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First Property sets up £180mln fund to capitalise on Brexit vote slowdown opportunities in commercial property

The firm said the Fprop Offices LP fund – which has a term of seven years - closed its first round of funding on 14 July with equity commitments of £182mln

Recurring revenues underpin record year for First Property

Record profits for property fund manager are clear evidence that focus on sustainable income streams is paying off, chief executive Ben Habib tells Proactive Investors.

First Property notches up record profits

The weakness of sterling against the euro added a layer of extra polish to profits

First Property's Ben Habib 'very pleased' to hang on as league-leading fund manager

Ben Habib, chief executive of First Property Group PLC ( LON:FPO) tells Proactive's Andrew Scott they've retained their position as the best performing fund manager versus MSCI's Central and Eastern European (CEE) Benchmark.

The property fund manager and investor has been in pole position now for eleven years in Morgan Stanley Capital International’s (MSCI) rankings in this category.

First Property keeps its winning streak going in MSCI rankings

The new follows the announcement that First Property's UK Pension Property Portfolio LP was recently awarded best "Small Specialist Fund" by MSCI
 
Select Year:   All | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009
 
Investors Chronicle - A quartet of small-cap value plays
“…trading on a modest premium to book value, rated on less than 9x EPS estimates of 5.6p, falling to only 8x EPS estimates for the year to March 2018, and offering a 3.2% prospective dividend yield based on a forecast payout of 1.55p per share, First Property’s shares still rate a great buy in my view and with further upgrade earnings potential in the price for free. Buy.”
Investors Chronicle - exploiting strong foreign exchange tailwinds
Simon Thompson says “Investors have yet to fully factor in (house broker Arden’s) massive earnings upgrade…(which is) solely based on rental income from the current portfolio and fund management fees on existing mandates, so the forecast risk is skewed to the upside.” He rates the shares a strong buy and believe his 56p price target could prove conservative. 
Proactive Investors - First Property's attractive divi comfortably covered by recurring earnings
"The quality of our earnings has continued to improve with very nearly all our profits being earned from activities of a recurring nature,” said CEO Ben Habib.
Investors Chronicle - High Fives - First Property major contract win
Simon Thompson reiterates his buy recommendation with a price target of 56p
IP Real Estate - BAE Shipbuilding Industries adds £45m to First Property commitment
“The scheme boosted its commitment to UK real estate via First Property Asset Management, from an initial £125, to £170m.”
Investors Chronicle - Anomalously priced fund managers
Simon Thompson summarises: ‘Rated on a discount to spot net asset value, trading on just 8 times forward earnings…, and with significant upgrades highly likely in eight weeks’ time, the investment case is very solid. In the circumstances, I rate First Property’s shares a strong buy…ahead of November’s interim results and my initial target price is 56p, coinciding with the all-time high dating back to the end of last year. Buy.’
Investors Chronicle - Exploiting sterling weakness
Simon Thompson feels “there is a major valuation anomaly to be exploited in the AIM traded shares of Eastern European property fund manager, First Property Group.” He rates the shares a strong buy with an initial target price of 56p.
Proactive Investors - Brexit holds no fear for First Property boss Habib
“…He sees the current market instability post the UK vote to leave the EU as a big opportunity for a small firm like First Property, and means (for currency reasons) an immediate injection of profits in the short term and later, a chance to buy more UK assets, while prices are under pressure (cheaper).
Longer term is also looking good for the UK market, he reckons…”
IP Real Estate - Uncertainty peaks
Ben Habib, chief executive of First Property, is one of the few in the UK’s real estate sector to argue that a “Brexit” would be positive for both the property market and Britain as a whole. “Any volatility would only be an opportunity for small, opportunistic companies such as First Property,” he said.
Investors Chronicle - head east for profit
Simon Thompson reiterates his price target of 56p, citing “the potential for further value creation is not being factored into the current valuation. Nor is the fact that 95 per cent of the current year £21.9m revenue forecast is recurring, so offering a high degree of certainty in those estimates. The market is also failing to acknowledge the impressive track record of the company. There are not too many investments that can generate such a high sustainable return, nor have potential to continue to do so, irrespective of whether the UK stays or remains a part of the EU.”
Investors Chronicle - First Property sell-off buying opportunity
Simon Thompson reiterates his buy recommendation, noting “…that investors are being overly cautious in their valuation and assessment of First Property’s future prospects. Offering 40 per cent share price upside to my target price of 56p, I would be a buyer of the shares ahead of the forthcoming results.”
Investors Chronicle - New highs beckon
...having first recommended buying First Property's shares at 18.5p in 2011...Simon Thompson feels that the odds continue to favour a move to the upside to his raised target price of 56p. Trading on only 1.25 times historic book value, he rates First Property’s shares a buy on a bid-offer spread of 49p to 50p.
Investors Champion - Consistent performer still looking good
Michael Crockett notes that “This small property group has been one of AIM’s most consistent performing shares over the last few years” and considers whether its “good run” can continue.
Investors Chronicle - Maintaining a strong pole position
Simon Thompson reiterates his buy recommendation: “Trading on less than 1.2 times adjusted book value of 40p, rated on 10 times earnings estimates and offering a dividend yield in excess of 3 per cent, I now rate First Property's shares a trading buy with a target price of 56p.”
IP Real Estate - First Property takes consortium into Polish retail sector
...in a new shopping centre in Swinoujscie, northern Poland, acquired at a total cost of €24.08m.
IP Real Estate - First Property extends UK real estate fund with pension-fund backing
...the limited partners in its UK Pension Property Portfolio vehicle, which is generating a 6.5% annual dividend yield without the use of leverage, agreed to extend the fund’s life by five years.
Investors Chronicle - Maintaining a pole position

Simon Thompson recommends investors “run profits” despite the share price having exceeded his price target of 49p, explaining that “the shares are still only rated on a little over 10 times earnings estimates and offer a prospective dividend yield of 2.8 per cent.” He sees “potential for more earnings-accretive acquisitions given that First Property will have £13m of cash available to invest once the Lidl properties are refinanced.”

FPAM funds rank No.1 versus MSCI’s Central & Eastern European (CEE) Benchmark for the eleven years from the commencement of its operations in Poland in 2005, and for the annualised periods from 2005 to the end of each of the years from 31 December 2008. In addition, FPAM’s UK Pension Property Portfolio (UK PPP) was awarded best “Small Specialist Fund” by MSCI at its UK Property Investment Awards 2017. FPAM was also one of ten fund managers, out of a pool of 95, to be awarded a Data Quality Award by MSCI.

© 2017 First Property Group plc
32 St James’s Street, London, SW1A 1HD.
Registered in England No. 2967020

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