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IR - PPG Half-Yearly Financial Report 2025 - Attachment: PPG-ASA-H1-report-2025-en.pdf

Company: Pioneer Property Group ASA Date: 2025-08-21 Language: English Register to download
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### **Highlights of the half-yearly 2025 report**

- Contractual rental income for the first half of 2025 was MNOK 76.5 compared to MNOK 49.2 for the first half of 2024. The large increase is due to the acquisition of Norlandia Holding, completed in Q4 2024.
- Operating profit (EBIT) for the first half of 2025 was MNOK 56.8 compared to MNOK 44.1 for the first half of 2024.
- PPG paid two quarterly dividends to the holders of preference shares, in total NOK 5.00 per preference share.

### **Operations and strategy**

Pioneer Property Group ASA (PPG) is an investment company with a real estate focus. The current real estate portfolio of PPG includes the following segments:

- 1. Preschools
- 2. Hotel Properties
- 3. Retail Properties
- 4. Property Development
- 5. Office Properties

PPG invest in real estate within these segments and enter into long-term leases with leading operators. PPG's real estate portfolio at the end of first half of 2025 consisted of three properties in the preschools segment, six properties in the retail properties segment, fifteen properties in the hotel properties segment, one office property in addition to seven properties in the property development segment. The movements during HY25 in this respect are related to the de-recognition of Evenes-properties as consolidated company.

In addition, PPG now holds joint ventures of six hotel properties, the latest being the acquisition of 50% of Horten Hotell in Q1 2025.

### **Key material events during the first half of 2025**

During first half of 2025, PPG has declared quarterly dividends to the holders of preference shares in total NOK 5.00 per preference share. As per the articles of association §5, the annual dividend to the holders of preference shares is NOK 10.00 per preference share.

The first half of 2025 has been another strong period for the hotel segment, like it has been since the end of the pandemic in 2023. The contractual rental income has increased compared to 2024, mostly due to the acquisition of Norlandia Holding AS, increasing the annual rent for the hotel segment by approximately NOK 60 million on annual basis. It is expected that the hotel segment will stay strong throughout 2025.

On the other side, higher interest rates have increased interest cost for PPG. In June 2025, the committee of Norges Bank decided to reduce the policy rate from 4.50 percent to 4.25 percent, and it is expected that interest cost will be reduced in 2H 2025. The fair value of properties has been slightly positively adjusted, mostly explained by the expectation of lower interest rates going forward and CPI rent-adjustments.

PPG acquired 50% of the shares in Horten Hotell Eiendom AS from Pancom AS. The joint venture company owns Horten Hotell, and the purchase price of the shares were set based on a property value of MNOK 130, settled through a combination of cash and a vendor note. It is planned an expansion of 60 new hotel rooms, expected to be financed by obtaining additional bank financing.

Evenes Holding is treated as an associate company, as the ownership were reduced to 43.3 in the end of 2024. The derecognition of Evenes Holding has reduced Investment property and Evenes Holding is accounted as an

associate company. On the other hand, Norlandia Holding is consolidated line by line, and increases the investment property in the accounts. The net effect from 1H 2024 to 1H 2025 is an increase in Investment properties.

## **Preschools**

| Preschool (NOKt)                               | 1H 2025 | 1H 2024 |
|------------------------------------------------|---------|---------|
| Total Income                                   | 3 595   | 3 515   |
| Fair value adjustment on investment properties | 5 000   | 0       |
| Operating profit/loss (EBIT)                   | 8 506   | 3 297   |
|                                                |         |         |
| Investment properties                          | 114 000 | 106 500 |

The Preschool segment consists of three preschool properties owned by PPG, at Gaustadskogen and Tjuvholmen in Oslo and Fyllingsdalen in Bergen. Total lease income for the first half of 2025 for the Preschool segment amounted to MNOK 3.6 with a fair property value based on third party valuation of the properties owned by PPG per 30.06.25 of MNOK 114. There have been no material events for the segment for the first half of 2025.

### **Retail Properties**

| Retail Properties (NOKt)                       | 30.06.2025 | 30.06.2024 |
|------------------------------------------------|------------|------------|
| Total Income                                   | 17 155     | 17 457     |
| Fair value adjustment on investment properties | 1 000      | -6 149     |
| Operating profit/loss (EBIT)                   | 17 508     | 7 857      |
|                                                |            |            |
| Investment properties                          | 426 000    | 478 222    |
| Project in progress                            | 697        | 1 079      |

Pioneer Retail Properties AS was established to procure and build facilities for retail properties, mainly for the Ferda group, all over Norway. The motorhome market to which Ferda is exposed has been challenging during the last couple of years, as higher interest rates have led to a contraction in the overall market. In 2024 the fair value adjustment of the properties led out to Ferda were reduced by MNOK 6. The Retail Properties segment consists of six retail properties owned by PPG. Total lease income for the first half of 2025 for the retail properties segment amounted to MNOK 17.2 in 1H 2025, compared to 17.4 in 1H 2024, with a fair property value based on third party valuations per 30.06.25 of MNOK 426.0. The decrease in property value and lease income is due to the sale of Døvikveien 22 in H2 2024 and the derecognition of Ferda Evenes as an associated company.

### **Hotel Properties**

| Hotel Properties (NOKt)                        | 1H 2025   | 1H 2024 |
|------------------------------------------------|-----------|---------|
| Total Income                                   | 51 872    | 18 042  |
| Fair value adjustment on investment properties | 3 146     | 14 667  |
| Operating profit/loss (EBIT)                   | 41 792    | 36 578  |
|                                                |           |         |
| Investment properties                          | 1 556 900 | 793 482 |
| Project in progress                            | 10 577    | 5 835   |

Hotel Properties segment consists of 15 hotel properties owned by PPG. In addition, 6 properties are recognized as associated companies, hence not included in the table above. Total lease income for the first half of 2025 for the Hotel Properties segment amounted to MNOK 51.8 in 1H 2025 compared to MNOK 18.0 in 1H 2024. The increase is due to the purchase of Norlandia Holding AS in Q4 2024. The project in progress is related to zoning costs for Park Hotel in Voss. The fair property value for the hotel segment, based on third party valuations per 30.06.25, is MNOK 1 556.9.

The hotel lease agreements are triple-net in nature, while the lease income is derived from the highest of a minimum lease and a percent of the hotel turnover. The total annual minimum rent from the hotel properties is approximately MNOK 90. All of the hotel properties, except Forus Hotell, are rented out to Norlandia Hotel Group, who operates the hotels on franchise agreements with leading hotel brands. Norlandia Hotel Group is owned by Hospitality Invest AS.

Park Hotel Voss is scheduled for refurbishment and development of the whole property, adding additional hotel rooms to the project and possibly residential apartments. For the renovation and property development in Voss, the scope is yet not decided. The zoning process is expected to be completed by the end of 2025.

| Property Development (NOKt)                    | 1H 2025 | 1H 2024 |
|------------------------------------------------|---------|---------|
| Total Income                                   | 1 480   | 7 976   |
| Fair value adjustment on investment properties | -951    | 2 129   |
| Operating profit/loss (EBIT)                   | -493    | 5 684   |
|                                                |         |         |
| Investment properties                          | 139 574 | 348 034 |
| Project in progress                            | 17 378  | 51 283  |

### **Property Development**

Pioneer Property Development is developing general commercial real estate and housing. In 2025, the lease income relates to a warehouse property in Mo i Rana, in addition to the newly established parking lot at Gardermoen airport. In 2024, the lease income mainly related to the parking income of the property in Evenes Airport, which now is accounted as associate company.

PPG now holds close to 2.000 parking spaces with the establishment of a parking lot, close to the hotel in Gardermoen. The parking lot opened in first half of 2025 and is expected to generate a lease income in 2025 of MNOK 1.5, with an expected increase to MNOK 4.0 in 2026.

In 2025, Evenes Holding AS is treated as an associated and the rental income and investment properties is not consolidated into the accounts.

At Evenes, the property east of E10 which was purchased in 2021, has now completed the construction of premises for Tesla. The financing of the construction was secured through a bank loan and Tesla will pay lease from June 2025.

Other existing projects within the segments include a housing project of 400 – 450 units in Mo i Rana, also in Northern Norway with local partners.

At Brennemoen nearby Mysen, PPG is working together with Studio City Norway AS in order to develop a studio city, with film, tv-studios backlots etc, as well as potentially expanding the current hotel at the location. The segment consists of 7 development projects and three properties that has a potential for further development.

All projects are long term in nature.

Fair value of the projects that are characterised as investment properties per 30.06.25 was MNOK 139.6. The Project in Progress and Investment property has decreased due to the derecgnition Evenes Holding.

## **Office Properties**

| Office Properties (NOKt)                       | 1H 2025 | 1H 2024 |
|------------------------------------------------|---------|---------|
| Total Income                                   | 2 288   | 2 172   |
| Fair value adjustment on investment properties | -2 272  | -2 000  |
| Operating profit/loss (EBIT)                   | -326    | 43      |
| Investment properties                          | 63 000  | 59 000  |

The office property segment was established in 2023 as a result of the acquisition of Terminalveien 10 in Bodø together with local investors. Total lease income for the first half of 2025 for the segment amounted to MNOK 2.3 in 1H 2025 compared to 2.2 in 1H 2024, with a fair property value based on third party valuations per 30.06.24 of MNOK 63.0.

### **Subsequent events since the end of the first half of 2025**

Since the end of first half 2025, Norlandia Eiendom AS, a subsidiary of PPG acquired Helma Home Hotel Mo I Rana. The hotel was acquired in July 2025, has 110 rooms and was built in 2014. The property is expected to generate a net lease income of 12MNOK and the gross property value in the transaction was MNOK 180, subject to adjustments. The purchase of the shares was settled through cash and obtaining new bank financing.

## **Overview of the financial accounts for the first half of 2025**

Contractual rental income from the first half of 2025 was MNOK 76.3 compared to MNOK 49.0 for the first half of 2024. The rent increase in first half of 2025 represents an increase of approximately 56%. The increase is related to rent income from the acquisition of new properties through the purchase of additional shares in Norlandia Holding AS in Q4 2024, now recognized as a subsidiary, together with CPI-adjustments of minimum rent and strong first half year of revenue from the hotel operation, resulting in lease payments above the minimum rent for some properties.

Operating profit (EBIT) from continued operations for the first half of 2025 was a positive MNOK 56.8 compared to MNOK 44.1 for the first half of 2024. Profitability for the first half of 2025 was positively impacted by fair value adjustments related to the hotel segment of the portfolio.

Gain from associated companies is due to positive results and fair value adjustments in the joint venture companies owning hotels such as Forus in Stavanger.

Net finance for the first half of 2025 amounted to a negative MNOK 35.9, compared to MNOK 28.4 for the first half of 2024. Net finance has been negatively impacted by interest expenses from new debt obtained and the purchase of Norlandia Holding. Net finance was positively impacted of interest income from cash and deposits recorded in other financial income.

Profit for the first half of 2025 for total operations amounted to MNOK 14.2, compared to MNOK 17.5 for the first half of 2024. The increased lease income has been offset by increasing interest cost. The fair value adjustment in 1H 2025 is in line with the fair value adjustment in 1H 2024.

At the end of the first half of 2025, PPG had total assets of MNOK 3,040.7 mainly compromised of MNOK 2,299.5 as investment property, investment in associated companies of MNOK 337.6, MNOK 50.8 in Hospitality Invest bonds and a cash balance of MNOK 79.3. Total equity amounted to MNOK 1,218.3 (1,257.1 in 1H 2024). At the end of the first half total borrowings amounted to MNOK 1.715,5 (2.029.6 in 1H 2024).

## **Use of Alternative Performance Measures (APM)**

Alternative Performance Measures (APM) are performance measures not within the applicable financial reporting framework (IFRS). The company reports the following alternative performance measures (APMs):

| APM                                                | Explanation                                                                                                                                                                                                                                                                                                                              |                                            | 1H 2025                      | 1H 2024                      | 1H 2023                      | 1H 2022              | 1H 2021              |
|----------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------|------------------------------|------------------------------|------------------------------|----------------------|----------------------|
| amounts in<br>NOK million                          |                                                                                                                                                                                                                                                                                                                                          |                                            |                              |                              |                              |                      |                      |
| EBIT                                               | Earnings before interest and taxes                                                                                                                                                                                                                                                                                                       |                                            | 68 832                       | 44 112                       | 61 595                       | 68 579               | 131 357              |
| Weighted<br>average<br>gross yield                 | The weighted average gross<br>yield on estimated rent<br>calculated by adjusting for<br>property value. Gross yield<br>for a property or portfolio of<br>properties is calculated as<br>estimated contractual<br>annualized rental income for<br>the upcoming financial year<br>divided by the market value<br>as of balance sheet date. | Pre<br>school<br>Hotel<br>Retail<br>Office | 6,1%<br>7,3%<br>8,0%<br>7,9% | 6,4%<br>5,9%<br>7,7%<br>7,9% | 5,6%<br>6,4%<br>7,3%<br>7,4% | 3,4%<br>5,8%<br>6,1% | 3,2%<br>6,0%<br>6,2% |
| NOI                                                | Net Operating Income, meaning<br>contractual rental revenue from<br>properties minus all reasonable direct<br>property related expenses.                                                                                                                                                                                                 |                                            | 75 854                       | 46 889                       | 45 840                       | 35 178               | 11 204               |
| Market<br>value of<br>the<br>property<br>portfolio | The market value of the Groups<br>investment properties                                                                                                                                                                                                                                                                                  |                                            | 2 708 718                    | 1 785 238                    | 1 757 256                    | 1 539 733            | 1 149 774            |
| Effective<br>leverage                              | Total interest bearing debt divided by<br>total assets                                                                                                                                                                                                                                                                                   |                                            | 56.4 %                       | 45.9%                        | 44.6%                        | 33.7%                | 25.6%                |

The reported numbers are included in the financial statements and can be directly reconciled with official IFRS line items. The APMs are used consistently over time and accompanied by comparatives for the corresponding previous periods.

### **Responsibility statement**

The interim financial statements for the period have been prepared in accordance with IAS 34 – Interim reporting, and that the information in the financial statements gives a true and fair view of the Group's assets, liabilities, financial situation and result as a whole.

We also confirm that, to the best of our knowledge, the interim financial statements give a true and fair reflection of important events that have occurred during the financial period and their impact on the financial statements, as well as a description of the principal risks and uncertainties facing the Group.

Oslo, 20. August 2025

Board of Directors of Pioneer Property Group ASA

Roger Adolfsen Chairman of the Board

Nina Hjørdis Torp Høisæter Member of the Board

Sandra Henriette Riise Member of the board

Geir Hjorth Member of the Board

John Ivar Busklein Chief Executive Officer

#### **Consolidated Income Statement - Pioneer Property Group ASA**

| NOK thousand                                                                | Note | 1H 2025 | 1H 2024 | FY 2024 |
|-----------------------------------------------------------------------------|------|---------|---------|---------|
| Continuing operations                                                       |      |         |         |         |
| Contractual rental income                                                   |      | 76 330  | 48 995  | 134 433 |
| Other income                                                                |      | 138     | 243     | 377     |
| Total income                                                                | 2    | 76 467  | 49 238  | 134 810 |
|                                                                             |      |         |         |         |
| Employee expenses                                                           |      | 7 349   | 4 271   | 9 665   |
| Property expenses                                                           |      | 9 400   | 2 106   | 11 398  |
| Other operating expenses                                                    |      | 8 835   | 7 396   | 23 180  |
| Total operating expenses                                                    |      | 25 584  | 13 773  | 44 244  |
|                                                                             |      |         |         |         |
| Fair value adjustment on investment properties                              | 2,3  | 5 922   | 8 647   | 133 392 |
| Operating profit (EBIT)                                                     |      | 56 805  | 44 112  | 223 958 |
|                                                                             |      |         |         |         |
| Gain/Loss from associated company                                           |      | 10 273  | 3 129   | -3 936  |
|                                                                             |      |         |         |         |
| Interest income                                                             |      | 3 466   | 3 962   | 17 098  |
| Interest expenses                                                           | 5    | 56 140  | 37 220  | 104 861 |
| Other financial income                                                      | 7,9  | 6 503   | 1 730   | 12 924  |
| Net Finance income (+) /expenses (-)                                        |      | -35 898 | -28 398 | -78 774 |
|                                                                             |      |         |         |         |
| Profit/(loss) before tax                                                    |      | 20 907  | 15 714  | 145 184 |
| Income taxes                                                                |      | 3 400   | 1 207   | 27 065  |
| Profit/(loss) for the period                                                |      | 17 507  | 14 507  | 118 119 |
| Profit/(loss) discontinued operations, net of tax                           |      |         |         |         |
| Profit/(loss) for the period, total operations                              |      | 17 507  | 14 507  | 118 119 |
|                                                                             |      |         |         |         |
| Consolidated Statement of Comprehensive Income - Pioneer Property Group ASA |      |         |         |         |
|                                                                             |      |         |         |         |
| Other comprehensive income                                                  |      |         |         |         |
| Exchange differences, from translations of foreign operations               |      | 0       | 0       | 0       |
| Items to be reclassified to P&L in subsequent periods:                      |      |         |         |         |
| Exchange differences associated company                                     |      |         |         |         |
| Exchange differences, from translation of foreign operations                |      |         |         |         |
| Total comprehensive income                                                  |      | 17 507  | 14 507  | 118 119 |
|                                                                             |      |         |         |         |
| Total comprehensive income attributable to                                  |      |         |         |         |
| Shareholders of the parent                                                  |      | 14 437  | 16 881  | 115 786 |
| Non-controlling interests                                                   |      | 3 070   | -2 374  | 2 333   |
| Profit/(loss) for the period                                                |      | 17 507  | 14 507  | 118 119 |

### **Consolidated Statement of Financial Position - Pioneer Property Group ASA**

| NOK thousands                            | Note | 1H 2025   | 1H 2024   | FY 2024   |
|------------------------------------------|------|-----------|-----------|-----------|
|                                          |      |           |           |           |
| Assets                                   |      |           |           |           |
| Investment property                      | 3    | 2 299 473 | 1 785 238 | 2 642 804 |
| Deferred tax asset                       |      | 4 960     |           | 9 609     |
| Project in progress, investment property |      | 28 694    | 58 266    | 38 498    |
| Other interest in property               | 10   | 7 461     | 986       | 7 461     |
| Other investments                        | 7    | 24 492    | 46 094    | 24 492    |
| Associated companies                     |      | 337 565   | 377 294   | 286 667   |
| Loans to associated companies            |      | 124 681   | 64 282    | 87 201    |
| Loans to other companies                 |      | 26 187    | 3 710     | 36 187    |
| Total non-current assets                 |      | 2 853 512 | 2 335 869 | 3 132 917 |
| Trade and other receivables              |      | 57 060    | 53 068    | 64 451    |
| Other short-term investments             | 7    | 50 818    | 84 155    | 68 542    |
| Cash and cash equivalents                |      | 79 316    | 56 940    | 260 265   |
| Total current assets                     |      | 187 194   | 194 163   | 393 259   |
|                                          |      |           |           |           |
| Total assets                             |      | 3 040 705 | 2 530 031 | 3 526 176 |
|                                          |      |           |           |           |
| Equity and liabilities                   |      |           |           |           |
| Share capital                            |      | 10 899    | 14 683    | 14 683    |
| Own shares                               |      | -488      | -988      | -988      |
| Share premium                            |      | 403 848   | 555 637   | 555 637   |
| Capital reduction, not registered        |      |           |           | -155 073  |
| Retained earnings                        |      | 704 035   | 629 902   | 733 112   |
| Non-controlling interest                 |      | 100 054   | 59 453    | 121 571   |
| Total equity                             | 4    | 1 218 348 | 1 258 687 | 1 268 941 |
|                                          |      |           |           |           |
| Borrowings non-current                   | 5    | 1 667 511 | 1 090 813 | 1 898 736 |
| Deferred tax                             |      | 57 613    | 46 484    | 68 450    |
| Other non-current liabilities            |      | 0         |           | 0         |
| Total non-current liabilites             |      | 1 725 124 | 1 137 297 | 1 967 186 |
|                                          |      |           |           |           |
| Borrowings current                       |      | 47 997    | 39 836    | 53 033    |
| Current tax payable                      |      | 3 930     | 71        | 633       |
| Other current liabilities                |      | 45 307    | 94 140    | 236 383   |
| Total current liabilities                |      | 97 234    | 134 047   | 290 050   |
| Total liabilities                        |      | 1 822 358 | 1 271 343 | 2 257 235 |
| Total equity and liabilities             |      | 3 040 705 | 2 530 031 | 3 526 176 |
|                                          |      |           |           |           |

### **Consolidated Statement of Changes in Equity - Pioneer Property Group ASA**

|                                                    | Attributable to owners of the parent |               |          |          |          |          |           |             |              |
|----------------------------------------------------|--------------------------------------|---------------|----------|----------|----------|----------|-----------|-------------|--------------|
|                                                    |                                      |               |          |          |          |          |           | Non         |              |
|                                                    |                                      |               | Treasury | Share    |          | Retained |           | controlling |              |
| NOK thousands                                      | Notes                                | Share capital | shares   | premium  | Other*   | earnings | Total     | interests   | Total Equity |
| Balance at 1 January 2024                          |                                      | 14 683        | -988     | 555 637  | -        | 652 423  | 1 221 756 | 61 827      | 1 283 584    |
| Profit/(loss) for the period                       |                                      |               |          |          |          | 119 817  | 119 817   | -1 698      | 118 119      |
| Total comprehensive income for the period          |                                      |               |          |          | -        | 119 817  | 119 817   | -1 698      | 118 119      |
| Other changes                                      |                                      |               |          |          | -155 073 | -        | -155 073  | -           | -155 073     |
| Transaction with non-controlling interests         |                                      |               |          |          |          | 19 676   | 19 676    | 61 441      | 81 117       |
| Dividends on ordinary shares and preference shares |                                      |               |          |          |          | -58 806  | -58 806   |             | -58 806      |
| Balance at 31 December 2024                        |                                      | 14 683        | -988     | 555 637  | -155 073 | 733 112  | 1 147 370 | 121 570     | 1 268 941    |
| Profit/(loss) for the period                       |                                      |               |          |          |          | 14 437   | 14 437    | 3 070       | 17 507       |
| Total comprehensive income for the period          |                                      |               |          |          |          | 14 437   | 14 437    | 3 070       | 17 507       |
| Redemption of shares                               |                                      | -3 784        | 500      | -151 789 | 155 073  | -        | -         | -           | -            |
| Dividends on preference shares                     | 4                                    |               |          |          |          | -19 403  | -19 403   |             | -19 403      |
| Transactions with owners                           |                                      | -3 784        | 500      | -151 789 | 155 073  | -19 403  | -19 403   | -           | -19 403      |
| Transaction with non-controlling interests         |                                      |               |          |          |          | -24 111  | -24 111   | -24 586     | -48 697      |
| Balance at 30 June 2025                            |                                      | 10 899        | -488     | 403 848  | -        | 704 035  | 1 118 294 | 100 054     | 1 218 348    |

### **Consolidated Statement of Cash Flows - Pioneer Property Group ASA**

| NOK thousands                                      | Note | 1H 2025  | 1H 2024  |
|----------------------------------------------------|------|----------|----------|
| Cash flows from operating activities:              |      |          |          |
| Profit before income tax total operations          |      | 20 907   | 15 714   |
| Adjustments for:                                   |      |          |          |
| Fair value adjustments on investment property      |      | -5 922   | -8 647   |
| Fair value adjustments on financial instruments    |      | 1 224    | -966     |
| Other adjustments                                  |      |          |          |
| Profit from associated companies                   |      | -10 273  | -3 129   |
| Interest net                                       | 5    | 46 171   | 33 107   |
| Taxes paid                                         |      | 0        | -4 400   |
| Gain on sale bonds/Bonds/shares/properties         |      |          | -615     |
| Changes in working capital:                        |      |          |          |
| Trade receivables                                  |      | -7 358   | -15 628  |
| Trade payables                                     |      | -36 503  | -9 058   |
| Other accruals                                     |      | 9 813    | 21 870   |
| Generated from operations                          |      | 18 059   | 28 249   |
| Interest received                                  |      | -7 798   | 4 312    |
| Interest paid                                      |      | -53 177  | -39 918  |
| Cash generated from operating activities           |      | -42 916  | -7 356   |
|                                                    |      |          |          |
| Cash flows from investing activities:              |      |          |          |
| Proceeds from sale of shares                       |      |          | -30      |
| Proceeds from sale of bonds and funds              |      | 62 620   | 35 000   |
| Proceeds from loans to other companies             |      |          |          |
| Loans to other companies                           |      | -1 500   | -1 500   |
| Purchase / investment of subsidiaries / properties |      | -57 441  | -36 905  |
| Purchase of shares                                 |      |          | -3 205   |
| Purcase of shares in assosiated companies          |      | -5 000   |          |
| Purchase of bonds and funds                        |      | -50 500  |          |
| Cash from investing activities                     |      | -51 821  | -6 640   |
|                                                    |      |          |          |
| Cash flows from financing activities:              |      |          |          |
| Proceeds from debt to financial institutions       |      | 174 000  | 331 658  |
| Repayments of debt to financial institutions       |      | -152 237 | -241 850 |
| Repayments other debt                              |      | 10 000   | -70 551  |
| Payments to / from minorities                      |      |          | 3 250    |
| Redemption of shares                               |      | -155 073 |          |
| Dividends on ordinary shares                       | 4    |          | -44 499  |
| Dividends on preference shares                     | 4    | -19 403  | -19 403  |
| Cash from financing activities                     |      | -142 713 | -41 395  |
|                                                    |      |          |          |
| Change in cash and cash equivalents                |      | -237 449 | -55 392  |
|                                                    |      |          |          |
| Cash and cash equivalents at beginning of period   |      | 260 265  | 112 332  |
| Cash and cash equivalents at period end            |      | 22 816   | 112 321  |

### **Notes to the Financial Statements - Pioneer Property Group ASA**

### **Note 1: General information**

Pioneer Property Group ASA, which is the parent company of the Pioneer Property group (the Group), is a public limited liability company incorporated and domiciled in Norway, with its corporate headquarters in Oslo. Pioneer Property Group ASA is listed on the Oslo Stock Exchange.

The company's Board of Directors approved the condensed financial statements on 20 August 2025. The figures in the statements have not been audited.

The interim condensed consolidated financial statements for the first half of 2025, ending 30 June 2025, were prepared in accordance IAS 34 Interim Financial Reporting. The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's 2024 annual report.

The accounting policies adopted in the preparation of the interim consolidated financial statements are consistent with those followed in the preparation of the Group's annual financial statements for the year ended 31 December 2024.

### **Note 2: Segments**

**Segment 30.06.25**

The Group's main business is to own and manage Investment Properties and rent them out. The Group is considered to operate in 5 business areas: i) Preschools, ii) Hotel Properties, iii) Retail Properties, iv) Property Development and v) Office Properties. The segment Other includes mainly Pioneer Property Group ASA.

A split between the real estate segments are as follows:

**Preschool Properties Retail Properties Development properties Hotel Properties Office Properties Other Total**  Total Income 3 595 17 155 1 480 51 872 2 288 77 **76 467** Fair Value Adjustment 5 000 1 000 -951 3 146 -2 272 **5 922** Operating profit (Ebit) 8 506 17 508 -493 41 792 -326 -10 182 **56 805** Investment property 114 000 426 000 139 574 1 556 900 63 000 0 **2 299 473** Project in progress 0 697 17 378 10 577 0 41 **28 694** Cash and Cash equivalents 4 032 7 344 1 258 40 644 147 25 891 **79 316**

#### **Segment 30.06.24**

|                           | Preschool  | Retail     | Development | Hotels     | Office     |        |           |  |
|---------------------------|------------|------------|-------------|------------|------------|--------|-----------|--|
|                           | Properties | Properties | properties  | Properties | Properties | Other  | Total     |  |
|                           |            |            |             |            |            |        |           |  |
| Total Income              | 3 515      | 17 457     | 7 976       | 18 042     | 2 172      | 75     | 49 238    |  |
| Fair Value Adjustment     | 0          | -6 149     | 2 129       | 14 667     | -2 000     |        | 8 647     |  |
| Operating profit (Ebit)   | 3 297      | 7 857      | 5 684       | 36 578     | 43         | -9 347 | 44 112    |  |
|                           |            |            |             |            |            |        |           |  |
| Investment Properties     | 106 500    | 478 222    | 348 034     | 793 482    | 59 000     | 0      | 1 785 238 |  |
| Project in progress       | 0          | 1 079      | 51 283      | 5 835      | 0          | 69     | 58 266    |  |
| Cash and Cash equivalents | 4 149      | 8 681      | 24 209      | 8 543      | 606        | 10 752 | 56 940    |  |

#### **Note 3: Investment Properties**

The fair value of Investment Properties is evaluated semi-annually based on third party valuations. The Investment Properties are also subject to on-site inspections and/or technical evaluations from time to time. As of the end of first half 2025 reporting period, the weighted average gross yield for preschool properties is 6.1%, and the yield ranges from 4.7% to 6.4%. For the hotel segment, the gross yield ranges from 3.8% to 8.7%, with a weighted average gross yield of 7.3%. For the retail properties segment, the gross yield ranges from 7.4% to 8.7%, with a weighted average of 8.2%. For the office properties segment, the gross yield ranges from 7.9% to 7.9%, with a weighted average of 7.9%. As of the end of first half 2025 reporting period, the calculated weighted average gross yield for the investment property portfolio with running rental income was 7.4% against 6.8% first half 2024, based on expected annual contractual lease income of rental properties excluding development properties of MNOK 160.5, expected inflation of 2.5% for 2025 and 2% normalized annual inflation and market rent at the end of lease period.

#### *Overview of account movements 30.06.2025*

|                                                | Preschool  |                   | Development |                  |                   |           |
|------------------------------------------------|------------|-------------------|-------------|------------------|-------------------|-----------|
| NOK thousand                                   | Properties | Retail Properties | Properties  | Hotel Properties | Office Properties | Group     |
| Fair value in the beginning of the year        | 109 000    | 473 000           | 474 726     | 1 523 078        | 63 000            | 2 642 804 |
| Changes:                                       |            |                   |             |                  |                   | 0         |
| -Investment in subsidiaries /properties        | 0          | 0                 | 0           | 30 676           | 2 272             | 32 948    |
| -Derecognition of subsidiaries to associates   | 0          | -48 000           | -333 506    |                  |                   | -381 506  |
| Fair value adjustments on investment properies | 5 000      | 1 000             | -951        | 3 146            | -2 272            | 5 922     |
| Fair value in the end of the year              | 114 000    | 426 000           | 139 574     | 1 556 900        | 63 000            | 2 299 473 |
| Net change in unrealized gain                  | 5 000      | 1 000             | -951        | 3 146            | -2 272            | 5 922     |

#### *Overview of account movements 30.06.2024*

|                                                | Preschool  |                   | Development |                  |                   |           |
|------------------------------------------------|------------|-------------------|-------------|------------------|-------------------|-----------|
| NOK thousand                                   | Properties | Retail Properties | Properties  | Hotel Properties | Office Properties | Group     |
| Fair value in the beginning of the year        | 106 500    | 484 222           | 339 534     | 766 000          | 61 000            | 1 757 256 |
| Addition:                                      |            |                   |             |                  |                   | 0         |
| -Investment in subsidiaries /properties        |            | 149               | 6 371       | 12 815           |                   | 19 334    |
| Sale                                           |            |                   |             |                  |                   | 0         |
| Fair value adjustments on investment properies |            | -6 149            | 2 129       | 14 667           | -2 000            | 8 647     |
| Fair value in the end of the year              | 106 500    | 478 222           | 348 033     | 793 482          | 59 000            | 1 785 237 |
| Net change in unrealized gain                  | 0          | -6 149            | 2 129       | 14 667           | -2 000            | 8 647     |

### **Note 4: Share capital and shareholder information**

The company's preference shares confer a preferential right over ordinary shares to an annual dividend of NOK 10.00 per preference share. Dividend payments are made quarterly with NOK 2.500 per preference share, subject to approval by the Board of Directors on quarterly basis. The Annual General Meeting has given the Board of Directors authorization to approve distribution of dividend on the preference shares.

Over the first half of 2025 PPG paid a total dividend to holders of preference shares of NOK 5.00 per preference share.

PPG holds no ordinary shares and 500,000 preference shares in PPG (approximately 4.48% of the share capital), which represents 0.70% of the votes.

The company has 6,530,422 ordinary shares outstanding and 4,368,553 preference shares.

#### **Note 5: Borrowings**

Interest-bearing liabilities and available cash and cash equivalents constitute the capital of the Group. On 30.06.2025 PPG had external borrowings with the following maturity profile:

### **Maturity of financial liabilities at the end of the period:**

| 30.06.2025                            |         |         |         |           |           |
|---------------------------------------|---------|---------|---------|-----------|-----------|
| NOK thousand                          | <1y     | 1y-2y   | 2y-5y   | >5y       | Total     |
| Borrowings                            | 47 997  | 220 636 | 492 239 | 973 851   | 1 734 724 |
| Interest on borrowings                | 80 423  | 81 180  | 154 696 | 170 760   | 487 059   |
| Other current liabilities             | 93 871  |         |         |           | 93 871    |
| Interest on other current liabilities |         |         |         |           | -         |
| Total                                 | 222 290 | 301 816 | 646 935 | 1 144 611 | 2 315 653 |
|                                       |         |         |         |           |           |
|                                       |         |         |         |           |           |

| 30.06.2024                            |         |         |         |         |           |
|---------------------------------------|---------|---------|---------|---------|-----------|
| NOK thousand                          | <1y     | 1y-2y   | 2y-5y   | >5y     | Total     |
| Borrowings                            | 81 016  | 51 672  | 532 454 | 499 259 | 1 164 401 |
| Interest on borrowings                | 87 443  | 78 877  | 158 544 | 322 088 | 646 952   |
| Other current liabilities             | 46 025  |         |         |         | 46 025    |
| Interest on other current liabilities |         |         |         |         | 0         |
| Total                                 | 214 483 | 130 549 | 690 998 | 821 347 | 1 857 378 |

| 31.12.2024                            |         |         |           |           |           |
|---------------------------------------|---------|---------|-----------|-----------|-----------|
| NOK thousand                          | <1y     | 1y-2y   | 2y-5y     | >5y       | Total     |
| Borrowings                            | 67 028  | 225 713 | 775 201   | 896 730   | 1 964 672 |
| Interest on borrowings                | 139 747 | 137 981 | 251 024   | 330 196   | 858 949   |
| Other current liabilities             | 236 383 |         |           |           | 236 383   |
| Interest on other current liabilities |         |         |           |           | 0         |
| Total                                 | 443 158 | 363 694 | 1 026 225 | 1 226 926 | 3 060 003 |

| NOK thousand                  | 30.06.2025 | 30.06.2024 |
|-------------------------------|------------|------------|
| Non-current                   |            |            |
| Commercial bank loans         | 1 505 170  | 1 054 925  |
| Other loans                   | 181 557    | 28 461     |
| Total                         | 1 686 727  | 1 083 386  |
|                               |            |            |
| NOK thousand                  | 30.06.2025 | 30.06.2024 |
| Current                       |            |            |
| Commercial bank loans         | 47 997     | 39 551     |
| Other loans                   | 0          | 41 464     |
| Total                         | 47 997     | 81 015     |
|                               |            |            |
| NOK thousand                  | 30.06.2025 | 30.06.2024 |
| Total non-current and current |            |            |
| Commercial bank loans         | 1 553 167  | 1 094 476  |
| Other loans                   | 181 557    | 69 925     |
| Total                         | 1 734 724  | 1 164 401  |

### **Note 6: Related-party transactions**

| NOK in thousand                                                                        | 30.06.2025 | 30.06.2024 |
|----------------------------------------------------------------------------------------|------------|------------|
| Rent revenue from Norlandia Health & Care Group AS including subsidiaries              | 3 696      | 3 593      |
| Rent revenue from Ferda Norge AS                                                       | 17 155     | 17 671     |
| Rent revenue from Norlandia Hotel group                                                | 51 872     | 24 492     |
| Rent revenue from BG Entreprenør                                                       | -          | 1 214      |
| Consultant fee frem Up North Hospitality and Hi Capital AS                             |            | 678        |
| Fee from NHG Development regarding refurbishment (subsidiary of Hospitality Invest AS) | 902        | 9 699      |
| Management fee to Hospitality Invest AS                                                | 2 515      | 1 867      |
| Consultant fee to Oslo Corporate Holding AS                                            | 480        | 480        |
| Loan to related parties                                                                | 1 500      | 3 417      |
| Debt downpayment related parties                                                       |            | 3 342      |
| Interest income from associated companies                                              | -          | 3 410      |
| Interest expense to associated companies                                               |            | 356        |

Transactions made between the related parties are made on terms equivalent to those that prevail in the market at arms length

### **Note 7: Fair value adjustments financial assets**

Specification of investments measured at fair value held as of 30 June 2025:

1) Bonds are measured at fair value as level 2 in the fair value hierarchy in accordance with observed prices.

2) Funds are measured at fair value as level 1 in the fair value hierarchy in accordance with quoted prices.

3) Investments in shares where the company have no significant influence or control, is measured according to level 3 in the hierarchy. The shares are not traded, not quoted.

#### **Bonds/Funds/Shares:**

|                                         |          |          | 3)          |                   |
|-----------------------------------------|----------|----------|-------------|-------------------|
|                                         |          |          | Hospitality |                   |
| NOK thousand                            | 1) Bonds | 2) Funds | invest AS   | 3) Other<br>Total |
| Fair value in the beginning of the year | 62 620   | 5 922    | 23 969      | 523<br>93 034     |
| Purchase in 2025                        | 50 500   |          |             | 50 500            |
| Sold in 2025                            | -62 000  | -5 922   |             | -67 922           |
| Repaid capital                          |          |          |             | 0                 |
| Currency adjustments                    |          |          |             | 0                 |
| Fair value adjustments                  | -302     |          | 0           | -302              |
| Fair value 30.06.2025                   | 50 818   | 0        | 23 969      | 523<br>75 310     |

|                                         | 2)<br>Hospitality<br>2) Pancom |          |                                      |        |  |   |         |
|-----------------------------------------|--------------------------------|----------|--------------------------------------|--------|--|---|---------|
|                                         |                                |          |                                      |        |  |   |         |
| NOK thousand                            | 1) Bonds                       | 1) Funds | invest AS<br>AS<br>3) Other<br>Total |        |  |   |         |
| Fair value in the beginning of the year | 62 620                         | 54 956   | 13 650                               | 30 741 |  | 0 | 161 967 |
| Purchase in 2024                        |                                |          |                                      | 1 703  |  | 0 | 1 703   |
| Sold in 2024                            |                                | -35 000  |                                      |        |  |   | -35 000 |
|                                         |                                |          |                                      |        |  |   | 0       |
| Fair value adjustments                  | 155                            | 1 424    | 0                                    | 0      |  |   | 1 579   |
| Fair value 31.12.2024                   | 62 775                         | 21 380   | 13 650                               | 32 444 |  | 0 | 130 249 |

### **Note 8: Companies bought/established in 2025**

The Group has during the first half of 2025 acquired or established the following companies:

Horten Hotell Eiendom AS (50%) - *associate*

### **Note 9: Other financial gains/-losses**

## *Other financial gains/losses*

| NOK thousand                              | 1H 2025 | 1H 2024 |
|-------------------------------------------|---------|---------|
| Currency gain/loss                        | -62     | 116     |
| Derecgnition from subsidiary to associate | 7 663   |         |
| Gain on sale bonds                        |         |         |
| Changes in fair value                     | -1 224  | 1 579   |
| Other financial income                    | 134     | 37      |
| Other financial expenses                  | -8      | -1      |
| Total                                     | 6 503   | 1 730   |

### **Note 10: Other interest in property**

A non-financial asset "Other interests in property" is included in the consolidated financial statements reporting for the first half of 2025. It is related to a right, but not the obligation to acquire land. The cost of these options are recognised when they meet the definition of an asset (with probable economic benefits and reliable measurement), and they represent the right, but not the obligation to acquire land. The assets are measured at their cost and are regularly reviewed for impairment.

The acquisition of Brennemoen Eiendom in 2022 included rights to purchase land in Mysen close to Brennemoen Hotel. The option agreement has been exercised, but the purchase has not yet been completed.

### **Note 11: Subsequent events**

The Board of Directors in Pioneer Property Group ASA has approved a dividend of NOK 2.500 per share to the holders of preference shares and for the third quarter of 2025.

The subsidiary Norlandia Hotel acquired Home Hotel Helma located in Mo i Rana in July 2025.The hotel has 110 rooms, the purchase was settled by new debt and cash.

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# PIONEER PROPERTY GROUP ASA

RÅDHUSGATA 23

0158 OSLO

NORWAY

PHONE: +47 46 29 67 19

WEB: WWW.PIONEERPROPERTY.NO