Slide 1: Preliminary Results for the financial year ended 31 March 2022
Preliminary Results for the financial year ended 31 March 2022 First Property Group plc 23 June 2022 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 45-52 Investment Approach 45-46 Preliminary Results 5-14 Shareholders >5% 47 Highlights 6-9 Share Statistics 48 NAV 10-11 Plc Management Team 49-50 Dividend 12 Awards 51 Outlook 13-14 Disclaimer 52 Segmental Analysis 15
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 CAP at 30p per share: £33.3m Fund Management Division Group Properties Division (FPAM) ▪ 13 funds; 7 directly owned properties ▪ 62 properties; ▪ 5 in Poland, 2 in Romania; ▪ Invested across the UK, Poland & ▪ Gross assets at market value: Romania £42.
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
First Property Group plc Highlights ➢ Profit before tax: £7.08m (2021: loss before tax of £5.09 million); ➢ Value of directly owned property at market value: £42.24 million (March 2021: £41.57 million); ➢ Net debt: £17.24 million (31 March 2021: £18.85 million); ➢ Value of shares owned by the Group
Slide 7: Highlights
First Property Group plc Highlights ➢ One new fund established, Fprop Fulcrum Property LP; ➢ Third party AUM: £516.5 million (31 March 2021: £527.2 million); ➢ Total AUM: £559 million (March 2021: £569 million); ➢ Weighted average unexpired fund management contract term: 3 years, 3 months (March 202
Slide 8: Statement of Financial Position at year end
First Property Group plc Statement of Financial Position at year end Unaudited year to 31 Audited year to 31 Statement of Financial Position Percentage change March 2022 March 2021 Investment properties and Inventories at book £36.20m £34.95m +3.6% value Investment properties and Inventories at £42.
Slide 9: Statement of Financial Position at year end
First Property Group plc Statement of Financial Position at year end Unaudited year to Audited year to Statement of Financial Position Percentage change 31 March 2022 31 March 2021 Gross debt £23.66m £35.09m -32.6% Net debt £17.24m £18.85m -8.5% Gearing ratio at book value* 34.90% 48.82% - Gearing r
Slide 10: NAV per share 2007-2022
First Property Group plc NAV per share 2007-2022 (excluding any value attributable to FPAM) 70 • NAV per share at EPRA NAV book value: 40.00p Book NAV 60 (2021: 33.33p) Cash 50 • EPRA NAV per share: 47.28p Pence per share 40 (2021: 42.80p) 30 • Cash per share: 5.81p 20 (2021: 14.71p) External valuer
Slide 11: Adjusted NAV Bridge
First Property Group plc Adjusted NAV Bridge Adjusted NAV breakdown 31 Mar 2021 Associates and 24.31p £27.46m Investments 7 directly owned 4.62p £5.22m properties less loans Cash 14.71p £16.63m FPAM - - Other working capital -£0.84p -£0.95m Total 42.80pp £48.36m Adjusted NAV breakdown 31 Mar 2022 As
Slide 12: Dividend
First Property Group plc Dividend 1.80 Proposed Final Dividend: 1.60 0.25p 1.40 (FY21: nil) 1.20 Interim dividend: Pence per Share 0.25p 1.00 (FY21: 0.45p) 0.80 Total for the year: 0.60 0.50p (FY21: 0.45p) 0.40 0.20 0.00 Mar-4 Mar-5 Mar-6 Mar-7 Mar-8 Mar-9 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 M
Slide 13: CEO Comment
First Property Group plc CEO Comment Commenting on the results, Ben Habib, Chief Executive of First Property Group, said: ➢ The year has seen a sharp turnaround in our fortunes, principally due to the restructuring of a finance lease secured against a property owned by the Group in Gdynia, Poland, w
Slide 14: 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 15: Segmental Analysis
Segmental Analysis Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 15
Slide 16: Fund Management (FPAM)
Fund Management (FPAM) Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 16
Slide 17: Fund Management Summary
Segmental Analysis: Fund Management Summary Fund • Third party AUM: £517m ➢ Revenue: £4.04 million (31 Mar 2021: £527m); (2021: £3.39 million); Management • 13 funds invested across UK, Poland & ➢ Contribution to PBT Romania; prior to deduction of unallocated central • Weighted average fund manageme
Slide 18: 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 19: Fund Management Revenue and AUM
Segmental Analysis: Fund Management Revenue and AUM Annualised fee income: 10 700 £2.66m (31 Mar 2021: £2.90m) 9 EXCLUDING performance 600 fees and the profit share 8 from Fprop Offices LP. 7 500 Revenue (£ Million) AUM (£ Million) 6 400 5 300 4 3 200 2 100 1 - - Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 M
Slide 20: 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 2021 349.8 177.4 527.2 68 Purchases 10.0 - 10.0 2 Property sale
Slide 21: Third Party funds under management
Segmental Analysis: Fund Management Third Party funds under management Assets Under Assets Under % of Total Third-Party Management at Market Management at Market Fund Country of Investment Fund Expiry Value at No. of Properties Assets Under Value at Management 31 March 2022 31 March 2021 SAM & DHOW
Slide 22: Directly owned properties by geography, sector, fund
Segmental Analysis: Group Properties 7 directly owned properties by geography, by property, by asset class FGC 4% FKR 4% FCL 5PT Supermarkets/ 2% 2% supermarket led 13% OFFICES POLAND 26% FPL 31% Shopping Centres 10% 10% By Geography By Sector By Fund FOP Retail/Retail Office 12% ROMANIA Warehousing
Slide 23: 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 £204.2m £93.2m £8.6m £306.0m 59.2% Retail warehousing £93.3m - - £93.3m 18.1% Supermarkets £48.0m £17.9m - £65.9m 12.8% Shopping centres - £51.3m - £51.3m 9.9% Industrial
Slide 24: 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 -20% Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 24
Slide 25: FPAM Track Record - Existing Funds
First Property Group plc FPAM Track Record - Existing Funds 50% IRR pa - Implied ROE pa - since inception ROE FY 2021/22 on original equity 40% 30% 20% 10% 0% 5PT UK PPP OFFICES SIPS FOP FRS FGC SPEC OPPS FKR FCL FPL FUL -10% -20% -30% ▪ Implied IRR’s: assumed sale price = NAVs as at 31 March 2022;
Slide 26: Group Properties
Group Properties Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 26
Slide 27: Group Properties Overview
Segmental Analysis: Group Properties Overview Group 1. 7 directly owned properties: ➢ Contribution to PBT prior to deduction Properties o 5 in Poland valued at £36.31m; of unallocated central overheads: o 2 in Romania valued at £5.93m £8.60 million (2021: loss £5.14 million) ▪ Gross asset value: £42
Slide 28: Contribution to PBT from properties and investments
Segmental Analysis: Group Properties Contribution to PBT from the 7 directly owned properties and the 11 Associates and Investments Contribution to PBT (prior to deduction of unallocated central overheads) 14,000 12,000 Corresponding net equity invested 10,000 8,000 6,000 Directly £'000's 4,000 owne
Slide 29: 7 directly owned properties
7 directly owned properties Contributed £7.48m (2021: loss of £5.80m) to Group PBT (prior to the deduction of unallocated central overheads). Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 29
Slide 30: 7 directly owned properties
Segmental Analysis: Group Properties 7 directly owned properties Book value Market value *Contribution to *Contribution to No. of Location Asset class at 31 March at 31 March Group PBT 31 Group PBT 31 properties 2022 2022 March 2022 March 2021 Poland Office 2 £25.87m £28.84m £8.14m** (£4.59m) Poland
Slide 31: Directly owned properties by geography, sector, property
Segmental Analysis: Group Properties 7 directly owned properties by geography, by property, by asset class Tureni, Industrial Dr Felix, Romania ROMANIA 6% Bucharest, 14% Supermarkets/ Romania Gdynia, supermarket led Wawer, Poland 18% Poland Nastroj/Lodz By Geography By Sector , Poland By Property Pr
Slide 32: Two office properties: Gdynia and Blue Tower
Segmental Analysis: Group Properties 7 directly owned properties ➢ Two properties (both offices) account for 68% of their value (£28.84m) Gdynia, Poland Blue Tower, Warsaw (14,000 m2) (Fprop 48% share: 11,000 m2) Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 32
Slide 33: The other five properties
Segmental Analysis: Group Properties 7 directly owned properties ➢ The other five, representing 32% by value (£13.40m), are invested in: Poland: ▪ 3 mini supermarkets let to Jeronimo Martins (t/a Biedronka). ▪ The property in Wawer has 2 additional units Wawer, Warsaw Lodz, Poland Praga, Warsaw Wawe
Slide 34: Directly owned properties debt and LTV
Segmental Analysis: Group Properties 7 directly owned properties 31 March 2022 31 March 2021 Book value £36.21m £34.95m Market value £42.24m £41.57m Gross debt (all non-recourse to Group) £23.66m £35.09m LTV at book value % 65.34% 100.41% LTV at market value % 56.01% 84.41% Weighted average borrowin
Slide 35: 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 19.79% 2 Teconnex Manufacturing Poland 12.08% 3 HRK HR Romania 11.14% 4 Vulpoi & Toader Management Professional / accounting serv
Slide 36: Office Building (14,000 m2), Gdynia, Poland
Segmental Analysis: Group Properties Office Building (14,000 m2), Gdynia, Poland ➢ Carried value: €16 million (following write down in FY 2021); ➢ Equity invested: €4 million; ➢ Deferred consideration: €12 million (due by 11 Jun 2024); ➢ Bank debt: nil ➢ Vacancy rate: 80%; ➢ Net operating income (NO
Slide 37: Blue Tower (11,000 m2), Warsaw
Segmental Analysis: Group Properties Blue Tower (11,000 m2), Warsaw ➢ The Group owns: ▪ 48% of the tower (15 floors) valued at €18.1m; and ▪ 90% of Corp Sp. z o.o., the company which is constitutionally tied to manage the building. ➢ Excellent location in Warsaw’s central business district adjacent
Slide 38: Associates and Investments
Segmental Analysis: Group Properties Associates and Investments Associates and Investments (minority shareholdings in 11 of FPAM’s 13 funds) Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 38
Slide 39: Associates and Investments
Segmental Analysis: Group Properties Associates and Investments ➢ Contributed £1,118,000 (31 March 2021: £655,000) to Group PBT (prior to the deduction of unallocated central overheads); ➢ The increase was mainly due to an increase in the value of the Group’s 44% share in Fprop Opportunities plc (FO
Slide 40: Associates and Investments holdings by fund
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 2022 March 2
Slide 41: Markets
Markets Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 41
Slide 42: Investment Markets Poland
Investment Markets Poland Poland: ➢ GDP is forecast to grow by 4% in 2022. ➢ Annual rate of inflation reached 13.9% in May but is expected to moderate to c6% in 2023; ➢ National Bank of Poland has led interest rate rises in Europe with its benchmark reference rate now at 6.0%. It has also indicated
Slide 43: Investment Markets United Kingdom
Investment Markets United Kingdom UK: ➢ UK is forecast to fall into recession; ➢ Inflation is running at over 10% per annum; ➢ The Bank of England base interest rate is still low at 1.25%, having risen from 0.1% in December 2021. Further increases in interest rates are expected. The yield curve curr
Slide 44: Appendix
Appendix Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 44
Slide 45: 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 46: 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 47: Shareholders > 5% as at 31 March 2022
Appendix Shareholders > 5% as at 31 March 2022 % held (of issued No of shares and fully paid) Ben Habib (Chief Executive Officer) 14,940,000 13.47% Galjaden Invest AB / Peter Gyllenhammar AB 8,860,693 7.99% J C Kottler 8,769,283 7.91% Alasdair Locke (Non-Executive Chairman) 8,571,990 7.73% Whitehall
Slide 48: Share Statistics as at 31 March 2022
Appendix Share Statistics as at 31 March 2022 LSE (AIM) Symbol FPO.L Issued & Fully Paid 116,601,115 Share price 30p Issued (excl Treasury) 110,882,332 Market Cap £33.3 million Shares held in Treasury 5,718,783 Dividends FY 2022 FY 2021 Interim 0.25p 0.45p Outstanding share options over 2,110,000 Or
Slide 49: 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 50: 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 51: 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 52: 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