First Property Group Plc · LSE:FPO
First Property — H1 2010 Earnings Presentation
26 slides from First Property's earnings presentation, Sep 30, 2009
Slide 1: First Property Group plc Interim Results
First Property Group plc Interim Results For the six months to 30 September 2009 Ben Habib – Chief Executive George Digby – Finance Director -1- 1
Slide 2: Contents
Contents Group Structure Earnings Overview Financial and Operational Highlights Segmental Performance Outlook Appendices -2- 2
Slide 3: Group Structure
Group Structure Chairman (Non Exec) Alasdair Locke Group CEO Ben Habib Group Finance Director George Digby First Property Group 100% 100% 60% First Property Asset First Property First Property Management Ltd Trading Services MD – Ben Habib MD – Ben Habib MD – Phil Moore -3- 3
Slide 4: Earnings Overview
Earnings Overview Operating Profit prior to the deduction of unallocated central (PLC) costs, by segment 2009 2008 £104,000, £354,000, 5% 16% £397,000, Property Fund Management £157,000, Property Fund Management 19% 7% Property Trading PropertyTrading Facilities Management Facilities Management £1,5
Slide 5: Interim Results – Operating Profit
Interim Results – Operating Profit Operating Profit 2 1.5 1 £m 0.5 Half year 30/09/08 Half year 30/09/09 0 -0.5 -1 Property Property Facilities Other fees Unallocated Total Fund Trading Management and income Central Management Costs Operation -5- 5
Slide 6: Interim Results - Financial Highlights
Interim Results - Financial Highlights Revenue during the period amounted to £4.8million (2008: £4.7million), yielding a decreased profit on ordinary activities before taxation of £1.6million (2008: £1.8million). Diluted earnings per ordinary share were 1.06 pence (2008: 1.08 pence). Increased
Slide 7: Interim Results - Operational Highlights
Interim Results - Operational Highlights First Property Asset Management Ltd planning launch of 2 new funds aimed at UK & CEE commercial investment properties. ¾ UK fund – lawyers have been instructed to draw up contractual documentation on behalf of a small group of pension funds. Quantum is indi
Slide 8: Interim Results - Segmental Performance
Interim Results - Segmental Performance Unaudited Unaudited Percentage change Audited Six months to 30 Six months to 30 from 30 September Year to September 2009 September 2008 2008 31 March 2009 Profit on ordinary activities before tax £1.56m £1.77m -12% £3.86m Operating profit £1.52m £1.52m 0% £3.4
Slide 9: Fund Management Division – First Property Asset Management Ltd
Fund Management Division – First Property Asset Management Ltd Four funds under management at 30 September 2009 with GAV of £296 million. Geographical split of funds likely to shift in favour of UK over the coming months. Sector Split By Value Geographical Split By Value 5% 16% 5% Offices Poland
Slide 10: First Property Asset Management Ltd – Cont.
First Property Asset Management Ltd – Cont. Performance remains good: ¾ Annualised pre-tax return on equity being earned from existing assets under management on behalf of clients in CEE is running at in excess of 20% per annum. ¾ We rank #1 versus IPD CEE Benchmark for the period 2006 – 2008 incl
Slide 11: Polish economy and market
Polish economy and market Poland is the only EU member to have thus far avoided recession: lower levels of consumer and state indebtedness. Economic outlook is brighter: investors are now differentiating between Poland and other CEE markets. The PLN/ Euro exchange rate appears to have stabilis
Slide 12: UK economy and market
UK economy and market Investor demand for well let commercial property has been building as a result of limited stock and a desire to lock into higher returns versus cash. Pricing has fallen sufficiently to compensate for further anticipated rent reductions. While the occupier market may still
Slide 13: Property Trading Division
Property Trading Division Two properties owned directly: ¾ Property 1: Class C office building, Mokotow, Warsaw Acquired Nov 2007 for £2.6 million Net rental income : PLN 1.3 million (£260,000) pa Yield & ROE - 11.3% Have applied for PP for change of use to residential which we expect to
Slide 14: Property Trading Division (cont)
Property Trading Division (cont) In addition to the 2 properties held directly, the Group also owns stakes in 2 of First Property Asset Management’s 4 funds. IFRS requires earnings from these shareholdings to be reported at PLC level as “share of associates net assets”. We refer to them within t
Slide 15: Property Services Division – First Property Services Ltd
Property Services Division – First Property Services Ltd First Property Services Ltd is a contracting business which specialises in the installation and maintenance of air conditioning units. It is 60% owned by the Group, following its opportunistic acquisition from Administrators for £1 in 2006
Slide 16: Value Attribution of differing segments at 17p
Value Attribution of differing segments at 17p Shares in issue = 108,170,527 (excluding 3,430,588 shares held in Treasury) Market Cap at 17p = £18,388,990 Enterprise Value* according to IFRS Enterprise Value* with assets held at market values Enterprise Value, Enterprise Value, £2,812,990, 15% £4,31
Slide 17: Outlook
Outlook Despite the Global economic environment, Fprop remains a secure and growing business capable of delivering excellent returns to its clients and shareholders. Strong balance sheet and a stable earnings platform of recurring revenues. Primary focus remains to exploit this position of str
Slide 18: Appendices
Appendices Market statistics Management Team Our Team on the Ground Fund Performance Contact Details -18- 18
Slide 19: Market Statistics
Market Statistics Number of shares in issue: 108,170,527 Number of shares held in treasury: 3,430,588 (av cost 16.2p) Diluted EPS for the interim period: 1.06p Share price: 17.00p Market capitalisation: £18,388,990 Major shareholders: Benyamin Naeem Habib (Chief Executive Officer) 15,500
Slide 20: PLC Management Team
PLC Management Team Non-executive Chairman, Alasdair Locke, MA (Oxon) Alasdair is also Executive Chairman of Abbot Group plc, a company providing wide ranging services to the oils services industry. He was voted Scottish Entrepreneur of the Year in 1999. Chief Executive, Ben Habib, MA (Cantab) Ben i
Slide 21: Management Team, continued
Management Team, continued Property Director, Martin Pryce, B.Sc, MRICS, IMC Having been Managing Director of Propertytrade plc, a commercial property portal, Martin joined the Fprop team in 2001, following its acquisition by Fprop. He brings with him a solid background in chartered surveying, havin
Slide 22: Our Team on the Ground
Our Team on the Ground The Group has a policy of managing its property portfolio in-house, as much as possible. It employs: Eight staff in the UK and eighteen staff in Poland in fund management and property trading. Eighteen staff in facilities management. Full in-house capabilities -22- 22
Slide 23: Fund Performance
Fund Performance Fund 1, 2, & 3 (all UK commercial) launched between 2002 & 2003, dissolved between 2006 & 2007: IRR earned from properties respectively of 52%, 73% & 54%. Fund 4 (UK offices) launched in 2004 on behalf of a HNW: earning some 9% return of equity per annum from rent alone. The fun
Slide 24: Ongoing Fund Performance
Ongoing Fund Performance Fund 7 (UK & CEE commercial, the USS fund) launched in 2005: if properties held by the fund had been sold at their value at 30 September 2009, the annualised IRR earned by the fund would have been some 1%. Fprop funds under management in CEE outperformed the IPD Benchmar
Slide 25: Funds Performance (cont)
Funds Performance (cont) Fund Performance 80 70 60 50 IRR% 40 30 20 10 0 Fund 1 Fund 2 Fund 3 Fund 4 Fund 5 Fund 6 Fund 7 -25- 25
Slide 26: Advisers and Contact Details
Advisers and Contact Details Website: www.fprop.com Telephone: 020 7731 2844 Address: First Property Group plc 17 Quayside Lodge William Morris Way London SW6 2UZ Email: enquiries@fprop.com Financial PR Enquiries: 0207 7566 6700 Adam Leviton / Kathryn Hurford Email: firstproperty@redleafpr.com -26-