Pioneer Property Group ASA

Earnings Release • Aug 25, 2017

PPG/PPP Financial Report for Q2 2017

PPG/PPP Financial Report for Q2 2017

25. August 2017

Please find attached the combined second quarter financial report

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

Properties AS (PPU01)

Highlights for Pioneer Property Group ASA

- Total revenue in the second quarter of 2017 was MNOK 62, compared

to MNOK 52 in the second quarter of 2016. The increase is primarily

due to the properties acquired during the second half of last year.

- Operating profit (EBIT) in the quarter was MNOK 55 and pre-tax

profit was MNOK 15, compared to MNOK 48 and MNOK 25 in the second

quarter of 2016, respectively. The results for Q2 are negatively

impacted by non-cash currency effects.

- At the end of the quarter PPG executed the quarterly 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 third quarter 2017. See the company's website for

updated financial calendar information.

- At the end of the quarter PPG had total assets of MNOK 4,372,

where Investment Properties were valued at MNOK 4,093, and with a

cash balance of MNOK 274. Cash is reduced from the first quarter due

to the previously announced dividend to ordinary shareholders of NOK

5 per share. Total debt was MNOK 2,594 with total equity of MNOK

1,778.

- In the quarter PPG consolidated the three pre-school properties

which were acquired towards the end of the first quarter from

operator Norlandia.

- After the end of the second quarter the Board of Directors

approved the purchase of fourteen new properties in Finland. These

properties will be included in the next financial report (Q3). See

the stock exchange notice for more information.

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 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