Slide 1: Interim Results, 29 November 2011
Interim Results, 29 November 2011 First Property Group plc
Slide 2: Table of Contents
Table of Contents Business Model 3 Fund Raising Market 15 Highlights 4-7 Investment Markets 16-18 Financial Highlights 4 Poland 16 Dividend 5 United Kingdom 17-18 Earnings Breakdown 6 Operational Highlights 7 Outlook 19 Segmental Analysis: APPENDICES FPAM 8-11 Share Statistics 20 Assets Under Manage
Slide 3: Business Model
Business Model First Property Group plc is a commercial property fund manager with operations in the United Kingdom and Central Europe. Its business model is to: Raise third party funds to invest in income producing commercial property; Co-invest in these funds; Earn fees for the management of
Slide 4: Interims 2011 Financial Highlights
Interims 2011 Financial Highlights Six months to 30-Sep-2011 Six months to 30-Sep-2010 Percentage (Unaudited) (Unaudited) change Profit before tax (continuing operations) £2.54m £1.42m +79% Assets under management (AUM) £374m £315m +19% Net Assets £16.79m £15.70m +7% Diluted earnings per share (cont
Slide 5: Dividend
Interims 2011 Dividend 1.20p Board recommends increased 1.00p 1.03p 1.06p Interim dividend of 0.33p (2010: 1.00p 0.32p). 0.80p GBP 0.80p Interim XD 7 Dec 2011 Final 0.60p Record Date 9 Dec 2011 Total Payment Date 29 Dec 2011 0.40p 0.20p 0.00p 2008 2009 2010 2011 2012 5
Slide 6: Financial Highlights – Earnings breakdown
Interims 2011 Financial Highlights – Earnings breakdown In monetary terms (2009–11): 1.8 1.6 2011 2009 1.4 2010 2011 1.2 £m 1.0 0.8 0.6 0.4 2009 2010 0.2 0.0 FPAM Group Properties (incl. FOP) 6
Slide 7: Interims 2011 Operational Highlights
Interims 2011 Operational Highlights The value of assets under management increased by Fund raising has begun for a new UK fund, designed to 19% to £374 million (2010: £315 million). mimic UK PPP LP, and to deliver an un-geared and defensive annual dividend return of over 6%. The UK fund we es
Slide 8: Funds under Management
Interims 2011 Funds under Management Termination Date Assets under Management Fund Established (unless extended) at 30-Sep-2011 SAM Property Company Ltd 2004 Rolling Not subject to recent revaluation Regional Property Trading (RPT) 2004 Aug 2012 £7.9 million 5th Property Trading (5PT) 2004 Dec 2014
Slide 9: Breakdown of Funds under Management
Interims 2011 Breakdown of Funds under Management By fund: By investor category: By geography: USS Pension Funds Poland 65% 89% 71% UK PPP UK (2010: 77%) 25% 26% (2010: 19%) FOP 6% Family Offices 1% 5PT 2% RPT Fprop High net worth Romania 2% 7% investors 3% 3% (2010:4%) 9
Slide 10: Track Record – All Funds to Sep 2011
Interims 2011 Track Record – All Funds to 30 Sep 2011 35% Dissolved IRR p.a. - Actual 30% IRR p.a. - Implied 25% ROE p.a. - Current 20% ROE p.a. - from Inception Exclusion: 15% SAM Property Co Ltd, established Aug 2004 on behalf 10% of a HNW client of Coutts & Co, because: 5% a.) we do not have full
Slide 11: UK Track Record – Market Timing
Interims 2011 UK Track Record – Market Timing Years Fprop invested in UK commercial property 10 years Strategic decision in 2005 to sell UK properties, executed Aggregate quantum invested in UK £133m by 2007. Weighted average IRR p.a. of 1PT, 2PT, 3PT (net of fees) 22.96% Subsequent reinvestment
Slide 12: Group Properties – Indirectly held assets
Interims 2011 - Segmental Analysis Group Properties – Indirectly held assets Plc shareholding Book Value (IFRS) Market Value Earnings to Fund 30-Sep-2011 30-Sep-2011 30-Sep-2011 30-Sep-2011 Regional Property Trading (RPT) 28.6% £193,000 £328,000 £97,000 5th Property Trading (5PT) 37.8% £528,000 £1,1
Slide 13: Group Properties – Directly held assets
Interims 2011 - Segmental Analysis Group Properties – Directly held assets Valuation at Contribution to Property Name Purchase date Purchase price Bank loan 31-Mar-2011 pre-tax profit PLN 11.7 m PLN 12.8 m Bacha St, Mokotow, Warsaw Nov 2007 Nil £132,000 (£2.3m) (£2.8 m) Blue Tower, Central Business
Slide 14: Group Properties – Earnings breakdown
Interims 2011 - Segmental Analysis Group Properties – Earnings breakdown In monetary terms: In percentage terms: 0.8 0.7 2011 0.6 0.5 2011 2x direct 0.4 properties FOP 38% 53% 0.3 2010 0.2 0.1 2010 2011 3x fund 0.0 shareholdings 9% 2x direct properties 3x fund shareholdings FOP 14
Slide 15: Fund Raising Market
Interims 2011 Fund Raising Market General: Fprop Opportunities plc (FOP) Raising blind pools is still challenging. Investor appetite for Polish commercial real estate increased during the year, but has subsequently waned Competition not only from proposed new funds, but also again following es
Slide 16: Investment Markets – Poland
Investment Markets Poland Economy: Commercial property market: Poland’s GDP growth continues at one of the €1.8 billion of property transacted during Q1-3 fastest rates in Europe . During 1H 2011 it grew by 2011 (likely to slow in Q4 due to Euro-crisis). some 4.3% and is forecast to have grown b
Slide 17: Investment Markets – United Kingdom
Investment Markets United Kingdom Economy: Our strategy: To continue to invest in higher yielding, well located The UK economy remains weak and vulnerable. We (but not prime) properties with sustainable income expect this to continue for several years. streams; To target secure long term incom
Slide 18: UK: Commercial Property Yields & Interest Rates
Investment Markets UK: Commercial Property Yields & Interest Rates 10.00% The Opportunity Secondary property has not re-priced to the 9.00% same extent as prime. It is still largely Yield (average of office and retail yields) Yield gap diminished for secondary properties 8.00% trading at trough le
Slide 19: Outlook
Interims 2011 Outlook FPAM: Group Properties: AUM (and therefore FPAM fee income) is expected to Earnings from Group Properties expected to grow due to: grow due to: Continued investment of FOP; Shareholdings in our funds continuing to perform well, particularly FOP in which we New subscri
Slide 20: Share statistics at Sep 2011
Appendices Share statistics at 30 Sep 2011 2011 2010 % change LSE (AIM) Symbol FPO.L Issued & Fully Paid 114,851,115 110,444,390 +3.99% Share price 16p Issued (excl Treasury) 111,069,811 106,613,802 +4.18% Market Cap £17,771,000 Shares held in Treasury 3,781,304 3,830,588 -1.29% 0.33p (subject to Ou
Slide 21: Shareholders > 3% at Sep 2011
Appendices Shareholders > 3% at 30 Sep 2011 % held (of issued No of shares and fully paid) Benyamin Habib (Chief Executive Officer) 16,700,000 14.5% J C Kottler Esq 14,806,783 12.9% Universities Superannuation Scheme Limited 9,550,000 8.3% Alasdair Locke (Non-Executive Chairman) 8,571,990 7.5% NFU M
Slide 22: 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 23: 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. Subject to the terms and conditions
Slide 24: Contact Details
Contact Details Website http://www.fprop.com Financial PR Redleaf Polhill Telephone +44 20 7340 0270 www.redleafpolhill.com Address First Property Group plc Mike Ward 35 Old Queen Street George Parrett London firstproperty@redleafpr.com SW1H 9JA +44 20 7566 6750 Jeremy Barkes NOMAD & Broker Director
Slide 25: 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