Slide 1: Interim Results for the six months ended 30 September 2021
Interim Results for the six months ended 30 September 2021 First Property Group plc 24 November 2021 Email jeremy.barkes@fprop.com Phone +44 20 7340 0270
Slide 2: Contents
First Property Group plc Contents Company Description and Structure 3 APPENDIX 45-52 Investment Approach 45-46 Interim Results 4-12 Shareholders >5% 47 Highlights 5 Share Statistics 48 Balance Sheet 6-7 Plc Management Team 49-50 Profit Before Tax 8 Awards 51 NAV 9-10 Dividend 11 Disclaimer 52 Outloo
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: Interim Results
First Property Group plc Interim Results Interim Results Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 4
Slide 5: Highlights
First Property Group plc Highlights Profit before tax: £6.67m (30 Sep 2020: £2.08 million) Cash reserves: £12.24 million (31 March 2021: £16.24 million); Substantially reduced net debt: £12.56 million (31 March 2021: £18.85 million); One new fund established, Fprop Fulcrum Property LP; AUM
Slide 6: Balance Sheet at period end
First Property Group plc Balance Sheet at period end Unaudited Audited year to 31 Balance Sheet as at 30 September Percentage change March 2021 2021 Investment properties and Inventories at book £36.87m £34.95m 5.5% value Investment properties and Inventories at £42.91m £41.57m 3.2% market value Ass
Slide 7: Balance Sheet at period end
First Property Group plc Balance Sheet at period end Unaudited as at Audited year to Balance Sheet Percentage change 30 September 2021 31 March 2021 Gross debt £24.80m £35.09m -29.3% Net debt £12.56m £18.85m -33.4% Gearing ratio at book value* 36.48% 48.82% - Gearing ratio at market value** 30.99% 4
Slide 8: CEO Comment
First Property Group plc CEO Comment Commenting on the results, Ben Habib, Chief Executive of First Property Group, said: The first half has seen a sharp turnaround in our fortunes, principally due to the restructuring of a finance lease secured against our largest Group Property which reduced our
Slide 9: NAV per share 2007-2021
First Property Group plc NAV per share 2007-2021 (excluding any value attributable to FPAM) 70 EPRA NAV 60 Book NAV • NAV per share at Cash book value: 39.13p 50 • EPRA NAV per share: 48.88p 40 Pence per share • Cash per share: 30 11.09p External valuers: 20 • CBRE • Koterski 10 0 -10 Adjusted NAV c
Slide 10: Adjusted NAV Bridge
First Property Group plc Adjusted NAV Bridge NAV/Share 30 Sep 2021 Adjusted NAV breakdown 30 Sept 2021 Associates and 25.12p £28.38m Investments 7 directly owned properties less 15.01p £16.96m Adjusted NAV breakdown 31 Mar 2021 loans Cash 11.17p £12.62m Associates and 24.31p £27.46m FPAM - - Investm
Slide 11: Dividend
First Property Group plc Dividend 1.80 1.60 Interim Final Total Dividend Proposed Interim Dividend: 1.40 0.25p 1.20 (FY 20/21: 0.45p) 1.00 Pence per share (Final dividend 0.80 FY 2021: nil) 0.60 0.40 0.20 - Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 11
Slide 12: Outlook - Why invest in Fprop plc?
First Property Group plc Outlook - 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 (12.8% p.a. since 2011). 2. Diversified earnings: From Group Properties
Slide 13: Segmental Analysis
Segmental Analysis Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 13
Slide 14: Group Structure
First Property Group plc Group Structure Fund Management Division Group Properties Division (FPAM) 13 funds; 7 directly owned properties 68 properties; 5 in Poland, 2 in Romania; Invested across the UK, Poland & Market value: £42.9m; Romania Debt: £24.8m; Fee income: £2.89m annualised
Slide 15: Fund Management (FPAM)
Fund Management (FPAM) Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 15
Slide 16: Fund Management Summary
Segmental Analysis: Fund Management Summary Fund • Third party AUM: £533m Revenue: £1.91m (31 Mar 2021: £527m); (30 Sep 2020: £1.66m); Management • 13 funds invested across UK, Poland & Contribution to PBT Romania; prior to deduction of unallocated central • Weighted average fund management over
Slide 17: 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 18: Fund Management Revenue and AUM
Segmental Analysis: Fund Management Revenue and AUM 10 800 Annualised fee income: Performance Fee FPAM Revenue 3rd Party AUM £2.89m 9 (31 Mar 2021: £2.90m) 700 EXCLUDING performance 8 fees and the profit share 600 from Fprop Offices LP. 7 500 Revenue (£ Million) 6 AUM (£ Million) 5 400 4 300 3 200 2
Slide 19: 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 - - - - New fund mandates -
Slide 20: 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 30 Sept 2021 31 March 2021 SAM & DHOW U
Slide 21: Breakdown of AUM by geography, fund, asset class
Segmental Analysis: Fund Management Breakdown of AUM by geography, by fund, by asset class Industrial 5PT FGC FKR 2% 1% 4% 4% FCL 2% Supermarkets/ supermarket led OFFICES 13% POLAND 25% FPL 32% 11% Shopping Centres 10% By Geography By Fund FOP UK 12% Asset Class 66% Office 58% ROMANIA SIPS UKPPP Ret
Slide 22: 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 £199.1m £103.5m £8.8m £311.4m 58.4% Retail warehousing £92.1m - - £92.1m 17.3% Supermarkets £52.2m £17.5m - £69.7m 13.1% Shopping centres - £50.4m - £50.4m 9.4% Industria
Slide 23: 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 23
Slide 24: FPAM Track Record - Existing Funds
First Property Group plc FPAM Track Record - Existing Funds IRR- pa - Implied ROE pa - since inception ROE FY 2021/22 on original equity 40% 35% 30% 25% 20% 15% 10% 5% 0% -5% -10% Implied IRR’s: assumed sale price = NAVs as at 30 September 2021; Average ROE’s since inception: calculated using av
Slide 25: Group Properties
Group Properties Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 25
Slide 26: 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 £36.6m; of unallocated central overheads: o 2 in Romania valued at £6.3m £8.13m (30 Sep 2020: £2.30m) Gross asset value: £42.9m; From 7
Slide 27: Contribution to PBT from directly owned properties and Associates
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) 9,000 8,000 7,000 Corresponding net equity invested 6,000 5,000 4,000 Directly owned propertie
Slide 28: 7 directly owned properties
7 directly owned properties Contributed £7.73m (30 Sept 2020: £1.50m) to Group PBT (prior to the deduction of unallocated central overheads). Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 28
Slide 29: 7 directly owned properties
Segmental Analysis: Group Properties 7 directly owned properties *Contribution to *Contribution to Book Market value No. of Group PBT in 6 Group PBT in 6 Country Sector value at 30 at 30 Sept properties months to months to Sept 2021 2021 30 Sept 2021 30 Sept 2020 Office Gdynia, Poland 1 £13.75m £13.
Slide 30: Directly owned properties by geography, property, asset class
Segmental Analysis: Group Properties 7 directly owned properties by geography, by property, by asset class Praga, Poland Shopping ROMANIA Centres Supermarkets/ Nastroj/Lodz, 15% 0% supermarket led Blue Tower, Poland 16% Warsaw Retail/Retail Warehousing Wawer, Poland 6% - By Geography Asset Class By
Slide 31: Two offices account for 72% of value
Segmental Analysis: Group Properties 7 directly owned properties Two properties (both offices) account for 72% of their value (£26.64m) Gdynia, Poland Blue Tower, Warsaw (14,000 m2) (Fprop 48% share: 11,000 m2) Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 31
Slide 32: The other five properties
Segmental Analysis: Group Properties 7 directly owned properties The other five, representing 28% by value (£10.2m), are invested in: Poland: 2 mini supermarkets, both let to Jeronimo Martins (t/a Biedronka); A mixed-use development site in Wawer, Warsaw Lodz, Poland Praga, Warsaw Warsaw sched
Slide 33: Directly owned properties debt and valuation
Segmental Analysis: Group Properties 7 directly owned properties 30 Sept 2021 31 March 2021 Book value £36.87m £34.95m Market value £42.91m £41.57m Gross debt (all non-recourse to Group) £24.80m £35.09m LTV at book value % 67.28% 100.41% LTV at market value % 57.81% 84.41% Weighted average borrowing
Slide 34: 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 13.22% 2 HRK HR Poland 12.46% 3 Teconnex Manufacturing Romania 11.26% 4 VULPOI & TOADER MANAGEMENT SRL Professional/ Accounting S
Slide 35: Office Building, Gdynia, Poland
Segmental Analysis: Group Properties Office Building (14,000 m2), Gdynia, Poland Value: €16 million; Equity invested: €4 million; Bank financing / deferred consideration: €12 million payable by 11 Jun 2024; Vacancy rate: 97%; Net operating income: (c€55,000) per month. Email jeremy.barke
Slide 36: Blue Tower, Warsaw
Segmental Analysis: Group Properties Blue Tower (11,000 m2), Warsaw The Group owns: 48% of the tower (15 floors) valued at €18.6m; 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 37: 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 37
Slide 38: Associates and Investments
Segmental Analysis: Group Properties Associates and Investments Contributed £406,000 (30 Sept 2020: £796,000) to Group PBT (prior to the deduction of unallocated central overheads); Reduction (49%) largely attributable to Fprop Opportunities plc (FOP), which contributed £175,000 (30 Sep 2020: £6
Slide 39: 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 30 earned by fund 30 fund Sept 2021 Sept 202
Slide 40: Markets
Markets Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 40
Slide 41: Investment Markets Poland
Investment Markets Poland Poland: GDP is forecast to grow by 4.8% in 2021 and 5.0% in 2022, marginally faster than forecast inflation. National Bank of Poland has started to tighten monetary policy, by hiking its key policy rate by 40bps to 0.50% in October, and by 75bps to 1.25% in November. It
Slide 42: Investment Markets Romania
Investment Markets Romania Romania: GDP is expected to grow by some 7% in 2021, falling back to some 4% in 2022, marginally ahead of inflation. Rents in Romania are contractually mostly linked to Eurozone inflation. We therefore expect rental values broadly to keep pace with inflation. Commerc
Slide 43: Investment Markets United Kingdom
Investment Markets United Kingdom UK: GDP growth is rebounding, mainly based on consumption, as restrictions to economic activity are eased. GDP is expected to return to its pre-pandemic level in early 2022. Inflation is also increasing but at a lesser rate than GDP growth. Investor demand for
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%
Appendix Shareholders > 5% as at 30 Sept 2021 % held (of issued No of shares and fully paid) Ben Habib (Chief Executive Officer) 14,940,000 13.5% J C Kottler Esq 9,664,283 8.8% Peter Gyllenhammar A.B. 8,860,693 8.0% Alasdair Locke (Non-Executive Chairman) 8,571,990 7.8% Whitehall Associated S.A. 7,7
Slide 48: Share Statistics
Appendix Share Statistics as at 30 Sept 2021 LSE (AIM) Symbol FPO.L Issued & Fully Paid 116,601,115 Share price 32.0p Issued (excl Treasury) 110,382,332 Market Cap £37.5 million Shares held in Treasury 6,218,783 Dividends 1H 2022 FY 2021 Interim 0.25p 0.45p Outstanding share options over 2,610,000 O
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