Pioneer Property Group (PPG) H1 2024 earnings summary

Executive summary

• Contractual rental income for 1H 2024 was MNOK 49.0, slightly down from MNOK 49.8 in 1H 2023, but adjusted for asset sales, rental income increased by about 10%.

• Operating profit (EBIT) for 1H 2024 was MNOK 44.1, down from MNOK 61.6 in 1H 2023, mainly due to lower fair value adjustments and higher interest expenses.

• Net profit for 1H 2024 was MNOK 14.5, compared to MNOK 39.3 in 1H 2023, reflecting increased interest costs and lower fair value gains.

• Dividends of NOK 5.00 per preference share and NOK 6.09 per ordinary share (MNOK 20.0) were paid.

• Portfolio includes preschools, hotels, retail, office, and property development, with new JV and property completions in 1H 2024.

Financial highlights

• Total assets at 30 June 2024 were MNOK 2,530.0; total equity MNOK 1,258.9; total borrowings MNOK 1,130.7.

• Net finance cost for 1H 2024 was negative MNOK 27.3, higher than MNOK -19.3 in 1H 2023 due to increased debt and interest rates.

• Cash and cash equivalents at period end were MNOK 56.9, down from MNOK 219.1 at 1H 2023.

• Fair value adjustment on investment properties was MNOK 8.6 in 1H 2024, down from MNOK 25.3 in 1H 2023.

• Gain from associated companies was MNOK 3.1 in 1H 2024, compared to MNOK 12.4 in 1H 2023.

Outlook and guidance

• Hotel segment expected to remain strong in 2024, with increased rent levels from renovated properties.

• Retail segment faces pressure from higher interest rates and negative fair value adjustments.

• Property development projects progressing as planned, with new leases and expansions expected to contribute to future income.