Pioneer Property Group ASA

Quarterly Report • Feb 15, 2017

PPG/PPP financial report for Q4 2016

PPG/PPP financial report for Q4 2016

15. February 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 revenues in the fourth quarter of 2016 were MNOK 60.3, up

from the third quarter as a result of newly acquired properties.

- Operating costs in the quarter were impacted by miscellaneous

costs relating to the acquisitions and implementation of properties

from NCG and Trevian, as announced in Q3.

- Interest expenses in the quarter increased due to the full effect

of the new PPP bond and also due to one-off expenses relating to the

refinancing of bank loans, including some double-interest costs.

- At the end of the quarter PPG commissioned Newsec to review the

valuation of the property portfolio. The valuation of MNOK 4,043 has

prompted the Board of Directors to increase the book value in

accordance to IFRS, triggering an extraordinary accounting profit of

MNOK 242 in the fourth quarter.

- Primarily as a result of large gains from the adjustment of

property values, EBIT for the fourth quarter was MNOK 292 and pre-

tax profit was MNOK 263.

- The new bond of MNOK 1,000 in Pioneer Property Group's subsidiary

company Pioneer Public Properties AS was successfully listed on the

Oslo Stock Exchange from the beginning of the fourth quarter.

- A new bank financing from DnB of MNOK 495 was established to

refinance smaller bank-loans in several subsidiary companies in

addition to adding bank financing to recently acquired

kindergartens.

- On 31th December, 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 first

quarter 2017. See the company's website for updated financial

calendar information.

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

4,423, where Investment Property (133 properties) were valued at

MNOK 4,043, and with a cash balance of MNOK 350. Total debt was MNOK

2,568 with total equity of MNOK 1,855.

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