Slide 1: First Property Group plc Preliminary Results
Oxford Tower, Warsaw Acquired Aug 2007 First Property Group plc Preliminary Results For the twelve months to 31 March 2010 Galeria Ostrowiec, Acquired Oct 2006 Ben Habib – Chief Executive George Digby – Finance Director -1- 1
Slide 2: Contents
Contents Group Structure p.3 Earnings Overview p.4 Financial and Operational Highlights p.5-6 Segmental Performance p.7 FPAM (including macro picture) p.8-11 Group Properties p.12-13 FPS p.14 Valuation p.15 Outlook p.16 Appendices p.17-26 Market Statistics p.18 Management team p.19-21 Fund Performan
Slide 3: Group Structure
Group Structure BUSINESS DESCRIPTION Chairman (Non Exec) First Property Group plc is a commercial Alasdair Locke property fund manager with operations in the United Kingdom and Central Europe. The principal business model of First Group CEO Property Group can be summarised as Ben Habib follows: Grou
Slide 4: Preliminary Results – Operating Profit
Preliminary Results – Operating Profit Operating Profit 4 3 2 Full year 2009 £m 1 Full year 2010 0 -1 -2 FPAM (excl Group FPS Interest Income Other Fees Unallocated Total (incl Group Properties 2010 – 2010 – and Central Performance Performance 2010 – £180,000/ 4% £140,000/ 3% Income Costs Fees) Fees
Slide 5: Preliminary Results - Financial Highlights
Preliminary Results - Financial Highlights Revenue during the period amounted to £10.38 million (2009: £11.23 million), yielding a decreased profit on ordinary activities before taxation of £2.79 million (2009: £3.86 million). Assets under management (AUM) of £300 million (31 March 2009 - £310 milli
Slide 6: Preliminary Results - Operational Highlights
Preliminary Results - Operational Highlights The Company retained its ranking as the best performing fund manager versus the IPD CEE Benchmark, now for the four year period to 31 December 2009. It is also the best performing fund manager versus the IPD Polish Benchmark over the same period. Diversif
Slide 7: Preliminary Results - Segmental Performance
Preliminary Results - Segmental Performance Unaudited Percentage change Audited Year to 31 March from 31 March Year to 2010 2009 31 March 2009 Operating profit (see segmental analysis below) £2.97m -17% £3.57m Interest income £0.14m -65% £0.40m Profit on ordinary activities before tax £2.79m -27% £3
Slide 8: First Property Asset Management Ltd
First Property Asset Management Ltd Five funds under management as at 31 March 2010 with a total value of £300 million. Geographical split of funds expected to shift further in favour of the UK over the coming months. Geographical Split by Value Sector Split By Value 11% 14% 4% UK Industrial Romania
Slide 9: First Property Asset Management Ltd – Cont.
First Property Asset Management Ltd – Cont. Performance remains good: Ranked #1 versus IPD CEE Benchmark and IPD Polish Benchmark over the 4 year period to 31 December 2009. This marks the full period that FPAM has been invested in CEE, following its decision to exit UK commercial property in 2005.
Slide 10: Polish economy and market
Polish economy and market Poland was the only economy in the 27 member European Union to avoid recession in 2009 according to the IMF. It is now the 6th largest economy in Europe and the 19th largest in the World. Poland recorded GDP growth of 1.8% in 2009 and is forecast to grow by 2.75% in 2010 ac
Slide 11: UK economy and market
UK economy and market Investor demand for well let commercial property has returned and pricing has bounced off the lows reached in early to mid 2009, particularly at the prime end and in some cases back to pre-credit crunch levels. The combined policy response by western Central Banks of pumping ex
Slide 12: Group Properties
Group Properties Two properties owned directly: 1. Class C office building, Mokotow, Warsaw Acquired Nov 2007 for PLN 11.5 million (£2.6 million) Net rental income - PLN 1.4 million (£290,000) pa Yield & ROE – 12% in local FX PP for change of use to residential granted Jan 2010 but Fprop is appealin
Slide 13: Group Properties (cont)
Group Properties (cont) In addition to the 2 properties held directly, the Group also owns stakes in 2 of FPAM’s 5 funds. IFRS requires earnings from these shareholdings to be reported at PLC level as “share of associates”. We refer to them within Group Properties because we regard earnings from co-
Slide 14: First Property Services Ltd (60% interest)
First Property Services Ltd (60% interest) First Property Services Ltd is a mechanical & electrical (M&E) contractor which specialises in the installation and maintenance of air cooling and heating systems. The Group acquired its 60% stake in 2006. Its Book Value is £213,000 (2009: £199,000), calcul
Slide 15: Value Attribution of component parts at 17p
Value Attribution of component parts at 17p Shares in issue at 9 June 2010 = 109,770,527 (excluding 3,830,588 shares held in Treasury) Market Cap at 17p = £18,660,990 Market Cap less net assets at cost Market Cap less net assets at market value Cash £807,990 £3,238,990 Group Properties 4% £1,000,000
Slide 16: Outlook
Outlook Fprop has navigated the credit crunch well thus far. It 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. AUM should rise by £100 million as the new UK fund
Slide 17: Appendices
Appendices Wallenroda, Lublin Acquired Jan 2006 Market statistics p.18 Management Team p.19-22 Fund Performance p.23-25 Blue Tower, Warsaw Acquired Dec 2008 Contact Details p.26 -17- 17
Slide 18: Market Statistics
Market Statistics Number of shares in issue (9.6.10): 109,770,527 Number of shares held in treasury: 3,830,588 (av cost 16.1p) Diluted EPS for the year: 1.97p (2009: 2.74p) Share price: 17.00p Market capitalisation: £18,660,990 Major shareholders: Benyamin Naeem Habib (Chief Executive Officer) 16,70
Slide 19: PLC Management Team – Non Exec
PLC Management Team – Non Exec Non-executive Chairman, Alasdair Locke, MA (Oxon) Alasdair is the outgoing Executive Chairman of Abbot Group, an oil services company which he founded in 1992 and which was listed on the London Stock Exchange between 1995 and 2008. It was acquired in 2008 for £906 mill
Slide 20: PLC Management Team - Exec
PLC Management Team - Exec Chief Executive, Ben Habib, MA (Cantab) Ben founded Fprop in 2000 and has been its Chief Executive since that date. He has 16 years experience in the property sector. Prior to establishing the Group he operated in a private capacity as a property developer and investor. Be
Slide 21: FPAM Management Team
FPAM Management Team Property Director - Martin Pryce, BSc, MRICS, IMC Martin joined Fprop in 2001, following its acquisition of Propertytrade plc, a commercial property portal of which he was MD. He has 27 years of experience in chartered surveying, including being a partner at Donaldsons Chartered
Slide 22: Our Team on the Ground
Our Team on the Ground Asseco HQ, Gdynia The Group has a policy of managing its property portfolio in-house, Acquired March 2007 as much as possible. It employs: 9 staff in the UK 18 staff in Poland Full in-house fund & asset management 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 fund is
Slide 24: Fund Performance (cont)
Fund Performance (cont) Fund 7 (UK & CEE commercial, the USS fund) launched in 2005: if properties held by the fund had been sold at their value at 31 March 2010, the annualised IRR earned by the fund would have been some 1%. This fund is the principal source of our #1 ranking vs IPD CEE & IPD Polis
Slide 25: Funds Performance (cont)
Funds Performance (cont) Fund Performance Fund Performance 80 80 80 70 70 60 60 50 50 40 IRR% 40 IRR% 30 30 20 20 10 10 0 0 Fund 1 Fund 2 Fund 3 Fund 4 Fund 5 Fund 6 Fund 7 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: 0207 731 2844 Address: First Property Group plc 17 Quayside Lodge William Morris Way London SW6 2UZ Email: jeremy.barkes@fprop.com Financial PR Enquiries: Redleaf Communications Ltd 0207 566 6700 Adam Leviton / Lucy Salaman Email: firstp