Email jeremy.barkes@fprop.com Phone +44 20 7340 0270 Prelims 2012 - PowerPoint PPT Presentation

Preliminary Results, 11 June 2012 First Property Group plc  Email jeremy.barkes@fprop.com  Phone +44 20 7340 0270

Prelims 2012 Table of Contents Business Model Fund Raising Market 17 3 Highlights 4-7 Investment Markets 18-20 Financial Highlights 4 Poland 18 Dividend 19-20 5 United Kingdom Earnings Breakdown 6 Operational Highlights 7 Outlook 21 Segmental Analysis: APPENDICES FPAM 8-11 Share Statistics 22 Assets under Management (AUM) 8 Shareholders 23 AUM breakdown 9 Plc Management Bios 24-25 Track Record 10-11 Tenancy Exposure 12 Contact Details 26 Disclaimer Group Properties 27 13-16 Directly held assets 13 Co-investments Extra Slides 29-33 14 Earnings breakdown 15 Tenancy Exposure 16  Email jeremy.barkes@fprop.com 2  Phone +44 20 7340 0270

First Property Group plc Business Model First Property Group plc is a commercial property fund manager with operations in the United Kingdom and Central Europe. The performance of its funds under management ranked No.1 versus the Investment Property Databank (IPD) CEE universe for the three, four, five and six years to 31 December 2008, 2009, 2010 & 2011.  The business model of First Property Group is to:  Raise third party funds to invest in income producing commercial property;  Co-invest in these funds;  Earn fees for the management of these funds. Fees earned are a function of the value of assets under management as well as the performance of the funds;  Earn a return on its own capital invested in these funds.  FPAM ranked No.1 vs IPD CEE universe over 3, 4, 5 & 6 years to 31 Dec 2008, 2009, 2010 & 2011  Email jeremy.barkes@fprop.com 3  Phone +44 20 7340 0270

Highlights Financial Highlights Year to 31-Mar-2012 Year to 31-Mar-2011 Percentage (Unaudited) (Audited) change Profit before tax - continuing operations £3.97m £2.95m +35% Diluted earnings per share (continuing operations) 1.90p +44% 2.73p Total Dividend 1.08p 1.06p +2% Profit before tax by segment: Profit before tax from property fund management (FPAM) £3.07m £2.74m +12% Profit before tax from total Group Properties (incl FOP) £2.54m £1.24m +105% Net assets £17.36m £16.57m +5% Assets under management £365m £366m - Poland 70% 75% UK 22% 27% Romania 3% 3%  Email jeremy.barkes@fprop.com 4  Phone +44 20 7340 0270

Highlights Dividend 1.200p 1.08p 1.06p Board recommends increased 1.03p 1.000p 1.00p dividend for year of 1.08p (2011: 1.06p). 0.800p 0.80p GBP 0.600p 22-Aug-2012 XD Record Date 24-Aug-2012 0.400p Payment Date 21-Sep-2012 0.200p 0.000p 2008 2009 2010 2011 2012 Interim Final Total  Email jeremy.barkes@fprop.com 5  Phone +44 20 7340 0270

Highlights Earnings breakdown In monetary terms (2010 – 12): 3.50 3.00 2012 2010 2011 2.50 2012 £m 2.00 1.50 2011 1.00 2010 0.50 0.00 FPAM Group Properties (incl FOP)  Email jeremy.barkes@fprop.com 6  Phone +44 20 7340 0270

Highlights Operational Highlights   UK PPP fund, established in February 2010, 90% Although headline assets under management remained invested with £93.5 million under management at year broadly unchanged year on year there was underlying end; movement in funds with assets in the UK increasing to 27% of total assets under management whilst a  In receipt of expressions of interest to invest in a new weakening Euro versus Sterling resulted in a 6% reduction UK fund to pursue the same higher yielding investment in assets in Poland to 70% of total assets under strategy as UK PPP; management;  Funds under management once again rated by  Material increased contribution to earnings from Group Investment Property Databank (IPD) as the best Properties, resulting from a full year’s contribution from performing versus the IPD Central & Eastern European properties acquired by Fprop Opportunities plc (FOP) in (CEE) universe, now for the six years to 31 December 2010; 2011.  Email jeremy.barkes@fprop.com 7  Phone +44 20 7340 0270

Segmental Analysis Assets under Management (AUM) Termination Date Assets under Management Fund Established (unless extended) at 31-Mar-2012 SAM Property Company Ltd (SAM) Aug-2004 Rolling Not subject to recent revaluation Regional Property Trading (RPT) Aug-2004 Aug 2012 £7.0 million 5 th Property Trading (5PT) Dec-2004 Dec 2014 £9.2 million USS Fprop Managed Property Portfolio LP Aug-2005 Aug 2015 £233.1 million UK Pension Property Portfolio LP (UK PPP LP) Feb-2010 Feb 2017 £93.5 million Fprop Opportunities plc (FOP) Oct-2010 Oct 2020 £22.2 million Total £365 million  Email jeremy.barkes@fprop.com 8  Phone +44 20 7340 0270

Segmental Analysis AUM Breakdown By fund: By geography: By investor category: Poland USS Pension Funds 70% 64% UK UK PPP 89% (2010: 75%) 27% 25% (2010: 22%) FOP 6% Family Offices 1% 5PT Fprop High net worth Romania 3% 7% investors RPT 3% 3% 2% (2010:3%)  Email jeremy.barkes@fprop.com 9  Phone +44 20 7340 0270

Segmental Analysis Track Record – All Funds (excl SAM) to 31 March 2012 IRR pa - Actual IRR pa - Implied ROE pa - Current ROE pa - from Inception 35% 30% 25% 20% 15% 2002 – 2006 2003 – 2007 2003 – 2008 10% 5% 0% 1PT 2PT 3PT RPT 5PT USS UK PPP FOP  All implied IRR calculations use 31-Mar-2012 NAVs.  Annualised ROEs from inception are calculated using average pre-tax INCOME returns over each fund’s life ÷ by ORIGINAL shareholders’ capital employed (time weighted).  Current ROE is calculated using the FY 2012 pre-tax income ÷ by original shareholders’ capital employed.  Email jeremy.barkes@fprop.com 10  Phone +44 20 7340 0270

Segmental Analysis Track Record – UK  Strategic decision taken in 2005 to sell UK properties, executed by 2007. Subsequent reinvestment of client funds into Poland.  Returned to UK property investment in 2009. 8.50% “…the commercial property investment market in the UK has Ben Habib risen sharply over the last few years and a large proportion of 8.00% Fprop plc 2 Annual Report 2005 properties for sale are, in our view, overvalued ....” Average UK Yields (CBRE) 2 2 4 3 3 7.50% 5 2 7.00% 3 2 2 6.50% Sale (with the number sold) 6.00% Purchase (with the number purchased) 2 5.50% 2 2 5.00% 3 5 4.50% Mar 2000 Mar 2001 Mar 2002 Mar 2003 Mar 2004 Mar 2005 Mar 2006 Mar 2007 Mar 2008 Mar 2009 Mar 2010 Mar 2011 Mar 2012 N.B: Where no number is provided only one property was transacted. Average UK yields are the average of prime and secondary office and retail yields (source = CBRE).  Email jeremy.barkes@fprop.com 11  Phone +44 20 7340 0270

Segmental Analysis Tenancy Exposure (top 10) – Client funds 5.00 4.50 15.0% 4.00 3.50 £ Millions pa 3.00 2.50 2.00 5.7% 1.50 5.3% 4.2% 1.00 3.4% 3.3% 2.6% 2.4% 2.4% 2.4% 0.50 - Prokom/ Asseco Citibank Int. Indesit Carrefour Aquila Skanska S.A. B&Q Plc Mazowiecki Matalan Retail Cadburys Odział Radomsko Ltd Schweppes Ltd Wojewódzkiego N.B: Rents converted to GBP at € 1.199/ £1. The percentages show rental income as a percentage of the total rental income of all properties managed by FPAM excluding directly held properties and FOP (which is majority owned by the Group and accounted for within Group Properties).  Email jeremy.barkes@fprop.com 12  Phone +44 20 7340 0270

Segmental Analysis Group Properties Group Properties comprises two properties owned directly by the Group and co-investments in four of the six funds managed by FPAM. Directly Held Properties: Valuation Contribution Property Name Purchase date Book cost Bank loan Net Rent at 31-Mar-2012 to pre-tax profit Bacha St, Mokotow, PLN 11.7m PLN 11.8m Nov-2007 Nil £344,000 £243,000 Warsaw (£2.4m) (£2.4m) Blue Tower, Central US$ 12.9m US$10.6m US$ 19.7m Dec-2008 £1,292,000 £831,000 Business District, Warsaw (£8.3m) (£6.6m) (£12.3m) £14.7m Total £10.7 m £6.6m £1.64m £1.07m (Net £8.1m)  Email jeremy.barkes@fprop.com 13  Phone +44 20 7340 0270

Segmental Analysis Co-investments Co-investments: Group’s share of Plc shareholding Book value of Market Value Fund Fprop’s share 31-Mar-2012 31-Mar-2012 pre-tax profit Interest in associates 5 th Property Trading (5PT) 37.8% £594,000 £1,165,000 £141,000 Regional Property Trading (RPT) 28.6% £213,000 £239,000 £41,000 Share of results in associates £182,000 Investments UK Pension Property Portfolio LP 0.9% £903,000 £906,000 £63,000* (UK PPP LP) Consolidated undertaking Fprop Opportunities plc (FOP) 84.1% £6,600,000** £8,500,000 £1,030,000*** Total £8.3 m £10.8 m £1.3 m * Represents dividend received . ** Original book cost was £7 million, initially comprised 99% (£6.93 million) of non-interest bearing shareholder loan. By 31-Mar-2012 there had been 4 loan repayments of which the Group’s share was £374,245 in aggregate. *** After non-controlling interest.  Email jeremy.barkes@fprop.com 14  Phone +44 20 7340 0270

Segmental Analysis Group Properties – Earnings Breakdown In monetary terms: In percentage terms: 1.2 2012 1.0 2012 0.8 £ Millions 2011 FOP 0.6 44% 2x direct properties 46% 0.4 0.2 2012 2011 2011 RPT, 5PT & UKPPP 10% 0.0 2x direct properties RPT, 5PT & UKPPP FOP  Email jeremy.barkes@fprop.com 15  Phone +44 20 7340 0270