Please find attached the fourth quarter financial report for Pioneer Property Group ASA (PPG PREF).
Highlights for Pioneer Property Group ASA:
- Total revenue from continued operations in the fourth quarter of 2019 was MNOK 1.2 compared to MNOK 0.1 in the fourth quarter of 2018. The increase is related to the acquisition of new properties.
- Operating profit (EBIT) for the quarter was a negative MNOK 8.9 and pre-tax profit for continuing operations was MNOK 41.6 compared to operating profit (EBIT) of negative MNOK 0.9 and pre-tax profit of negative MNOK 0.3 for the fourth quarter of 2018. Profitability in the fourth quarter was negatively affected by non-recurring payroll expenses related to the sale of PM and PPP, and negative fair value adjustments related to transaction costs of the new acquisition. Further pre-tax profit was affected by a positive fair value revision of the earn-out consideration of MNOK 40 from the sale of PM and PPP.
- As previously communicated PPG entered into a purchase agreement with Odin Bidco AS regarding the purchase of 100% of the shares in Pioneer Public Properties AS and Pioneer Management AS from PPG on 9 October 2019 with a total purchase price for the shares of MNOK 2,734. Closing of the Transaction took place on 24 October 2019. A gain on sale of MNOK 694 was recorded over the quarter, and were included as part of profit from discontinued operations.
- PPG's subsidiary Pioneer Property Group International AS acquired over the quarter 8 properties in Poland, 3 properties in Netherlands and 1 property in Sweden from Care Properties Finance AS, a wholly owned subsidiary of Norlandia Health & Care Group AS.
- Based on the development of the PPP group, the earn-out consideration of MNOK 100 related to the sale of PPP and PM was paid in full subsequent to the quarter.
- PPG purchased 1,631,447 preference shares in PPG at a price of NOK 102.00 per preference share.
- Over the quarter PPG paid a quarterly dividend to holders of preference shares of NOK 1.875 per preference share and an extraordinary dividend to the holders of ordinary shares of NOK 27.74 per ordinary share charged to the company's share premium reserves.
For further information, please contact:
Ole-Kristofer Bragnes, CFO
Telephone: +47 917 03 415
E-mail: IR@pioneerproperty.no