First Property Group Plc · LSE:FPO
First Property — H1 FY2025 Earnings Presentation
65 slides from First Property's earnings presentation, Nov 21, 2024
Slide 1: Interim Results for the period to 30 September 2024
Interim Results for the period to 30 September 2024 First Property Group plc 21 November 2024 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 57-64 Investment Approach 58-59 Preliminary Results 5-16 Shareholders >5% 60 Highlights 6-9 Share Statistics 61 NAV 10-11 Plc Management Team 62-63 Dividend 12 Awards 64 Outlook 13-14 Disclaimer 65 Markets 15-17 Investm
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 15.3p per share: £22.6m Fund Management Division Group Properties Division (FPAM) ▪ 11 funds; 7 directly owned properties ▪ 26 properties; ▪ 6 in Poland, 1 in Romania; ▪ Invested across the UK, Poland & ▪ Gross properties at market va
Slide 5: Interim Results for 1H FY 2025
First Property Group plc Interim Results Interim Results for 1H FY 2025 Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 5
Slide 6: Highlights
First Property Group plc Highlights ➢ Profit before tax: £1.16 million (30 September 2024: loss before tax of £0.65 million) ➢ Successful completion of an open offer of 36,960,777 new shares at 8 pence per share, raising £2.96 million (before expenses) ➢ New lease signed over 3,100 square metres at
Slide 7: Income Statement
First Property Group plc Income Statement 6 months to 6 months to Income Statement 30 September 2024 Percentage change 30 September 2023 (unaudited) Statutory profit/(loss) before tax £1.16m (£0.65m) 278.5% Diluted earnings per share 0.91p (0.99p) 191.9% Total dividend per share - - - Average €/£ ex
Slide 8: Financial Position
First Property Group plc Financial Position at year end Statement of Financial Position 30 September 2024 31 March 2024 Percentage change Investment properties and Inventories at book £44.90m £45.76m -1.9% value Investment properties and Inventories at £50.52m £51.90m -2.7% market value Associates a
Slide 9: Financial Position
First Property Group plc Financial Position at year end Statement of Financial Position 30 September 2024 31 March 2024 Percentage change Gross debt (including deferred consideration) £24.54m £27.62m -11.2% Net debt £18.65m £22.99m -18.9% Gearing ratio at book value 36.4% 41.5% - Gearing ratio at ma
Slide 10: NAV per share 2007-2024
First Property Group plc NAV per share 2007-2024 (excluding any value attributable to FPAM) 70 • NAV per share at EPRA NAV book value: 29.01p Book NAV 60 (31 March 2024: Cash 35.15p) 50 • EPRA NAV per Pence per share 40 share: 31.79p (31 March 2024: 30 39.41p) 20 • Cash per share: 3.98p 10 (31 March
Slide 11: Adjusted NAV Bridge
First Property Group plc Adjusted NAV Bridge Adjusted NAV breakdown 30 Sep 2024 ADJUSTED NAV BRIDGE (PER SHARE) Associates and 13.94p £20.90m Investments Cash 3.93p £5.89m 7 directly owned 15.04p £22.55m properties less loans FPAM - - Pence Per Share Other working capital (1.12p) (£1.68m) Total 31.7
Slide 12: Dividend
First Property Group plc Dividend Dividend History Interim dividend: 1.80 Nil 1.60 (FY 2024: Nil) 1.40 Final dividend: 1.20 Nil (FY 2024: Nil) 1.00 0.80 0.60 Total for FY 2024: Nil 0.40 (FY 2024: Nil) 0.20 - Interim Final Total Dividend Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 12
Slide 13: CEO Comment
First Property Group plc CEO Comment Commenting on the results, Ben Habib, Chief Executive of First Property Group, said: ➢ I am delighted to report our swing back into profit. ➢ Markets in the UK remain difficult though there would appear to be a marginal improvement in certain sub-sectors of the p
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: c17% 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: Markets
Markets Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 15
Slide 16: Investment Markets Poland
Investment Markets Poland Poland: ➢ Polish GDP is forecast to grow by 2.9% in 2024, up from 0.2% in 2023, underpinned by a resurgence in private consumption. Unemployment has tightened to 5.0%, the lowest since 1990. Poland has one of the lowest unemployment rates in the European Union. ➢ The Nation
Slide 17: Investment Markets United Kingdom
Investment Markets United Kingdom United Kingdom: ➢ Investment volumes in 2024 have, so far, mirrored those of 2023. According to initial figures from MSCI, year-to-date investment volumes total £29.4bn (2023: £30.6bn for the same period). From early August, agents started to witness a rise in the n
Slide 18: Segmental Analysis
Segmental Analysis Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 18
Slide 19: Fund Management (FPAM)
Fund Management (FPAM) Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 19
Slide 20: Fund Management Summary
Segmental Analysis: Fund Management Summary Fund • Third party AUM: £186m ➢ Revenue: £1.17m (31 Mar 2024: £222m); (30 Sep 2023: £1.26m); Management • 11 funds invested across UK, Poland & ➢ Contribution to PBT Romania; prior to deduction of unallocated central • Weighted average fund management over
Slide 21: 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 22: Fund Management Revenue and AUM
Segmental Analysis: Fund Management Revenue and AUM 10 800 Performance Fee FPAM Revenue 3rd Party AUM 9 700 8 600 Annualised fee 7 income: 500 £1.42m 6 Revenue (£ Million) (31 Mar 2024: AUM (£ Million) £1.83m), 5 400 EXCLUDING performance fees. 4 300 3 200 2 100 1 - - Sept-13 Sept-14 Sept-15 Sept-16
Slide 23: 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 2024 115.0 106.8 221.8 35 Purchases 11.5 - 11.5 3 Property sale
Slide 24: 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 30 September 2024 31 March 2024 OFFICE
Slide 25: AUM by geography, sector, asset class
Segmental Analysis: Fund Management AUM by geography, by sector, by asset class FULCRUM 6% FCL 4% OFFICES FPL Shopping Centres 18% 0% 26% FKR 9% UK SPEC OPPS 44% 5% SIPS By Geography POLAND By Sector UKPPP By Fund 11% 52% Supermarkets/ Office 4% supermarket led 57% 8% FGC Retail/Retail 11% Warehousi
Slide 26: Split of third-party funds by asset class
Segmental Analysis: Fund Management Split of third-party funds managed by asset class UK Poland Romania TOTALS % of Total Offices £62.0m £36.1m £8.1m £106.2m 57.3% Retail warehousing £17.1m - - £17.1m 9.2% Supermarkets £2.9m £11.7m - £14.6m 7.9% Shopping centres - £47.6m - £47.6m 25.7% TOTALS £82.0m
Slide 27: FPAM Track Record - Existing Funds
First Property Group plc FPAM Track Record - Existing Funds IRR pa - Implied ROE pa - since inception ROE FY 2024/25 on original equity 30% 20% 10% 0% 5PT UK PPP OFFICES SIPS FOP FGC SPEC OPPS FKR FCL FPL FUL -10% -20% -30% -40% ▪ Implied IRR’s: assumed sale price = NAVs as at 30 September 2024; ▪ R
Slide 28: 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 28
Slide 29: Group Properties
Group Properties Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 29
Slide 30: 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 £47.01m, 1 in of unallocated central overheads for six Romania valued at £3.51m): months to 30 September 2024: £1.44m o Gross asset value: £50
Slide 31: 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 (prior to deduction of unallocated central overheads) Corresponding net equity invested 9,000 8,000 7,000 6,000 5,000 Associates and 4,000 Investment
Slide 32: 7 directly owned properties
7 directly owned properties Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 32
Slide 33: 7 directly owned properties at 30 September 2024
Segmental Analysis: Group Properties 7 directly owned properties at 30 September 2024 Blue Tower, Warsaw Gdynia, Poland Dr Felix Strada, Bucharest, Romania (Fprop 80% share: c18,900 m2) (c14,500 m2) (c3,200 m2) MV: £25.98m (€31.2m) MV: £9.98m (€12.0m) MV: £3.51m (€4.2m) 5th Property Trading Ltd: con
Slide 34: Directly owned properties by geography, asset class, property
Segmental Analysis: Group Properties 7 directly owned properties by geography, by asset class, by property Dr Felix, Bucharest, Romania ROMANIA 0% 5PT: Mokotaw, 7% Gdynia, Poland 7% 17% Warsaw 20% 6% 5PT: Blonie, Warsaw 5% 0% 5PT: Tulipan, Poznan 5% By Geography By Sector E&S: Praga, Poland By Prope
Slide 35: 7 directly owned properties
Segmental Analysis: Group Properties 7 directly owned properties ➢ Contributed £0.10m (30 September 2023: Contribution £0.27m) to Group PBT (prior to the deduction of unallocated central overheads); ➢ Book value: £44.90m, Market value: £50.52m; ➢ Activity in the six months to 30 Sep 2024: ▪ Blue Tow
Slide 36: 7 directly owned properties
Segmental Analysis: Group Properties 7 directly owned properties No. of Book value at Market value at *Contribution to Group Location Asset class properties 31 March 2024 31 March 2024 PBT 31 March 2024 Poland, Gdynia Offices 1 £9.98m £9.98m £0.48m Poland, Warsaw Offices 1 £22.92m £25.98m (£0.10m) P
Slide 37: Directly owned properties debt and valuation
Segmental Analysis: Group Properties 7 directly owned properties 30 September 2024 31 March 2024 Book value £44.90m £45.76m Market value £50.52m £51.90m Gross debt (including £17.10m of non-interest £24.54m £27.62m bearing deferred consideration) LTV at book value % 54.65% 60.81% LTV at market value
Slide 38: 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 (c18,900 m2 over 18 office floors): ▪ 90% of Corp
Slide 39: Office Building, Gdynia, Poland
Segmental Analysis: Group Properties Office Building (c14,500 m2), Gdynia, Poland ➢ Prime location in Gdynia city centre/CBD; ➢ Purchase price (Mar-2021): €16 million (€1,103 per m2); ➢ Equity invested: €4 million; ➢ Leverage: ▪ Interest bearing debt: nil ▪ Deferred consideration: €12m (due June 202
Slide 40: 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% ▪ NOI: c€306k pa. ▪ WAULT: 6 yrs, 1 mths ➢ Book value: £2.11m (£659
Slide 41: 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 MV: €3.2m (c2,300 m2) MV: €3.1m (c3,500 m2) MV: €3.4m (c1,000 m2) ▪ 3 properties in Poland ▪ Market value: €9.66m
Slide 42: 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 (c1,300 m2) ▪ Market Value: €3.62m (£3.01m) ▪ NOI: €265,000 pa ▪ Tenant: Jeronimo Martins ▪ Leverage: c45% LTV ▪ WAULT: 10 yrs, 1 mths Email jeremy.bark
Slide 43: 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 Supermarket Chain Poland 14.17% 2 Miasto Stołeczne Warszawa Government Poland 11.30% 3 Sąd Rejonowy w Gdynia District Court Poland 7.29% 4 HRK HR Poland 7.27% 5 Vulp
Slide 44: Associates and Investments
Segmental Analysis: Group Properties Associates and Investments Associates and Investments (minority shareholdings in 9 of FPAM’s 11 funds) Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 44
Slide 45: Associates and Investments
Segmental Analysis: Group Properties Associates and Investments ➢ Contribution of £1.34 million (30 September 2023: Detraction of £185,000) to Group PBT (prior to the deduction of unallocated central overheads). ➢ Increase mainly due to a £1.07 million increase in the value of the Group’s associates
Slide 46: 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 earned by fund fund 30 September 2024 30 Sep
Slide 47: Minority shareholdings in 5 of FPAM's 11 funds
Segmental Analysis: Group Properties Associates and Investments Minority shareholdings in 5 of FPAM’s 11 funds accounted for as Associates (FOP, FPL, FGC, FCL, FKL) Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 47
Slide 48: Fprop Opportunities plc (FOP)
Fprop Opportunities plc (FOP) Associates & Investments Fprop Opportunities plc (FOP) ▪ BV of Group’s 45.7% share: £12.57m ▪ MV of Group’s 45.7% share: £12.57m ▪ Contribution to PBT of Group’s share: £26k Galeria Ostrowiec (19,400 m2) Zana 39, Lublin (10,600 m2) Comments: ▪ Galeria Ostroweic: o Rent
Slide 49: 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: £3.07m ▪ 45 stores, 4 cinema screens, 160 parking places ▪ MV of Group’s 29.1% share: £3.20m ▪ Property value: €25.4m ▪ Contribution
Slide 50: 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: £0.69m ▪ 43 underground parking places ▪ Market value of Group’s 21.2% share: £0.81m ▪ NOI: €696k ▪ Contribution to PBT from G
Slide 51: 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: £1.08m ▪ 149 underground parking places, 26 at ground level ▪ Market value of Group’s 18.1% share: £1.08m ▪ Eco Rating: LEED P
Slide 52: Investments in 4 of FPAM's 11 funds
Segmental Analysis: Group Properties Associates and Investments Investments (minority shareholdings in 4 of FPAM’s 11 funds - UK PPP, Fprop Offices, Spec Opps, Fulcrum) Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 52
Slide 53: UK Pension Property Portfolio LP
UK Pension Property Portfolio LP Associates & Investments UK Pension Property Portfolio (UK PPP) ▪ 6 properties ▪ Located across the UK ▪ Book value of Group’s 0.94% share: £112,000 ▪ Value: £6.8m ▪ Market value of Group’s 0.94% share: £112,000 ▪ 3 tenants ▪ Contribution to PBT from Group’s 0.94% sh
Slide 54: 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 ▪ 3 directly held properties valued at £9.6m ▪ Book value of Group’s 11.1%
Slide 55: Fprop Offices LP
Fprop Offices LP Associates & Investments Buildings A, B & D, Imperial Place, Borehamwood Bartley Wood Business Park, Hook Fprop Offices LP ▪ 3 properties ▪ Book value of Group’s 1.64% share: £353,000 ▪ Value: £33.6m ▪ Market value of Group’s 1.64% share: £353,000 ▪ 1 tenant ▪ Contribution to PBT fr
Slide 56: Fprop Fulcrum Property LP
Fprop Fulcrum Property LP Associates & Investments Corum 1&2, Warmley, Bristol The Pinnacle, Crawley Fprop Fulcrum Property LP ▪ 3 properties ▪ Book value of Group’s 2.5% share: £174,000 ▪ Value: £11.2m ▪ Market value of Group’s 2.5% share: £174,000 ▪ 15 tenants ▪ Contribution to PBT from Group’s 2.
Slide 57: Appendix
Appendix Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 57
Slide 58: 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 59: 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 60: Shareholders > 3%
Appendix Shareholders > 3% as at 20 November 2024 % held (of issued and fully paid) Peter Gyllenhammar AB / Galjaden Invest AB / Bronsstädet AB / Galjaden Holding AB / 26.43% Browallia Asset Management Ltd / Silversläggan Invest AB Ben Habib (Chief Executive Officer) 16.38% Alasdair Locke (Non-Execu
Slide 61: Share Statistics
Appendix Share Statistics as at 20 November 2024 LSE (AIM) Symbol FPO.L Issued & Fully Paid 153,561,892 Share price 15.25p Issued (excl Treasury) 147,843,109 Market Cap £22.5 million Shares held in Treasury 5,718,783 Dividends 1H 2025 FY 2024 Interim - - Outstanding share options over 12,560,000 Ord
Slide 62: 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 63: 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 64: 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 65: 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
First Property Group — H1 FY2025 Earnings Presentation on 6ix