First Property Group Plc · LSE:FPO
First Property — H1 FY2013 Earnings Presentation
38 slides from First Property's earnings presentation, Dec 5, 2012
Slide 1: Interim Results
Interim Results 5 December 2012 First Property Group plc The performance of funds managed by First Property Group ranked No.1 vs IPD CEE universe over the three, four, five & six years to 31 Dec 2008, 2009, 2010 & 2011 Email jeremy.barkes@fprop.com Phone +44 20 7340 0270
Slide 2: Table of Contents
Prelims 2012 Table of Contents Business Model 3 Outlook 19-23 Fund Raising Market 20 Highlights 4-8 Investment Market - Poland 21 Financial Highlights 5 Investment Market - United Kingdom 22 Dividend 6 Outlook 23 Earnings Breakdown 7 Financial & Operational Highlights 8 Contact Details 24 Segmental
Slide 3: Business Model
First Property Group plc Business Model First Property Group plc is a commercial property fund manager with operations in the United Kingdom & Central Europe. First Property Group plc is listed on the AIM segment of the London Stock Exchange (AIM: FPO) and was founded in 2000 by its Chief Executive,
Slide 4: Highlights
Highlights 5 Financial Highlights 6 Dividend 7 Earnings Breakdown 8 Financial & Operational Highlights Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 4
Slide 5: Financial Highlights
Highlights Financial Highlights Six months to Six months to Percentage Year to 30-Sep-2012 (Unaudited) 30-Sep-2012 (Unaudited) change 31-Mar-2012 (audited) Profit before tax - continuing operations £2.21m £2.54m -13.0% £3.97m Assets under management £347m £374m -7.2% £365m Net assets £17.84m £16.79m
Slide 6: Dividend
Highlights Dividend Board recommends Interim dividend be maintained at 0.33p (2011: 0.33p) Interim Final Total 1.20 1.00 XD 12-Dec-2012 GBP pence Record Date 14-Dec-2012 0.80 Payment Date 11-Jan-2013 0.60 0.40 0.20 0.00 2008 2009 2010 2011 2012 2013 Email jeremy.barkes@fprop.com Phone +44 20 734
Slide 7: Earnings Breakdown
Highlights Earnings Breakdown Profit Before Tax by Segment (2010-2012) N.B. Purple bar earnings show the negative impact of foreign currency translation on 2012 earnings (by using 2011’s average exchange rate on 2012 earnings). The white bar on Group’s 2011 earnings denotes the effect of the increas
Slide 8: Financial & Operational Highlights
Highlights Financial & Operational Highlights Financial Highlights (notes): Current Developments: Negative impact of foreign currency translation on: We are working on raising a new UK fund to mimic the investment strategy of the UK Pension Property a. Assets under Management £19.9m decrease Por
Slide 9: Segmental Analysis
Segmental Analysis 10-14 FPAM: 10 Assets under Management (AUM) 11 AUM breakdown 12-13 Track Record 14 Tenancy Exposure 15-18 Group Properties: 15 Directly held assets 16 Co-investments 17 Earnings breakdown 18 Tenancy Exposure Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 9
Slide 10: Assets under Management (AUM)
Segmental Analysis Assets under Management (AUM) Assets under Management at 30 September 2012: Termination Date AUM Fund Established Geography (unless extended) 30-Sep-2012 SAM Property Company Ltd (SAM) Aug-2004 Rolling Not subject to revaluation United Kingdom Regional Property Trading (RPT) Aug-2
Slide 11: AUM Breakdown
Segmental Analysis AUM Breakdown AUM breakdown by Fund, Investor Category and Geography: USS Pension Poland 62% Funds 69% 89% Fund UK PPP Investor Geographic Breakdown 27% Category Breakdown UK 28% FOP Fprop 6% Family Offices 7% 1% HNWs 5PT 3% Romania RPT 3% 2% 3% Email jeremy.barkes@fprop.com P
Slide 12: Track Record – All Funds (excl SAM) to September 2012
Segmental Analysis Track Record – All Funds (excl SAM) to 30 September 2012 Fund performance at 30 September 2012: • FPAM’s three historic funds (all of which were invested in UK commercial property) generated a weighted average IRR of 23.0% p.a. net of fees. • FPAM’s five discretionary active funds
Slide 13: Track Record - UK
Segmental Analysis Track Record - UK FPAM’s UK Purchase & Sale History (2002-12) Highlighting strategic decision to exit UK commercial property at peak of the bubble. 2012 Investing Re-opening FOP to subscriptions and in Poland launch FSIF (FPAM’s 6th UK fund). “…the commercial property investment m
Slide 14: Tenancy Exposure (top 10) – Client funds
Segmental Analysis Tenancy Exposure (top 10) – Client funds 5.00 £ Millions p.a. 4.50 14.3% 4.00 3.50 3.00 2.50 2.00 5.6% 5.2% 1.50 4.1% 3.4% 3.2% 1.00 2.7% 2.4% 2.2% 2.1% 0.50 - Prokom Gdynia Citibank Int. Indesit Carrefour Aquila Skanska S.A. B&Q Plc Matalan Retail Cadburys Kirklees Primary Radoms
Slide 15: Group Properties
Segmental Analysis Group Properties Group Properties comprises one property owned directly by the Group and co-investments in four of the six funds managed by FPAM. 1. Directly owned property: Purchase Book Bank Valuation Contribution Return on Original Equity Property Name Net Rent date cost loan a
Slide 16: Co-investments
Segmental Analysis Co-investments 2. Co-investments in funds managed by FPAM: Plc shareholding Book value Market Value of Group’s share Fund 30-Sep-2012 of Fprop’s share holdings 30-Sep-2012 of pre-tax profit Interest in associates: 5th Property Trading (5PT) 37.8% £657,000 £1.2m £64,000 Regional Pr
Slide 17: Group Properties – Earnings Breakdown
Segmental Analysis Group Properties – Earnings Breakdown In monetary terms: In percentage terms: 0.8 0.7 2011 0.6 2012 0.5 2011 £ Millions FOP RPT, 5PT & UKPPP 0.4 2012 38% 10% 0.3 2x direct properties* 0.2 51% 0.1 2011 2012 0.0 2x direct properties* RPT, 5PT & UKPPP FOP * Of the 2x direct propertie
Slide 18: Group Properties – Tenancy Exposure (top 10)
Segmental Analysis Group Properties – Tenancy Exposure (top 10) 1.4 54.6% 1.2 1 0.8 £ Millions p.a. 0.6 0.4 10.1% 0.2 6.1% 5.5% 3.2% 3.0% 2.4% 2.3% 2.3% 2.2% 0 Carrefour HRK Agencja Alex Gross / UBM Medica Polska Gleeds Degremont Benefit Systems First Property Nieruchomosci TECTUM Wytwornia S.A. Pol
Slide 19: Outlook
Outlook 20 Fund Raising Market 21 Investment Market – Poland 22 Investment Market – UK 23 Outlook Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 19
Slide 20: Fund Raising Market Outlook
Fund Raising Market Outlook UK Sterling Income Fund (FSIF) Fprop Opportunities plc (FOP) We are in the process of raising a new UK fund and We are also raising new funds into FOP to finance the have indications of interest from a number of purchase of a number of property acquisitions we are ins
Slide 21: Investment Markets Poland
Investment Markets Poland Review of Market Environment: In the wake of a slowdown in European growth, Poland’s Poland’s commercial investment property market has GDP growth has also slowed and is expected to end the had a good year so far with over €1 billion of property year having grown some 2
Slide 22: Investment Markets United Kingdom
Investment Markets United Kingdom Review of Market Environment: As we have mentioned in previous statements, we expect the UK economy to remain weak for a number of years. The commercial property investment market has softened during the first half of the year but income and values in our UK por
Slide 23: Outlook
Interims 2012 Outlook Current trading and prospects: The difficulties in the euro zone continue to overhang all European capital markets, although the recent announcement by the ECB of its outright market transactions has somewhat stabilised markets. Our earnings have been impacted by these diff
Slide 24: Contact Details
Contact Details First Property Group plc Financial PR Redleaf Polhill Website http://www.fprop.com www.redleafpolhill.com Telephone +44 20 7340 0270 George Parrett/ Henry Columbine firstproperty@redleafpolhill.com Address First Property Group plc +44 20 7566 6750 35 Old Queen Street London NOMAD & B
Slide 25: Appendix 1
Appendix 1 26 Shareholders >3% at 30-Sep-2012 27 Share Statistics at 30-Sep-2012 28 Plc Management Team Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 25
Slide 26: Shareholders > 3% at 30-Sep-2012
Appendix 1 Shareholders > 3% at 30-Sep-2012 % held (of issued No of shares and fully paid) Ben Habib (Chief Executive Officer) 16,700,000 14.5% J C Kottler Esq 15,006,783 13.1% Universities Superannuation Scheme Limited 9,550,000 8.3% Alasdair Locke (Non-Executive Chairman) 8,571,990 7.5% Whitehall
Slide 27: Share Statistics
Appendix 1 Share Statistics at 5 Dec-2012 2012 2011 % change LSE (AIM) Symbol FPO.L Issued & Fully Paid 114,851,115 114,851,115 0.0% Share price 20.0p Issued (excl Treasury) 111,127,947 111,069,811 +0.1% Market Cap £22.2 million Shares held in Treasury 3,723,168 3,781,304 +1.5% 5.4% pa 0.33p Dividen
Slide 28: 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 29: Appendix 2
Appendix 2 30-31 Funds Open for Subscription 32-33 Investment Markets 34 UK Tenants – Discount Retailers 35-36 Investment Approach and Philosophy 37 Videos Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 29
Slide 30: Fprop Sterling Income Fund (FSIF)
Funds Open for Subscription Fprop Sterling Income Fund (FSIF) Fprop Sterling Income Fund (FSIF) will invest in UK commercial property, targeting a dividend yield of 6%+ p.a., coupled with the prospect of capital growth. Defensive strategy to navigate weak economic environment. Focus on higher yi
Slide 31: Fprop Opportunities plc (FOP)
Funds Open for Subscription Fprop Opportunities plc (FOP) Fprop Opportunities plc (FOP) was established in Oct-2010 with £8.28 million of equity, comprising £7 million from First Property Group plc and a further £1.28 million from staff, their families and friends. Pan-European Fund focused on Polan
Slide 32: UK Commercial Property Market Analysis by IPD
Investment Markets UK Commercial Property Market Analysis by IPD Over the long term income is the main driver of Since 1981 UK retail has generated the best risk investment returns adjusted returns Capital Growth Income Return Total Return 15 20 Risk (Standard Deviation) % pa Income as a % of Total
Slide 33: UK: Commercial Property Yields & Interest Rates
Investment Markets UK: Commercial Property Yields & Interest Rates Average Secondary Yields Average Prime Yields Bank Base Rate Sharp re-pricing 12% The Opportunity Secondary property has not re-priced to the same extent as prime; Yield (average of office and retail yields) 10% Prime yields are,
Slide 34: Selection of UK Tenants Weighting Towards Discount Retailers
Selection of UK Tenants Weighting Towards Discount Retailers Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 34
Slide 35: First Property Asset Management 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 This illiquidity can be mitigated by rental income – theme but that does n
Slide 36: First Property Group 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 37: Videos
Appendices Videos Bloomberg TV – Ben Habib discusses outlook for commercial property Fprop Opportunities plc in 2012 (Dec-2011) – Presentation www.bloomberg.com/video/82576408/ (Dec-2010) www.fprop.com/videos/fop- promotional-video UK Commercial investment property - a minefield (Mar-2011) http://ww
Slide 38: Disclaimer
Disclaimer These presentation materials (the "Presentation Materials”) are being solely issued to No reliance may be placed for any purpose whatsoever on the information contained and directed at (a) persons having professional experience in matters relating to in this document or on its completenes
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