Trading update

First Property Group plc

Trading update

First Property Group plc (AIM: FPO), the property fund manager and investor, is pleased to provide a trading update for the year ended 31 March 2025.

The Board expects the Group's profit before tax (on an unadjusted basis) for the year to significantly exceed market expectations.

Despite ongoing volatility in the property markets, the Group has had a successful financial year. First Property benefitted from several one-off events, including profits made on the disposal of investment properties by one of its managed funds, in which it holds an associated interest. Additionally, the Group benefited from the early receipt of fees from another fund, following the early disposal of its properties.

The Group also implemented several cost-cutting measures (which included a 15% voluntary reduction in salary by the CEO), resulting in total annual savings of £650,000. It also raised £2.96 million (before expenses) through an open offer of new ordinary shares to all qualifying shareholders. The proceeds were used to meet contractual debt liabilities in respect of the deferred consideration payments for the Blue Tower property, located in Warsaw, funding capital expenditure incentives for tenants as the Group continues to lease the remaining vacant space in its portfolio and strengthening the Group's balance sheet. The open offer was jointly underwritten by the CEO and Chairman, demonstrating their confidence in the Company's prospects and the Board's strategy.

These actions contributed to enhancing profits and strengthening the Group's financial position. On an underlying basis (assuming no movement in the value of properties held), the Group is now trading profitably.

The past few years have been challenging, first with lockdowns impacting the collection of rental income and then rising inflation and interest rates accordingly, resulting in increases in borrowing costs, a reduction in capital values, a withdrawal of/ tightening in the terms of bank lending against property, valuation impairments from the ever increasing obligations under environmental regulations, changing working habits and the requirement for significant capital expenditure for fit-outs.

The Group is emerging from these difficult times.

A strengthened balance sheet with underlying profitability positions the Group well for making opportunistic investments alongside the funds it manages.

The Group is expected to announce its results for the year ended 31 March 2025 on 19 June 2025.

Nick Naylor / Daniel Dearden-Williams (Corporate Finance) Amrit Nahal / Tony Quirke (Sales and Corporate Broking)

Notes to Investors and Editors:

• Fund management - via its FCA regulated and AIFMD approved subsidiary, First Property Asset Management Ltd ("FPAM"), which earns fees from investing for third parties in property. FPAM currently manages twelve funds which are invested across the United Kingdom, Poland and Romania.
• Group properties - principal investments by the Group to earn a return on its own capital, usually in partnership with third parties. Investments comprise six directly held properties in Poland, one in Romania, and non-controlling interests in nine of the twelve funds managed by FPAM.