First Property Group Plc · LSE:FPO
First Property — H1 2014 Earnings Presentation
29 slides from First Property's earnings presentation, Nov 27, 2013
Slide 1: Interim Results (six months ended 30 Sep 2013)
Interim Results (for the six months ended 30 Sep 2013) First Property Group plc 27 Nov 2013 The performance of funds managed by First Property Group ranked No.1 vs IPD CEE universe over the seven years to 31 Dec 2012, having previously ranked No.1 over the three, four, five & six years to 31 Dec 200
Slide 2: Table of Contents
Interim Results 2013 Table of Contents Business Model 3 Outlook 15-18 Fund Raising 16 Highlights 4-7 Investment Markets - Poland 17 Financial Highlights 5 Investment Markets - United Kingdom 18 Operational Highlights 6 Outlook 19 Dividend 7 Contact Details 20 Segmental Analysis 8-15 Earnings Breakdo
Slide 3: Business Model
First Property Group plc Business Model First Property Group plc is a co-investing direct property fund manager with operations in the United Kingdom and Central Europe. Its business model is to: Raise third party funds to invest in income producing commercial property; Co-invest in these funds
Slide 4: Highlights
Highlights 5 Financial Highlights 6 Operational Highlights 7 Dividend Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 4
Slide 5: Financial Highlights
Highlights Financial Highlights Six months to Six months to Percentage Audited Year to 30-Sep-2013 (Unaudited) 30-Sep-2012 (Unaudited) change 31-Mar-13 (Audited) Profit before tax 1£1.91m £2.21m -13.6% £3.54m Diluted Earnings per share 1.27p 1.46p -13.0% 2.18p Total Dividend 0.33p 0.33p - 1.08p Prof
Slide 6: Operational Highlights
Highlights Operational Highlights Operational Highlights: Current Developments: FPAM: Establishment of five year partnership with a global investment firm to invest £12 million of equity (with Poland – annualised pre-tax income return on intention of increasing to £40 million) in offices in th
Slide 7: Dividend
Highlights Dividend The Board recommends maintaining the Interim Dividend at 0.33p Interim Final Total 1.20 1.00 Interim Dividend: 0.80 GBP pence XD 18-Dec-2013 Record Date 20-Dec-2013 0.60 Payment Date 17-Jan-2013 0.40 0.20 0.00 2008 2009 2010 2011 2012 2013 2014 Email jeremy.barkes@fprop.com P
Slide 8: Segmental Analysis
Segmental Analysis 9 Earnings Breakdown 10-11 FPAM: 10 Assets under Management (AUM) 11 AUM Breakdown 12-15 Group Properties: 12 Directly Held Assets 13 Co-investments 14 Earnings Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 8
Slide 9: Segmental Analysis: Earnings Breakdown
Segmental Analysis Earnings Breakdown Benefitted from rental income and profit on sale of £255,000 Profit before Tax by Segment (1H 2011- 1H 2013) from the disposal of property in Mokotow, Warsaw Benefited from one-off FX gain of £213,000 1.80 3.50 1.60 3.00 1.40 2.50 £m 1.20 1.00 2.00 0.80 1.62 1.5
Slide 10: Segmental Analysis - FPAM Assets under Management (AUM)
Segmental Analysis - FPAM Assets under Management (AUM) Assets under Management (AUM) at 30 September 2013: Termination Date AUM % total assets under Fund Established (unless extended) 30-Sep-2013 management Not subject to SAM Property Company Ltd (SAM) Aug-2004 Rolling revaluation Regional Property
Slide 11: AUM Breakdown
Segmental Analysis - FPAM AUM Breakdown USS Pension Poland 63% Funds 71% 89% UK PPP By Investor By Geography By Fund Category 26% UK 26% FOP Fprop Family Offices 6% 7% 1% HNWs 5PT 3% Romania RPT 3% 3% 2% Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 11
Slide 12: Segmental Analysis: Group Properties
Segmental Analysis Group Properties Group Properties Comprises: Blue Tower: Acquired 28.5% interest Dec-2008 for £8.3m. Now 1. 3x directly held properties: valued at £12.9m. a. Poland: Blue Tower (28% interest), office Acquired further 19.7% interest Nov-2013, increasing building located in
Slide 13: Group Properties: Co-investments
Segmental Analysis – Group Properties Co-investments Group Properties (cont.) Co-investments in funds managed by FPAM as at 30 September 2013: Group’s Book value Market Value Group’s share Return on Fund shareholding of Group’s Share of Group’s share of earnings Equity Invested1 Investments: UK Pens
Slide 14: Group Properties: Earnings
Segmental Analysis – Group Properties Earnings In monetary terms: In percentage terms: 0.6 2012 2013 0.5 0.4 2012 3x directly held £ Millions 2013 properties 53% RPT, 5PT & UKPPP 0.3 12% Group held 76.2% Group held 84.1% FOP 0.2 35% 0.1 2012 2013 0.0 3x direct properties RPT, 5PT & UKPPP FOP Email
Slide 15: Outlook
Outlook 16 Fund Raising 17 Investment Markets – Poland 18 Investment Markets – UK 19 Outlook Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 15
Slide 16: Fund Raising
Fund Raising Poland: UK: 30 April 2013 – Fprop Opportunities plc (FOP) raised 24 Oct 2013 - established new partnership to invest £12 £3.71 million, including an investment of £2 million by million (with intention to increase to £40 million) to acquire the Group. office blocks in the UK with a v
Slide 17: Investment Markets: Poland
Investment Markets Poland Economy: Commercial Property Market: GDP growth: Turnover: 2012: 1.9% (actual) 2005 (peak): €5.2 billion 2013E: 1.3% (IMF) 2012: €2.6 billion 2014E: 2.4% (IMF) 2013E: €3 billion, dominated by German and pan European opportunity funds Demand still mainly li
Slide 18: Investment Markets: United Kingdom
Investment Markets United Kingdom Economy: Property Market: GDP growth Demand has spread out to the regions. 2012: 0.2% (actual) Values for good secondary property now rising. 2013E: 1.4% (OBR collated) Lending market improving – reduced margins and 2014E: 2.2% (OBR collated) increased
Slide 19: Outlook
Outlook We have some £11 million of cash which we intend to use to seed new funds and invest in high yielding properties Poland UK USS contract expires in 2015. Will not be renewed. One off capital gain expected from sale of 2x office properties in Bracknell & Woking; Investment of the Group’s
Slide 20: Contact Details
Contact Details First Property Group plc Financial PR Redleaf Polhill Website www.fprop.com www.redleafpolhill.com Telephone +44 20 7340 0270 George Parrett/ Henry Columbine firstproperty@redleafpr.com Address First Property Group plc +44 20 7382 4747 35 Old Queen Street London NOMAD & Broker SW1H 9
Slide 21: Appendix 1
Appendix 1 22 Shareholders >3% at 30-Sep-2013 23 Share Statistics at 30-Sep-2013 24 Plc Management Team Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 21
Slide 22: Shareholders > 3% at 30-Sep-2013
Appendix 1 Shareholders > 3% at 30-Sep-2013 % held (of issued No of shares and fully paid) Ben Habib (Chief Executive Officer) 16,700,000 15.02% J C Kottler Esq 15,006,783 13.49% Universities Superannuation Scheme Limited 9,550,000 8.59% Alasdair Locke (Non-Executive Chairman) 8,571,990 7.71% Whiteh
Slide 23: Share Statistics at 30-Sep-2013
Appendix 1 Share Statistics at 30-Sep-2013 2013 2012 % change LSE (AIM) Symbol FPO.L Issued & Fully Paid 114,851,115 114,851,115 - Share price 25p Issued (excl Treasury) 111,180,025 111,127,947 +0.05% Market Cap £27.8 million Shares held in Treasury 3,671,090 3,723,168 -1.4% 0.33p Dividend yield 4.3
Slide 24: Plc Management Team
Appendix 1 Plc Management Team Non-Executive Chairman — Alasdair Locke, MA (Oxon) Alasdair is the former executive Chairman of Abbot Group plc, an oil services company which he founded in 1992. It was listed on the London Stock Exchange from 1995 until its sale in 2008 for £906 million to Turbo Alph
Slide 25: Appendix 2
Appendix 2 26 FPAM Track Record 27-28 Investment Philosophy and Approach Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 25
Slide 26: FPAM Track Record
FPAM Track Record All Funds (excl SAM) to 30 Sep 2013 Fund performance at 30 September 2013: • FPAM’s three historic funds (all of which were invested in UK commercial property) generated a weighted average IRR of 23.0% p.a. net of fees. • FPAM’s five discretionary active funds (with inception dates
Slide 27: Investment Philosophy
First Property Asset Management Investment Philosophy Our Investment Approach: Sustainable income is a priority. A fundamental approach to investing: Property is illiquid: Consensus may chase a particular investment This illiquidity can be mitigated by rental income – theme but that does n
Slide 28: Investment Approach
First Property Group Investment Approach We recognise the need to continually monitor macro and micro changes in our markets and to adapt our asset management approach accordingly, exemplified by: Our decision to largely exit the UK commercial property market in 2005 following the increase of UK p
Slide 29: Disclaimer
Disclaimer These presentation materials (the "Presentation Materials”) are being solely issued to No reliance may be placed for any purpose whatsoever on the information contained and directed at (a) persons having professional experience in matters relating to in this document or on its completenes