Slide 1: Preliminary Results, 11 June 2012
Preliminary Results, 11 June 2012 First Property Group plc Email jeremy.barkes@fprop.com Phone +44 20 7340 0270
Slide 2: Table of Contents
Prelims 2012 Table of Contents Business Model 3 Fund Raising Market 17 Highlights 4-7 Investment Markets 18-20 Financial Highlights 4 Poland 18 Dividend 5 United Kingdom 19-20 Earnings Breakdown 6 Operational Highlights 7 Outlook 21 Segmental Analysis: APPENDICES FPAM 8-11 Share Statistics 22 Assets
Slide 3: Business Model
First Property Group plc Business Model First Property Group plc is a commercial property fund manager with operations in the United Kingdom and Central Europe. The performance of its funds under management ranked No.1 versus the Investment Property Databank (IPD) CEE universe for the three, four, f
Slide 4: Financial Highlights
Highlights Financial Highlights Year to 31-Mar-2012 Year to 31-Mar-2011 Percentage (Unaudited) (Audited) change Profit before tax - continuing operations £3.97m £2.95m +35% Diluted earnings per share (continuing operations) 2.73p 1.90p +44% Total Dividend 1.08p 1.06p +2% Profit before tax by segment
Slide 5: Dividend
Highlights Dividend 1.200p 1.06p 1.08p Board recommends increased 1.000p 1.00p 1.03p dividend for year of 1.08p (2011: 1.06p). 0.800p 0.80p GBP XD 22-Aug-2012 0.600p Record Date 24-Aug-2012 0.400p Payment Date 21-Sep-2012 0.200p 0.000p 2008 2009 2010 2011 2012 Interim Final Total Email jeremy.bark
Slide 6: Earnings breakdown
Highlights Earnings breakdown In monetary terms (2010–12): 3.50 3.00 2012 2.50 2010 2011 2012 £m 2.00 1.50 1.00 2011 2010 0.50 0.00 FPAM Group Properties (incl FOP) Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 6
Slide 7: Operational Highlights
Highlights Operational Highlights Although headline assets under management remained UK PPP fund, established in February 2010, 90% broadly unchanged year on year there was underlying invested with £93.5 million under management at year movement in funds with assets in the UK increasing to end;
Slide 8: Assets under Management (AUM)
Segmental Analysis Assets under Management (AUM) Termination Date Assets under Management Fund Established (unless extended) at 31-Mar-2012 SAM Property Company Ltd (SAM) Aug-2004 Rolling Not subject to recent revaluation Regional Property Trading (RPT) Aug-2004 Aug 2012 £7.0 million 5th Property Tr
Slide 9: AUM Breakdown
Segmental Analysis AUM Breakdown By fund: By investor category: By geography: USS Poland 64% Pension Funds 70% UK PPP 89% UK (2010: 75%) 27% 25% (2010: 22%) FOP 6% Family Offices 1% 5PT Fprop High net worth Romania 3% RPT 7% investors 3% 2% 3% (2010:3%) Email jeremy.barkes@fprop.com Phone +44 20
Slide 10: Track Record – All Funds (excl SAM) to March 2012
Segmental Analysis Track Record – All Funds (excl SAM) to 31 March 2012 IRR pa - Actual IRR pa - Implied ROE pa - Current ROE pa - from Inception 35% 30% 25% 20% 15% 2003 – 2007 2002 – 2006 2003 – 2008 10% 5% 0% 1PT 2PT 3PT RPT 5PT USS UK PPP FOP All implied IRR calculations use 31-Mar-2012 NAVs.
Slide 11: Track Record – UK
Segmental Analysis Track Record – UK Strategic decision taken in 2005 to sell UK properties, executed by 2007. Subsequent reinvestment of client funds into Poland. Returned to UK property investment in 2009. 8.50% Ben Habib “…the commercial property investment market in the UK has 8.00% Fprop pl
Slide 12: Tenancy Exposure (top 10) – Client funds
Segmental Analysis Tenancy Exposure (top 10) – Client funds 5.00 4.50 15.0% 4.00 3.50 £ Millions pa 3.00 2.50 2.00 1.50 5.7% 5.3% 4.2% 1.00 3.4% 3.3% 2.6% 2.4% 2.4% 2.4% 0.50 - Prokom/ Asseco Citibank Int. Indesit Carrefour Aquila Skanska S.A. B&Q Plc Mazowiecki Matalan Retail Cadburys Radomsko Odzi
Slide 13: Group Properties
Segmental Analysis Group Properties Group Properties comprises two properties owned directly by the Group and co-investments in four of the six funds managed by FPAM. Directly Held Properties: Valuation Contribution Property Name Purchase date Book cost Bank loan Net Rent at 31-Mar-2012 to pre-tax p
Slide 14: Co-investments
Segmental Analysis Co-investments Co-investments: Plc shareholding Book value of Market Value Group’s share of Fund 31-Mar-2012 Fprop’s share 31-Mar-2012 pre-tax profit Interest in associates 5th Property Trading (5PT) 37.8% £594,000 £1,165,000 £141,000 Regional Property Trading (RPT) 28.6% £213,000
Slide 15: Group Properties – Earnings Breakdown
Segmental Analysis Group Properties – Earnings Breakdown In monetary terms: In percentage terms: 1.2 1.0 2012 2012 0.8 £ Millions 2011 FOP 0.6 44% 2x direct properties 0.4 46% 0.2 2011 2012 2011 RPT, 5PT & UKPPP 10% 0.0 2x direct properties RPT, 5PT & UKPPP FOP Email jeremy.barkes@fprop.com Phon
Slide 16: Group Properties - Tenancy Exposure (top 10)
Segmental Analysis Group Properties - Tenancy Exposure (top 10) 1.4 37.7% 1.2 1 0.8 £ Millions pa 0.6 0.4 0.2 7.1% 4.8% 4.2% 4.0% 3.8% 3.4% 2.2% 2.1% 1.9% 0 Carrefour HRK Fundacja Agencja WFOŚiGW Alex Gross / People Can Fly UBM Medica Polska Rekol-Med. Edukacyjna Nieruchomosci TECTUM Wytwornia Varso
Slide 17: Fund Raising Market
Prelims 2012 Fund Raising Market General: UK Sterling Income Fund (FSIF) The fund raising market remains challenging. However, the We are in the process of determining a suitable fund two funds we have been marketing, our new UK fund and structure for our new UK fund, Fprop Sterling Income Fund.
Slide 18: Investment Markets: Poland
Investment Markets Poland Review of Market Environment: The Polish Zloty or PLN has weakened against the Euro Poland’s GDP growth in 2011 was 4.3%. This rate of growth since the middle of last year, from a level of circa PLN 4/ is expected to slow this year to 3% (source: IMF) but such a €1 to P
Slide 19: Investment Markets: United Kingdom
Investment Markets United Kingdom Review of Market Environment: The outlook for the UK economy is poor. The UK economy re-entering recession is of little consequence to our UK investment strategy which has been The UK’s GDP contracted by 0.3% in both the last quarter predicated on a protracted
Slide 20: UK: Commercial Property Yields & Interest Rates
Investment Markets UK: Commercial Property Yields & Interest Rates 10.0% The Opportunity Secondary property has not re-priced to 9.0% Yield gap diminished for secondary properties the same extent as prime. It is still largely 8.0% trading at trough levels; 5% 7.0% Prime yields are, in many cases
Slide 21: Outlook
Prelims 2012 Outlook FPAM: Group Properties: Our underlying funds are well positioned for continued We expect continued material contribution to earnings from good performance. our two directly held properties and our co-investments in FPAM’s funds; The fund raising market is still challenging
Slide 22: Share Statistics at 31-Mar-2012
Appendices Share Statistics at 31-Mar-2012 2012 2011 % change LSE (AIM) Symbol FPO.L Issued & Fully Paid 114,851,115 114,601,115 +0.2% Share price 16.5p Issued (excl Treasury) 111,098,580 110,796,501 +0.3% Market Cap £18.4 million Shares held in Treasury 3,752,535 3,804,614 -1.4% 1.08p (subject to D
Slide 23: Shareholders > 3% at 31-Mar-2012
Appendices Shareholders > 3% at 31-Mar-2012 % held (of issued No of shares and fully paid) Ben Habib (Chief Executive Officer) 16,700,000 14.5% J C Kottler Esq 15,006,783 13.1% Universities Superannuation Scheme Limited 9,550,000 8.3% Alasdair Locke (Non-Executive Chairman) 8,571,990 7.5% NFU Mutual
Slide 24: Plc Management Team – Non Executives
Appendices Plc Management Team – Non Executives 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 mill
Slide 25: Plc Management Team – Executives
Appendices Plc Management Team – Executives Group Chief Executive & FPAM Chief Investment Officer — Ben Habib, MA (Cantab) Ben founded First Property Group plc in 2000. He is responsible for all aspects of the operations of Fprop and its fund management business. Prior to setting up Fprop, Ben was M
Slide 26: Contact Details
Contact Details First Property Group plc Financial PR Redleaf Polhill Website http://www.fprop.com www.redleafpolhill.com Telephone +44 20 7340 0270 George Parrett firstproperty@redleafpolhill.com Address First Property Group plc +44 20 7566 6750 35 Old Queen Street London NOMAD & Broker SW1H 9JA Ar
Slide 27: Disclaimer
Disclaimer These presentation materials (the "Presentation Materials”) are being solely issued to and No reliance may be placed for any purpose whatsoever on the information contained in this directed at (a) persons having professional experience in matters relating to investments and who document o
Slide 28: Extra Slides
Extra Slides Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 28
Slide 29: Investment Approach
First Property Group plc Investment Approach Our investment strategy is governed by: The recognition that property investment is comparatively illiquid. This illiquidity can only be compensated with any degree of certainty by rental income - achieving liquidity through income. In any case, over th
Slide 30: Investment Approach
First Property Group plc 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
Slide 31: Videos
Videos www.fprop.com Bloomberg TV – Ben Habib discusses outlook for commercial property Fprop Opportunities plc in 2012 (Dec-2011) – Presentation www.bloomberg.com/video/82576408/ (Dec-2010) www.fprop.com/videos/fop- promotional-video UK Commercial investment property - a minefield (Mar-2011) http:/
Slide 32: Income Return as % of Total Return
Markets Income Return as % of Total Return Capital Growth Income Return Total Return 25 20 Income return as a % of Total Return 15 10 5 0 -5 -10 -15 -20 -25 -30 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 20 Years 10 Years 5 Years 3 Years Source: Investment Property Databank (IPD) All Property
Slide 33: Risk Adjusted Returns, 1981-2010
Markets Risk Adjusted Returns, 1981-2010 15 West End Office 14 Risk (Standard Deviation) % pa 13 City Office 12 Retail Warehouses 11 S.E. Industrial All Property Rest UK Industrial S.E. Office 10 Rest of UK Office Shopping Centres S.E. Retail 9 Rest UK Retail 8 6 7 8 9 10 11 12 13 Total Return % pa