Slide 1: Interim Results for the half year ended 30 September 2016
Interim Results for the half year ended 30 September 2016 First Property Group plc 23 November 2016 FPAM funds rank No.1 versus MSCI’s Investment Property Databank (IPD) Central & Eastern European (CEE) Benchmark for the ten years from the commencement of its operations in Poland in 2005 to 31 Decem
Slide 2: Contents
First Property Group plc Contents Company Description 3 Markets 24-27 Business Model 4-5 Investment Markets – Poland 25 Investment Approach 6 Investment Markets – Romania 26 Why Invest in Fprop plc? 7 Investment Markets – United Kingdom 27 Interim Results 8 Outlook 28-30 Highlights 9 Financial perfo
Slide 3: Company Description
First Property Group plc Company Description First Property Group plc is an award winning property fund manager and investor with operations in the United Kingdom and Central Europe. Around one third of the shares in the Company are owned by management and their families. Its focus is on higher yi
Slide 4: Group Structure
First Property Group plc Group Structure The Company operates via two divisions: Via its FCA regulated and AIFMD approved subsidiary, First Property Asset 4.6% Fund Management Ltd (FPAM), which earns fees (2015: 18.5%) Management of profit before tax and from investing for third parties in property.
Slide 5: Group Structure
First Property Group plc Group Structure Fund Group Management Properties • AUM: £405m; • Eleven commercial properties in Poland • Nine funds invested in 56 properties and Romania, including five held by FOP (excluding FOP) across UK, Poland & FOP (in which the Group is currently the Romania; • Inve
Slide 6: Investment Approach
First Property Group plc 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 lo
Slide 7: Why invest in Fprop plc?
First Property Group plc Why invest in Fprop plc? 1. Expertise: Experienced, nimble management team; Excellent investment track record: 24% annualised growth in net assets between Apr-2008 and Sep-2016; Ranked No.1 vs MSCI’s Investment Property Databank Central & Eastern European Benchmark. 2.
Slide 8: Interim Results - Highlights
Interim Results - Highlights Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 8
Slide 9: Interim Results Highlights
Interim Results Highlights Highlights: Profit before tax of £4.47m in line with the prior year despite a significant reduction in one-off non-recurring items to £290,000 (2015: £1.58 million); Total assets under management up 43% to £405 million (2015: £283 million); Adjusted NAV per share up
Slide 10: Financial Performance Summary
Interim Results Financial Performance Summary Unaudited Unaudited Percentage Audited Six months to 30 September 2016 Six months to 30 September 2015 change Year to Restated* 31 March 2016 Income Statement: Statutory profit before tax £4.47m £4.46m +0.2% £7.35m Non-recurring items £0.29m £1.58m -81.6
Slide 11: Financial Summary (cont.)
Interim Results Financial Summary (cont.) Unaudited Unaudited Percentage change Audited Six months to Six months to Year to 30 September 2016 30 September 2015 31 March 2016 Restated* Group Property Portfolio at period end: Group Properties at book value*** £144.3m £125.9m +14.6% £134.5m Group Prope
Slide 12: NAV per share 2007-2016
Interim Results NAV per share 2007-2016 50 Adjusted NAV NAV Cash Adjusted NAV = in line 45 with European Public Real 40 Estate Association 35 (EPRA) methodology, which includes fair values Pence per share 30 of: financial instruments; debt; deferred taxes. 25 20 15 External valuers 10 CBRE, BNP Pari
Slide 13: Continued Growth in Dividend
Interim Results Continued Growth in Dividend Interim dividend: 1.60 Total Dividend 0.40p 1.40 (2015: 0.385p) +3.9% 1.20 Total dividend for year to Mar-2016: Pence per share 1.00 1.50p 0.80 (2015: 1.35p) 0.60 +11.1% Policy: 0.40 Progressive 0.20 0.00 Ex div date: 1 Dec FY03 FY04 FY05 FY06 FY07 FY08 F
Slide 14: Segmental Analysis
Segmental Analysis Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 14
Slide 15: Profit before Tax by segment
Segmental Analysis Profit before Tax by segment (before unallocated central overheads) 7 FPAM (excl fees from FOP) Group Properties (incl FOP) Group Properties – rising contribution due to investments 6 0.27 1.19 made in FY2014 and FY2015 being 5 held for the full 2.90 period. Should now £ Million
Slide 16: Segmental Analysis – Fund Management
First Property Group plc Segmental Analysis – Fund Management • AUM: £405m; 4.6% Fund • Nine funds invested (2015: 18.5%) Management across UK, Poland & Romania; of profit before via First Property • Annualised fee income tax and Asset Management of £1.9 million. In-built unallocated Ltd (FPAM) grow
Slide 17: Segmental Analysis – Fund Management (FPAM) Overview
Segmental Analysis – Fund Management (FPAM) Overview AUM set to 10 Performance Fee FPAM Revenue AUM 500 continue rising as 9 450 we invest remainder of SIPS 8 400 fund; 7 350 AUM (£ Million) Revenue (£ Million) Underlying fund 6 300 management fee 5 250 income set to grow with AUM; 4 200 Lost
Slide 18: Breakdown of AUM (incl Group Properties)
Segmental Analysis – Fund Management (FPAM) Breakdown of AUM (incl Group Properties) Fprop PDR 0.0% HNW SIPS 7.9% 5PT 23.6% 2.1% Poland FOP 48.6% RPT 16.5% 1.8% UK Fprop 46.6% By Fund By Investor 41.2% By Geography Pension Funds Category 46.3% UK PPP Group 23.0% Properties 25.5% Fprop Romanian Famil
Slide 19: Segmental Analysis - Group Properties
First Property Group plc Segmental Analysis - Group Properties 1. Eleven commercial properties in Group Poland and Romania, including five 95.4% held by FOP (in which the Group is (2015: 81.5%) Properties currently the majority shareholder): of profit Principal investments • Book value £144.3 millio
Slide 20: Segmental Analysis – Group Properties Overview
Segmental Analysis – Group Properties Overview Group Properties: 7 Contributed £5.65m (2015: £4.96m) Contribution to PBT from 6 four wholly owned to PBT and properties in Poland and unallocated central Romania 5 overheads; Represents 95.4% 4 Contribution to PBT from £ Million Group's share in FO
Slide 21: Cash flows from eleven properties owned by the Group and FOP
Segmental Analysis – Group Properties Cash flows from eleven properties owned by the Group and FOP Six months to 30 Sep 2016 Six months to 30 Sep 2015 €m. €m. Net operating income (NOI) 9.66 9.69 Interest expense on bank loans / finance leases (1.67) (1.92) NOI after interest expense 7.99 7.77 Curre
Slide 22: Value of the eleven properties owned by the Group and FOP
Segmental Analysis – Group Properties Value of the eleven properties owned by the Group and FOP Market Value Properties are held in separate 180 = £170.3m non-cross collateralised SPV’s Book Value which are non-recourse to the 160 = £144.3m Group; Equity = 28.4% 140 Interest rates: Equity = 15.5
Slide 23: Eleven properties – top 10 tenants
Segmental Analysis – Group Properties Eleven properties owned by the Group and FOP – top 10 tenants Tenant Sector % 1 Asseco S.A. Technology 27.4% 2 Citibank Europe Plc Finance 11.6% 3 Carrefour Food Retail 7.9% 4 Aquila Logistics 6.3% 5 Skanska S.A. Construction 6.0% 6 Tesco (Polska) sp z o.o. Food
Slide 24: Markets
Markets Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 24
Slide 25: Investment Markets Poland
Investment Markets Poland GDP Growth: 2016: 3.7% (F) 2017: 3.6% (F) Commercial Property: Rent levels for office property in Warsaw and other main cities have generally softened over the past couple of years, as the pace of new development has increased; Capital values for prime property
Slide 26: Investment Markets Romania
Investment Markets Romania GDP Growth: 2016: 4.2% (F) 2017: 3.7% (F) Commercial Property: Occupier and investor demand picking up from a relatively low level; Still a mismatch between buyer and seller pricing expectations. Debt market: Senior loan margin = 4-4.5% over EURIBOR; Marg
Slide 27: Investment Markets United Kingdom
Investment Markets United Kingdom GDP Growth: 2016: c2% (F) - fastest growing G7 nation 2017: c1.5% (F) Commercial Property: Commercial property values fell in the wake of the Referendum, in particular for properties with shorter leases, or requiring asset management; Prime properties wi
Slide 28: Outlook
Outlook Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 28
Slide 29: Outlook
Interim Results Outlook In-built earnings growth from additional fund management commitments, once invested; Very nearly all profits of a recurring nature; The assets we own and manage are performing well, as are the economies in which we operate. We expect continued earnings growth; The con
Slide 30: Why invest in Fprop plc?
First Property Group plc Why invest in Fprop plc? 1. Expertise: Experienced, nimble management team; Excellent investment track record: 24% annualised growth in net assets between Apr-2008 and Sep-2016; Ranked No.1 vs MSCI’s Investment Property Databank Central & Eastern European Benchmark. 2.
Slide 31: Appendix
Appendix Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 31
Slide 32: Funds under management at 30 September 2016
Segmental Analysis – Fund Management (FPAM) Funds under management at 30 September 2016 Fund Country of Investment Fund expiry AUM 30-Sep-16 % of total AUM AUM 30-Sep-15 SAM Property Company Ltd (SAM) UK Rolling * * * Regional Property Trading (RPT) Poland Aug 2020 £7.0m 1.7% £6.3m 5th Property Trad
Slide 33: Reconciliation of movement in funds under management
Segmental Analysis – Fund Management (FPAM) Reconciliation of movement in funds under management Funds managed for third parties (including funds in Group Properties Totals which the Group is a minority shareholder) (including FOP) UK CEE Total No. of All CEE No. of AUM No. of £m. £m. £m. prop’s £m.
Slide 34: Segmental Analysis – Group Properties composition
Segmental Analysis – Group Properties composition Group Properties at 30-Sep-2016 Property No. of Book value Market value Contribution to Contribution to properties Group PBT to Group PBT to 30 Sep-16 30 Sep-15 Poland 3 79.6m 94.0m 3.15m 2.79m Romania 3 6.0m 9.3m 0.58m 0.45m FOP (consolidated undert
Slide 35: Non-controlling interests in funds managed by FPAM
Segmental Analysis Non-controlling interests in funds managed by FPAM at 30-Sep-2016 Group’s share Group’s share of Book value Current of pre-tax pre-tax profits % owned by First earned by fund Fund of First Property’s market value profits earned Property Group 30-Sep-15 share in fund of holdings by
Slide 36: Shareholders > 3%
Appendix Shareholders > 3% at 16 Sep-16 % held (of issued No of shares and fully paid) Ben Habib (Chief Executive Officer) 16,700,000 14.4% New Pistoia Income Ltd 15,090,000 13.0% J C Kottler Esq 12,206,783 10.5% Universities Superannuation Scheme Limited 9,550,000 8.2% Alasdair Locke (Non-Executive
Slide 37: Share Statistics at Sep-2016
Appendix Share Statistics at 30 Sep-2016 HY 2016 HY 2015 LSE (AIM) Symbol FPO.L Issued & Fully Paid 116,601,115 114,851,115 Share price 45p Issued (excl Treasury) 115,980,040 114,205,912 Market Cap £52 million Shares held in Treasury 621,075 645,203 Dividend HY2016 FY2016 Outstanding share options 2
Slide 38: 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 Ansbach
Slide 39: 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 40: FPAM Track Record
FPAM Track Record All funds (excl SAM to 30-Sep-2016) IRR pa - Actual IRR pa - Implied ROE pa - since inception ROE HY 2016/17 - on original equity 100% 95% 90% 40% 35% 30% 25% 20% 15% 10% 5% 0% 1PT 2PT 3PT USS PDR RPT 5PT UK PPP FOP SIPS FRS FGC -5% Implied IRR calculations use NAVs as at 30-Sep-
Slide 41: Awards
Appendix – First Property Group Awards FPAM funds rank No.1 versus MSCI’s Investment Property Databank (IPD) Central & Eastern European (CEE) Benchmark for the ten years from the commencement of its operations in Poland in 2005 to 31 December 2015, and for the annualised periods from 2005 to the end
Slide 42: Disclaimer
Disclaimer These presentation materials (the "Presentation Materials”) are being solely issued to the information, opinions or beliefs contained in this document. Save in the case of fraud, and directed at (a) persons having professional experience in matters relating to no liability is accepted for