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 revenue in the fourth quarter of 2018 was MNOK 73.8, compared to MNOK 66.6 in the fourth quarter of 2017. The increase is related to the acquisition of new properties.
- Operating profit (EBIT) in the quarter was MNOK 138.4 and pre-tax profit was MNOK 118.8 compared to MNOK 257.4 and MNOK 252.8 in the fourth quarter of 2017, respectively. Profitability in the fourth quarter was positively impacted by net fair value adjustments amounting to MNOK 62.8 based on the Company’s valuation process.
- Profitability in the quarter was positively impacted by a reversal of previously booked value added tax for management services, as VAT authorities reclassified these services as VAT-exempt. Total operating costs in the quarter had therefore a positive impact of MNOK 2.9 on EBIT. Adjusted for one-time effects the operating costs were at the same level as previous quarters.
- The Company took over two properties from Norlandia in the fourth quarter. These are a part of the acquisition announced towards the end of the previous quarter. The remaining properties are to be taken over during 2019.
- In the fourth quarter PPG acquired Pioneer Management AS, the provider of management services to PPG, as a strategic move to secure direct control of business-critical management services and systems.
- Following the acquisition of Pioneer Management AS, the new CEO Anders Løken was hired. Former CEO Runar Rønningen and CFO Martin P. Hoff are facilitating the transfer and will be leaving the Company in the first quarter of 2019.
- At the end of the quarter PPG paid 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 5,559.8, where Investment Properties were valued at MNOK 5,269.3, and with a cash balance of MNOK 283.3. Total liabilities was MNOK 3,502.5 with total equity of MNOK 2,057.2.
- The Company is in compliance with all bank and bond-related financial covenants.
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:
Anders Løken (CEO) - tlf +47 97769200