REG - First Property Group - AGM Statement

First PropertyAnnouncement

27/09/2023 07:00

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RNS Number : 7452N  First Property Group PLC  27 September 2023

 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
(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)                        www.fprop.com (http://www.fprop.com)

 Laura James (Finance Director)                             investor.relations@fprop.com (mailto:investor.relations@fprop.com)

 Jeremy Barkes (Director, Business Development)

 Jill Aubrey (Director, Company Secretary)

 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 (http://www.fprop.com) . To receive RNS alerts by email please
subscribe here
(https://sirius.brighterir.com/public/fprop/news_alerts/email_alerts/register)
.

 

 

 

 

 

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