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Pioneer Property Group (PPG) investor relations material

Pioneer Property Group H1 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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H1 2025 earnings summary21 Aug, 2025

Executive summary

  • Contractual rental income rose to MNOK 76.5 in 1H 2025 from MNOK 49.2 in 1H 2024, driven by the Norlandia Holding acquisition in Q4 2024.

  • Operating profit (EBIT) increased to MNOK 56.8 from MNOK 44.1 year-over-year.

  • Preference shareholders received NOK 5.00 per share in dividends for the period.

  • The hotel segment continued strong post-pandemic performance, with significant rental income growth.

  • Higher interest rates increased finance costs, but a policy rate cut in June 2025 is expected to reduce costs in 2H 2025.

Financial highlights

  • Net profit for 1H 2025 was MNOK 14.2, down from MNOK 17.5 in 1H 2024, as higher interest costs offset rental income gains.

  • Total assets at period end were MNOK 3,040.7, with investment property at MNOK 2,299.5 and cash at MNOK 79.3.

  • Total equity stood at MNOK 1,218.3, and total borrowings at MNOK 1,715.5.

  • Net finance expense increased to MNOK 35.9 from MNOK 28.4 year-over-year.

  • Weighted average gross yield for the property portfolio was 7.4% in 1H 2025, up from 6.8% in 1H 2024.

Outlook and guidance

  • The hotel segment is expected to remain strong throughout 2025, supported by the Norlandia acquisition.

  • Interest costs are anticipated to decrease in 2H 2025 following the policy rate reduction.

  • The new parking lot at Gardermoen is projected to increase lease income to MNOK 4.0 in 2026.

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Frequently asked questions

Pioneer Property Group ASA (PPG) is a Norway-based investment company with a strategic focus on real estate investments. The company's portfolio is diversified across various segments, including preschool properties, hotel properties, retail properties, and development projects. PPG's business model emphasizes investing in real estate and entering into long-term triple-net leases with leading operators, showcasing a broad engagement across different real estate sectors. The company operates with a specific interest in preschools, retail properties, hotel properties, development properties, and office properties. The company is headquartered in Oslo, Norway, and its shares are listed on the Oslo Stock Exchange.

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