Public Property Invest

Earnings Release • May 16, 2025

Q1 2025: Strong growth in net operating income and earnings, delivering on strategy of being a leading consolidator

Q1 2025: Strong growth in net operating income and earnings, delivering on strategy of being a leading consolidator

Net operating income increased with 47.7 % to NOK 189 million (NOK 128

million) and net income from property management increased with 78 % to NOK 92

million (NOK 52 million) in the first quarter of 2025 compared to the same

quarter last year. Profit (loss) before tax came in at NOK 210 million in the

first quarter compared to (NOK 215) million in the first quarter of 2024.

PPI signed new and renewed leases for a total of 15,000 sqm in the quarter and

as of 31.03.2025 the portfolio occupancy was 97.3 %. As of the same date, PPI

owned 77 properties with a total market value of NOK 11,682 million, an

average lease term of 5.6 years (WAULT) and an average net yield of 6.4 %. The

value of PPI's investment properties increased by NOK 71 million in the first

quarter and EPRA NRV per share increased from NOK 27.2 to NOK 28.0 in the

quarter.

During the first quarter PPI acquired five properties of which one government

tenant property in Bergen in Norway, a pre-school in Trelleborg in Sweden, two

school properties in Espoo and one school property under redevelopment in

Helsinki in Finland. In total, these properties have added around 20,875 sqm

to the portfolio.

As a result, PPI's estimated run rate rental income increased by 6.3 % from

NOK 774 million to NOK 823 million while run rate net income from property

management per share increased by 9.4 %, from 1.59 per share as of 31.12.2024

to 1.74 per share as of 31.03.2025

PPI maintains a solid balance sheet with a loan to value ratio of 46.6 % and a

Net debt/Run rate EBITDA multiple of 8.6 as of 31.03.2025.

Events after the balance sheet date:

On 13 May 2025, PPI announced a large milestone transaction involving the

acquisition of a portfolio of eight mission critical industrial infrastructure

assets, while also getting a new strategic, long-term investor in the Aker

Group. The portfolio will be acquired for a total equity value of NOK 2.325

billion, based on a net property value of approximately NOK 1.525 billion and

a net cash level of approximately NOK 800 million in exchange for 124.4

million new ordinary shares in PPI. The shares will be issued at a price of

NOK 18.69 per share. Approximately 39.8 million of the PPI shares will be

transferred to Samhällsbyggnadsbolaget i Norden AB in a separate transaction.

Following completion, Aker Property Group will own approximately 24.6 % of the

outstanding shares in PPI ASA. Reference is made to the detailed stock

exchange announcements for more information on the transaction.

So far in Q2 2025, PPI has also signed five additional transactions involving

three government tenant properties in Norway, a portfolio of assisted living

service properties in Norway and a life science property under development in

Aalto University campus in Espoo in Finland. In total the transactions

announced so far in Q2 2025 will add almost 190,000 sqm to the portfolio

In line with the communicated dividend strategy, the Board of PPI has proposed

to the AGM to be held later today to distribute a dividend of a total of NOK

0.5 per share for 2024. The dividend will be split in quarterly installments

of which NOK 0.10 per share is proposed to be paid out in July and October

2025 and NOK 0.15 is proposed to be paid out in January and April 2026.

Management will present the results in a webcast, followed by a Q&A session

today at 10:00 CET. The webcast may be followed

from: https://publicproperty.no/en/investor-relation.

Questions may be submitted by sending an email to IR@publicproperty.no.