Slide 1: Preliminary Results for the year ended March 2015
Preliminary Results for the year ended March 2015 First Property Group plc 11 June 2015 FPAM funds have ranked No.1 versus the Investment Property Databank (IPD) Central & Eastern European (CEE) universe for the annualised periods from the commencement of its operations in Poland in 2005 to the end
Slide 2: Contents
First Property Group plc Contents Company Description 3 Investment markets – Poland 19 Investment Approach 4 Investment markets – UK 20 NAV per share FY 2007-15 5 Outlook 21 Prelims Highlights – Financial Highlights 6-7 Contact Details 22 Prelims Highlights – Operational Highlights (and Explanatory
Slide 3: Company Description
First Property Group plc Company Description First Property Group plc is a 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, First Property Asset Managem
Slide 4: Investment Approach
First Property Group plc Investment Approach A fundamental approach to investing (sentiment may chase a theme but does not justify the theme). Thinking from first principles. Sustainable income is a priority: The yield at purchase of any property investment must ALWAYS exceed borrowing costs;
Slide 5: NAV per share FY 2007-15
First Property Group plc NAV per share FY 2007-15 Adjusted NAV = adjusted to market 40 Adjusted NAV NAV Cash value in line with EPRA triple net valuation methodology, which 35 includes fair values of: (i) financial instruments; 30 (ii) debt; (iii) deferred taxes. Pence per share 25 20 15 10 5 0 Mar-
Slide 6: Prelims Financial Highlights
Highlights - Prelims Financial Highlights Unaudited Notes Audited Year to Percentage year to 31-Mar-2014 change 31-Mar-2015 Profit before tax £8.08m £6.60m +22.4% Diluted Earnings per share 6.93p 4.53p +53.0% Total Dividend per share 1.35p 1.12p +20.5% Profit before tax by segment (prior to deductio
Slide 7: Prelims Operational Highlights and Explanatory Notes
Highlights - Prelims Operational Highlights and Explanatory Notes Year to 31-Mar-2015 Year to 31-Mar-2014 Assets under management (including Group Properties): £327m £341m Poland 65% 67% United Kingdom 33% 30% Romania 2% 3% Operational Highlights (and Explanatory Notes): The increase in profit bef
Slide 8: Operational Highlights and Explanatory Notes (cont)
Highlights - Prelims Operational Highlights and Explanatory Notes (cont) (cont) Final dividend increased to 1 penny per share (2014: 0.79 pence per share), an increase of 27%, which together with the interim dividend of 0.35 pence per share (2014: 0.33 pence per share) equates to a dividend for th
Slide 9: Prelims Dividend
Highlights - Prelims Dividend 1.60 Interim Final Total Final dividend: 1.40 1p (2014: 0.79p) = +26.6% 1.20 Total dividend for year: 1.00 1.35p (2014: 1.12p) = +20.5% Pence per share 0.80 0.60 0.40 Ex-Dividend 20-Aug-2015 0.20 Record Date 21-Aug-2015 0.00 Payment Date 30-Sep-2015 2013 2014 2015 DIVID
Slide 10: Operating profit by segment
Segmental Analysis Operating profit by segment (prior to deduction of unallocated central overheads) 12 Group Properties (incl FOP) FPAM (excl fees from FOP) 10 8 £6.56m £ Million 6 £6.32m 4 £2.07m £4.44m 2 £2.84m £2.63m 0 2013 2014 2015 Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 10
Slide 11: Segmental Analysis – Fund Management (FPAM)
Segmental Analysis – Fund Management (FPAM) Fund Management (FPAM) Fund Management (FPAM): Contributed profit before unallocated central overheads and tax of £4.44 million (2014: £2.63 million), representing 40% (2014: 29%) of Group profit before tax and unallocated central overheads. Performance fe
Slide 12: Fund Management – Assets under Management
Segmental Analysis – Fund Management (FPAM) Assets under Management (incl Group Properties) Fund Country of Termination Commitment AUM % of AUM investment Date 31-Mar-2015 AUM 31 Mar-2014 (unless 31 Mar-2015 extended) Not subject to n/a n/a 1. SAM Property Company Ltd (SAM) UK Rolling Fully invested
Slide 13: Breakdown of AUM (incl Group Properties)
Segmental Analysis – Fund Management (FPAM) Breakdown of AUM (incl Group Properties) FPAM earns fees for supplying fund management services based on the value of properties under management; The quantum levied varies depending on the investment strategy; In the case of Fprop PDR, a trading str
Slide 14: Segmental Analysis – Group Properties Overview
Segmental Analysis – Group Properties OVERVIEW Group Properties: Contributed profit before unallocated central overheads and tax of £6.57 million (2014: £6.32 million), representing 60% (2014: 71%) of Group profit before tax and unallocated central overheads, of which: Six directly held properties
Slide 15: Eleven properties owned directly by the Group and FOP
Segmental Analysis – Group Properties Eleven properties owned directly by the Group and FOP Property No. of properties Book value Market value Contribution to Group profit before tax and overheads Continuing Blue Tower 1 £12.54m £14.18m £1,461,000 FOP 4 £42.76m £45.76m £1,135,000 Sub total 5 £55.30m
Slide 16: Group Properties: cash flows and top 10 tenants
Segmental Analysis – Group Properties (cont) Eleven properties owned directly by the Group and FOP Eleven properties owned directly by the Group and FOP (8 in Poland, 3 in Romania = 11) Cash flows: Top 10 tenants: Net rent 1 Asseco S.A. Technology 26.79% (after property operating costs but €19.5
Slide 17: Group Properties: Debt exposure
Segmental Analysis – Group Properties (cont) Eleven properties owned directly by the Group and FOP Eleven properties owned directly by the Group and FOP – Debt exposure: (8 in Poland, 3 in Romania) 250 Each property is held in a separate non-cross collateralised SPV. Market Value = €196.3m Debt
Slide 18: Non-controlling interests in funds managed by FPAM
Segmental Analysis – Group Properties (cont) Non-controlling interests in funds managed by FPAM Non-controlling interests in funds managed by FPAM: Contributed £879,000 (2014: £253,000), the increase being attributable to Fprop PDR LP. As at 31-Mar-2015: Book value Market Value Contribution to Fund
Slide 19: Investment Markets – Poland
Investment Markets Poland GDP growth: 2014: 3.4% 2015: 3.4% (E) Commercial Property: Rent levels generally sustainable, subject to location; Capital values of secondary property remain largely unchanged from their credit crunch lows. Yield c2-3% more than equivalent property in Western E
Slide 20: Investment Markets – United Kingdom
Investment Markets United Kingdom GDP growth: 2014: 2.8% - fastest growing major advanced economy 2015: > 2.5% (E) Consumer confidence is at a twelve year high Commercial Property Occupier demand growing across the board. Slowly manifesting itself in upward property revaluations and ri
Slide 21: Outlook
Outlook We have some £12 million in cash which is intended to seed new funds and invest in properties. FPAM Group Properties Lost fee income from expiry of USS contract in Annualised recurring contribution to Group profit Aug-2015 has been more than entirely before unallocated overheads and tax
Slide 22: Contact Details
Contact Details First Property Group plc Financial PR Website www.fprop.com Redleaf Polhill www.redleafpolhill.com Telephone +44 20 7340 0270 Richard Gotla / Henry Columbine firstproperty@redleafpr.com Address First Property Group plc +44 20 7382 4747 35 Old Queen Street London NOMAD & Broker SW1H 9
Slide 23: Appendix
Appendix Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 23
Slide 24: Shareholders > 3% at Jun-2015
Appendix 1 Shareholders > 3% at 10 Jun-2015 % held (of issued No of shares and fully paid) Ben Habib (Chief Executive Officer) 16,700,000 14.6% J C Kottler Esq 15,006,783 13.1% New Pistoia Income Ltd 12,440,000 10.9% Universities Superannuation Scheme Limited 9,550,000 8.4% Alasdair Locke (Non-Execu
Slide 25: Share Statistics at 10-Jun-2015
Appendix 1 Share Statistics at 10-Jun-2015 2015 2014 % change LSE (AIM) FPO.L Symbol Issued & Fully Paid 114,851,115 114,851,115 - Share price 40p Issued (excl Treasury) 114,192,541 112,952,158 +1.1% Market Cap £46 million Final 1.00p Shares held in Treasury 658,574 1,898,957 -65.3% Dividend Interim
Slide 26: Plc Management Team
Appendix 1 Plc Management Team 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 million to Turbo Alph
Slide 27: FPAM Track Record
FPAM Track Record All Funds (excl SAM) to 31-Mar-2015 Fund performance at 31 March 2015: 120% IRR pa - Actual IRR pa - Implied ROE FY 2014/15 - on original equity ROE pa - since inception 100% 80% 60% 40% 20% 0% 1PT 2PT 3PT RPT 5PT USS UK PPP FOP PDR -20% All implied IRR calculations use NAVs at 3
Slide 28: Poland Economy
Poland Economy GDP growth: Since 2009: 16% (cumulative). Highest in OECD. Only euro zone country NOT to enter recession in 2009. 2014: 3.4% 2015: 3.4% (E) GDP per capita: 1995: 43% of the average of EU countries; 2000: 48% 2011: 64% EU Cohesion Policy (transfer payments from richer
Slide 29: Poland Commercial Property Market
Poland Commercial Property Market COMMERCIAL PROPERTY MARKET: Opaque – creates opportunity; Occupier Market: Tenant demand is generally robust - because of continued GDP growth; But is insufficient in some sectors (eg. Warsaw non-CBD offices) to match pending supply. Investment Market: R
Slide 30: Poland Commercial Property Finance
Poland Commercial Property Finance COMMERCIAL PROPERTY FINANCE: Debt: Readily available, enabling income returns on equity from rent alone >mid-high teens per annum; Favourable terms for smaller loans against commercial property; Larger loans require syndication and are generally subject to
Slide 31: 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