First Property Group plc, a property fund manager and investor, has reported that its underlying trading profits for the financial year ending March 2024 are in line with market forecasts. The company has leased nearly one third of the vacant office space it acquired in Warsaw and Gdynia in 2021 and 2022, totaling 20,000 square meters. Tenant demand remains steady in both cities. The increase in interest rates has impacted property values, but the company has been shielded from much of this due to its accounting policy of holding properties at the lower of cost or value.

The company's share in Fprop Opportunities plc (FOP), a fund invested in five commercial properties in Poland, was deconsolidated from the group's accounts and accounted for as an associate in October 2018. In the six months to September 2023, the properties owned by FOP decreased in value by £2.2 million, resulting in an overall loss for the group in the first six months of the current financial year. However, the properties held by FOP currently have an aggregate value of £61.5 million and yield income of approximately 8.5% per annum. The majority of rent payable is subject to annual increases linked to inflation, and the board expects the value reduction to partially reverse as rents increase.

The group plans to announce its financial results for the six months to September 2023 on November 23. A meeting for analysts and investors will be held on the same day via the Investor Meet Company platform. Questions can be submitted prior to the event or during the live presentation. The accompanying investor presentation will be available online.

First Property Group plc is an award-winning property fund manager and investor with operations in the UK and Central Europe. Its earnings are derived from fund management and principal investments in commercial properties.