News and Press Releases

Jeremy Naylor interviews Fprop CEO Ben Habib on the Group’s interim results for the six months to 30 September 2021.

Simon Thompson of IC updates his buy recommendation, highlighting new balance sheet deals, fund extensions and launches, and the discount to sum-of-the-parts-valuations. He concludes by saying; “In fact, I am more bullish now given the improvement in investor sentiment in the commercial property market which augurs well for First Property being able to pull off further smart deals. Buy.”

Interim results for the six months to 30 September 2021.

Our Annual General Meeting (AGM) can be watched back here.

Ben Habib argues that the Polish economy is a direct beneficiary of the “carry trade” resulting from continued quantitative easing, and that investment in its property market is an obvious way to benefit from this. However, fast-growing markets can be difficult to navigate and a two-tier market for commercial property exists in Poland. Most of the weight of money is focused on large lot sizes with long leases, where yields are tight. As lease lengths shorten, the capital value of such property deteriorates. We tend to avoid this segment of the market, focusing instead on property where we can add value by buying at lower prices off lower rents, and extending leases and refurbishing where necessary. When leverage is added, double digit per annum returns are easily achievable from rental income alone, with the potential of a further boost from capital gain.

Jeremy Naylor interviews Fprop CEO Ben Habib on the Group’s preliminary results for the financial year to 31 March 2021. (13m, 34s)

Simon Thompson sets out his reasons for a “Recovery Buy” saying “…the shares trading on a huge 40 per cent discount to proforma NAV (after factoring in €9m debt write-off after the financial year-end), the rating fails to acknowledge the track record of a management team that has delivered 12.8 per cent annual growth in adjusted net assets including dividends since 2011.”

Simon Thompson: Investor overreaction presents buying opportunity https://t.co/YuqQYpJmZO

— Investors’ Chronicle (@IChronicle) June 24, 2021

Fprop CEO Ben Habib discusses the group’s financial results for the year to 31 March 2021

Mr Habib told The Telegraph: “I was interested to read that Mr Ashley has offered [Sir] Philip Green a £50m loan. Especially interested, in fact, as Mr Ashley’s Frasers Group currently owes a pension fund, on whose behalf I manage property, hundreds of thousands of pounds in unpaid rent.

“Buying distressed assets and saving jobs is a positive thing. But if you are simultaneously refusing to honour your debts, you are in effect buying them with other people’s capital. In this case, that of vulnerable pensioners. In the midst of a pandemic, this is inexcusable.”

Mike Ashley criticised by landlord for refusing to pay store rents but offering £50m lifeline to Arcadia, First Property Group warns of legal action next year if the bill is not paid https://t.co/b8Y9026Wpi#HighStreet #Arcadia #retailnews #BusinessNews

— Retail Gazette (@retailgazette) December 2, 2020

Writing in Investors Chronicle, Simon Thompson has urged readers to invest in Fprop, highlighting “significant firepower to take advantage of investment opportunities”.

He concludes: “Trading on a modest PE ratio of 9 and offering a near 5 per cent dividend yield, expect the hefty discount to book value to narrow as the cash pile is deployed. Buy.”

Simon Thompson: A quartet of value opportunities https://t.co/d2Xfu2ZHuq

— Investors Chronicle (@IChronicle) November 30, 2020

Read in full: First Property Group plc: Interim Results and interview with Ben Habib

• Here for a copy of the statement;
• Here for a copy of the presentation;
• Here to listen to the results meeting (40 mins);
• Here to listen to Ben Habib, CEO, being interviewed on the results by IG News (11 mins).

Interim Results for the six months to 30 September 2020. Download the accompanying presentation here. Presented by Jeremy Barkes, Business Director, Ben Habib, CEO, and Laura James, Finance Director.