15. February 2017
Please find attached the combined fourth 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 fourth quarter of 2016 were MNOK 60.3, up
from the third quarter as a result of newly acquired properties.
- Operating costs in the quarter were impacted by miscellaneous
costs relating to the acquisitions and implementation of properties
from NCG and Trevian, as announced in Q3.
- Interest expenses in the quarter increased due to the full effect
of the new PPP bond and also due to one-off expenses relating to the
refinancing of bank loans, including some double-interest costs.
- At the end of the quarter PPG commissioned Newsec to review the
valuation of the property portfolio. The valuation of MNOK 4,043 has
prompted the Board of Directors to increase the book value in
accordance to IFRS, triggering an extraordinary accounting profit of
MNOK 242 in the fourth quarter.
- Primarily as a result of large gains from the adjustment of
property values, EBIT for the fourth quarter was MNOK 292 and pre-
tax profit was MNOK 263.
- The new bond of MNOK 1,000 in Pioneer Property Group's subsidiary
company Pioneer Public Properties AS was successfully listed on the
Oslo Stock Exchange from the beginning of the fourth quarter.
- A new bank financing from DnB of MNOK 495 was established to
refinance smaller bank-loans in several subsidiary companies in
addition to adding bank financing to recently acquired
kindergartens.
- On 31th December, 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 first
quarter 2017. See the company's website for updated financial
calendar information.
- At the end of the fourth quarter PPG had total assets of MNOK
4,423, where Investment Property (133 properties) were valued at
MNOK 4,043, and with a cash balance of MNOK 350. Total debt was MNOK
2,568 with total equity of MNOK 1,855.
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 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