Fprop in the News

Simon Thompson comments on Fprop’s leasing progress at its office block in Gdynia, Poland, on its acquisition of a further 32% of Blue Tower in Warsaw and on its disposal of a warehouse in Romania. He concludes by saying “investors have yet to cotton onto the upside from First Property’s dealmaking as the £33.3mn market capitalisation company is priced 37 per cent below its last reported net asset value (NAV) of £53.4mn (47.3p a share).”

Gavin Laidlaw summarised his write up with the following tweet: “B/S ‘strong’ after sales/refi. £9m cash? Warsaw office dynamics: less development(costs), supply falling, demand up( +Ukraine relocation) & 4% eco growth= rents rising. Also filling vacancies (Blue Tower,Gdynia)& deal opps. Rents become rising dividends?” and published the full report here http://www.stockwatchuk.com/.

FIRST PROPERTY…CEO chat. B/S ‘strong’ after sales/refi. £9m cash? Warsaw office dynamics: less development(costs), supply falling, demand up( +Ukraine relocation) & 4% eco growth= rents rising. Also filling vacancies (Blue Tower,Gdynia)& deal opps. Rents become rising dividends?

— STOCKWATCH UK (@StockwatchUK) June 24, 2022

Andrew Hore concludes by saying: “Underlying net assets, including assets at market value, are 47.28p a share, up from 42.8p a share the previous year. This does not include any valuation on the fund management division. There should be upside from new tenants for Gdynia. The current share price is 31p, which is a 34% discount to underlying net assets.

Management has shown its ability to weather problems and take advantage of opportunities over the past two decades. The share price does not reflect the real value of the business, let alone the potential.”

Simon Thompson concludes by saying “the combination of disposals at a significant premium to book value, new lettings and property acquisitions should act as catalysts to markedly narrow the unwarranted 35 per cent share price discount to NAV. Buy.”

Guy Montague-Jones interviews Fprop CEO Ben Habib in which Ben says he expects the influx of refugees into Poland will increase demand in the economy and that Poland’s willingness to use coal will help avert an energy crisis.