15. November 2016
Please find attached the combined third quarter financial report
for Pioneer Property Group ASA (PPG PREF) and Pioneer Public
Properties AS (PPU01)
Highlights for Pioneer Property Group ASA:
- Total revenues in the third quarter of 2016 were MNOK 52.7,
marginally up from the second quarter because of newly acquired
preschools.
- PPG's subsidiary group, Pioneer Public Properties AS, issued a
new unsecured bond of MNOK 1,000 to refinance existing bond-loans
and other external unsecured debt, in addition to strengthening the
Group's cash balance.
- Interest expenses in the quarter were heavily impacted by one-off
costs relating to the refinancing of the two bond loans in Pioneer
Public Properties II AS and Pioneer Public Properties III AS. Call
premiums and the write down of previously amortized bond
transaction costs totaled MNOK 38.7 in the quarter in addition to
some double interest costs for a short period. Operating profit
(EBIT) remained strong at MNOK 46.7, but with a pre-tax loss was
MNOK -25 due to one-off costs.
- Towards the end of the quarter, PPG acquired additional nine
properties for a total enterprise value of MNOK 188 with total
annualized rent of MNOK 12. Four of these properties are
consolidated in the third quarter results.
- On 30th September, PPG paid a dividend to holders of preference
shares - in total NOK 1.875 per preference share. The next dividend
to preference shareholders is scheduled for the end of the fourth
quarter 2016. See the company's website for updated financial
calendar information.
- The company had total assets of MNOK 3,927, where Investment
Property (116 properties) were valued at MNOK 3,486 and with a cash
balance of MNOK 342. Total debt was MNOK 2,296 with total equity of
MNOK 1,631.
- Since the end of the third quarter, the company has entered into
agreement to acquire additional twelve preschool properties in
Finland for a total value of MEUR 22, which have annual revenues of
MNOK 1.4. This acquisition is debt financed with MEUR 13.2 from
Danske Bank.
Pioneer Public Properties AS:
The Pioneer Public Properties AS (PPP) group of companies was
established towards the end of 2015 and comprise all the
operational companies in Pioneer Property Group ASA. The reason for
establishing this subset group of companies was in preparation for
the issuance of the PPP unsecured bond of MNOK 1,000, which was
issued in the third quarter of 2016. The financial statements of
Pioneer Public Properties AS are therefore very closely related to
the financial statements of Pioneer Property Group ASA, with the
key difference being the exclusion of the mother company of the PPG
group. All operational discussions will be identical for the two
groups, and discussions of financial accounts will be similar, with
a few exceptions. See the attached report for more details.
Contact persons:
Runar Rønningen (CEO) - tlf +47 90690038
Martin P. Hoff (CFO) - tlf +47 47214721