Pioneer Property Group (PPG) H1 2025 earnings summary

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.