First Property Group plc, a property fund manager and investor, has announced its interim results for the six months ended 30 September 2023. The company reported a statutory loss before tax of £0.65 million, compared to a profit before tax of £2.39 million in the same period last year. Cash balances decreased to £6.71 million from £7.65 million as of 31 March 2023. Third-party Assets Under Management (AUM) stood at £304 million, down from £400 million as of 31 March 2023. Total AUM decreased to £358 million from £454 million. The weighted average unexpired fund management contract term was 2 years, 1 month as of 30 September 2023, compared to 2 years, 9 months as of 31 March 2023.
The balance sheet at the end of the period showed investment properties at book value of £47.13 million, up from £47.01 million as of 30 September 2022. Investment properties at market value decreased to £53.28 million from £53.97 million. Associates and investments at book value decreased to £20.03 million from £22.13 million, while associates and investments at market value decreased to £22.30 million from £25.27 million. Cash balances decreased to £6.71 million from £7.65 million. Net debt increased slightly to £22.22 million from £22.01 million.
CEO Ben Habib commented on the results, stating that the markets have been challenging, with a rapid increase in interest rates and a collapse in demand for commercial property. However, he noted that inflation is reducing and interest rates are likely to be close to their peak. Habib also mentioned that the company is seeing an uptick in investment demand and occupational demand for vacant office space in Warsaw and Gdynia. He expressed optimism about the future, stating, "I am once again beginning to be excited about the future."
A briefing for analysts and investors will be held today, and a copy of the investor presentation and a recording of the call will be posted on the company's website.