Pioneer Property Group ASA

Earnings Release • Feb 28, 2018

PPG/PPP financial report for Q4 2017

PPG/PPP financial report for Q4 2017

28. February 2018

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 fourth quarter of 2017 was MNOK 66.6, compared to MNOK 60.3 in the fourth quarter of 2016. The increase is due to the acquisition of new properties during 2017, the majority in Finland.

- Operating profit (EBIT) in the quarter was MNOK 257.4 and pre-tax profit was MNOK 252.8, compared to MNOK 297.1 and MNOK 267.9 in the fourth quarter of 2016, respectively. Profitability in Q4 was significantly positively impacted by fair value adjustment of properties of MNOK 198, on the back of PPG's end-of-year updated market value analysis of the portfolio.

- At the end of the quarter PPG executed the quarterly dividend to holders of preference shares, technically a repayment of share capital, in total NOK 1.875 per preference share.

- At the end of the quarter PPG had total assets of MNOK 4,874, where Investment Properties were valued at MNOK 4,723, and with a cash balance of MNOK 139. Total debt was MNOK 2,948 with total equity of MNOK 1,925.

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