First Property Share Discussion Threads

[kimboy2] 19/4/2011 11:44

Well I would agree with the blurb from the IC but I thought that the take up of the new Polish fund was disappointing. They only seem to have completed on the two properties that were in the pipeline last autumn and it appears have not raised much more than the cash they put in.

Those two properties are going to return a fancy yield though which I presume will come through on the FPO accounts.

[azalea] 19/4/2011 11:10

I am in today on the strength of S.T> recc, he is rarely wrong.

[yupawiese2010] 18/4/2011 19:12

Investers Chronicle.

Property plays

Created: 18 April 2011 Written by: Simon Thompson

Investors are starting to warm to the merits of several of the shares I selected in my bargain share portfolio a few months ago (Bargain shares, 11 Feb 2011) and specifically those in the property sector. In fact, virtually all my real-estate plays have had a good news story to tell in recent months and, with the potential for significant re-ratings, an update on these positions is urgently in order
First Property
Last week European property fund manager First Property Group released a bullish pre-close trading update, which revealed that assets under management (AUM) have risen by 20 per cent to £365m in the 12 months to 31 March 2011.
It's worth noting that the company has significant exposure to Polish property, so, although sterling's weakness is rather bad news for UK holidaymakers in Europe, it is very good news for First Property. In fact, around 75 per cent of those AUM are invested in Polish property and a further 3 per cent in Romania. In addition, the company manages and invests in a pan-European commercial property fund, Fprop Opportunities, which has so far made two acquisitions in Poland for a combined €25m. First Property also own two valuable commercial properties in Warsaw, one of which was valued last October at $18.1m, or £11.1m, based on a yield of over 8 per cent.
So, with sterling plunging by 4.5 per cent against the zloty and by 6.5 per cent against the euro since mid-February, First Property's real estate is benefiting from a strong currency tailwind. And that is hardly likely to change any time soon, with the European Central Bank firmly in monetary tightening mode and any chance of an interest-rate hike in the UK now far less likely after retail sales figures in March showed alarming signs of consumers retrenching.
By my calculations, if you mark the company's assets to market value, the shares are trading modestly above the book value of First Property's assets which means in effect we are getting a fast-growing property fund management operation - which analyst Chris Thomas at broker Arden Partners expects to make profits of around £3.1m this year - in the price for "virtually nothing". And there is also a decent 5.1 per cent decent yield on offer, based on a 5 per cent increase in the full-year payout to 1.08p, which Mr Thomas predicts. The board can certainly afford to raise the payout as it would be covered twice over by EPS of 2.18p.
So it's hardly surprising that the Aim-traded shares have started to be re-rated, rising 14 per cent to 21p, since I advised buying at 18.5p nine weeks ago - a price that was readily available at the time. But they are still too lowly rated on nine times March 2012 earnings estimates of 2.36p a share and, underpinned by a decent and growing yield - and benefiting from exposure to a robust Polish property market - I continue to rate them a strong buy ahead of the full-year results on 21 June

[dorset64] 14/4/2011 16:45

All looking good. As for the divi Darias, where I live we have only just got electric so it's no surprise its takes weeks longer for my divi chq to arrive, either that or the missus was trying to hide it from me lol.

[darias] 14/4/2011 07:06

Trading statement issued. Nothing there to frighten the horses.

[darias] 01/3/2011 07:26

I think Dorset has posted on the wrong thread either that or he lives in some remote place where post takes several weeks to arrive. Payment date was 30th December.

[colonel a] 28/2/2011 12:54

If you were a holder on Dec. 7th you should have received a dividend payment.
Mine was credited on 31/12

[choffter] 28/2/2011 12:44

Should I have recieved a dividend cheque by now if I'm holding?

[darias] 25/2/2011 13:58

63000 bought at 21p

Only way is up.

[oregano] 24/2/2011 11:29

there is a very thorough presentation by CEO Ben Habib on the website, presumably in the recent round of fund raising. very interesting stuff on the high returns generated. well worth watching.

[kimboy2] 24/2/2011 10:18

I think that there is the possibility for something more than steady growth if they can get their new Polish fund away.

They did a number of presentations before Christmas so we will have to see the result of that.

It will be interesting to see what sort of gearing they can get on some of these properties. They got 90% on the first Carrefour one. I don't suppose that they will be repeating that though.

[dorset64] 24/2/2011 10:11

lol mathisvale, how very true.

Agree that the BoD's here really have gone unnoticed in that they have performed superbly in some very diffcult times. Capital & income growth together are rare things in these times.

[mathisvale] 24/2/2011 10:07

Darius

Been here for several years. This is one of the banker stocks in my portfolio - steady capital and income growth.

The term 'banker' used to mean steady and reliable - not so sure now though

[oregano] 24/2/2011 09:53

still cheap as chips. 18p of asset value and the underlying business on a pe of 1

[darias] 24/2/2011 08:09

Hm

Trading at a 30 month high

Anybody there.

[kimboy2] 15/2/2011 20:12

About 6 weeks ago actually.

[dorset64] 15/2/2011 19:54

I take it everyone else has received the dividend chq in the post this/last week.

[dorset64] 11/2/2011 10:04

Its about time the market took a closer look at FPO and its BoD's have been shown to be some shrewd cookies over the last few years, and well done to them.

[oregano] 11/2/2011 09:30

conclusion from the last brokers note in November

�� The Group remains very significantly undervalued from both an earnings and assets perspective. The PE is 8.1x
falling to 7.5x and there is an attractive and growing dividend, which is 2x covered, giving a yield of 6.1%. At the end of
September, tangible net assets were £15.4m, equivalent to 14p per share. However, if the Blue Tower and associate
investments are valued at market rather than book value, tangible net assets would be c£20m, equivalent to 18p per
share, in line with the current share price. This leaves the highly profitable and growing property fund management
side, which is expected to make profits of £3.1m this year "in for nothing". We reiterate our Buy recommendation.

[oregano] 11/2/2011 09:15

they are starting to invest the cash in their funds / properties - note the last deal they did. i agree it is a good target though.

[darias] 11/2/2011 09:14

Looking at the cash pile. I think the company has to look to grow by aquisition or it will be swallowed up.

[wjccghcc] 11/2/2011 09:10

It's good until all the buyers get bored and sell :-)

[oregano] 11/2/2011 09:08

if someone could post the article it would be appreciated. whilst i appreciate the IC touch might normally be a curse, with asset value of 18p and a profitable, cash generative and growing business, it is hard to argue that it isn't cheap.

[darias] 11/2/2011 09:06

That is good????

[deswalker] 11/2/2011 08:47

To answer my own question, it's been named as a "Bargain Share for 2011" in the IC.