Financial Year End Trading Statement

RNS Number : 4404B

First Property Group PLC

17 April 2012

 



Date:	17 April 2012
On behalf of:	First Property Group plc ("First Property", "the Company" or the "Group")
Embargoed for:	0700hrs

First Property Group plc

Financial Year End Trading Statement

First Property Group plc (AIM: FPO), the commercial property fund management group, today issues a trading update for the year ended 31 March 2012.

Profit before tax for the year is expected to meet broker forecasts. Preliminary results are expected to be announced on 11 June 2012.

Assets under management as at 31 March 2012 were £366 million (2011: £366 million). We continued to grow our assets under management in the UK during the year but this growth was offset by a weakening of the euro (the currency in which our Central European assets are valued) versus Sterling by some 4%. Our funds continue to perform well, as do the two properties we own ourselves.

The eurozone crisis worsened considerably in the second half of 2011 and we decided to suspend the purchase of properties by Fprop Opportunities plc, our Polish focused fund. Since the European Central Bank commenced its refinancing operations, the investment climate has improved and we are once again reviewing new opportunities. However, the root causes of the crisis have not been sufficiently dealt with and we consequently remain risk averse. The real economy in Poland continues to perform well but investment markets are also dependent on the capital markets, which remain volatile.

Our UK fund is now virtually fully invested, with some £96 million of the £106 million invested. The portfolio of properties is trading well and we are in discussions with a number of institutions about establishing a new UK fund, Fprop Sterling Income Fund (FSIF), to mirror our existing UK fund.  

The fund raising environment remains challenging. Notwithstanding this, we established good relationships with both Poland and UK orientated institutional investors during the course of 2011 and first quarter of 2012. We are confident that these relationships will result in new mandates in the fullness of time, as the investment climate improves.

We have also appointed Laure Duhot as a non-executive director of First Property Asset Management Ltd (FPAM), in order to benefit from her experience in fund raising for real estate. Laure is Director of Strategic Capital Markets at Grainger plc and has built a distinguished career across Europe, North America, Asia, the Middle East and the UK in investment banking, global equity raising and the development of new funds and partnerships. Most recently Laure was Head of Equity Raising for Pradera and sat on the group's executive board.

Ben Habib, CEO of the Group and CIO of FPAM, said:

"All our funds under management and our own properties have performed well during the year.

"The eurozone crisis has naturally slowed down our growth plans but it has not materially adversely affected us. This is the fifth year of the credit crunch and we are proud that all our funds have generated positive total returns over their lives and that we have remained a profitable, dividend-paying company throughout.

"Our broad range of investment skills and flexible approach will enable us to continue to grow the business and deliver profits and dividends for our clients and shareholders alike."

-Ends-

For further information please contact:

First Property Group plc	Tel: [phone]
Ben Habib (Group Chief Executive & FPAM Chief Investment Officer)	www.fprop.com
Jeremy Barkes (Director, Business Development)	[e-mail]
Arden Partners	Tel: [phone]
Chris Hardie (Director Corporate Finance )
Redleaf Polhill	Tel: [phone]
Mike Ward / George Parrett	[e-mail]

Notes to investors and editors:

First Property Group plc is a commercial property fund manager with operations in the United Kingdom and Central Europe. The Group's investment performance is ranked No.1 versus Investment Property Databank's (IPD) Polish Benchmark for the four years to 31 December 2009 and the five years to 31 December 2010 and also No.1 versus IPD CEE Benchmark over the three years to 31 December 2008, four years to 31 December 2009 and five years to 31 December 2010.

The business model of First Property Group is to:

·      Raise third party funds to invest in income producing commercial property;

·      Co-invest in these funds;

·      Earn fees for the management of these funds. Fees earned are a function of the value of assets under management as well as the performance of the funds;

·      Earn a return on its own capital invested in these funds.

First Property Asset Management Limited is authorised and regulated by the Financial Services Authority. Further information about the Company and its products can be found at: www.fprop.com.

 

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