9th Apr 2014 08:27
LONDON (Alliance News) - First Property Group PLC Wednesday said it expects to pretax profit for the year ended March to be broadly in line with broker forecasts which it attributed to earnings from new investments made in three income-producing commercial properties in Poland acquired during the second half of the year.
The property investment firm which operates from offices in London and Warsaw expects these Polish properties to contribute around GBP1.2 million to pretax profit and non-controlling interests for the year.
First Property said it returned to development activity in the UK and investment in income-producing commercial property in Poland during the year, which resulted in material increases to broker forecast earnings for the years to end-March 2014 and 2015.
The property fund manager said the contribution to its earnings from the acquisition and subsequent sale of its office blocks in Woking and Bracknell amounted to GBP3.8 million.
"This contribution is non-recurring, though we expect to also earn development profits in the year to March 31, 2015 from Fprop PDR, our new partnership with clients of a leading global investment business, established on October 24, 2013," it added.
First Property said to date this partnership has committed to invest some GBP14 million in five properties and has a further GBP8 million of property under offer.
"We have come through the credit crunch in excellent shape, without having to raise additional equity and having paid dividends throughout this difficult period," Chief Executive Ben Habib said in a statement.
"I hope and expect that the financial crisis is now largely behind us and that we can translate the improved investment environment into growing profits for the group and its shareholders," he added.
First Property shares were of 1.7% at 29.50 pence early Wednesday.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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