Slide 1: Preliminary Results Year ended 31 March 2014
Preliminary Results Year ended 31 March 2014 First Property Group plc 3 June 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 31 Decem
Slide 2: Table of Contents
Preliminary Results 2014 Table of Contents Business Model 3 Outlook 15-18 Fund Raising 16 Highlights 4-7 Investment Markets – Poland 17 Financial Highlights 5 Investment Markets – United Kingdom 18 Operational Highlights 6 Outlook 19 Dividend 7 Contact Details 20 Segmental Analysis 8-15 APPENDIX 1 2
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 Operational Highlights 7 Dividend Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 4
Slide 5: Financial Highlights
Highlights Financial Highlights Year to 31-Mar-2014 Year to 31-Mar-2013 Percentage (Unaudited) (Audited) change Profit before tax £6.60m £3.54m +86% Diluted Earnings per share 4.53p 2.18p +108% Total Dividend 1.12p 1.08p +4% Profit before tax and unallocated central overheads by segment: Profit befo
Slide 6: Operational Highlights
Highlights Operational Highlights Operational Highlights: Return to development activity in the UK generating a non- Reduction in cash balances by £1.7 million from £12.98 million to recurring contribution to earnings of some £3.8 million; £11.28 million principally as a result of £7.5 million o
Slide 7: Dividend
Highlights Dividend The Board recommends an increased Final dividend of 0.79p When combined with the Interim dividend of 0.33p this equates to a total dividend for the year of 1.12p (2013: 1.08p) 1.20 Interim Final Total 1.00 0.80 Final Dividend: £ pence Ex-Dividend 20-Aug-2014 0.60 Record Date 22-A
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: Earnings Breakdown
Segmental Analysis Earnings Breakdown Profit before Tax by Segment (FY 2012- FY 2014) 7.0 7.0 £6.32m 6.0 6.0 5.0 5.0 4.0 4.0 £m £m £3.07m £2.84m 3.0 3.0 £2.63m £2.54m £2.07m 2.0 2.0 1.0 1.0 0.0 0.0 2012 2013 2014 2012 2013 2014 FPAM Group Properties (incl) FOP Email jeremy.barkes@fprop.com Phone
Slide 10: FPAM Assets under Management (AUM)
Segmental Analysis - FPAM Assets under Management (AUM) Assets under Management (AUM) at 31 March 2014: Termination Date AUM % total assets under (unless extended) 31-Mar-2014 management Fund Established Not subject to SAM Property Company Ltd (SAM) Aug-2004 Rolling revaluation Regional Property Tra
Slide 11: FPAM AUM Breakdown
Segmental Analysis – FPAM AUM Breakdown Pension Funds Poland 75.89% 67% USS 47.1% UK PPP 26.5% By Investor Family By Geography UK By Fund Offices Category 30% HNWs 0.79% 6.54% FOP Fprop 18.2% 15.49% PDR RPT Romania 5PT 2.1% Endowments 3.5% 2.6% 1.29% 3% Email jeremy.barkes@fprop.com Phone +44 20
Slide 12: Group Properties
Segmental Analysis Group Properties Group Properties: NB. It is the Group’s policy to carry its investments at the lower of cost or market value for accounting purposes. Comprised during the year: Blue Tower: 1. Blue Tower (office building in Warsaw’s CBD) – Initial 28.5% interest now valued a
Slide 13: Group Properties Co-investments
Segmental Analysis – Group Properties Co-investments Group Properties (cont.) Co-investments in funds managed by FPAM as at 31 March 2014: Book value Market Value Group’s share of Fund Group’s shareholding of Group’s Share of Group’s share earnings Investments: 1 UK Pension Property Portfolio (UK PP
Slide 14: Group Properties Earnings
Segmental Analysis – Group Properties Earnings In monetary terms: In percentage terms: 6.00 2014 5.00 3x directly held properties 4.00 77% £m 3.00 2.00 FOP 2014 19% 1.00 2013 2013 2013 2014 0.00 RPT, 5PT & Direct Properties RPT, 5PT & UKPP FOP UK PPP 4% Email jeremy.barkes@fprop.com Phone +44 20
Slide 15: Outlook
Outlook 16 Fund Raising 17 Investment Markets – Poland 18 Investment Markets – UK 19 Outlook Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 15
Slide 16: Fund Raising
Fund Raising Poland: UK: Fprop Opportunities plc (FOP) - raised additional £3.71 Fprop PDR LP – established Oct 2013 with some £41 million in Apr 2013, including an investment of £2 million million in commitments, principally from clients of a by the Group. We expect to complete investing the le
Slide 17: Investment Markets Poland
Investment Markets Poland Economy: Commercial Property Market: GDP growth: Turnover: 2013: 1.6% (actual) 2005 (peak): €5.2 billion 2014E: 3% 2013: €3 billion 2015E: 3.1% Dominated by international investors (>90% in 2013) Inflation 2014E: 1.4% Prime yields – in c25bp from last
Slide 18: Investment Markets United Kingdom
Investment Markets United Kingdom Economy: Property Market: GDP growth: Turnover in 2013 of £53.4 billion, a 6 year high; 2013: 1.9% (actual) Demand for commercial investment property has spread 2014E: 2.9% out to the regions. Valuation gap between prime and good secondary commercial prope
Slide 19: Outlook
Outlook We have some £11 million of cash which is intended to seed new funds and invest in high yielding properties. Poland UK USS contract expires in 2015. Will not be renewed. Fprop PDR LP – no ongoing management fees, only a share of profits from realisations. Development profits expected in
Slide 20: 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/ Hannah Pollack firstproperty@redleafpr.com Address First Property Group plc +44 20 7382 4747 35 Old Queen Street London NOMAD
Slide 21: Appendix 1
Appendix 1 22 Shareholders >3% at 3-Jun-2014 23 Share Statistics at 3-Jun-2014 24 Plc Management Team Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 21
Slide 22: Shareholders > 3% at 3-Jun-2014
Appendix 1 Shareholders > 3% at 3-Jun-2014 % held (of issued No of shares and fully paid) Ben Habib (Chief Executive Officer) 16,700,000 14.8% J C Kottler Esq 15,006,783 13.3% Universities Superannuation Scheme Limited 9,550,000 8.5% Alasdair Locke (Non-Executive Chairman) 8,571,990 7.6% New Pistoia
Slide 23: Share Statistics at 3-Jun-2014
Appendix 1 Share Statistics at 3-Jun-2014 2014 2013 % change LSE (AIM) Symbol FPO.L Issued & Fully Paid 114,851,115 114,851,115 - Share price 31p Issued (excl Treasury) 112,952,158 111,153,755 +1.62% Market Cap £34.3 million 1.12p – comprising Final dividend of Shares held in Treasury 1,898,957 3,69
Slide 24: 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 25: Appendix 2
Appendix 2 Appendix 2 26 Investment Philosophy 27 Investment Approach Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 25
Slide 26: 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 27: 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 28: 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