns: ▪ 80.3% of the tower (c18,000 m2 over 18 office floors): ▪ 90% of Corp
Slide 44: Dr Felix St, Bucharest
Segmental Analysis: Group Properties Dr Felix St, Bucharest (3,200 m2 over 7 floors) ➢ Prime location in Bucharest’s CBD within walking distance from Victoriei Square, the financial centre of Bucharest. ➢ Leasing: ▪ Vacancy Rate: 0% wef June 2023 ▪ NOI: c€325k pa. wef June 2023 ▪ WAULT: 6 yrs, 0 mth
Slide 45: 5th Property Trading Ltd (5PT)
5th Property Trading Ltd (5PT) Consolidated Undertaking 5th Property Trading Ltd (5PT) Ground floor retail units, Office & Retail, Błonie, Warsaw Office, Tulipan, Poznań Mokotów, Warsaw ▪ 3 properties in Poland ▪ Market value: €9.6m (£8.45m) ▪ NOI: €603k p.a. ▪ Vacancy rate: 16% ▪ Main tenants: Jero
Slide 46: E and S Estates Ltd (E&S)
E and S Estates Ltd (E&S) Consolidated Undertaking E and S Estates Ltd (E&S) Mini supermarket, Praga ▪ 1 supermarket in Praga, a suburb of Warsaw ▪ Market Value: €3.36m (£2.95m) ▪ NOI: €160,000 pa ▪ Vacancy rate: nil ▪ Tenant: Jeronimo Martins ▪ Leverage: c50% LTV ▪ WAULT: 11 yrs, 7 mths Email jer
Slide 47: Top tenants of the directly owned properties
Segmental Analysis: Group Properties Top 10 tenants of the 7 directly owned properties Tenant Sector Jurisdiction % 1 Jeronimo Martins Polska S.A Supermarket Chain Poland 14.36% 2 HRK HR Poland 13.79% 3 Urząd Miasta Government Poland 12.52% 4 Vulpoi & Toader Management Professional / Accounting Serv
Slide 48: Associates and Investments
Segmental Analysis: Group Properties Associates and Investments Associates and Investments (minority shareholdings in 9 of FPAM’s 12 funds) Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 48
Slide 49: Associates and Investments
Segmental Analysis: Group Properties Associates and Investments ➢ Contributed £869,000 (31 March 2022: £1,118,000) to Group PBT (prior to the deduction of unallocated central overheads). ➢ Decrease mainly due to: ▪ Impairment provisions of £0.90m in the values of: ▪ Fprop Krakow Ltd, by £0.43m ▪ Fpr
Slide 50: Associates and Investments
Segmental Analysis: Group Properties Associates and Investments Group’s share of Group’s share of Book value of First % owned by First Current market post-tax profits post-tax profits Fund Property's share in Property Group value of holding earned by fund 31 earned by fund 31 fund March 2023 March 2
Slide 51: Minority shareholdings accounted for as Associates
Segmental Analysis: Group Properties Associates and Investments Minority shareholdings in 5 of FPAM’s 12 funds accounted for as Associates (FOP, FPL, FGC, FCL, FKL) Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 51
Slide 52: Fprop Opportunities plc (FOP)
Fprop Opportunities plc (FOP) Associates & Investments Fprop Opportunities plc (FOP) ▪ BV of Group’s 45.7% share: £12.7m ▪ MV of Group’s 45.7% share: £12.7m ▪ Contribution of Group’s share to PBT: £293k Comments: Galeria Ostrowiec Zana 39, Lublin ▪ Galeria Ostroweic: o Rent for anchor tenant (Carref
Slide 53: Fprop Phoenix Ltd
Fprop Phoenix Ltd Associates & Investments Fprop Phoenix Ltd ▪ BV of Group’s 23.4% share: £0.06m ▪ MV of Group’s 23.4% share: £2.68m ▪ Contribution of Group’s share to PBT: (£848,000) Comments: ▪ 51,000 m2 office park near Kraków Airport, Poland; ▪ 14km’s from city centre; ▪ Train station on the par
Slide 54: Fprop Galeria Corso Ltd (FGC)
Fprop Galeria Corso Ltd (FGC) Associates & Investments Fprop Galeria Corso Ltd (FGC) – shopping centre in Świnoujście, Poland ▪ 10,000 m2 ▪ BV of Group’s 29.1% share: £3.06m ▪ 45 stores, 4 cinema screens, 160 parking places ▪ MV of Group’s 29.1% share: £3.30m ▪ Property value: €25.0m ▪ Contribution
Slide 55: Fprop Cluj Ltd (FCL)
Fprop Cluj Ltd (FCR) Associates & Investments Fprop Cluj Ltd (FCL) – Class A office tower in Cluj-Napoca, Romania ▪ 7,289 m2 (9 storeys) ▪ Book value of Group’s 21.2% share: £636,000 ▪ 43 underground parking places ▪ Market value of Group’s 21.2% share: £908,000 ▪ Vacancy rate: 13.9% ▪ Contribution
Slide 56: Fprop Kraków Ltd (FKR)
Fprop Kraków Ltd (FKR) Associates & Investments Fprop Krakow Ltd (FKL) – Class A office tower in Krakow, Poland ▪ 10,297 m2 (13 storeys) ▪ Book value of Group’s 18.1% share: £1.16m ▪ 149 underground parking places, 26 at ground level ▪ Market value of Group’s 18.1% share: £1.16m ▪ Eco Rating: LEED P
Slide 57: Minority shareholdings accounted for as Investments
Segmental Analysis: Group Properties Associates and Investments Minority shareholdings in 4 of FPAM’s 12 funds accounted for as Investments (UK PPP, Fprop Offices, Spec Opps, Fulcrum) Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 57
Slide 58: UK Pension Property Portfolio LP
UK Pension Property Portfolio LP Associates & Investments UK Pension Property Portfolio (UK PPP) ▪ Book value of Group’s 0.94% share: £272,000 ▪ Market value of Group’s 0.94% share: £272,000 ▪ Contribution to PBT from Group’s share: £40,000 NB. Through its 11.1% shareholding in Fprop UK Special Oppo
Slide 59: Fprop UK Spec Opps LP
Fprop UK Spec Opps LP Associates & Investments St Anne’s House, St Anthony’s House & St.Catherine’s House, Newbury Cirencester Office Park The Crown, Westerham Rightwell, House, Peterborough Fprop UK Special Opportunities LP ▪ 4 directly held properties valued at £14.93m ▪ Book value of Group’s 11.1
Slide 60: Fprop Offices LP
Fprop Offices LP Associates & Investments Buildings A, B & D, St Mark’s Court, Horsham Imperial Place, Borehamwood Bartley Wood Business Park, Hook Fprop Offices LP ▪ 4 properties ▪ Book value of Group’s 1.64% share: £1.46m ▪ Value: £84.9m ▪ Market value of Group’s 1.64% share: £1.46m ▪ 27 tenants ▪
Slide 61: Fprop Fulcrum LP
Fprop Fulcrum LP Associates & Investments Retail warehouse, Corum 1&2, Warmley, Bristol The Pinnacle, Crawley Bispham, Blackpool - SOLD Fprop Fulcrum LP ▪ 2 properties ▪ Book value of Group’s 2.5% share: £185,000 ▪ Value: £8.78m ▪ Market value of Group’s 2.5% share: £185,000 ▪ 20 tenants ▪ Contribut
Slide 62: Appendix
Appendix Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 62
Slide 63: Investment Approach
Appendix Investment Approach ➢ Sustainable income is a priority: ▪ The yield at purchase of any property investment must ALWAYS exceed debt service costs; ▪ We assess investments with an emphasis on ROE as opposed to IRR (because IRR’s require an exit price assumption); ▪ Over the long term it is in
Slide 64: Investment Approach (cont.)
Appendix Investment Approach (cont.) ➢ Property is illiquid – but this illiquidity can be mitigated by rental income – liquidity through income; ➢ Flexibility in the light of market changes; ➢ An active approach to asset management (where possible): ▪ 2005: largely exited the UK commercial property
Slide 65: Shareholders > 3%
Appendix Shareholders > 3% as at 18 May 2023 % held (of issued No of shares and fully paid) Peter Gyllenhammar AB / Galjaden Invest AB / Bronsstädet AB / Galjaden Holding AB / 22,214,283 20.03% Browallia Asset Management Ltd / Silversläggan Invest AB Ben Habib (Chief Executive Officer) 15,010,000 13
Slide 66: Share Statistics
Appendix Share Statistics as at 31 March 2023 LSE (AIM) Symbol FPO.L Issued & Fully Paid 116,601,115 Share price 27p Issued (excl Treasury) 110,882,332 Market Cap £27 million Shares held in Treasury 5,718,783 Dividends FY 2023 FY 2022 Interim 0.25p 0.25p Outstanding share options over 12,560,000 Ord
Slide 67: Plc Management Team
Appendix Plc Management Team Non-Executive Chairman — Alasdair Locke, MA (Oxon) Alasdair began his career in banking. In 1982 he established a Singapore-based business providing finance for and investing in shipping and offshore oil service companies which was subsequently acquired by Henry Ansbache
Slide 68: Plc Management Team
Appendix Plc Management Team Group Chief Executive & FPAM Chief Investment Officer — Ben Habib, MA (Cantab) Ben founded and is CEO of First Property Group plc, an award winning commercial property fund manager with operations in the United Kingdom and Central Europe. Prior to setting up First Proper
Slide 69: Awards
Appendix Awards FPAM funds rank No.1 vs MSCI’s Central & Eastern European (CEE) Benchmark for the twelve years from the commencement of its operations in Poland in 2005, and for the periods from 2005 to 31 December 2008, and to the end of each of the years thereafter. In addition, FPAM’s UK Pension
Slide 70: Disclaimer
Disclaimer Certain statements made in this presentation may not be based on historical information or facts and may be "forward- looking" statements, including those relating to the Company's general business plans and strategy, its future financial condition and growth prospects, and future develop