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
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 Analysis: APPENDIX 1 25-28 FPAM Share Statistics 26 10-14 Assets under Management (AUM) Shareholders 27 10 AUM breakdown Plc Management Bios 28 11 Track Record 12-13 Tenancy Exposure APPENDIX 2 29-37 14 Funds Open for Subscription 30-31 Group Properties 15-17 Investment Markets 32-33 Directly held assets 14 UK Tenants – Discount Retailers 34 Co-investments 15 Investment Approach and Philosophy 35-36 Earnings breakdown 16 Videos 37 Tenancy Exposure 17 Disclaimer 38 Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 2
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, Ben Habib. At 30 September 2012 the Group had some £347 million of direct property assets under management, invested across six funds in the United Kingdom and Central Europe, managed by its wholly owned subsidiary First Property Asset Management Ltd (FPAM). The business model of First Property Group is to: UK Raise third party funds to invest in income producing commercial property; Romania 28% 3% Co-invest in these funds and thereby earn a return on its own capital invested; and Earn fees for the management of these funds. Fees earned are a function of the AUM value of assets under management as well as the performance of the funds. £347m 30-Sep-2012 Poland 69% 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 3
Highlights 5 Financial Highlights Dividend 6 Earnings Breakdown 7 8 Financial & Operational Highlights Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 4
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 £374m -7.2% £365m £347m Net assets £17.84m £16.79m +6.3% £17.36m Cash Balances £11.77m £8.97m +31.2% £9.98m Diluted earnings per share (continuing operations) 1.46p 1.61p -9.3% 2.73p Profit before tax by segment: Profit before tax from property fund management (FPAM) £1.46m £1.62m -9.9% £3.07m Profit before tax from total Group Properties (incl FOP) £1.37m £2.54m £1.17m -14.6% Average € /£ used 1.249 1.135 -10% 1.1611 Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 5
Highlights Dividend Board recommends Interim dividend be maintained at 0.33p (2011: 0.33p) Interim Final Total 1.20 GBP pence 1.00 XD 12-Dec-2012 14-Dec-2012 Record Date 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 7340 0270 6
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 increase in earnings from a one -off exchange rate gain in 2011. 1.80 1.80 1.60 1.60 1.40 1.40 £m 1.20 1.20 1.00 1.00 0.80 0.80 0.60 0.60 0.40 0.40 0.20 0.20 2010 2011 2012 0.00 0.00 2010 2011 2012 2010 2011 2012 FPAM Group Properties (incl) FOP Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 7
Highlights Financial & Operational Highlights Current Developments: Financial Highlights (notes): 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 Portfolio (UK PPP) fund (see p. 30). b. Profit before tax £296,000 decrease New funds are being raised into FOP to fund the Group Properties in 2011 benefitted from a one-off foreign purchase of a number of properties in Poland (see p. exchange gain of £213,000 31). We plan to close this fund raising exercise during the first quarter of 2013. Operational Highlights: Funds under management have performed well in a difficult market environment. The total pre-tax income return earned by our funds under management in Poland was 21.1% on an annualised basis. The total pre-tax income return earned by our funds under management in the UK, which are un-geared, was 6.5% on an annualised basis. Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 8
Segmental Analysis 10-14 FPAM: Assets under Management (AUM) 10 AUM breakdown 11 12-13 Track Record Tenancy Exposure 14 15-18 Group Properties: 15 Directly held assets Co-investments 16 Earnings breakdown 17 18 Tenancy Exposure Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 9
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-2004 Aug 2012 £6.7 million Poland 5 th Property Trading (5PT) Dec-2004 Dec 2014 £8.8 million Poland USS Fprop Managed Property Portfolio LP (USS) Aug-2005 Aug 2015 £215.4 million CEE & United Kingdom UK Pension Property Portfolio LP (UK PPP) Feb-2010 Feb 2017 £95.2 million United Kingdom Fprop Opportunities plc (FOP) Oct-2010 Oct 2020 £20.9 million Poland Total £347 million Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 10
Segmental Analysis AUM Breakdown AUM breakdown by Fund, Investor Category and Geography: Pension USS Poland Funds 62% 69% 89% Fund Investor Geographic UK PPP Category Breakdown Breakdown 27% UK 28% FOP Fprop Family Offices 6% 7% 1% HNWs Romania 3% 5PT RPT 3% 3% 2% Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 11
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 (with inception dates ranging from 2004-10) are generating ROEs on original equity invested of between 6.5% p.a. (unleveraged) and 15.8% p.a. (leveraged) net of fees, as at 30-Sep-12. 35% IRR pa - Actual IRR pa - Implied ROE pa - on opening equity ROE pa - on original equity 30% 25% 20% 15% 10% 5% 0% 1PT 2PT 3PT RPT 5PT USS UK PPP FOP All implied IRR calculations use NAVs at 30-Sep-2012. Annualised ROE’s on original equity are calculated using the annualised H1 2012/3 pre-tax income ÷ original shareholders’ equity employed. Annualised current ROE’s are calculated using the annualised H1 2012/3 pre -tax income ÷ by opening equity (NAV at 31-Mar-2012). Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 12
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