REG - First Property Group - Trading Update and Notice of Results

First PropertyAnnouncement

17/05/2024 07:00

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RNS Number : 7935O  First Property Group PLC  17 May 2024

 Date:          17 May 2024
 On behalf of:  First Property Group plc ("First Property", the "Company" or the "Group")
 Embargoed:     07:00 hours

 

First Property Group plc

Financial Year End Trading Update and Notice of Results and Investor
Presentation

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

Included in the results will be a reduction in the carrying value of the
Group's net assets due to: i) the write down in value of the Group's share in
Fprop Opportunities plc ("FOP"), as reported on 8 November 2023; and ii) a
reduction in the market value by the Group's directly owned office block in
Gdynia, Poland.

The Group owes deferred consideration of €12 million in respect of the
Gdynia property, which is due for payment on 12 June 2024 (the "Liability").
It is around 30% leased (up from 2% leased at purchase) and at that level of
leasing makes a small operating loss of around €30,000 on an annualised
basis.

The Group is in discussions to restructure the deferred consideration and is
hopeful of a positive outcome. However, in view of the due date of the
liability, the directors have resolved to impair the value of the property by
£3.7 million to match its value against the value of the Liability. As a
result of this impairment, £3.7 million will be debited from the profit and
loss account for the year ended 31 March 2024 and will result in the Group
reporting an overall loss in the financial year, subject to audit. This
deduction is not as a result of a deterioration in the underlying trading
performance of the Group and comprises a non-cash item.

The Group plans to announce its preliminary financial results for the 12
months to 31 March 2024 on Wednesday, 26 June. 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
(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 up to 25 June 2024, 09.00 BST, or at
any time during the live presentation or to investor.relations@fprop.com
(mailto:investor.relations@fprop.com) . The accompanying investor presentation
will simultaneously be available online at
http://www.fprop.com/media-news/presentations/
(http://www.fprop.com/media-news/presentations/) .

- ENDS -

 

For further information please contact:

 

 First Property Group plc                                      Tel: +44 (20) 7340 0270
 Ben Habib (Chief Executive Officer)                           investor.relations@fprop.com (mailto:investor.relations@fprop.com)

 Laura James (Group Finance Director)

 Jeremy Barkes (Director, Business Development)

 Jill Aubrey (Director, Compliance & Company Secretary)

 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. 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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