News and Press Releases

Fprop CEO Ben Habib argues the case for lending against commercial property in the current higher interest rate environment. “The returns to be earned from lending are now as high as the kind of returns which had been available from investing in the underlying assets. And, of course, it is less risky to lend than to buy.”

Following yesterday’s release of the Group’s Preliminary Results for the year to 31 March 2023, Simon Thompson of Investors Chronicle updated his “buy” recommendation. The article concludes with: “Priced on a 42% share price discount to book value, and with a reduction in vacancy rates supporting valuations at the group’s directly held high-yielding properties, the shares remain attractively priced. Buy.”

Heather Sandlin reports on Fprop’s new loan product and quotes CEO Ben Habib, who said: “Our move into senior secured commercial property lending via this platform is in response to a clear gap in the market created by higher interest rates and a retreat of traditional lenders, including banks. Our loan platform offers borrowers better terms than are typically available and investors in loans made on the platform a high rate of return. For these reasons it is a good time to be entering the market.” 

Fprop CEO Ben Habib discusses the Group’s financial results for the year to 31 March 2023

Virna Asara writes: First Property is looking to offer senior facilities secured by any existing commercial real estate assets including office, retail, leisure, hospitality, care homes and logistics. The loans would be offered with a maximum leverage of 65%, a minimum term of three years and up to 15, a fixed interest rate and no debt amortization required. ‘We believe this is a very compelling loan product because it fully responds to what borrowers need these days,’ Habib noted. ‘I think there is going to be a lot of stress for borrowers and since we are property specialists, we can take a much more robust view on loans and not only look at the financial parameters like a bank does.’

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).”

Fprop wins first known arbitration award under the Commercial Rent (Coronavirus) Act 2022 – testament to our tenacious pursuit of what is rightfully and contractually due.

Ben Habib, Fprop CEO, argues that the UK’s commitment to deliver net zero by 2050 is creating a buildings’ emergency, but that those with the requisite funds, expertise and appetite for granular work to upgrade our built environment should quite literally clean up.

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.”

Having swung back into profit after last year’s loss, and re-instituting its dividend, First Property Group (FPO) has plans to buy more commercial property at beaten up prices. Ben Habib, chief executive of FPO, tells IGTV’s Jeremy Naylor that he plans to do this by exiting the company’s Romanian business. Habib also talks about being able to double rents in the forthcoming period as markets recover.

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.”