First Property Group's results dip as Warsaw lease expires

First Property Group’s interim revenue and profit both dropped after the expiration of a lease on a major property in Warsaw, Poland, according to unaudited results released on Thursday.

For the six months ended 30 September the property fund manager and investor’s revenue dropped by 8% from the same period last year to £11.2m and statutory profit before tax fell by 23% to £3.82m.

The expiry of Citi Group's lease at one of First Property’s CH8 Tower, on of its two towers in Warsaw, was cited as the driver behind the drop, with the AIM traded company unruffled and confident that the space would be leased in the near future.

Meanwhile, the group ended the period with reported net assets of £50.8m, an increase of 13%, while cash balances at the period end were unchanged versus the prior year at £10m.

Ben Habib, chief executive of First Property, said: "Third party funds under management increased by 44% from the prior year and the group's adjusted net assets per share increased by 21% over the same period."

The company’s directors proposed an interim dividend of 0.44p per share, up by 4.8% from the prior year, following what Habib called “a good six months”.

"We are particularly excited by the investments we are acquiring on behalf of Fprop Offices in the UK and the prospects of Eximius Park in Krakow, both of which should result in material contributions to group profits in due course," said Habib.

First Property Group’s shares were up 2.02% at 50.50p at 1140 GMT.