First Property results show polish

Interim profits shot higher at commercial property fund management group First Property as it reaped the benefit of being heavily invested in its own funds.

The Poland and UK-focused firm saw a 79% rise in pre-tax profit to £2.54m for the six months ended 30 September from £1.42m at the interim stage last year.

Revenue increased from £2.96m last year to £4.59m this time round.

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The Group Properties division, which comprises two Warsaw properties owned directly by the group and shareholdings in four of the six funds managed by First Property Asset Management (FPAM), was largely responsible for the sharp increase in revenue and profits.

Revenue from Group Properties more than doubled to £2.48m from £1.00m last year, resulting in an increase in profit before tax to £1.37m from £0.38m at the half-year stage last year.

In contrast, growth in the FPAM division was more pedestrian; revenue rose to £2.11m from £1.93m last year, while profit before tax, prior to the deduction of unallocated central overhead costs, climbed to £1.62m from £1.47m last time out.

Assets under management increased from £315m to £374m. Of these, 71% were located in Poland (2010: 77%), 26% were located in the UK (2010: 19%) and 3% in Romania (2010: 4%). There were five purchases with a total value of around £16.5m during the period and no property sales.

Chief executive Ben Habib said: "The unfolding sovereign debt crisis in Europe naturally causes us concern but the Polish economy, where 71% of our assets under management are located, has continued to perform well, as have our properties there. Poland remains a bright spot on the European landscape, but we are closely monitoring the crisis in Europe and any consequences it may have for the group."

The firm has recommended an increased interim dividend of 0.33 pence per share from 0.32 pence at the same date a year ago. Cash fell slightly from £10.3m to £8.97m.

The share price rose 7.145 to 16.88p by 13:51.

NR