Highlights of the Q3 2018 report
- Total revenue in the third quarter of 2018 was MNOK 72.7, compared to MNOK 66.0 in the third quarter of 2017. The increase is mainly related to the acquisition of new properties, the majority in Finland.
- Operating profit (EBIT) in the quarter was MNOK 116.8 and pre-tax profit was MNOK 77.5 compared to MNOK 58.3 and MNOK 32.9 in the third quarter of 2017, respectively. Profitability in the third quarter was positively impacted by net fair value adjustments amounting to MNOK 57.6, entirely related to properties in Finland.
- In Q3 the company refinanced all its existing loans in Finland with a new long-term fixed rate direct loan of EUR 70 million.
- Towards the end of the quarter the company entered into agreement to acquire eleven properties from Norlandia at a total enterprise value (EV) of MNOK 174, of which six properties were acquired in Q3 and the remaining will be acquired in Q4 and 2019. The first six properties, with an EV of MNOK 83 have been financed from PPG’s balance sheet and paid in cash.’
- PPG’s largest tenant, Espira, gave notification that it would utilize its ten-year extension option on 31 properties. These 31 properties have an additional five year option from 31 Dec 2028.
- At the end of the quarter PPG executed the quarterly dividend to holders of preference shares in total NOK 1.875 per preference share.
- At the end of the quarter PPG had total assets of MNOK 5,489, where Investment Properties were valued at MNOK 5,098, and with a cash balance of MNOK 361. Total debt was MNOK 3,489 with total equity of MNOK 1,999.
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