Last checked at 27 Sep 2023 07:00
Date: | 27 September 2023 |
On behalf of: | First Property Group plc ("First Property", the "Company" or the "Group") |
Embargoed: | 07.00am |
First Property Group plc
AGM Statement
First Property Group plc (AIM: FPO), the property fund manager and investor with operations in the United Kingdom and Central Europe, will hold its Annual General Meeting (the "AGM") today at 12 noon. The AGM is being held online via Investor Meet Company (https://www.investormeetcompany.com/first-property-group-plc/register-investor) and at the Company's head office in London.
At the meeting Alasdair Locke, Chairman of the board, will make the following statement:
"The Group continues to steward shareholder funds with great care. Net asset value ("NAV") per share has been broadly maintained in the face of extremely challenging market conditions for the property sector over the last few years, in particular from lockdowns and the subsequent working from home trend, interest rate rises, rampant inflation and the drive to net zero. In spite of these headwinds, the Group has reported continued leasing progress at its Group properties over the past couple of years, which will be reflected in income and capital value growth in due course.
"The internal rate of return ("IRR") earned by the Group is impressive: 19% on an annualised basis after the admission of its shares to trading on AIM in 2001; 19% on an annualised basis since the peak of the boom in 2007 (before the onset of the credit crunch); and only negative 3% since March 2019 before the onset of covid related lockdowns and the consequential market difficulties.
"Since the financial year-end on 31 March 2023, the Group has achieved leasing progress at Blue Tower, its directly held office property in Warsaw, and at Maestro Business Centre, an office building in Cluj, Romania, in which the Group is a 21% shareholder. It has also acquired the minority share interest in E and S Estates Ltd ("E and S"), which owns a supermarket in Praga (a suburb of Warsaw), resulting in the Company now owning 100% of the shares in E and S.
"Total funds under management as at 31 August 2023, including properties owned directly by the Group, amounted to £436 million (31 March 2023: £454 million).
"Third party funds under management as at 31 August 2023 amounted to £383 million (31 March 2023: £400 million), of which some 60% was invested in the United Kingdom. The reduction since the financial year end is explained by the sale of one property in a UK fund valued at £5.4 million, reductions in property values of £7.98 million and a weakening of the Euro, the currency in which our Polish and Romanian properties are valued, of £3.62 million.
"Group cash as at 31 August 2023 amounted to £6.64 million (31 March 2023: £7.65 million). This equates to 5.66 pence per share (31 March 2023: 6.82 pence per share). The reduction was mainly due to capital expenditure incurred at Blue Tower, Warsaw, in respect of upgrades to the heating and cooling system, tenant fit-out's associated with new leases, and the cost of buying out the minority shareholders in E and S.
"The Group remains vigilant to market opportunities, in particular with respect to its new activity as a lender."
-Ends-
For further information please contact:
First Property Group plc | Tel: +44 (20) 7340 0270 |
Ben Habib (Chief Executive Officer) Laura James (Finance Director) Jeremy Barkes (Director, Business Development) Jill Aubrey (Director, Company Secretary) | www.fprop.com investor.relations@fprop.com |
Allenby Capital (Nominated Adviser & Broker) | Tel: + 44 (20) 3328 5656 |
Nick Naylor / Daniel Dearden-Williams (Corporate Finance) Amrit Nahal / Tony Quirke (Equity Sales) | |
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.