First Property Group Plc · LSE:FPO
First Property — H1 FY2015 Earnings Presentation
27 slides from First Property's earnings presentation, Nov 26, 2014
Slide 1: Interim Results (6 months ended 30 Sep 2014)
Interim Results (for the 6 months ended 30 Sep 2014) First Property Group plc 26 Nov 2014 The performance of funds managed by First Property Group ranked No.1 vs IPD CEE universe over the eight years to 31 December 2013, having previously ranked No.1 over the three, four, five, six & seven years to
Slide 2: Table of Contents
Interim Results FY 2014/15 Table of Contents Business Model 3 Outlook 15-18 Investment Markets – Poland 16 Highlights 4-7 Investment Markets – United Kingdom 17 Financial Highlights 5 Outlook 18 Explanatory Notes 6 Dividend 7 Contact Details 19 Segmental Analysis 8-15 APPENDIX 1 20-23 Shareholders >
Slide 3: Business Model
First Property Group plc Business Model First Property Group plc is a co-investing direct 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
Slide 4: Highlights
Highlights 5 Financial Highlights 6 Explanatory Notes 7 Dividend Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 4
Slide 5: Financial Highlights
Highlights Financial Highlights Unaudited Six months to Unaudited Six months to Percentage Audited Year to 30-Sep-2014 30-Sep-2013 change 31-Mar-2014 Profit before tax £5.42m £1.91m +184% £6.6m Diluted Earnings per share 4.07p 1.27p +220% 4.53p Total Dividend 0.35p 0.33p +6% 1.12p Profit before tax
Slide 6: Explanatory Notes / Highlights
Notes Explanatory Notes/ Highlights Explanatory Notes/ Highlights: The impact of a weaker Euro versus Sterling during the period compared to the same period last year resulted in profit before tax being c£177,000 lower than it would otherwise have been. The increase in profit before tax to £5.42
Slide 7: Dividend Payments
Highlights Dividend Payments The Board recommends an increased Interim dividend of 0.35p (2013: 0.33p) 1.20 Interim Final Total 1.00 0.80 Interim Dividend: Ex-Dividend 18-Dec-2014 pence Record Date 19-Dec-2014 0.60 Payment Date 15-Jan-2015 0.40 0.20 0.00 2008 2009 2010 2011 2012 2013 2014 2015 Ema
Slide 8: Segmental Analysis
Segmental Analysis 9 Earnings Breakdown 10-11 FPAM: 10 Assets under Management (AUM) 11 AUM Breakdown 12-15 Group Properties: 12 Directly Held Assets 13 Co-investments 14 Earnings Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 8
Slide 9: Segmental Analysis: Earnings Breakdown
Segmental Analysis Earnings Breakdown Profit before Tax by Segment (1H 2012/13- 1H 2014/15) 3.5 3.5 £2.90m £2.97m 3.0 3.0 2.5 2.5 2.0 2.0 £m £m £1.46m £1.41m 1.5 1.5 £1.17m 1.0 1.0 £0.89m 0.5 0.5 0.0 0.0 2012 2013 2014 2012 2013 2014 FPAM Group Properties (incl) FOP NB. Recurring annual fund managem
Slide 10: Segmental Analysis - FPAM: Assets under Management
Segmental Analysis - FPAM Assets under Management (AUM) Assets under Management (AUM) at 30 Sep-2014: Termination Date AUM % total assets under Fund Established (unless extended) 30 Sep 2014 management Not subject to SAM Property Company Ltd (SAM) Aug-2004 Rolling n/a revaluation Regional Property T
Slide 11: Segmental Analysis - FPAM: AUM Breakdown
Segmental Analysis – FPAM AUM Breakdown Pension Funds Poland 79.7% 66% USS 47.1% UK PPP 30.2% By Fund By Investor By Geography Category Family UK Offices 34% HNWs 5.7% 0.8% FOP Fprop 14.1% 12.5% PDR RPT 5PT 2.2% Endowments 3.6% 2.8% 1.3% Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 11
Slide 12: Segmental Analysis: Group Properties
Segmental Analysis Group Properties Group Properties: Profit before tax and unallocated central overhead costs from Group Properties, including FOP, was £2.97 million (2013: £0.89 million). This represents 50.6% (2013: 38.7%) of Group profit before tax and unallocated central overheads. Comprised
Slide 13: Group Properties: Co-investments
Segmental Analysis – Group Properties Co-investments Group Properties (cont.) Co-investments in funds managed by FPAM as at 30 Sep-2014: Book value Market Value Group’s share of Fund Group’s shareholding of Group’s Share of Group’s share earnings Investments: UK Pension Property Portfolio (UK PPP) 0
Slide 14: Group Properties: Earnings
Segmental Analysis – Group Properties Earnings In monetary terms: In percentage terms 2.50 2014 2.00 4x directly held properties 64% 1.50 £m 1.00 2013 2014 FOP 2014 0.50 2013 19% 2013 RPT, 5PT, 0.00 UK PPP & Fprop 4x Direct Properties RPT, 5PT, UKPPP & FOP PDR Fprop PDR 17% Email jeremy.barkes@fpr
Slide 15: Outlook
Outlook 16 Investment Markets – Poland 17 Investment Markets – UK 18 Outlook Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 15
Slide 16: Investment Markets: Poland
Investment Markets Poland Economy: Commercial Property Market: GDP growth - FY2014 (E) = 3.2%, 2015 (E) = similar, Commercial property transactions forecast > €3 bn, similar to despite headwinds from EU & Ukraine. 2013, itself highest volume year since 2006. Confidence - Oct PMI = 51.2, >50 fo
Slide 17: Investment Markets: United Kingdom
Investment Markets United Kingdom Economy: GDP growth - slowing. FY2014 (E) = 2.9%, 2015 (E) = Retail: 2.7%. Occupational market - high street vacancy rates down to c13% from c16% in 2012. Vacancy rates for retail Confidence - Oct composite PMI = 55.8, lowest since Jun warehousing at 8%, low
Slide 18: Outlook
Outlook We have some £12 million in cash which is intended to seed new funds and invest in properties. Poland UK USS contract expires in Aug-2015. Will not be renewed. Expect additional trading profits from Fprop PDR, the quantum of which is hard to predict. Have already virtually entirely mit
Slide 19: Contact Details
Contact Details First Property Group plc Financial PR Website www.fprop.com Redleaf Polhill www.redleafpolhill.com Telephone +44 20 7340 0270 George Parrett/ Henry Columbine firstproperty@redleafpr.com Address First Property Group plc +44 20 7382 4747 35 Old Queen Street London NOMAD & Broker SW1H 9
Slide 20: Appendix 1
Appendix 1 21 Shareholders >3% at 28-Oct-2014 22 Share Statistics at 7-Nov-2014 23 Plc Management Team Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 20
Slide 21: Shareholders > 3% at 28-Oct-2014
Appendix 1 Shareholders > 3% at 28-Oct-2014 % held (of issued No of shares and fully paid) Ben Habib (Chief Executive Officer) 16,700,000 14.7% J C Kottler Esq 15,006,783 13.2% New Pistoia Income Ltd 11,440,000 10.1% Universities Superannuation Scheme Limited 9,550,000 8.4% Alasdair Locke (Non-Execu
Slide 22: Share Statistics at 7-Nov-2014
Appendix 1 Share Statistics at 7-Nov-2014 2014 2013 % change LSE (AIM) Symbol FPO.L Issued & Fully Paid 114,851,115 114,851,115 - Share price 26.5p Issued (excl Treasury) 113,669,360 111,180,025 +2.23% Market Cap £30.1 million Dividend yield 0.35p (subject to shareholder approval) Shares held in Tre
Slide 23: 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 24: Appendix 2
Appendix 2 Appendix 2 25 Investment Philosophy 26 Investment Approach Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 24
Slide 25: Investment Philosophy
First Property Asset Management Investment Philosophy Our Investment Approach: Sustainable income is a priority. A fundamental approach to investing: Property is illiquid: Consensus may chase a particular investment theme but that does not justify the theme. This illiquidity can be mitigat
Slide 26: Investment Approach
First Property Group 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 UK p
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 document or on
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