First Property Share Discussion Threads

[dorset64] 06/7/2010 14:02

A decent rise today, something bubbling away perhaps?

[darias] 09/6/2010 10:52

There are always stale holders and no dividend for some months - I think it will fall over the next few week but who knows.

I am concerned that they are looking for recovery in the UK commercial market. If the economy does go double dip together with relative weakness of the Euro compared with 2008/9 they might get their fingers burnt.

[colonel a] 09/6/2010 08:28

From my reading of the results you should not get the chance, but who knows.
This looks like a company who know what they're doing and I'll hold for revenue and growth, hopefully.

[deswalker] 09/6/2010 07:52

Results marginally better than forecast. Looks a very solid stock to me.

[darias] 09/6/2010 07:51

I will buy again at under 15p

[darias] 09/6/2010 07:50

Annual results.

A curates egg?

90% of funds invested in Poland and Romania.

"The geographic split by value of our funds under management at the period end
was 85% in Poland, 4% in Romania, and 11% in UK. We expect these weightings to
shift in favour of the UK in the coming months given our recent and continuing
purchases in the UK on behalf of our new UK fund."

and

"At 31 March 2010 the value of assets under management within the fund management division stood at GBP300 million (2009: GBP310 million). The assets we manage are denominated in a mixture of currencies with 90% of our assets being denominated in Euros. The value of our assets under management and the fee income we earn for managing these assets, which is linked to the value of the assets, is therefore subject to changes in the Euro/ GBP exchange rate. The
value of assets under management of GBP300 million at 31 March 2010 was based on a Euro/ GBP exchange rate of 1.12."

however

"The outlook for our fund management activities is good. The value of assets
under management is expected to increase by some GBP100 million (representing an increase of 30% in the value of assets under management at 31 March 2010) over the next 12 to 24 months as the new UK fund is invested. In addition we believe that, as long as the recent concerns over the credit worthiness of certain European countries does not translate into a double dip recession for Europe, the value of our assets in Poland should have bottomed out and should begin to increase again. There are signs of tenant demand increasing and investor appetite returning to Poland - both of which are very welcome. Our fund management fees, which are calculated by reference to the value of assets under management, should therefore grow this year. Any new funds we launch during the year will serve to accelerate this growth. We are exposed to the Euro/ GBP exchange rate and if the current weakness in the Euro should persist, the growth in the value of assets under management and our fee income may be slowed but we expect fee income to grow in any event."

Whilst the Polish economy has stood up well it is the devaluation of the Euro since March which may make a difference to profits next year. It could be argued that funds invested over the last two years have been maintained because of the strength of the Euro against the pound and the board appear to be hedging their bets with the opening of the new UK commercial fund last year.

Still it seems fairly valued at present and I will not be investing my gains from BRG in this company unless the price falls somewhat.

[oregano] 08/4/2010 11:49

from the broker. nothing particularly interesting.

? First Property has reported that trading for the year to March 2010 is in line with expectations. This represents a resilient performance given the sharp down turn in property markets. With the recent new fund win and improving Polish property values the outlook for growth in the current year is positive.

? Polish property (currently 90% of funds under management) has benefitted from the country's relatively strong performance as the only EU member not to tip into recession but still saw a significant decline in values over the year and the decline in £ terms was slightly greater due to the modest strengthening of £. These factors were however largely offset by additional property purchases during the year, leaving overall FUM broadly flat for the year, which should also be reflected in profits.

? 60% owned Property Services has suffered from its exposure to financial clients with profits expected to be significantly down on 2008/9 and Group profits will also have been impacted by lower interest receipts on the substantial cash holdings and the additional hires to strengthen the team.

? The outlook for 2010/11 is encouraging. The company has made a good start to the investment of the new £106m UK property mandate with £10m invested by the year end and a further £16.5m is under offer. The Polish property cycle has lagged the UK and with values only just starting to recover we expect further increases during the year. The company also continues to look at using its local expertise through JV transactions. We therefore expect that FUM will increase during the year driving increased fees and we also see scope for some recovery from facilities management. We therefore remain comfortable with our 2010/11 PBT forecast of £3.1m

? First Property remains significantly undervalued. At the interim stage it had cash of £9.5m, £10.7m of property (partly funded by £6.7m of non recourse debt) and associate holdings worth £1.1m giving a total of £14.6m of company investments. This leaves the Property Asset Management and Property Services businesses valued at just £5.2m, implying a PE of about 3.5x. A 10x PE for these operations would give a 27p share price target. The company also offers investors an attractive 5.7% yield, from a nearly twice covered dividend.

[dorset64] 07/4/2010 08:58

Yet again good, solid foundations being set here and agree, its amazing really with continued dividends (received mine yesterday) being continually paid, along with increases in thje NAV its surprising not many more are buying in. This is one of my few non-oilers and as you say Darius, we're all chasing the dream elsewhere.

Management should be congratulated here.

[darias] 07/4/2010 08:25

Mathis

Agree.

[mathisvale] 07/4/2010 07:54

NKS

You are not alone. There are a few stalwarts here, supporting this solid but (so far) un-dramatic stock.

Most of the PIs are off chasing frothy mining stocks, so the BB tends to be quiet. That suits me

[novine] 05/4/2010 11:03

I have been in this one before it had changed its name to what it is now - paid a fortune for it in the old days of internet boom but I value it for being still around and it looks solid even paying dividends whereas a lot of my other investments have disappeared from the earth's surface long time ago - this one might survive - not sure that it will go ever 10 fold up but it has some patient and intelligent people running it so who knows

[colonel a] 31/3/2010 14:29

You're not, but this share is an investment and if it does "come good" I expect it to be a slow process.

[nksharpe] 30/3/2010 20:08

I think I am alone with this one.

[nksharpe] 24/3/2010 16:36

ooo its very quiet in here, I can hear an echo of my breathing. Is anybody there? ooooo
scary

[nksharpe] 24/3/2010 11:12

Hi everyone. I'm new to this stock having bought in this morning. Pleased to see informed comment on this site.
My reasons to buy. The charts show an uptrend, The company is profitable, The builder and housing is out of favour, on a recovery this company should be well placed to take an advantage.
I noticed that this stock was part of the SF smaller company growth fund.
Also a dividend.

NKS

[mazarin] 08/3/2010 09:50

A little belated news - First Property Asset Management has established a 7yr UK Commercial Property Fund. It will represent about 30% increase in FPO's assets under management to approximately £400m.

[dorset64] 24/2/2010 10:32

It would certainly add up to that amount mazarin.

[mazarin] 24/2/2010 10:28

I'm assuming today's early fall reflects the 'market' taking (0.72p) dividend into account, as FPO goes Ex-Div today

[oregano] 23/2/2010 09:08

it is the summary from Arden partners 16 pager. it's quite a thorough note, hopefully what is moving the share price. i would imagine no-one else covers it.

[mazarin] 19/2/2010 16:58

Thanks Oregano - interesting Broker's comments..can you say by whom made, are they in-house or connected to ' Arden Partners Ltd ' in anyway?

[oregano] 19/2/2010 11:57

Encouraging move up on small buys, hopefully the net widening. Summary from recent brokers note enclosed in case you haven't seen it.

First Property offers a compelling value situation. The company's own investments (less debt) are worth 13.5p per share but only contribute c26% of earnings. This leaves the property fund management business, which is cash generative and has good growth prospects, valued on a PE of 2.0x. A twice covered dividend offers a 6.2% yield. A 10x PE for property fund management gives a 27p share price target and 66% upside.
Resilient interim results
��
The interim results to September 2009 demonstrated a resilient performance, given the sharp downturn in property over the previous year, with PBT down 12% to £1.56m. This fall was cushioned at the earnings level due to a lower minority charge and also a lower tax rate, with basic EPS of 1.10p down just 3.5%. Net cash increased from £2.62m to £2.75m (gross cash £9.5m). The interim dividend was increased 3% to 0.31p.
Property fund management to drive earnings growth
��
First Property has a good investment record in both the UK (largely withdrawing from the market before the downturn) and Poland (where it manages the top performing CEE fund in IPD over 2006-8). The company currently manages c£300m of property investments for clients and has now secured a new £106m UK property mandate. Together with existing funds, First Property has about £150m of equity to invest for clients, which will drive growth in fees and profits over the next two or three years. The company will also benefit from any recovery in property values.
Shares also well backed by investments
��
First Property has cash of £9.5m, £10.7m of property (partly funded by £6.7m of non recourse debt) and associate holdings worth £1.1m. This makes a total of £14.6m of company investments, worth 13.5p per share. With a £17.6m market value, this implies that Fund Management & Property Services are valued at just £3.0m, giving these a PE of just 2.0x.
New funds – a potential catalyst for re-rating
��
Not only does the new mandate provide a useful boost to the medium term growth prospects but it is also an important step in broadening the client base, improving the quality of earnings. Marketing has also commenced for a new Central and Eastern European Fund. Investment of the Groups cash, either as co-investments in funds, new trading purchases or through JVs could also increase returns and contribute to a re-rating.

[mazarin] 18/2/2010 11:23

FPO made a practical move today by declaring an early (Final) dividend to avoid increased dividend tax coming into force 6th April 2010. Nice to see recent ticks up on this quiet but gaining asset.

[deswalker] 18/2/2010 08:06

Good news indeed.

[dorset64] 18/2/2010 07:35

1.03p for the full year, can't complain at that in these times. Just how many other 'property' plays have continued to pay dividends and arew still paying them today? Anyone else know who is.