First Property Group Plc · LSE:FPO
First Property — H1 2011 Earnings Presentation
20 slides from First Property's earnings presentation, Nov 30, 2010
Slide 1: Interim Results, 30 November 2010
Interim Results, 30 November 2010 First Property Group plc
Slide 2: Contents
Contents Group Structure p.3 Earnings Overview p.4 Operating Profit p.5 Financial & Operational Highlights p.6 Segmental Performance p.7-10 FPAM p.7 Group Properties p.8-9 FPS p.10 Valuation p.11 Outlook p.12 Economic Outlook p.13 Appendices p.14-19 Share Statistics p.14 Biographies p.15-17 Track Re
Slide 3: Group Structure
Group Structure Business Description First Property Group plc is a commercial Chairman (Non Exec) property fund manager with operations in the Alasdair Locke United Kingdom and Central Europe. The business model of First Property Group is: Group CEO Ben Habib Group Finance • To raise third party fun
Slide 4: Earnings Overview
Earnings Overview Unaudited Percentage change Audited Audited year to 6 months to 30 Sep from 30 Sep 2009 6 months to 31 March 2010 2010 30 Sep 2009 Profit on ordinary activities before tax £1.32m -15.4% £1.56m £2.79m Net profit for period £1.12m -8.0% £1.22m £2.31m AUM £315m +6.4% £296m £300m Net a
Slide 5: Earnings Overview - Operating Profit
Earnings Overview - Operating Profit 2 1.5 1 0.5 1H 2010 1H 2009 0 -0.5 -1 FPAM Group FPS Central Total Properties Overheads FPAM contribution steady at 75%, now expected to grow . 5
Slide 6: Financial & Operational Highlights
Financial & Operational Highlights Financial Operational • AUM = £315 million (1H 2009: £296 million), of • £7 million of Group cash invested (after the which £59 million is property located in UK, period end) in new pan European remainder in CEE. opportunity fund, Fprop Opportunities plc (FOP), lau
Slide 7: Segmental Performance - FPAM
Segmental Performance - FPAM Highlights specified on previous page in Group highlights Asset Class, Interims 2010 Geography, Interims 2010 14% (2009: 16%) 19% (2009: 5%) Industrial UK 4% (2009: 5%) Retail Romania 26% (2009: 22%) 60% (2009: Offices Poland 62%) 77% (2009: 90%) 5 funds under management
Slide 8: Segmental Performance – Group Properties
Segmental Performance – Group Properties Bacha St - Class C Office Building, Mokotow, Warsaw Acquired Nov 2007 for PLN 11.7 million (£2.34 million at Operating profit from these 2 properties purchase). of £528,000 (2009: £454,000). Unleveraged. Net rental income – PLN 1.5 million (£300,000)
Slide 9: Segmental Performance – Group Properties Co-investments
Segmental Performance – Group Properties Co-investments Regional Property Trading (est. June 2005) • Operating profit from these 3 shareholdings of Shareholding 34% (share of associates) £943,000 (2009: £391,000) Book value (IFRS) £215,000 Valuation £270,000 • Our share in these 3 funds is held at £
Slide 10: Segmental Performance – FPS
Segmental Performance – FPS • First Property Services Limited is a mechanical & • Revenue during the period of £1,136,000 electrical (M&E) maintenance contractor, in which the (2009: £1,915,000). Group acquired a 60% shareholding in 2006. • Operating loss of -£93,000 (2009: £104,000). • Book Value (
Slide 11: Share price valuation
Share price valuation 20,000,000 18,000,000 16,000,000 14,000,000 GBP £ 12,000,000 Book Value 10,000,000 Market Value 8,000,000 6,000,000 4,000,000 2,000,000 0 ts ) n h) ta l 8p) 10 o 0 ale ca s T (1 2 q uiv ss C ap (FY E l( e t i t & s ke r of sh s et ar P M g C a t As tin a Ne per O PAM F Share pr
Slide 12: Outlook
Outlook • AUM (and therefore FPAM fee income) expected to • FPS – outlook uncertain but carried value is continue to grow as a result of: low (£172,000) and no inter company loans • Continued investment of UK PPP LP from or other outstanding liabilities. current £54 million to £106 million (plus pos
Slide 13: Economic outlook
Economic outlook POLAND UNITED KINGDOM • Only country in 27 member EU area to escape • Economic recovery underway but occupier recession in 2009 (GDP grew by 1.8%). demand still weak in most areas. • For 2010 GDP forecast to grow by 3.4% (EC) and • Investor demand has rebounded strongly and tipped t
Slide 14: Share Statistics, Sep 2010
Share Statistics, 30 Sep 2010 Number of shares in issue 109,770,527 Number of shares held in treasury 3,830,588 Interim Dividend 0.32p Share Price 17.5p Market Capitalisation £19.21 million Benyamin Habib (Chief Executive Officer) 16,700,000 15.21% J C Kottler 14,746,783 13.43% Universities Superann
Slide 15: PLC Management Team
PLC Management Team Alasdair Locke, MA (Oxon) Peter Moon Non Executive Chairman Independent Non Executive Director Outgoing Executive Chairman of Abbot Group, an oil Peter is the outgoing Chief Investment Officer of services company which he founded in 1992 and which Universities Superannuation Sche
Slide 16: PLC Management Team
PLC Management Team Ben Habib, MA (Cantab) George Digby, BA (Hons), ACA, IMC Chief Executive Officer Group Finance Director Ben founded Fprop in 2000 and has been George joined Fprop in 2003 following a 5 year Chief Executive since that date. period running a private accountancy business. Between 19
Slide 17: FPAM Management Team
FPAM Management Team Przemyslaw Kiszka, CFA Martin Pryce Managing Director, First Property Poland Sp. z Property Director o.o. Martin joined Fprop in 2001 following its Przemek joined the Group in 2006 to manage its acquisition of Propertytrade plc, a commercial Polish subsidiary which now employs 1
Slide 18: FPAM Track Record
FPAM Track Record Funds 1, 2 & 3 (all UK commercial) Fund 7 (UK & CEE commercial) • Established between 2002 – 2003 • Established 2005 • Dissolved between 2006 – 2007 • Earning ROE of 20.2% • IRR earned from properties respectively 52%, 73% & • Implied IRR, if properties sold at 30 Sep 2010, of 54%.
Slide 19: FPAM Track Record
FPAM Track Record 30 25 20 15 Net IRR 10 5 0 Fund 1 Fund 2 Fund 3 Fund 4 Fund 5 Fund 6 Fund 7 Fund 8 (diss) (diss) (diss) Positive absolute returns across ALL funds, despite credit crunch 19
Slide 20: Contact Details & Advisers
Contact Details & Advisers Website http://www.fprop.com Financial PR, Redleaf Communications http://www.redleafpr.com Telephone +44 20 7340 0270 Adam Leviton Address First Property Group plc al@redleafpr.com 35 Old Queen Street +44 207 566 6708 London SW1H 9JA Alicia Jennings aj@redleafpr.com jeremy