Trading Update

First Property Group PLC

08 November 2023

 

Date:	8 November 2023
On behalf of:	First Property Group plc ("First Property", the "Company" or the "Group")
Embargoed:	07:00 hours

First Property Group plc

Trading update

First Property Group plc (AIM: FPO), the property fund manager and investor, is pleased to report underlying trading profits for the financial year to 31 March 2024 remain in line with market forecasts.

Nearly one third of the vacant office space in Warsaw and Gdynia, which the Group acquired in 2021 and 2022, and which totalled some 20,000 square metres, has been leased. Tenant demand remains steady in both cities. The rapid increase in interest rates from near zero in 2021 has naturally impacted property values. The Group has been shielded from much of this by its accounting policy of holding properties at the lower of cost or value.

The cost of the Group's share in Fprop Opportunities plc ("FOP"), a fund invested in five commercial properties in Poland, was rebased in October 2018 when the Group's share in it fell below 50%, resulting in it being deconsolidated from the Group's accounts and accounted for as an associate at the then prevailing property values.  In the six months to 30 September 2023 the five properties owned by FOP decreased in value by £2.2 million, of which the Group's share amounted to £816,000. As a result, the Group expects to report an overall loss in the first six months of the current financial year.

At their current aggregate value of £61.5 million, the properties held by FOP yield income of some 8.5% per annum. The properties are 97% leased by net lettable area. The vast majority of rent payable is subject to annual increases linked to inflation and, as rents increase, the Board expects this value reduction at least partially to reverse.

The Group plans to announce its financial results for the six months to 30 September 2023 on Thursday, 23 November. A meeting for analysts and investors will be held at 11 a.m. on the same day via the Investor Meet Company (IMC) platform. Those wishing to attend should add to meet First Property Group Plc via https://www.investormeetcompany.com/first-property-group-plc/register-investor. Once registered, automatic invitations to this presentation and to future online meetings held on the platform will be sent. Questions can be submitted prior to the event via the IMC platform or to [e-mail]. In addition, questions can be submitted at any time during the live presentation via the "Ask a Question" function. The accompanying investor presentation will simultaneously be available online at http://www.fprop.com/media-news/presentations/.

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For further information please contact:

First Property Group plc	Tel: [phone]
Ben Habib (Chief Executive Officer) Laura James (Group Finance Director) Jeremy Barkes (Director, Business Development) Jill Aubrey (Director, Compliance & Company Secretary)	[e-mail]
Allenby Capital (NOMAD & Broker)	Tel: + 44 (20) 3328 5656
Nick Naylor / Daniel Dearden-Williams (Corporate Finance) Amrit Nahal / Tony Quirke (Sales and Corporate Broking)

Notes to Investors and Editors:

First Property Group plc is an award-winning property fund manager and investor with operations in the United Kingdom and Central Europe. Its focus is on higher yielding commercial property with sustainable cash flows. The Company is flexible and takes an active approach to asset management. Its earnings are derived from:

·      Fund management - via its FCA regulated and AIFMD approved subsidiary, First Property Asset Management Ltd ("FPAM"), which earns fees from investing for third parties in property. FPAM currently manages twelve funds which are invested across the United Kingdom, Poland and Romania.

·      Group properties - principal investments by the Group to earn a return on its own capital, usually in partnership with third parties. Investments comprise six directly held properties in Poland, one in Romania, and non-controlling interests in nine of the twelve funds managed by FPAM.

Quoted on AIM, the Company has offices in London and Warsaw. Around one third of the Company's shares are owned by management, directors, and their families. Further information about the Company and its properties can be found at: www.fprop.com. To receive RNS alerts by email please subscribe here.

 

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