Pioneer Property Group ASA

Earnings Release • May 9, 2017

PPG/PPP financial report for Q1 2017

PPG/PPP financial report for Q1 2017

9. May 2017

Please find attached the combined fourth 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 first quarter of 2017 was MNOK 61, compared

to MNOK 52 in the first quarter of 2016 as a result of properties

acquired during the second half of last year.

- Operating profit (EBIT) in the quarter was MNOK 54 and pre-tax

profit was MNOK 24, compared to MNOK 47 and MNOK 23 in the first

quarter of 2016, respectively.

- 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 second quarter 2017. See the company's website for

updated financial calendar information.

- At the end of the first quarter PPG had total assets of MNOK

4,410, where Investment Properties were valued at MNOK 4,043, and

with a cash balance of MNOK 363. Total debt was MNOK 2,582 with

total equity of MNOK 1,828.

- Towards the end of the quarter PPG acquired three pre-school

properties from operator Norlandia which will be included in the

second quarter results and will marginally increase revenues going

forward.

- After the end of the first quarter there was an extraordinary

general meeting which approved an extraordinary dividend to the

ordinary shareholders of NOK 5 per share - a total payment of MNOK

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