- Third-party AUM down 45 per cent to £222mn
- Pre-tax loss of £4.4mn due to non-cash impairments
- Adjusted NAV down 15 per cent to £44.5mn (39.4p)
Annual results from European property investor and fund manager First Property (FPO:18p) reflect a challenging commercial property market.
Chief executive and 13.5 per cent shareholder Ben Habib said the company faced a combination of higher interest rates in the US, which have attracted capital out of other markets (including key market Poland), the negative impact of higher interest rates on property values and availability of bank debt, weaker economies and a burdensome regulatory environment as governments strive to achieve their net zero ambitions. The multiple headwinds led to reduced occupancy demand, higher capital investment requirements, lower property values and an exodus of institutional investors from the markets that First Property operates in.