Pioneer Property Group ASA

Earnings Release • Nov 16, 2016

PPG/PPP financial report for Q3 2016

PPG/PPP financial report for Q3 2016

15. November 2016

Please find attached the combined third quarter financial report

for Pioneer Property Group ASA (PPG PREF) and Pioneer Public

Properties AS (PPU01)

Highlights for Pioneer Property Group ASA:

- Total revenues in the third quarter of 2016 were MNOK 52.7,

marginally up from the second quarter because of newly acquired

preschools.

- PPG's subsidiary group, Pioneer Public Properties AS, issued a

new unsecured bond of MNOK 1,000 to refinance existing bond-loans

and other external unsecured debt, in addition to strengthening the

Group's cash balance.

- Interest expenses in the quarter were heavily impacted by one-off

costs relating to the refinancing of the two bond loans in Pioneer

Public Properties II AS and Pioneer Public Properties III AS. Call

premiums and the write down of previously amortized bond

transaction costs totaled MNOK 38.7 in the quarter in addition to

some double interest costs for a short period. Operating profit

(EBIT) remained strong at MNOK 46.7, but with a pre-tax loss was

MNOK -25 due to one-off costs.

- Towards the end of the quarter, PPG acquired additional nine

properties for a total enterprise value of MNOK 188 with total

annualized rent of MNOK 12. Four of these properties are

consolidated in the third quarter results.

- On 30th September, PPG paid a dividend to holders of preference

shares - in total NOK 1.875 per preference share. The next dividend

to preference shareholders is scheduled for the end of the fourth

quarter 2016. See the company's website for updated financial

calendar information.

- The company had total assets of MNOK 3,927, where Investment

Property (116 properties) were valued at MNOK 3,486 and with a cash

balance of MNOK 342. Total debt was MNOK 2,296 with total equity of

MNOK 1,631.

- Since the end of the third quarter, the company has entered into

agreement to acquire additional twelve preschool properties in

Finland for a total value of MEUR 22, which have annual revenues of

MNOK 1.4. This acquisition is debt financed with MEUR 13.2 from

Danske Bank.

Pioneer Public Properties AS:

The Pioneer Public Properties AS (PPP) group of companies was

established towards the end of 2015 and comprise all the

operational companies in Pioneer Property Group ASA. The reason for

establishing this subset group of companies was in preparation for

the issuance of the PPP unsecured bond of MNOK 1,000, which was

issued in the third quarter of 2016. The financial statements of

Pioneer Public Properties AS are therefore very closely related to

the financial statements of Pioneer Property Group ASA, with the

key difference being the exclusion of the mother company of the PPG

group. All operational discussions will be identical for the two

groups, and discussions of financial accounts will be similar, with

a few exceptions. See the attached report for more details.

Contact persons:

Runar Rønningen (CEO) - tlf +47 90690038

Martin P. Hoff (CFO) - tlf +47 47214721