Pioneer Property Group (PPG) H2 2025 earnings summary

Executive summary

• Contractual revenue rose 29% to MNOK 173.5 in 2025, driven by the Norlandia Holding acquisition and CPI-adjusted rents.

• Total revenue reached MNOK 175.7, while pre-tax profit declined to MNOK 105.7 from MNOK 145.2 in 2024.

• Net profit was MNOK 71.5, down from MNOK 118.1 in 2024; adjusted 2024 net profit was MNOK 32.2 excluding a one-time fair value adjustment.

• Preference shareholders received NOK 10 per share in dividends, paid quarterly.

• Investment property portfolio value increased by MNOK 69.6, mainly due to higher lease income in the hotel segment.

Financial highlights

• Rental income increased to MNOK 173.5 (MNOK 134.4 in 2024); other income was MNOK 2.2.

• EBIT was MNOK 195.0, down from MNOK 224.0 in 2024, mainly due to lower fair value revisions.

• Net financial expenses rose to MNOK 89.1 (MNOK 78.7 in 2024) due to higher interest rates and write-downs.

• Total assets were MNOK 3,321.6 (MNOK 3,526.2 in 2024); equity stood at MNOK 1,241.2.

• Net cash from operating activities was MNOK 3.8 (MNOK 77.0 in 2024); cash at year-end was MNOK 75.1.

Outlook and guidance

• Market conditions remain demanding due to rising interest rates, impacting net cash flow.

• Positive CPI adjustments and higher market rent expectations are expected to drive rent increases in 2026.

• The board anticipates increased minimum rent and revenue-based lease income from hotels in 2026.