Public Property Invest

Annual Report (ESEF) • Apr 24, 2025

PUBLIC PROPERTY INVEST ASA 2024 ANNUAL REPORT Table of content This is PPI 4 Portfolio highlights 5 The year in brief 6 Key figures 8 Words from the CEO 10 The business 12 Strategy 12 The property portfolio 14 Lease structure and letting activity 18 Transactions 21 Funding 22 The share and shareholders 24 Risk management 26 Senior Executives 36 ESG 38 Environment 48 Social 54 Governance 60 From the Board room 72 Board of Directors 72 Board of Directors report 74 Financials 80 Consolidated financial statements 82 Parent company financial statements 116 Auditor’s report 126 Alternative performance measure 131 Appendices 134 The property portfolio 134 Definitions 137 This report presents an overview of our 2024 results, our achievements and our progress. PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 2 This is Public Property Invest // //Portfolio Highlights Public Property Invest (PPI) is a sustainable owner, operator and developer of social infrastructure properties. The Group owns a large and diversified portfolio of centrally located properties in cities in the Nordics. PPI’s business is characterised by solid tenants from the Norwegian government and local municipalities, such as the police, judiciary functions and public health organisations, on long lease contracts. PPI’s tenants fulfill crucial societal functions. PPI’s mission is to do deliver as good service to our tenants, as they do for our society. As of 31 December 2024, the property portfolio consisted of approximately 395 000 square meters across 72 properties with an annualised run rate rental income of NOK 774 million and an aggregate book value of around NOK 10.9 billion. PPI’s property portfolio is close to fully let with an occupancy rate of around 97 per cent, and the public sector represents 92 per cent of total rental income. The PPI team consists of 22 highly competent resources who aim to deliver with quality and with intrinsic motivation to create value for its tenants, owners and for the environment. Public Property Invest is listed on Euronext Oslo Børs with the ticker PUBLI. 72 Properties 110k sqm. Development potential 97% Occupancy rate 5.1 Years WAULT 92% Government tenants 774m (NOK) Normalised GRI 27.6k (NOK) Property Value/BTA 27.2 (NOK) EPRA NRV per share 1 984 (NOK) GRI/BTA 395k sqm. BTA 10.9bn (NOK) Portfolio value 6.5% Net Yield Geographical distribution Tenant distribution Private tenants Government tenants 8% 92% East North Inland West South Central 58% 8 % 9% 1% 11% 13% PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 4 5 First half of 2024 The first half year of 2024 was eventful for PPI, and the Group went through a major transformation. During this time, the Group acquired a large portfolio of properties from SBB Samfunnsbygg AS (SBB), refinanced a substantial part of its long-term debt and listed the Group’s shares on Euronext Oslo Børs, all in a binary transaction in April. In brief, PPI acquired 13 properties from SBB with settlement in shares in PPI for a net purchase price of approximately NOK 1 191 million. The corresponding property value was approximately NOK 1 640 million, determined as the average gross property value of the SBB Properties (including development potential) pursuant to external valuations carried out by Newsec AS and Cushman & Wakefield Realkapital AS as of 31 December 2023. The Group also made a successful initial public offering with cash proceeds to the company of NOK 1.5 billion, which was partly used to refinance debt and partly held as cash for future transactions. The Group’s shares were listed on Euronext Oslo Børs in April 2024. After the completion of these transactions the Group’s Total assets increased from NOK 8.5 billion to NOK 11.0 billion as of 30 June 2024. EPRA LTV was reduced from 65.1 per cent to 45.5 per cent, and the total equity increased by 87 per cent from NOK 2.8 billion to NOK 5.3 billion. In connection with the IPO, a new Board of Directors was established. The Group also established a professional in-house organisation by transfer of employees from SBB in Norway. Second half of 2024 In connection with the IPO, PPI communicated a clear strategy of becoming a leading consolidator of social infrastructure properties and aim to pursue an opportunistic growth strategy focused on value accretive transactions. During the second half PPI has delivered on this strategy and acquired the following properties: • Jærveien 33 in Sandnes/Stavanger with a triple net lease with Municipality of Sandnes for a total property value of NOK 139 million. The property is 4 700 square meters and is fully let to the Municipality of Sandnes. • Rigedalen 5 in Kristiansand for a total property value of NOK 160.8 million. The property is 6 300 square meters and is fully let, of which 83 per cent to the Norwegian Roads Administration. • A portfolio of eight pre-schools for a total property value of NOK 182.5 million. The properties total approximately 6 750 square meters and are fully let to Læringsverkstedet. • 82.6 per cent of the shares in the Njord syndicate Bergen Etatbygg AS, which owns the property Strandgaten 229 in Bergen. The transaction was based on a total property value of NOK 330 million. The property is approximately 8 750 square meters and is fully let to the government agency Directorate of Fisheries. In November PPI launched an EUR 2 billion Euro Medium Term Note Program and placed its first EUR 300 million senior unsecured bond. PPI was also assigned a BBB Investment Grade rating from Fitch. The year in brief PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 6 7 Key Figures 1) See the section “Definitions” for defintion of occupancy. The Group has changed calculation method for Occupancy rate % from Q3 2024, comparative figures are reculculated based on this method. 2) As calculated in EPRA LTV, refer to section concerning “Alternative performance measures” for calculation of the key figure. 3) Refer to section concerning “Alternative performance measures” for calculation of the key figure. 4) Intraday volume-weighted average price (VWAP). Property related key gures 2024 2023 Number of properties 72 48 Lettable area (thousand square meters) 395 307 Occupancy rate % 1) 97 % 98 % Yield % - normalised 6.53 % 6.39 % Data per share, amounts in NOK per share 2024 2023 Number of shares end of period 215 103 825 71 931 660 EPRA Earnings per Share 3) 0.89 2.03 EPRA NRV 3) 27.18 40.58 Share price end of period 4 ) 17.57 Share price 4) / EPRA NRV 3) 0.65 Financial key gures, amounts in NOK million 2024 2023 Rental income 662 575 Net operating income 598 501 Net realised financials (261) (247) Net income from property management 270 223 Profit (loss) before tax 73 (969) Net profit (loss) 13 (900) Fair value of the Investment properties portfolio 10 880 8 336 Net debt 2) 5 078 5 430 LTV (%) 42.6% 65.1% EPRA LTV (%) 2) 46.7% 65.1% Net debt / Run rate EBITDA 8.0 10.7 Interest coverage ratio (multiples) 3) 2.0 1.9 Normalised annual run rate The run rate rental income for PPI is total annualised contract rent as of 31 December 2024 for properties owned by the Group at year end. The run rate rental income includes the blended CPI indexation for 2024 that will apply from 1 January 2025. Annualised rental income increased by NOK 157.5 million as a result of acquisitions during the year. The normalised run rate expenses are operative targets in the medium to long term, and not for any particular financial year. Net realised financials are based on interest rates and swap agreements after refinancing carried out during 2024. Net realised financials do not include amortisation of capitalised borrowing costs. Run rate figures below are presented on a 12 months basis from period end. 1) Based on signed agreements at period end. Not including new properties acquired after period end. Rents are CPI adjusted according to specifications in lease agreements. 2) PPI receives reimbursal of property management fees from management of properties not owned by the Group. The organisation in PPI manages SBB’s remaining Norwegian portfolio as well as Nordiqus AB’s Norwegian portfolio. 3) Based on interest rates for existing debt and interest rate derivatives by end of 31.12.2024. Does not include amortisation of capitalised borrowing cost. Amounts in NOK million Year end 2024 Rental income 1) 774 Other income 0 Property expenses (77) Net operating income 698 Administration expenses (80) Reimbursed property management fee 2) 16 Run rate EBITDA 633 Net realised financials 3) (291) Net income from property management 342 Net income from property management per share (NOK) 1.59 Net debt/Run rate EBITDA 8.0 //The year in brief PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 8 9 Full speed ahead PPI operates a steady business with quality tenants on long leases. Our properties house essential social infrastructure functions like police stations, courts, schools and public health facilities. 2024 has been an eventful year for PPI, marked by significant progress. In April we raised NOK 1.5 billion in a successful IPO, listed PPI’s shares on Euronext Oslo Børs and established a new and professional organisation. Since the IPO, we have also refinanced most of our outstanding debt at more attractive terms. We also obtained a BBB Investment Grade rating with stable outlook from Fitch, confirming the qualitiy of our portfolio, tenants and cash flows. We have acquired a total of 24 properties during the year and renewed and extended lease contracts with NOK 103 million in annual rent, thus leaving our occupancy rate at 97 per cent and portfolio WAULT at 5.1 years as of year-end. As of 1 January 2025, I assumed the role as the CEO of PPI. I look forward to continue building on our strategy to be a sustainable and preferred owner, operator and developer of social infrastructure properties in the Nordics. We have a great team in place, and we will continue pursuing an opportunistic growth strategy focused on value accretive transactions, while maintaining a conservative balance sheet. The market Geopolitical tension continues to impact us globally, making the macro-outlook difficult to navigate. PPI should however provide a safe haven as the portfolio is 97 per cent let on long lease contracts, of which 92 per cent to the government sector. The transaction market seems to be picking up, albeit slowly. Total transaction volume in //Words from the CEO the Norwegian market ended approximately NOK 70 billion in 2024, versus NOK 56 billion in 2023 and NOK 161 billion in the top year 2021. Valuations seem to have started to slowly pick up again and we were pleased to see positive value revisions of 2.1 per cent in the fourth quarter of 2024. Operations PPI operates a steady business with high-quality tenants on long leases. Our properties house essential social infrastructure functions like police stations, courts, schools and public health facilities. We had a solid year on the letting side, renewing lease contracts with a total annual rent of NOK 103 million in 2024. Financing We have taken significant steps towards improving our financing structure and terms. We have obtained a BBB Investment Grade rating from Fitch, established a EUR 2 billion EMTN Programme and issued a EUR 300 million bond. We have also repaid a significant portion of our outstanding secured bank loan, releasing almost NOK 6 billion of previously secured assets. These transactions increased the maturity profile of our debt portfolio to 4.4 years and our average interest rate decreased to 5.18 per cent as of 31 December 2024. Sustainability In PPI we work systematically together with our tenants to address issues related to climate change. In 2024, we managed to reduce the portfolio’s energy consumption per square meter by 7 per cent. We also focus on using low-carbon and/or re-used materials in our development projects. In the fourth quarter we finalised a refurbishment project in Statens Park which in a life cycle perspective is estimated to give 78 per cent lower CO2 emissions than a comparable new build project. Outlook We continue to deliver strong operational performance. Our operations are steady and long-term, and our customer base provides low exposure to macro-economic fluctuations. We have delivered a strong cash- flow from operations (adjusted for non-recurring cost related to the IPO process) of NOK 574 million in 2024, up from 437 million in 2023. The company continues to have positive net letting and we have completed several transactions, with more to come. The BBB investment grade rating and our EMTN program are supporting our diversification of funding with lower financial expenses to follow. As of 31 December 2024, EPRA NRV was NOK 27.2 per share, up from NOK 26.0 per share as of 30 June 2024. Finally, and as emphasised during the IPO process, PPI is a dividend company and our Board is proposing a dividend of NOK 0.50 per share for 2024, split in four quarterly payments. NOK 0.10 per share to be paid in June and October 2025 and NOK 0.15 per share to be paid in January and April 2026. We continue to deliver strong operational performance. Our operations are steady and long-term, and our customer base provides low exposure to macro-economic fluctuations. André Gaden CEO PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2023 10 11 Public Property Invest ASA (PPI) is a Norwegian property company with a long-term strategy of owning, operating and developing social infrastructure properties in a sustainable manner. PPI’s portfolio mainly consists of community service properties with public-sector tenants, centrally located in significant cities in Norway. The properties house functions of essential importance to society such as police stations, courts, health and other public services. PPI offers high-quality and specially adapted premises that enable our tenants to fulfil their social mandate. PPI’s property portfolio is close to fully let with an occupancy rate of 97 per cent as of 31.12.2024. Sustainable property management is an integral part of PPI’s business, and PPI aims to be a responsible owner, operator and developer of real estate, with the Norwegian government and local municipalities as tenants. PPI has a dedicated strategy for further growth. The Group has a solid balance sheet and aims to continue consolidating the market to further strengthen the position as a leading provider of social infrastructure properties. Our values are presence, quality and value creation. These values define how we deliver to and interact with our tenants, owners, suppliers, partners and society in general. Presence Presence ensures understanding, seamless operation, expectation management, transparency, insight and access. We commit to think with both our heads and our hearts, by making sound choices with a clear conscience. Quality We are passionate about the quality of our buildings, and the experiences the buildings provide for their users. We are also passionate about the quality of our tenants. We believe that quality builds trust. Value creation We create value for our tenants, their employees and guests, our owners and local communities. Our buildings are particularly valuable for society, because they are home to multiple organisations that form the very fabric of Norwegian democracy and the welfare state. Strategy How we build value Our values //The business Our business strategy is focused on maximizing return to our shareholders. We have pinpointed eight focus areas that we believe will elevate the Group’s overall value and also builds a resilient and sustainable real estate company that align with the best interests of our tenants and local communities. Ensure cash flow by extending lease contracts Progress development portfolio Preserve values and increase the standard of the properties Optimise capital structure and costs of financing Accretive property transactions Build brand and trust with shareholders, tenants and the market Utilise economies of scale Sustainable portfolio and operations PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 12 13 As of 31 December 2024, the property portfolio consisted of approximately 394 569 square meters across 72 properties, with an annual run rate rental income of NOK 774 million. Public sector tenants represented 92 per cent of the total rental income, and the portfolio occupancy rate was 97 per cent. The Group has a diversified portfolio where the median asset accounts for merely one per cent of the total portfolio value, and no asset accounts for more than seven per cent. The Group uses external valuations to determine the market value of its properties on a quarterly basis. The portfolio valuations as of year-end were performed by the inde- pendent appraiser Cushman & Wakefield and were carried out in accordance with generally accepted international valuation methods. The total market value of PPI’s 72 properties amounted to NOK 10 880 million on 31 December 2024. The property portfolio Portfolio key figures //The business Segment Number of properties Square meters Market value (NOK million) Rental income (NOK million) Occupancy (%) 1) Wault (years) Central 2 4 474 109 6 64.0 % 13.2 East 34 225 488 6 193 430 95.9 % 4.4 Inland 8 40 065 894 78 99.7 % 4.9 North 11 42 745 1 128 84 96.6 % 7.4 South 4 29 241 953 72 100.0 % 3.1 West 12 48 118 1 417 104 99.2 % 6.9 Sum Management portfolio 71 390 131 10 694 774 96.8 % 5.1 Development Sites 2) 1 4 438 187 Sum Property portfolio 72 394 569 10 880 774 96.8 % 5.1 1) See the section "Definitions" for calculation of occupancy. 2) Development sites include development potential for properties within the managment portfolio and properties defined as development sites. PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 14 72 properties centrally located in 31 cities Geographic presence Geographical distribution as of year-end 2024: 58% in Eastern Norway 13% in Western Norway 11% in Northern Norway 9% in Southern Norway 8% in the Inland 1% in Central Norway (Calculations based on property value) //The business SOGNDAL LEIKANGER BERGEN ETNE STAVANGER SANDNES FLORØ GJØVIK HAMAR KONGSVINGER LILLESTRØM MOSS SARPSBORG FREDRIKSTAD HALDEN LILLEHAMMER NARVIK BODØ MO I RANA NAMSOS KIRKENES ALTA TROMSØ HØNEFOSS DRAMMEN TØNSBERG SANDEFJORD PORSGRUNN SKIEN ARENDAL KRISTIANSAND Our tenants COURTS OF NORWAY Local court houses constitute a significant tenant base for PPI. The Group owns 12 court houses through- out Norway. In total they constituted approximately eight per cent of PPI’s rental income as of year-end. MUNICIPALITIES Municipalities across Norway are tenants in 18 of PPI’s properties and accounted for approximately seventeen per cent of PPI’s rental income as of year-end. The most substantial leases PPI has in this sector are with the municipalities of Kristiansand, Fredrikstad and Sandefjord. NORWEGIAN LABOUR AND WELFARE ADMINISTRATION (NAV) The Norwegian Labor and Welfare Administration (NAV) is a tenant in seven of PPI’s properties and consti- tuted approximately six per cent of PPI’s rental income as of year-end. NORWEGIAN TAX ADMINISTRATION The Norwegian Tax Administration is a tenant in six of PPI’s properties , representing approximately six per cent of PPI’s rental income as of year-end. POLICE PPI owns 18 local police stations throughout Norway, which makes the police is PPI’s largest tenant group. In total, the Norwegian police consti- tuted approximately nineteen per cent of PPI’s rental income as of year-end. EDUCATION HEALTHCARE INSTITUTIONS OTHER GOVERNMENT AGENCIES One of PPI’s largest tenants is Oslo Metropolitan University (OsloMet) located on Kjeller/Lillestrøm. Educational institutions constituted approximately eight per cent of PPI’s rental income as of year-end. Healthcare institutions constituted approximately eight per cent of PPI’s rental income as of year-end. Nine of PPI’s properties house healthcare institutions, of which Vestfold Hospital, Drammen Hospital’s emergency room and Helfo (The State’s Health Econom- ics Administration) are the largest. PPI has 17 different government agen- cies such as the Norwegian Labor Inspection Authority, The Norwegian Directorate for Children, Youth and Family Affairs and The Norwegian Road Administration as tenants in its properties. In total they constituted approximately eighteen per cent of PPI’s rental income as of year-end. PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 16 17 The Group’s property portfolio consists primarily of social infrastructure properties located in cities across Norway. PPI’s business is characterised by strong tenants within the public sector, such as the police, judiciary functions, universities, and public health facilities, on long lease contracts and with a high occupancy rate. The majority of the buildings in the portfolio are single-use buildings. Tenants categorised as Private, consist mainly of parking leases, law firms, accounting firms, banks, insurance companies and grocery stores. Lease structure and letting activity //The business Rental Income per sector POLICE 19.3% GOVERNMENT AGENCY 18.3% NORWEGIAN LABOUR AND WELFARE ADMINISTRATION 6.3% MUNICIPALITY / COUNTY 17.1% EDUCATION 8.7% COURTS OF NORWAY 8.0% NORWEGIAN TAX ADMINISTRATION 6.0% HEALTHCARE 8.1% PRIVATE 8.1% 19.3% 8.1% 6.0% 18.7% 6.3% 8.1% 8.0% 18.3% 17.1% To reduce the risk of lower rental revenue, PPI endeavours to create long-term relationships with the Group´s different tenants. Current WAULT in the portfolio is 5.1 years, with an evenly distributed lease maturity profile for the coming years. Distribution of leases Expiration of contracts Share of contractual rental income Rental income (NOK million) Rental income (Share %) Number of leases Average rental income (NOK million) WAULT > 2% 204 26% 7 29 3.8 1-2% 276 36% 28 10 4.9 < 1% 294 38% 167 2 6.1 Sum 774 100% 202 4 5.1 Year of expiry Area (sqm) Rental income (NOK million) Share of rental income 2025 51 436 87 11% 2026 33 748 79 10% 2027 31 062 67 9% 2028 52 771 126 16% >2028 195 227 415 54% Development area 4 438 Vacant area 25 887 Sum 394 569 774 100% 11% 12% 7% 16% 17% 36% <1 y.< 2 yrs.< 3 yrs.< 4 yrs.< 5 yrs.> 5 yrs. % of Rental income PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 18 19 During 2024 PPI signed new and renegotiated leases with an annual rent totaling NOK 103 million and 51 000 square meters. The largest contracts were: Letting activity in 2024 //The business 5.83 9.8 Years Years Average lease term Average lease term ~87 ~16 MNOK MNOK 88% Public tenants 0% Private tenants 12% Private tenants 100% Public tenants Tenant split Tenant split Extended lease holds in 2024 New lease holds in 2024 Recurring annualised rent Recurring annualised rent 19 extended lease holds 3 new lease holds Gross area (sqm) 44 929 Gross area (sqm) 6 464 • Renegotiated 5-year lease contract with Ministry of Education for 27 000 square meters in Kunnskapsveien 55 in Lillestrøm • New 10-year lease contract with NAV (Norwegian Labour and Welfare Administration) for 5 920 square meters in Gyldenløves gate, Kristiansand • Renegotiated 6-year lease contract with Stavanger Municipality for 2 290 square meters in Tinngata 8 in Stavanger • Renegotiated 10-year lease contract with Courts of Norway for 2 180 square meters in Sigvat Skalds gate 3 in Sarpsborg • Renegotiated 5-year lease contract with The Police for 1 740 square meters in Fjørevegen 20 in Sogndal • Renegotiated 20-year lease contract with Courts of Norway for 1 560 square meters in Jul Pettersens gate 2 in Lillehammer • Renegotiated 5-year lease contract with Porsgrunn Municipality for 1 500 square meters in Rådhusgata in Porsgrunn Transactions Public Property Invest aims to be a leading consolidator and to pursue an opportunistic growth strategy focused on value accretive transactions, while at the same time maintaining a low-risk profile in order to attract competitive debt-funding and allow for a predictable dividend payment strategy going forward. PPI actively seeks to increase its portfolio size and quality and focus on community service properties with public sector tenants, centrally located in significant cities in the Nordics. Leveraging a vast broker and investment banking network, PPI has refined its capability in off-market deal sourcing. This is considered a strategic advantage and enables PPI to navigate ahead of prevailing market trends and seize exclusive opportunities. During 2024 PPI acquired 13 properties in the second quarter and 11 properties during the fourth quarter. Annualised rent for these properties is NOK 157.5 million and the WAULT for the acquired properties is 7.3 years. Transactions in 2024 Acquisitions Location Square meters WAULT at closing date (years) Rental income (NOK million) Contractual property value (NOK million) Closing date Portfolio of 13 properties Across Norway 60 862 5.0 99.0 1 639.7 29.04.2024 Jærveien 33 Sandnes, Norway 4 690 5.0 10.5 139.0 14.10.2024 Rigedalen 5 Kristiansand, Norway 6 300 6.3 11.2 160.8 18.12.2024 Pre-school portfolio Across Norway 6 744 35.0 10.8 182.5 13.12.2024 Strandgaten 229 (83 %) Bergen, Norway 8 748 6.0 26.0 330.0 20.12.2024 Total 87 344 7.3 157.5 2 452.0 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 20 21 Funding //The business The Group’s assets are funded by a combination of bank loans and bonds. During 2024, PPI’s interest-bearing liabilities increased from NOK 5 529 million as of 31 December 2023 to NOK 6 004 million as of 31 December 2024. After deduction of cash and liquid assets, PPI’s net debt was NOK 5 078 million as of year-end 2024. During 2024, PPI has almost fully refinanced its capital structure. In April, the Group refinanced its outstanding bank loan with a new facility of NOK 3 300 million, and prolonged and renegotiated the terms of the existing bond loans. In September PPI partially repaid two of its outstanding bonds with NOK 664 million. In December PPI established a EUR 2 billion EMTN programme, placed an unsecured bond of EUR 300 million and obtained a BBB Investment Grade rating from Fitch. The Group also repaid Tranche A and C of the NOK 3 300 million bank loan with a total amount of NOK 2 815 million. At year- end 2024, PPI’s debt portfolio consisted of: • Four secured, fixed-rate bond loans with total principal amounts of NOK 1 835 million • One EUR 300 million unsecured, listed bond loan, calculated at NOK 3 541 million • Three secured bank loans of NOK 628 million in total. The adjusted average maturity of the long-term debt portfolio was 4.5 years, and the current weighted average interest rate of the debt portfolio was 5.18 per cent as of 31 December 2024. The Group manages interest rate risk through floating- to-fixed interest rate swaps and by issuing fixed-rate bonds. At year-end, the Group had total interest rate hedge agreements in nominal amounts of NOK 50 million. As of 31 December 2024, the portfolio of fixed interest rate bonds consisted of collateralised bonds with a total volume of NOK 1 835 million and the unsecured Eurobond of approximately NOK 3 541 million. The total principal amounts of fixed rate bonds of NOK 5 426 million set the Group’s share of fixed rate long-term loans at 90.4 per cent. At year-end PPI had EUR 58 million in cash and had a currency swap/hedge securing EUR 100 million of the final maturity amount of the Eurobond. In January 2025, PPI also acquired two properties in Finland with annual rental income of EUR 2.9 million, providing a natural hedge for parts of the interest payments on the outstanding Eurobond. The Group’s unencumbered asset ratio was 2.45 by year-end 2024. Interest-bearing debt Amounts in NOK million 31.12.2024 31.12.2023 Bond loan 5 376 2 273 Bank loan 628 3 256 Interest-bearing liabilities at period end 6 004 5 529 Amount of debt at fixed interest rate 5 426 3 901 Share of bank loan at fixed rate 8.0 % 50.0 % Share of debt at fixed rate including bonds 90.4 % 70.6 % PPI has a conservative financial policy, and the long-term capital structure has the following targets: Debt maturity structure The bond loan maturing September 2025 will be repaid with cash on maturity 211 226 750 648 3541 578 50 0 500 1 000 1 500 2 000 2 500 3 000 3 500 2025 2026 2027 2028 2029 2030 2031 2032 NOK million BANKBOND * • Net debt/EBITDA maximum 9.0 x • LTV ratio <50% • ICR > 2.2x • Average duration of long-term debt > 5 years • Unencumbered assets > 2x total outstanding unsecured debt PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 22 23 The Share and Shareholders //The business Public Property Invest ASA was listed on Euronext Oslo Børs (Oslo Stock Exchange) on 29 April 2024, under the ticker PUBLI. The company had a total of 215 103 825 issued and outstanding shares by 31 December 2024. PPI has one class of shares, and all shares provide equal rights, and equal right to any dividends. As of 31 December 2024, PPI had more than 2 200 shareholders. Norwegian shareholders held approximately 53 per cent of the share capital. The 10 largest shareholders as registered in Euronext VPS on 31 December 2024 are shown in the table below. Development in share capital Date No of new shares issued No of shares outstanding post transaction Par value Share capital No of shares outstanding per 31.12.2023 71 931 660 0.05 3 596 583 Share capital increase in connection with IPO 26.04.2024 105 000 000 176 931 660 0.05 8 846 583 Share capital increase in connection with acquisition of portfolio 26.04.2024 31 659 509 208 591 169 0.05 10 429 558 No of shares outstanding per 30.06.2024 208 591 169 0.05 10 429 558 Acquisition of Jærveien 21.10.2024 1 802 486 210 393 655 0.05 10 519 683 Acquisition of Rigedalen 27.12.2024 815 119 211 208 774 0.05 10 560 439 Acquisition of Strandgaten 229 27.12.2024 3 895 051 215 103 825 0.05 10 755 191 No of shares outstanding per 31.12.2024 215 103 825 0.05 10 755 191 Name Number of shares Stake Samhällsbyggnadsbolaget i Norden AB 75 631 366 35.16 % Skagen Vekst Verdipapirfond 8 991 411 4.18 % Verdipapirfondet DnB Norge 6 441 107 2.99 % Avanza Bank AB 4 684 082 2.18 % Kverva Finans AS 4 427 618 2.06 % Centra Capital AS 3 793 103 1.76 % First Nordic Real Estate 3 777 980 1.76 % Centra Invest AS 3 747 950 1.74 % Sagacia AS 3 598 320 1.67 % Verdipapirfondet Fondsfinans Norge 3 372 931 1.57 % Total 10 largest shareholders 118 465 868 55.07 % Other shareholders 96 637 957 44.93 % Total 215 103 825 100.00 % PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 24 25 PPI’s overall objective is to provide a high and stable return on equity over time and to ensure long-term value creation for its shareholders. All business involves a certain amount of risk-taking, as risks may affect the company’s business, financial position and earnings. At the same time, good risk management can also generate opportunities. The purpose of the risk management process is to create a proactive management that balances risks and opportunities. PPI is exposed to various risks that may affect the Group’s ability to achieve its overall strategic targets and goals. A structured process is carried out at least annually by the Group management and Board to identify the risks relating to PPI’s business. Hereunder the probability that they will occur, their potential impact on strategy and how individual risks are to be managed. The analysis is aimed at creating a balance between the desire to limit uncertainty or risk and the task of generating growth and shareholder value. The company has guidelines, processes and procedures that aim to minimise risks while also allowing the company to carry out its business at a healthy pace. To be able to estimate the impact of identified risks, an internal risk matrix is mapped where each individual risk is assessed, in terms of both probability and consequence. The identified risks that are viewed as the most important for the company and the way in which they are monitored and managed, are presented below. Risk Management //The business P = Probability, where green is low, yellow is medium and red is high C = Consequences, where green is limited, yellow is moderate and red is significant Market risk Risk area: Business cycle and macroeconomic factors P C Description A general economic downturn can lead to reduced demand for premises, increased costs and lower rent levels in all of the PPI’s local markets. It may also affect the financial market, the availability of capital and the stock market. Geopolitical instability can have a significant impact on financial markets. In addition to uncertainty, it can increase prices, complicate deliveries of, or cause a shortage of inputs to the business. Greater risk aversion in financial markets could limit access to financing and increase the Grooup’s return requirements. Risk Management A property portfolio with breadth in terms of type of premises, geography and tenants contribute to the diversification of risk. Properties with central locations in local markets make them attractive to several customer segments, which further reduces the risk in case the market changes. PPI’s portfolio also consist of a significant share of special purpose properties such as police stations, court houses etc., making tenant relocation more difficult. Local presence provides in-depth knowledge of the market conditions in the locations where PPI operates. Local property management is prioritised in order to maintain close contact with and knowledge of the market and tenants’ situation. Among other things, the risk is managed by promoting good financial stability in the company, close relationships with suppliers and well-balanced agreement terms. The use of multiple sources of capital, maintaining good relationships with banks and financing institutions, and limiting the loan-to-value ratio reduces the risks of the financial market. The Group has a conservative finance policy with targets and/or limitations on leverage, hedging, debt maturi- ties and liquidity management. Risk area: Market value of the property portfolio P C Description PPI’s properties are measured at their fair value and with changes in value being recognised as profit or loss in the period in which it arises. The valuations are perfomed on a quarterly basis by the independent third party external valuer Cushman & Wakefield . Different factors affect the fair value of PPI’s properties. Such factors could both be property specific, such as rent levels, occupancy ratio and operative expenses, and market specific, such as macroeconomic effects, general economic trends, growth, unemployment levels, the rate of production of new premises, population growth, inflation and interest rates. A substantial neg- ative development in the property value could affect both the profit and loss account through unrealised changes in value and the balance sheet through an increase in key metrics like the loan to value ratio (LTV). A too high LTV could have negative effects on the cost of, and access to capital, on PPI’s credit rating and on shareholders’ interest and attention. It could also potentially impose a breach of the covenants of the financing agreements. Risk Management PPI monitors the market and follows up the risk quarterly, amongst others things, through active dialogue with the external appraiser. PPI further works continuously on portfolio optimisation and risk mitigation in relation to property quality, location and letting profile. The company takes actions to limit its exposure to company-specific events having a negative impact on the market value, for example, through proactive management, the signing of property insurance agreements and by formulating leases with adequate contractual terms.PPI regularly simulate different negative scenarios in the market, which could affect the market value of its property portfolio. PPI continuously work to upgrade the property portfolio to comply with new environmental regulations. PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 26 27 Risk area: Regulatory risks P C Description New planning regulations and changes in or completion of existing planning regulations and practices by relevant authorities and changes in infrastructure may affect the operations of PPI’s properties, includ- ing the interest of potential tenants in future rental of premises or interest of future purchasers of the property. New laws may be introduced which may be retrospective and affect environmental planning, land use and development regulations. Furthermore, existing or new planning regulations may limit the possi- bility to further develop PPI’s properties.The EU has ranked the building sector as the single largest energy consumer in the EU and aims to improve the energy performance of buildings across the EU, with the aim to double the rate of renovation by 2030 to lead to better energy and resource efficiency, with estimated 35 million buildings to be renovated under such climate pact. A revised Energy Performance of Buildings Directive with stricter energy performance and energy efficiency requirements has recently been adopted in the EU. If the revised Energy Performance of Buildings Directive is adopted and implemented in Norway, this may require PPI to refurbish properties in its property portfolio to meet new minimum energy perfor- mance standards and possible requirements to establish solar energy installations. Additionally, changes in laws and regulations regarding tax and other duties/charges, including could involve new and changed parameters applicable to PPI and taxation of/charges for PPI at higher levels than as of the date hereof. Risk Management PPI works continuously to monitor and implement new standards and regulations. PPI works to reduce the CO2 consumption in its portfolio and is in process establishing individual strategies for the properties with low EPC score, hereunder assess the risk and gain the ability to prioritise and implement adequate mitigat- ing measures. Risk area: Environmental and climate risk P C Description Properties are affected by climate change through rising temperatures, extreme weather conditions and floods. Future investments must therefore take into account possible consequences of climate change. A changing climate requires pro-active efforts to minimise unforeseen costs and investments that may ensue from a changed climate. Increased severity of extreme weather events such as storms and floods is a long-term risk. Property values constitutes most of PPI’s balance sheet, and potential physical damage to property values could be severe. Damage to third party equipment and installations may lead to increased insurance cost and/or reduced customer satisfaction. Failure to comply and adapt to climate related mat- ters is also a significant reputation risk. Transition risks such as new policies and regulations aimed at reducing negative climate impacts (e.g. the Energy Performance of Buildings Directive), may increase costs and need for investments. Stricter climate policies and regulations may boost demand for green buildings while making non-green buildings less attractive for renting, financing, and investing. Adapting to climate change and reducing negative climate impacts is also important for a business’s competitiveness and reputation. Risk Management PPI is in the process of mapping consequences and probabilities of all properties regarding physical climate risk to assess the risk and gain the ability to prioritise and implement adequate mitigating meas- ures. PPI work to reduce the CO2 consumption in its portfolio, and KPIs within energy efficiency and waste disposal are included in the scorecard for determining variable pay for all employees. Potential damage to property from e.g., flooding or heavy rain is an integral part of risk management on individual asset level. PPI aims to design, upgrade, and operate buildings in a manner that minimise GHG emissions and energy consumption. PPI is currently in process of reviewing the EPC status of all properties and map performance improvement activities for the properties with low EPC certificates. Additionally, KPIs related to energy consumption and waste management are included in the scorecard for determining variable pay for all PPI employees. Financial risks Risk area: Refinancing risk P C Description PPI’s operations are financed by bond and bank financing. PPI relies on its financing agreements, renewal of these and/or obtaining new financing agreements to fund its operations, additional acquisitions and capital expenditures. PPI’s ability to obtain funding in the future will depend upon its business, prospects and market conditions, and there is a risk that PPI will be unable to secure additional financing or retain or renew current financing upon expiry on favourable terms or at all. An increase in PPI’s level of debt financ- ing and/or adverse change in the terms of its current financing agreements, may increase financing costs and reduce PPI’s profitability. PPI’s financing arrangements contain a number of covenants which PPI will need to comply with on an ongoing basis. The conditions in the capital and credit markets can change, which could result in no refinancing of existing liabilities or that refinancing cannot take place on reasonable terms. In addition, a weaker economy and changes in supply and demand for the company’s premises could negatively impact the company’s income statement, balance sheet and key performance indicators, which could lead to a lower credit rating, thus making it more difficult to refinance existing debt. A reduction in access to funding could further weaken the company’s global credit rating from Fitch, thus further reducing refinancing possibilities, and the Group’s ability to finance new investments. In such a case, the company could be exposed to an increase in financing costs which would weaken the underlying result, debt service ability and dividend capacity. Management In order to limit its refinancing risk, PPI endeavours to have a low percentage of short-term interest-bear- ing funding, to secure refinancing for long-term interest-bearing liabilities in good time before maturity and to use several different sources of funding, through several financial markets and sectors. The Group is building a diversified maturity structure for its liabilities which further lowers the interest rate risk. The development in the company’s financing needs, ability and costs is monitored on a continuous basis and reported quarterly to ensure that the financing operation supports the overall business strategy. PPI seeks to maintain strong relationships with international and Nordic bond investors as well as the Nordic banks. PPI aims to maintain a diversified financing structure with a balanced maturity profile and financing mix in order to ensure stable and predictable access to capital. PPI has an investment grade credit rating from Fitch, currently at BBB. The rating contributes to the Group’ credit availability and is believed to enable PPI to further extend and enhance its debt maturity profile over time. PPI limit interest rate risk through inter- est rate hedges and by issuing fixed rates bonds. PPI monitor closely, and act upon, any new regulations in the bank and debt capital market with respect to possible implications for the Group’s future financing. Risk area: Interest rate risk P C Description Interest expense is the Group’s largest current cost item. Interest rate risk is defined as the risk that changes in market interest rates will affect PPIs financing costs and cash flow. The interest-rate risk is attributable to the trend in current interest rates. Conditions in the fixed income market could change, which could in turn impact the interest rate scenario. The interest rates have increased significantly over the recent years, and may increase further. The interest rates available to PPI in the future are uncertain. Any increase in interest rates may increase PPI’s costs and have a negative effect on PPI’s property portfolio and may require PPI to record fair value adjustment losses. Such losses would result in a corresponding decrease in the value of PPI’s properties as reported on its balance sheet and in PPI’s fair values and increases in PPI’s loan to value. Materialisation of any of the above risks could have a material adverse impact on PPI’s business, financial position, results of operations and prospects. Management The Group has a significant portion of its debt on fixed-rate terms, to reduce exposure to a potential rise in interest rates. To limit interest-rate risk on loans at floating interest rate terms, financial interest-rate hedging instruments such as interes-rate swaps are being utilised. On 31 December 2024, 90.4 of PPI’s interest-bearing liabilities were fixed-rate loans. An increase in market interest rates is thus deemed to have a limited effect on PPI’s interest expenses in the short and medium-term. PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 28 29 Risk area: Currency risk P C Description PPI is exposed to exchange-rate risks due to investments and liabilities in SEK and in EUR. PPI’s presenta- tion currency is NOK and all balance-sheet items that are in SEK or EUR are translated to NOK. Exchange rate fluctuations could have a material effect on the Group’s financial position and earnings in NOK. Management Currency risk is managed by using derivaties and by natural hedges, such as financing acquisitions of properties in the same currency as they are acquired. Transaction exposure in the Group is managed by matching revenue and expenses in the same currency. To hedge future foreign exchange risk related to the parent company’s Eurobond, a currency swap/hedge securing EUR 100 million of the final maturity amount is in place. Risk area: Liquidity risk P C Description The Group defines liquidity risk as the risk of not having access to liquidity to cover its payment obligations, including interest payments. A shortage of liquidity to cover due payments would have a negative impact on the Group’s operations and financial position. Management The Group’s approach to liquidity risk management is grounded in maintaining a consistently sufficient liquidity level to meet all financial liabilities at maturity. This commitment applies under both standard and exceptional circumstances, with the aim of avoiding unacceptable losses and safeguarding the Group’s rep- utation. As of 31 December 2024 PPI had Cash and Cash equivalents on balance sheet of NOK 968 million. PPI has a positive operating cash flow and limited refinancing requirements over the next 24 months. PPI is in process of establishing unutilised credit facilities as back-up for its short term debt maturities. Operational risks Risk area: Rental revenue and rent trends P C Description PPI’s commercial success depends on its ability to maintain and increase its rental income generated from its properties. Rental income constitutes PPI’s main source of current earnings. This income needs to cov- er operation and maintenance costs, administration costs and financing expenses. The amount of rental income PPI is able to generate is dependent on occupancy rates and to a lesser extent tenant turnover, which in turn depend on factors such as macroeconomic conditions, demographic trends, availability of suitable tenants for PPI’s properties and the level of new construction, which could increase the supply of rental properties relative to demand. Furthermore, if the condition, location or other characteristics of the properties in PPI’s property portfolio are not responsive to the demand, this may negatively affect PPI’s ability to maintain and increase rent levels and total rental income. PPI considers that some of its office properties located on the outskirts of city centres can be challenging to lease out to new tenants. Some of the office properties are located in cities where the general demand for office space is low, such as Halden, Leikanger and Sogndal. The properties identified as being difficult to let as offices will therefore have to be considered to be converted and refurbished to other uses, such as housing. Rent-level risk is attributable to trends in current market rents that are affected by the economic climate, demographic growth and the extent of new builds in the market. Management To limit PPI’s exposure to vacancies and rent losses, PPI endeavours to offer leases with long-term custom- er relationships and to prioritise tenants with a high credit rating. This is particularly important in relation to major tenants. PPI works continuously to renegotiate existing leases with the aim of minimising the short-term risk.The public sector represents 92 per cent of the total rental income. The occupancy rate per 31 December 2024 was 97 per cent. The majority of PPI’s leases are indexed to the CPI or the equiva- lent. Annual indexation may, in certain cases, be limited by a ceiling or floor. Some leases have annual fixed rental adjustments. The portfolio is also well diversified geographically. The average lease term is 5.1 years and PPI’s lease structure helps reduce the risks of vacancies and rent losses. Risk area: Operating and maintenance costs P C Description The most significant operating expenses include electricity and heating costs for the properties and property tax. If increases in expenses cannot be offset by lease terms, this may have a negative effect on the company’s earnings. In the event of vacancies, the company’s profit is not only impacted by lost rental revenue but also by expenses for such items as energy, which were previously paid by the tenants Management Regarding the rental situation for premises in the specialised public property segment, tenants in this area normally assume responsibility for a significant portion of operations and maintenance. PPI’s exposure to changes in operating expenses is thus limited. PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 30 31 Risk area: Occupancy ratio P C Description The occupancy ratio in the management portfolio affects PPI’s profitability through rental income and operating costs. It relates mainly to lease expiries and to what extent PPI is able to renegotiate with existing tenants, and relet vacant space. In the long term, the occupancy ratio is also affected by how flexible and adaptable our buildings are to changes in customer demand. Fluctuating energy costs in combination with high CPI adjustments on leases may increase tenant focus on total costs of renting space and may have adverse effect on rent levels and on tenant appetite for less energy efficient buildings. Management The occupancy ratio is an important key metric in all external and internal reporting. Vacancies and market opportunities are monitored on a continuous basis. Risks regarding upcoming lease expiries are evaluated quarterly. Customers are followed up closely by the property managers. Risk area: Credit risk P C Description The primary credit risk to which PPI is exposed is that tenants could fail to make the payments required by their lease. Management PPI’s tenant base with 92 per cent public tenants has low counterparty risk. The largest tenants are funded by the State of Norway, which carries a AAA rating. In conjunction with acquisitions and leases, counter- party risk assessments are carried out and, if necessary, contracts are supplemented by collateral in the form of deposits, bank guarantees, or a similar instrument. Risk area: Organisational risk P C Description The knowledge, experience and commitment of PPI’s employees are important success criteria for PPI’s future development. If PPI is unable to retain members of management and other key personnel or recruit new members of management or other key personnel to replace people who leave PPI, this could have a material adverse effect on PPI’s operations, earnings and financial position. PPI’s future development is highly dependent on the expertise, experience and commitment of company management and other key individuals. The company could be negatively impacted should one or more key individuals terminate their employment or if the company is unable to attract competent personnel. Management The work environment is followed up through employee interviews. The employment contracts are consid- ered to be on commercially competitive terms. PPI has also established annual incentive programmes to retain, and attract new, employees. The development and management of competence is an integral part of the business strategy. Risk area: Transaction related risks P C Description A key part of PPI’s strategy is to capitalise on the current situation in the real estate market and to consol- idate its market position through acquisitions. The acquisition and integration of properties and property companies may however not be successful. When deciding to make an acquisition, PPI performs financial, legal and technical due diligence and makes certain assumptions and determinations based on its due dil- igence of the properties to be acquired, as well as other information then available, including assumptions regarding future rental income, operating costs and synergies. However, these assumptions and deter- minations are based on the information available to PPI and may later prove to be incorrect, and therefore PPI may not realise the full benefits resulting in economies of scale and cost savings not being realised or occurring later than anticipated. Also, any material errors or inaccuracies in the due diligence reports could result in significant costs to PPI. Management Risks are prevented by ensuring that PPI carries out relevant controls and investigations and that the right skills are found internally in the organisation or engaged externally as necessary. Key employees have sig- nificant M&A and transaction experience, combined with deep commercial real estate market knowledge. PPI evaluates each investment case by reference to strategy, risk and profitability. This is done at several levels, by transaction professionals, by group management and by the Board of Directors. All investments and divestments exceeding NOK 100 million must be approved by the Board of Directors. Risk area: Operational and IT security risk P C Description PPI’s operations are dependent on information systems sourced from certain suppliers. The informa- tion systems are mainly standard solutions and include telecommunication systems as well as software applications that PPI uses to control business operations, manage its property portfolio and risks, prepare operating and financial reports and to execute treasury operations. Shortcomings in IT security or inade- quate routines could result in the destruction or loss of data, which could have a negative impact on PPI’s operations. Management PPI works continuously on preventive measures and on developing its administrative procedures, policies and guidelines for IT security. PPI makes use of firewalls, e-mail filters, back-up systems and anti-virus programmes to prevent IT-related service interruptions. PPI focus on security and employees’ knowledge and attitudes, including training of employees. Nanolearning (short, internet-based learning sessions) are implemented for all employees to increase focus and improve understanding of ICT threats. PPI use suppliers with certifications that focus on security and has outsourced the operational part of ICT security to one of Norway’s top-of-class companies. PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 32 33 Risk area: Compliance P C Description Compliance is a compilation of PPI’s specific assessment of risk factors within the compliance area. PPI’s key risk factors within compliance are considered to be the following: Corruption and financial crime, Ethics, Social responsibility, Personal data protection, Insider rules, Information security. Management Risk assessment, monitoring, and follow-up is an integral part of PPI’s operations on all levels, including at the Board of Directors level. The Board discusses compliance risk on a regular basis. PPI is working to prevent corruption and financial crime. PPI’s strategy includes an e-training program for employees, rigorous purchase and invoice controls, and both internal and external whistleblower channels. We encourage ethical decision-making and behaviour through dilemma training. The company’s external and internal whistleblower channels ensure transparency and accountability. We are committed to socially responsible purchasing practices, guided by a comprehensive procurement policy. Stringent supplier controls are in place to uphold these standards. We are working with personal data protection through data processing agreements and the establishment of internal routines. Our insider rules dictate strict guidelines for employees regarding confidential information. PPI complies with and reports in accordance with the Transparency Act. Risk area: Risk of conflicts of interest P C Description A lack of transparency regarding the Board’s and company management’s potential conflicts of interest with PPI could affect the capital market’s confidence in PPI and thus negatively impact the company’s financial position. Following the Listing on the Euronext Oslo Børs, SBB Samfunnsbygg AS became PPI’s largest shareholder, holding approximately 35 per cent of the Shares. SBB Samfunnsbygg AS transferred the Shares to its indirect parent company Samhallsbyggnadsbolaget i Norden (“”SBB””) in July 2024. With such a shareholding, SBB will be able to exert a certain degree of influence over certain matters, including the election of the Board of Directors and approval of significant corporate transactions. The commercial interests of SBB may not always be aligned with the interests of the Issuer’s other stake- holders. Management PPI treats all shareholders equally and reports to its largest shareholder on the same level and in the same manner as to other shareholders. The relationship is further outlined in PPI’s by-laws which state that any agreement between the company, or a company controlled by PPI on the one hand, and SBB or a company controlled by SBB on the other hand, must be approved by the company’s general meeting. This applies as long as Samhällsbyggnadsbolaget i Norden AB directly or indirectly controls more than 15 per cent of the shares and votes of the General Assembly of PPI ASA. Risk area: Health and Safety P C Description There is an inherent risk that PPI’s own employees, tenants in PPI’s buildings and workers on PPI’s construction sites may be injured due to PPI’s activities. Management A central element in PPI’s HSE work is a continuous focus on identifying, reporting and processing risk, and to take appropriate measures to avoid unwanted incidents on all levels. PPI has internal routines and systems to ensure compliance with HSE requirements. To motivate a proactive HSE culture, reporting of precautionary safety or unwanted HSE incidents, is included as one of the KPIs in PPI’s scorecard for performance-related pay for both management and other employees. Severe incidents are followed up and investigated to ensure both learning and future avoidance. Reported incidents are used to identify and mitigate risk areas. PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 34 Name André Gaden Ylva Göransson Ilija Batljan Marianne Aalby Tone K Omsted Position: CEO CFO CIO EVP Finance and ESG EVP IR and Corporate Finance Nationality/Residency: Norwegian/Norway Swedish/Norway Swedish/Sweden Norwegian/Norway Norwegian/Norway Gender: Male Female Male Female Female With PPI since: 2024 2024 2024 2024 2024 Number of shares / share options in PPI 1 724 shares / 50,000 options 1 900 shares / 50 000 options 125 000 shares / 160 000 options 5 500 shares / 50 000 options 0 shares / 100 000 options Education: MBA from BI Norwegian Business School Master of Business Administration fromLund University PhD in Demography and Planning for elderly care and a Bachelor in eco- nomics from Stockholm University BBA and MSc Finance from Tex- as A&M University and Chartered European Financial Analyst (CEFA/ AFA), NHH BA with Honours in Finance from University of Strathclyde Prior positions: André Gaden has held the position as CEO of PPI since 1 January 2025. From January to December 2024 he held the position as COO of PPI. Prior to his positions in PPI, Gaden has served as Property Director for Samhällsbyggnadsbolaget i Norden AB (publ) and Hemfosa Samfunnsbygg AS. Gaden has also served as Commercial Director for Citycon Oyj. Ylva Göransson has held the position as CFO of PPI since 1 January 2024. She has vast experience from the real estate sector from companies such as SBB Samfunnsbygg AS, ICA Eiendom Norge AS, Peritus Entreprenør AS and Union Eiendoms- kapital. She also has experience from Accenture. She has served as chair of the board/board member in several property companies within the SBB Group and currently serve as board member in several property companies within Public Property Invest. lija Batljan has held the position as CIO of PPI since January 2025. Prior to that, and since the IPO in April 2025he held the position asinterim CEO in PPI.Ilija Batljan is the founder and a member of the board ofdirectors of Samhällsbyggnadsbolaget i Norden AB (publ)and has served as the CEO, chairperson and board member inover 1,000 companies within the SBB Group. Batljan has among others, also served as the Vice Chair forStockholm Regional Council and as vice CEO of Rikshem AB. He is currently chair of the board of Health Runner AB and PSOMRI Holding AB and board member in Samhällsbygg- nadsbolaget i Norden AB, Cryptzone Group AB and Emergy Holding. Marianne Aalby has previously served as CFO of Attivo AS, SVP, Head of Group Finance and Treasury at OBOS as well as held senior roles in JP Morgan, Nordea, Telenor and Statnett. She has also had many non-executive directorships in companies in the real estate and financial industries. She currently serves as board member in Söderberg & Partners Wealth Management AS and in several property companies within Public Property Invest. Tone Omsted has long experience from the finance and real estate sector and She has previously held the position as Head of Investor Relations at Entra ASA. Prior to that she was an Investment Banking executive at SEB Enskilda for 14 years. She currently serves as board member of Bluenord ASA. Senior Executives //The business * directly or indirectly owned PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 36 37 ESG General Disclosures //ESG During 2024 PPI has established the Group’s double materiality analysis, hereunder established which sustainability topics that have a material impact on the Group’s business model, its value chain and stakeholders and where the company has significant impact on people and the environment. PPI has initiated and will continue to develop a more structured ESG reporting process for the Group. Actions for increased data quality are important to undertake in order for the Group to be able to present a more representative view of the ESG work. Further actions involve internal training in reporting requirements and systems with the ambition to continue to develop processes for the collection, control and follow-up of data. PPI reports on sustainability in accordance with the Norwegian Annual Accounts Act. There are uncertainties as to if and when the Group will be subject to the EU’s Corporate Sustainability Reporting Directive (CSRD). PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 38 Governance Sustainability work is integrated in PPI’s day-to-day operations. Governance is based on policy documents in the forms of the Code of Conduct, the Group’s ESG policy and other governance and policy documents. Focus is on sustainability areas as identified in PPI’s double materiality analysis. The company’s process for governance and follow- up involves identification and management of sustainability risks and opportunities and securing progress towards the targets and commitments that have been adopted. The Board of Directors PPI’s Board is responsible for the Group’s ESG strategy, priorities, targets and risk profile. The Board and the CEO are also ultimately responsible for ensuring that PPI’s ESG Report is prepared in accordance with the Norwegian Annual Accounts Act and is adapted continually in line with laws and directives. Every year, the Board adopts policy documents linked to sustainability work, such as the Code of Conduct and the ESG Policy. The ESG Policy regulates PPI’s approach and actions with regard to environmental, social sustainability and governance. The Board monitors progress towards defined targets and the company’s risks and potential impact relating to the environment, social aspects and general governance. The Board has also set ESG key performance indicators that are reflected in the variable remuneration of all employees. The Board is presented with information about the company’s sustainability work on a regular basis. Significant deviations and actions associated with PPI’s ESG Policy and Code of Conduct are reported to the Board if they occur. The Board strives to ensure that sustainability reporting is transparent, relevant and reliable. The Audit Committee is assigned special responsibility for ESG-related matters on behalf of the Board. The Board will continue to undertake training on sustainability topics and reporting requirements . Management and organisation PPI’s CEO and management team are responsible for ensuring that the business is operated in a sustainable manner, hereunder to implement and follow up on PPI’s ESG strategies, policies and general risk management. The CEO and management team shall revise the materiality analysis annually and follow up on compliance with the ESG policy and progress towards defined targets. Executive management is responsible for ensuring that the Group’s operations are performed in accordance with sound business ethics and for the Group’s management framework, including climate related risks. All of PPI’s employees are subject to policies that have been adopted by the Board of Directors and are expected to sign the Code of Conduct on an annual basis. The employees within the property managment and property development departments are responsible for ensuring that material environmental aspects are taken into account in the day- to-day operations, as well as aspects relating to social sustainability and governance. 1. INPUT The materials resources, products and services needed to run PPI´s operations. 2. OWN OPERATIONS The values that PPI´s operations create and the factors that affect the company and the impact the company has on external environment. 3. OUTPUT The footprint and effects to which PPI´s operations contribute. PPI´s owns, manages and develops properties S o c i a l i m p a c t E n v i r o n m e n t a l i m p a c t F i n a n c i a l r e s u l t • Material • Water • Energy • Land use E S G • Own employees • Workers in the value chain • Supplier requirements • Ethical business conduct • Climate • Waste • Biodiversity • Sosial area development • Safety and well-being • Business ethics • Corporate culture PPI’s value chain and impact Through its own activities and the company’s value chain, PPI has an impact on, and is impacted by, social, environmental and governance-related sustainability issues. The company is dependent on various resources, products and services to enable it to run its operations and create value for its customers and owners. In terms of the environment, this relates primarily to energy and water consumption in the day-to-day operation of properties as well as the procurement and use of materials in connection with renovations and tenant alterations. PPI also has social impact through the working conditions of its own employees and employees in the supply chain, as well as safety and well-being for those who work in the company’s properties. The way the company is governed, for example through policy documents, routines and supplier requirements, has an impact on corporate culture and on business ethical conduct. PPI’s sustainability focus must consider the entire value chain and therefore, also include business partners, customers and other stakeholders who are involved in the Group’s business, products and services. The illustration below describes PPI’s value chain from a sustainability perspective, and the material sustainability issues in the areas of environment, social responsibility and governance. PPI has a direct and indirect impact in the value chain, which has been addressed in the compilation of the double materiality analysis PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 40 41 Stakeholders and stakeholder dialogue Identifying and analysing stakeholder expectations are important elements of achieving defined goals and creating long-term value from both a financial and sustainability perspective. PPI has a structured approach towards understanding and managing the company’s impact on the environment and society, as well as stakeholder requirements and expectations. PPI’s process for identifying stakeholders and stakeholder dialogue involves analysis of various stakeholder groups and interaction with them to get their input on risk, opportunities and materiality. The main groups of stakeholders that PPI has identified includes customers, employees, owners and lenders, suppliers and society. Dialogues with stakeholder groups take place in many different forums, see the table on the next page for examples. PPI has also interviewed representatives for the different stakeholders in connection with the materiality analysis. Different topics are important for each stakeholder group, and the different topics have been weighted to contribute to the materiality analysis and as such forms the basis for PPI’s sustainability work. Stakeholder group: Material topics: Channels for dialogue: Customers • Energy efficiency and environmental building qualities • Workplace health and well-being • Security in the premises • Tenant adaptation of premises and material selec- tion • Services provided by PPI and its partners • Opportunity for sustainable choices, such as e.g. waste sorting • Customer dialogue meetings • Relationship management • Customer satisfaction surveys and feedback • Advisory within energy and waste management • Customer service Employees • Performance and goals • Working conditions and work environment • Strategy and opportunities • Equality • Social events and outside work activities • Manager - employee dialogue on performance, career development and opportunities • Employee surveys • Intranet and social media channels • Day to day direct dialogue Owners and lenders • Strategy and priorities • Growth opportunities and outlook • Operational and financial performance • Availability and price of funding • Asset valuations • Macro impact • Office market dynamics and development in occu- pancy rate • ESG related risks and capex • Business ethics governance • Shareholder structure and handling of conflicts of interest • Risks and uncertainties • Regular, direct dialogue • Quarterly and annual financial reporting and pres- entations • Stock exchange releases, press releases and pres- entations • Roadshows, conferences and meetings with ana- lysts, investors and lenders • ESG reporting Suppliers • Commercial and responsible business relationships • Compliance with Code of Conduct, supplier require- ments and Transparency Act • Good working conditions and work-related rights in the supply chain • Technology and environmental solutions • Accuracy and timely deliveries • Risk mitigation • Cost savings • Regular, direct dialogue • Procurement processes, tenders and negotiations • Supplier audits • Follow-up on Code of Conduct and supplier require- ments Society • Society • Decarbonisation of the value chain • Impact of new regulations • Real estate market and industry trends • Engaging in living and working conditions in local communities • Long-term, sustainable property development • Long-term, ethical business relationships • Reduced environmental impact, for example from transport operations, improved waste management • Transparency and reporting of corporate responsi- bility • Urban planning processes • Dialogue meetings with politicians, municipalities, public/government agencies, and regulators • Website and social media • Engagement in industry associations and confer- ences • Sponsor of Norwegian Athletics Federation (Norges Friidrettsforbund) with focus on the National Athlet- ics School (Landslagets Friidrettsskole), organised by sports clubs in over 80 municipalities around Norway PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 42 43 Double materiality analysis - Impacts, Risks and Opportunities PPI conducted its first double materiality analysis in 2024. The purpose of the analysis is to identify sustainability topics that have material, actual or potential and positive or negative impacts for people or the environment in the short, medium and long term (impact materiality). The double materiality analysis also aims to identify sustainability topics that have, or may be reasonably expected to have, material financial effects for the company and thereby generate risks or opportunities in the short, medium and long term (financial materiality). The analysis was based on the requirements specified in the EU’s Corporate Sustainability Reporting Directive (CSRD). The scope and timing of implementation of the CSRD and corresponding ESRS standards are however subject to change and PPI has not implemented the ESRS standards on its reporting on the individual topics. The materiality analysis was based on stakeholder dialogue and interviews and an analysis of the value chain and markets in which PPI operate against, and the sustainability topics included in the ESRS standards. The outcome of the double materiality analysis was approved by the PPI’s Board of Directors in February 2025. The outcome of the double materiality analysis is summarised in the table below. The materiality of each sustainability topic is expressed as high or low financial materiality on the y-axis, and as high or low impact materiality on the x-axis in the matrix shown above. Sustainability topics with high materiality are prioritised and reported on. The topics will be monitored and revised annually in case circumstances results in the materiality of the topics increasing, meaning that reporting is required. THE PROCESS FOR THE DOUBLE MATERIALITY ANALYSIS WAS DIVIDED INTO FOUR PHASES: 1 2 3 4 8, 9, 12 10 24, 25 16 26, 27, 33 5, 7, 13, 17 18, 36 19, 22, 32 28 26 30 31 6, 11, 15, 21 24, 28 24, 29, 25 Financial sustainability Impact materiality Double materiality analysis PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 44 45 PPI’s work, actions and resources related to the material sustainability topics identi- fied are summed up below and further described in the respective sub-chapters on Environment, Social and Government on the following pages. Focus area ESRS topic Why is the topic important PPI policy Our way of working Key performance indicators Reference chapter Climate change adapta- tion and mitigation ESRS E1 Society is facing a major transition in order to greatly reduce emissions and managing the consequences of climate change. The construction and real estate sector accounts for a large share of the world's total emissions and thus has an important role in the transition, while at the same time it is important to manage the risks of its own property portfolio ESG policy. Action plan for reduced energy use at the prop- erty level. EMS system for daily control of energy use Climate risk manage- ment. Reduce portfolio energy consumption by 2 % per sqm p.a. Environment Circular economy ESRS E5 The construction and real estate sector uses large amounts of natural resources in the form of building materials in connec- tion with new construction and renovation. This has an impact on both the environment and the climate. ESG policy. Conservation and maintenance of existing buildings. Requirements for sorting and disposal of con- struction waste during projects Provision for recycling. 90 % waste sorting in projects Environment Own workforce ESRS S1 Competent and committed staff are prerequisites for successful business and long-term entre- preneurship. The work environ- ment, conditions and benefits are important for securing the supply of skills, while making a big difference for the individual. HR-policy Code of conduct. Good working conditions and benefits. Low staff turnover Social Workers in the value chain ESRS S2 Construction and real estate op- erations can involve health and safety risks that must be man- aged carefully. For PPI, it goes without saying that everyone who performs work for the com- pany, whether it is its own staff or suppliers, should have good and safe working conditions ESG -policy Code of conduct for suppliers. Supplier code of conduct and Sup- plier Requirements Safety training Follow-up of accidents and incidents. Zero tolerance for any kind of fraud or corruption Zero serious accidents in construction projects Average num- ber of reported precaution- ary safety incidents in the manage- ment portfolio reported per property per month should be >/= 2.5. Social Business conduct and corporate culture ESRS G1 Corporate culture affects the company in many ways: work environment, drive, business ethics, risk-taking and much more. It is therefore central for the company to have a good corporate culture and business ethics. ESG-policy Code of conduct Whistle blower rou- tines. Review of Code of Con- duct in all major projects Access to external whistleblower policy Training in Code of Con- duct and anti-corruption for employees. 100% of employees comply with the code of conduct and sign off on this annually Governance # ESRS Topic Sub Topics Materiality assessment 1. E1 Climate change Climate change adaptation High 2. E1 Climate change Climate change mitigation High 3. E1 Climate change Energy High 4. E2 Pollution Pollution of air Low 5. E2 Pollution Pollution of water Low 6. E2 Pollution Pollution of soil Low 7. E2 Pollution Pollution of living organisms and food resources Low 8. E2 Pollution Substances of concers Low 9. E2 Pollution Substances of very high concern Low 10. E2 Pollution Microplastics Low 11. E3 Water and marine resources Water Low 12. E4 Biodiversity and ecosystems Direct impact drivers of biodiversity loss Low 13. E4 Biodiversity and ecosystems Impacts on the state of species Low 14. E4 Biodiversity and ecosystems Impacts on the extent and condition of ecosystems Low 15. E4 Biodiversity and ecosystems Impacts and dependencies on ecosystem services Low 16. E5 Circular economy Resources inflows, including resource use High 17. E5 Circular economy Resources outflows related to products and services Low 18. E5 Circular economy Waste Medium 19. S1 Own workforce Working conditions High 20. S1 Own workforce Equal treatement and opportunities for all Low 21. S1 Own workforce Other work-related rights Low 22. S2 Workers in the value chain Working conditions High 23. S2 Workers in the value chain Equal treatement and opportunities for all High 24. S2 Workers in the value chain Other work related rights Low 25. S3 Affected communities Communities’ economic, social and cultural rights Low 26. S3 Affected communities Communities’ civil and political rights Low 27. S3 Affected communities Rights of indigenous peoples Low 28. S4 Consumers and end- users Information-related impacts for consumers and/or end-users Low 29. S4 Consumers and end- users Personal safety of consumers and/or end-users Low 30. S4 Consumers and end- users Social inclusion of consumers and/or end-users Low 31. G1 Business conduct Corporate culture High 32. G1 Business conduct Protection of whistle-blowers Low 33. G1 Business conduct Animal welfare Low 34. G1 Business conduct Political engagement and lobbying activities Low 35. G1 Business conduct Management of relationships with suppliers including payment practices Low 36. G1 Business conduct Corruption and bribery Medium Materiality assessment PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 46 47 //ESG Sustainability is integrated in PPI’s overall business strategies and corporate conduct, including in investment decisions. The Group also aims for continous improvements. This chapter describes PPI’s sustainability strategy, its targets and performance, related to climate-change mitigation and adaptation. Strategy PPI works actively to reduce its negative impact on the climate through sustainable property management and portfolio quality. Having a sustainable property portfolio is important for future-proofing PPI’s business and property values while also reducing operational costs, and ensuring the best product for the customers. PPI aims to work smart and with the most efficient climate change mitigating solutions. PPI’s most significant sources of greenhouse gas emissions are from energy consumption in its property portfolio and from the use of materials in its development and renovation projects. Therefore, PPI systematically works on reducing energy consumption and energy efficiency in its property portfolio and strives to use low carbon materials/reuse as much building material and inventory as possible in its development and renovation projects. The main indirect greenhouse gas emissions that occur in the value chain stem from production of purchased materials and inventory. PPI seeks to work together with its customers and to co- invest in implementing efficiency measures that increase environmental qualities and reduce operating costs. This intention is also included in PPI’s lease contracts which state that the parties shall cooperate to raise and further develop the environmental standards of the leasehold during the lease period. PPI also works with suppliers who share its values and all suppliers must adhere to PPI’s sustainable supplier requirements and ethical guidelines. Sustainability targets linked to energy reduction and waste sorting are included in the overall company performance targets, also serving as a basis for performance-related pay for both executive management and other employees. Net zero target A cornerstone of PPI’s climate work is to reduce greenhouse gas emissions from its own operations and value chain in accordance with the 1.5-degree target set by the Paris Agreement, with the goal of achieving climate neutrality by 2050. An important task for PPI going forward will be to prepare transition plans with quantitative decarbonisation measures to reach net-zero. PPI will investigate whether the targets should be validated by the Science Based Targets initiative (SBTi). Priorities and achievements in 2024 PPI is a relatively new company and therefore does not have a long history of measuring emission data, but has during 2024: • Established a new Energy Management System for management and follow-up of energy, water and waste management on all properties in the portfolio. • Established GHG accounting (Scope 1 and 2) for in-use operations of the property portfolio. • Reduced the energy consumption per square meter by seven per cent • Performed physical climate risk analysis of the individual properties in the portfolio. • Reviewed the EPC status of all properties and mapped performance improvement activities for the properties with low EPC certificates. • BREEAM In-Use certified one property • In 2025, PPI will measure progress based on the strategies and KPI’s described in the following sections. Climate risk mitigation Property management PPI has set the following overarching targets for climate risk mitigation in its portfolio and property management: • Reduce energy consumption in the property portfolio by at least 2 per cent per year • Work and invest together with the customers to implement effective climate measures and improve the environmental qualities of the property portfolio • Increase the amount of energy produced from renewable sources • Reduce water consumption in the property portfolio • Reduce waste and increase sorting rates - Goal of a sorting rate of >70% in property management - Goal of a sorting rate of >90% in development and renovation projects • Review mitigating measures to reduce effects from potential physical climate risks Energy use and GHG emissions Reducing GHG emissions from property management and related operations are essential for PPI in order to reach the overarching target of achieving climate neutrality by 2050. PPI includes energy used by tenants in Scope 2 and when considering the total emissions from the in-use operations of its property portfolio. In 2024, approximately 80 per cent of the Scope 1 and 2 GHG emissions stems from energy consumption. Focused and systematic work and technical upgrades over time are important drivers for how PPI will succeed in this work, supported by the energy management system which makes it possible to measure, compare and follow up various initiatives. PPI aims to build a corporate culture where energy management is an integrated part of the business operations. Although PPI is not yet in the position to measure its Scope 3 emissions it is known that the main source of scope 3 emissions in property management stems from use of materials in refurbishment and development projects. Environment PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 48 49 Energy use (kWh) Like-for-Like 2024 2023 % change Electricity 37 126 181 39 885 125 -7% Heating and cooling 10 245 825 11 234 968 -9% Fuel 4 985 156 953 -97% Total energy use 47 376 991 51 277 046 -8% Energy intensity kWh per rentable sqm [Energy-Int-LfL] 154 164 -6% Of which from renewable sources 88% 88% Percentage measured 100% 100% Data coverage (no of properties) 53 53 GHG emissions (tonnes CO2e) 2024 2023 % change Scope 1, total [GHG-Dir-Abs] 0.1 0 Biofuels for heating Fossile fuels for heatiing Company cars 0.1 Scope 2 market based, totalt [GHG-Indir-Abs] 418 451 -7% Electricity 334 359 -7% District heating and cooling 84 92 -9% Scope 2 location based, totalt [GHG-Indir-Abs] 418 451 -7% Electricity 334 359 -7% District heating and cooling 84 92 -9% Data coverage (no of properties) 53 53 Scope 1+2 market based (kg CO2 per rentable sqm, GHG-int) 1.33 1.44 -7% Scope 1+2 location based (kg CO2 per rentable sqm, GHG-int) 1.33 1.44 -7% Estimated GHG emissions in 2023 and 2024 Sustainable assets PPI works on increasing the percentage of buildings in the property portfolio which can be proven sustainable through objective criteria, such as the EU Taxonomy and/or BREEAM. The EU Taxonomy is a classification system established by the European Union to provide a clear framework for identify- ing environmentally sustainable economic activities. For the building sector, the EU Taxonomy sets specific criteria and thresholds that construction and real estate activities must meet to be considered environmentally sustainable. Accord- ing to the criteria in CCM 7.7 Acquisition and ownership of buildings under the EU Taxonomy a building must either have an Energy Performance Certificate (EPC) class A or be within the top 15 per cent of the national or regional building stock to screen as aligned with the EU Taxonomy. As of date, such top 15 per cent threshold has not yet been determined in Norway. However, the threshold values recommended by NVE (‘Norges vassdrags- og energidirektorat) in a report delivered to the Ministry of Energy in September 2023 states that a theoretical threshold value for the top 15 per cent of the Norwegian office buildings is to should include buildings with current EPC A and B and the upper part of EPC C. This should therefore provide constitute a as a guideline, while the final threshold may differ. BREEAM is a globally recognised certification system for assessing the sustainability of buildings and infrastructure. BREEAM evaluates a building’s performance across various categories, including energy efficiency, water usage, health and well-being, pollution, transportation, materials, waste, ecology, and management processes. PPI is currently in process of reviewing the EPC status of all properties and map performance improvement activities for the properties will low EPC status. Currently four per cent of the portfolio values is certified EPC A, 18 per cent EPC B, 23 per cent EPC C, 34 per cent EPC D and 23 per cent EPC E or lower. In 2024, the property Wilbergjordet 1 was certified BREEAM In-Use Excellent. Renewable energy PPI will gradually seek to produce more renewable energy by installing solar panels on the roofs and facades of existing buildings and in connection with development projects, when applicable. For roofs which are identified as less appropriate for solar panels, alternative solutions such as blue-green roofs for better stormwater management and increased biodiversity may be considered. Waste management Waste generated from PPI’s own operations includes waste from PPI’s offices and waste generated from development projects, and maintenance of buildings owned by the compa- ny. PPI is in the process of implementing systems for man- agement and follow-up of waste both from own operations and customers operations and will implement measures for increased waste sorting. Water consumption Even though availability of clean water is not a constraint in Norway, PPI will focus on reducing water consumption. The aim is to minimise water wastage due to possible leakages and have meters to monitor water use in the properties, which is followed up through the EMS system. Where possible, auto- mated leak detection systems should be installed as well as flow control devices that regulate water supply to demand. Additionally, whenever new water appliances must be installed or old ones replaced, water-efficient products should be chosen. Whenever tenants are responsible for their own appliances, they should be encouraged to install water- efficient products. Refurbishment and development projects PPI is primarily involved in smaller projects involving renova- tion of (parts of) existing buildings and/or refurbishment pro- jects for its tenants. Generally, PPI always works to increase the energy efficiency in its property portfolio and strives to use low carbon materials/reuse as much building material and inventory as possible in its development and renovation projects. In the project phase PPI analyses potential measures that can be made to improve the property’s energy performance and hence the Energy Performance Certificate. PPI investigates the climate shell, technical facilities, and the potential to reduce the Global Warming Potential (GWP) of existing cooling machines in particular. All materials that are dismantled are registered, and a full assessment of what building components, materials and inventory that can be maintained and/or reused is carried out. The most used materials for renovation projects are glass, insulation, façade materials, gypsum boards, and technical PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 50 51 equipment. Refurbishment projects and tenant alteration projects primarily involve materials such as drywall, glass, var- ious flooring materials, lighting fixtures, porcelain for sanitary equipment, and paint. PPI encourages their customers’ awareness of the significant emission reductions that are associated with increasing the level of reused materials and inventory in the project, and hence to promote reuse also in the choices that are made by the customers. The intention to cooperate to raise the environmental standard of the building/leasehold is also included in the lease contracts. Material usage is managed sustainably where possible. For instance, recycled steel and insulation materials are incorpo- rated, and timber is sourced from sustainable suppliers. In large redevelopment projects that also involves building fa- cades, PPI will target to reduce energy consumption (Primary Energy Demand) by at least 30 per cent in accordance with the Substantial Contribution criteria for climate change mitigation in the EU and to increase the Energy Performance Certificate to at least B. PPI requires contractors working for the company to adhere to the EU Taxonomy criteria for transitioning to a circular econ- omy. According to these criteria, at least 70 per cent of the non-hazardous construction and demolition waste generated on construction sites must be prepared for reuse, recycling and other material recovery. PPI strives to exceed the EU Taxonomy criteria of 70 per cent waste sorting on construc- tion sites and has established an internal goal of achieving a sorting rate of at least 90 per cent in its projects. Climate risk adaptation PPI’s operations may be impacted by effects resulting from climate change. The Group is therefore working actively to manage exposure to and mitigation of climate risk. Examples of climate risks that can affect buildings are acute physical climate changes, such as extreme weather events such as flooding from heavy rainfall, heavy snowfall or landslides and chronic climate changes such as higher temperatures, more extreme weather and rising sea levels. The purpose of climate adaptation is to strengthen the resilience of operations and buildings to climate change. Climate risk analysis In 2024 PPI has performed climate risk analyses for the indi- vidual assets in the property portfolio. The analysis covers dif- ferent emission scenarios (RCP 4.5, RCP 6.0 and RCP 8.5) and a short-, medium- and long-term time horizon and provides a broad understanding of how the portfolio risks are affected by different climate scenarios. The analysis is based on third-par- ty software services and will be followed up by property-spe- cific analysis carried out by PPI’s property management. On overall the analysis shows that the most significant physical climate risk facing PPI’s portfolio is fluvial flooding, i.e poten- tial damage to property values from heavy rainfall. The overall financial effects of fluvial flooding are, however, estimated to be limited. Four properties are to a limited extent exposed to pluvial flooding where the long-term financial effects are estimated to be around 0.3 per cent of property values in a high emission scenario. One property is potentially exposed to coastal flood- ing from long-term effects of rising sea water. Mitigating measures PPI will utilise the findings from the climate risk assessment to consider necessary implementation of mitigation measures to increase resilience to effects from climate change. Such measures could involve installing backflow valves, sealing cellar windows and doors, diverting water that might reach garages, creating blue-green roofs, constructing stormwater retention basins, and/or deploying mobile flood barriers. These measures effectively manage water-related climate hazards and ensure structural integrity during extreme weather events. Ongoing measures taken in property management involves in- spections and maintenance of outdoor environments, hereun- der inspecting roofs and stormwater drains before anticipated heavy rainfall, securing emergency exits, and taking actions to prevent water intrusion during floods. PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 52 Social //ESG PPI is a responsible owner, manager and developer of social infrastructure properties and has established relevant procedures and initiatives in its daily operations. PPI’s focus areas involve its employees and their working environment, working conditions and human rights in the supply chain, health, safety and community engagement. PPI works to promote equality and prevent discrimination in the workplace. PPI has set ethical requirements for its own operations as well as for suppliers and partners. When evaluating new initiatives, PPI seeks partners and suppliers with common values and targets. Employee motivation PPI strives to develop a value-based culture characterised by the company’s core values: Presence, Quality and Value Creation. It is fundamental for PPI’s success that its employees consider PPI to be an attractive place to work. PPI focuses on employee motivation and satisfaction, which are considered to form the basis for an individual’s desire and willingness to perform and contribute to the development of the company. Employees are offered opportunities for personal and professional development through close dialogue and follow-up by their immediate superior and by external courses and seminars. PPI aims to be a health-promoting workplace. To this end, the Group has implemented measures to contribute to the health and wellbeing of its employees, hereunder exercise- facilities at the office, sponsoring of sport club memberships, team participation in the Holmenkollen relay run etc. Employee rights Norway has an extensive social welfare system which is built on a tax-funded model with public services that provide social security to the population. This ensures that education, healthcare, parental leave and public childcare is provided for free or heavily subsidised to the user. As an employer, PPI must pay employer’s national insurance contributions, which are taxes employers must pay for its employees as part of the financing of the National Insurance Scheme. Generally, all individuals who are either resident or working as employees in Norway are compulsorily insured under the National Insurance Scheme. Persons insured under the National Insurance Scheme are entitled to retirement pension, survivors’ pension, disability benefit, basic benefit and attendance benefit in case of disablement, technical aids etc., work assessment allowance, occupational injury benefits, benefits to single parents, cash benefits in case of sickness, maternity, adoption and unemployment, medical benefits in case of sickness and maternity and funeral grants where needed. PPI complies with established standards and employment legislation. Employees in PPI are free to organise themselves. Negotiations with employee representatives and follow-up in the event of an operational change or restructuring comply with Norwegian law. PPI’s employees have elected a Safety Representative. The main function of the Safety Representative is to take care of the employees’ interests in matters relating to the working environment. The Safety Representative is elected among employees with experience and knowledge of the working conditions in the company. Wages and working conditions Each employee is to be compensated in accordance with the principles for remuneration applied by PPI, in accordance with which, the individual’s performance and contribution to the company’s success are fairly assessed. PPI applies collective agreements and follows the appurtenant principles for wages, wage-setting, and other remunerations and terms. Among other things, maximum working hours, minimum wage, vacation, pension and dependent care leave are agreed in the collective agreements. Applicable regulation in PPI’s markets regulates and enables sick leave, parental leave among other things. Salaries are surveyed annually to discover discrepancies in pay based on gender or other bases for discrimination. Discrepancies are not tolerated and are adjusted immediately. There is equality in the remuneration of men and women, and all employees are included in a collective bonus scheme. All employees are included in the pension scheme and have the same insurance schemes, hereunder additional travel and health insurance. PPI has no employees involuntarily working part-time. Evaluation and salary adjustments are reviewed by the Senior Executive team. Sick leave Sick leave in the PPI Group was two per cent in 2024. The objective is to maintain a continued low level of sick leave. Freedom of association and human rights PPI shall always respect human rights and the ILO Declaration on Fundamental Principles and Rights at Work. This includes the right to engage in unions and applies both to employees, suppliers and partners. PPI does not tolerate any form of forced labour and supports the abolition of exploitative child labour Employee demographics The Board of PPI consists of three men and two women, where the Chair is a man. The Senior Executive team of PPI consists of three women and two men, with the CEO being male. Of other employees in PPI, six are women and 11 are men. During 2024, PPI hired seven new employees. There have been two employees that have resigned from their positions at PPI during 2024. The average age of employees in PPI is 50.1 years, and the median is 51.2 years. Equality Different expertise and experience contribute positively to PPI’s development and to a broader and better basis for decision-making. Equal opportunities are an integral PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 54 55 Business ethics and anti-corruption measures PPI’s Code of Conduct summarises the most important principles of the company’s social responsibilities, as well as personal, ethical and professional principles to which all employees must adhere, and which govern the company’s relationships with employees, customers, suppliers, society and shareholders. All managers in the Group are responsible for informing new employees about the company’s Code of Conduct. All employees, including managers, are responsible for adhering to the Code of Conduct and other applicable company policies, as well as about applicable legislation. Based on the company’s core values, PPI has undertaken to follow the principles of fair competition with zero tolerance of bribes, extortion, fraud, embezzlement, facilitation payments or any other kind of corruption. Use of professional power for personal gain, bribes, or use Key employee metrics Indicator Unit of measure 2024 Diversity Gender diversity % of employees Board of Directors (women/men) 40 % Executive Management (women/men) 60 % Other managerial positions (women/men) 55 % Age diversity Number of employees Under 30 years old 0 30-50 years old 9 Over 50 years old 13 Employee training and Training and development Average hours Avg. no of training hours per employee > 40 Development Performance appraisals % of employees Share of direct employees 100 New hires Total number Direct employees 7 Turnover Total number Direct employees 2 part of PPI’s standards. Employees are recruited and promoted solely on the basis of professional qualifications, regardless of ethnicity, skin colour, religion or other beliefs, age, national origin, gender, sexual orientation, political views, union membership, marital status or disability, or similar considerations with no bearing on the position in question , and the measures adopted to attract necessary competence and to attract a new generation of competent employees. of company resources for personal gain are examples of corruption. This applies to all employees of PPI as well as suppliers and partners. PPI acts in line with current competition law, including applicable regulations against anti-competitive cooperation (cartel arrangements). Accordingly, PPI does not enter into anti-competitive agreements and does not apply dishonest methods when conducting business. For PPI, to cooperate with the Norwegian Competition Authority and other authorities is self-evident and, through information conveyed to new recruits, as well as at company-internal conferences, the company seeks to keep its employees abreast of legislation and policies. PPI complies with current regulations on combating money laundering. PPI operates in markets with the world’s lowest levels of corruption and refrains from doing business in high-risk markets in terms of corruption, child labour, forced labour, lack of labourer’s rights or other prohibited behaviours according to the company’s policies. PPI does not fund political parties, neither at the national level nor at the EU level. All memberships in trade organisations shall be disclosed publicly. PPI always co-operates with tax authorities and other authorities. The Board appoints an external auditor to audit the company’s fulfilment of tax obligations annually. All suspicion of, or knowledge of tax-evasion by any person associated with PPI are to be reported to the closest manager immediately. All reported or suspected cases shall be taken seriously and be investigated accordingly. Gifts, entertainment, remuneration and personal benefits can only be offered to a third party if they are of low monetary value and in accordance with normal business practices. No gifts, entertainment or personal services may be offered that violate any applicable law or Code of Conduct. Similarly, no employees may receive gifts, entertainment or personal services that may be believed to have an impact on business transactions or in other ways give the impression that business benefits can be achieved in exchange for said gifts, entertainment or personal favours. Supply chain management The Group has implemented a Supplier Code of Conduct and Supplier Requirements that all PPI’s suppliers need to sign and that are available on www.publicproperty.no. This enables PPI to request information more easily from its suppliers for verification purposes and to conduct reviews of the suppliers’ conditions as part of its routine control measures, aligned with the Transparency Act. All direct suppliers, licensing partners, and relevant indirect suppliers must contractually agree regarding their own operations as well as on behalf of their sub-suppliers’ operations to be evaluated on their performance. PPI conducts regular evaluations of third-party entities, with a particular focus on safeguarding fundamental human rights and promoting fair working conditions. These evaluations are carried out prior to new assignments with suppliers, and in response to any reports or suspicions of violations related to fundamental human rights and working conditions. To ensure effective operations and optimal property management, PPI collaborates with a wide range of suppliers and business partners. These include facility management companies, property maintenance providers, contractors, architects, engineering consultants, legal and financial advisors, technology providers and other service providers. PPI reviews all of the company’s suppliers and partners, and assesses the potential for the company to cause, contribute to, or influence violations of labour rights or human rights. The company has identified the following groups of trade workers as more prone to risks of violating human rights and working conditions: building and construction workers, plumbers, electricians, craftsmen, caretakers, gardeners, cleaners, and canteen services. Most of PPIs suppliers are larger companies that are either subject to the Transparency Act or have committed to guidelines such as the OECD Guidelines for Multinational Enterprises. These suppliers mainly operate in industries not typically associated with an increased risk of fundamental human rights violations. Additionally, foreign suppliers are primarily based in open economies with labour legislation that largely aligns with Norwegian standards. PPI has implemented procedures to conduct due diligence assessments on suppliers and business partners identified as posing higher risks, incorporating customised measures to mitigate these risks effectively. For suppliers deemed high-risk, PPI performs risk-based evaluations, considering various criteria including geographical considerations. Internally, we are conducting due diligence on selected suppliers using publicly available information from the internet, published documents, and annual reports. This meticulous process ensures a comprehensive understanding of our suppliers’ operations, performance, and adherence to industry standards. By leveraging these sources, we aim to foster stronger supplier relationships and maintain our dedication to transparency and responsible sourcing practices. PPI has not discovered any deviations in any of its reviews in 2024. If negative consequences were to be discovered, PPI would manage, resolve, and engage in dialogue with the PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 56 57 relevant supplier. PPI would, through appropriate actions, ensure that the breaches were not repeated and review our procedures to prevent potential similar breach or negative consequences in the future. PPI counteracts money laundering through surveillance of payments and prohibition of suspicious payments. Payments in cash, payments to accounts with a hidden identity and payments between parties that do not have an agreement in writing are examples of suspicious payments. Payments in cash are never to be made to suppliers and subcontractors. Payment may only be made to the contracted party and never to a third party. PPI does not make payments to bank accounts where the identity of the account holder is concealed. To the greatest extent possible, payments are disbursed against invoices and always after checking that the payment matches the agreed price and/or service performed, and in accordance with the company’s payment procedures. Cash is never accepted as payment for services, rent or the like. Health and safety No employee, tenant, supplier, contractor, or other partner shall be injured in PPI’s workplace, projects or properties. To prohibit injuries, all incidents and near-incidents shall be reported and investigated. Reported incidents shall be disclosed. Employees shall cooperate with authorities and unions to minimise the risk of injury. PPI does not accept any form of bullying, such as isolation, harassment, or verbal or physical abuse. HSE work is central to PPI in all parts of the value chain. It shall be safe to visit and work in PPI’s properties and projects and there shall be no injuries with absence in connection with the Groups development projects. PPI’s safety focus is a natural part of the day-to-day operations and PPI works actively to increase awareness about the registration of all types of incidents, including accidents and near misses. The reporting of incidents is important to prevent potential accidents and to increase awareness internally among PPI’s employees, suppliers and customers. Safety targets are also included in the Group KPI’s and the target is that the average number of reported precautionary safety incidents in the management portfolio reported per property per month should be >/= 2.5. Senior management is involved in practical HSE work and is expected to take the lead through behaviour and leadership. Conflicts of interest The PPI organisation is politically independent, and the company’s funds are not used to support political campaigns or purposes. The company’s employees work in the best interests of the company and avoid actions that can be perceived as favouring companies, organisations, individuals or other stakeholders at the company’s expense. Such conflicts of interest may include, for example, holding external positions or shareholdings in a competitor, customer, supplier, subcontractor or representative contrary to the interests of PPI; receiving gifts or hospitality where there is an expectation or perceived expectation of a return favour, a decision on employment or promotion of relatives or friends. Community engagement PPI is deeply committed to involvement in community life. One example of this commitment is the long-term sponsorship of the Norwegian Athletics Federation. Through this agreement, PPI, in collaboration with the Norwegian Athletics Federation (Norges Friidrettsforbund), has a special focus on making participation in organised sports activities available for more children. An important project the parties will collaborate on is the National Athletics School (Landslagets Friidrettsskole), which is organised by sports clubs in over 80 municipalities around Norway. This school gives children and young adolescents a positive, inclusive and exciting first encounter with the sport of athletics. PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 58 //ESG The Board of Public Property Invest ASA (the “Board”) is dedicated to upholding a high standard of corporate governance, in the pursuit of a long-term sustainable future for the Public Property Invest ASA (“PPI”) and its subsidiaries (the “Group”) and its shareholders. This is done by ensuring that good governance is an integral part of the decision- making process in matters dealt with by the Board. Moreover, PPI’s corporate governance standards are subject to at least annual assessment and discussion by the Board. PPI is subject to corporate governance reporting requirements pursuant to section 2-9 of the Norwegian Accounting Act; the Public Limited Companies Act; chapter 4.4 of the Euronext Oslo Børs Rulebok II - Issuer Rules; and the Norwegian Code of Practice for Corporate Governance (the “Code”), issued by the Norwegian Corporate Governance Board (NUES). The Norwegian Accounting Act and the Public Limited Companies act can be found (in Norwegian) on lovdata.no. The Euronext Oslo Børs Rulebook II can be found on euronext.com and the Code, which was last revised on 14 October 2021, can be found on nues.no. PPI’s corporate governance statement for 2024 follows the system used in the Code, issued by the Norwegian Corporate Governance Board (NUES). The Code covers provisions and guidance that in part elaborate on company, accounting, stock exchange and securities legislation. It also covers areas not addressed by legislation. We follow the ‘comply or explain’ principle required by the Code and in case of any deviations from its 15 provisions, we explain the reasons and the alternative solutions we have adopted. Governance strategy The Group believes that good corporate governance involves transparent and trustful cooperation between all parties involved with the Group and its business. This includes the Group’s shareholders, the Board and executive management team, employees, customers, suppliers, and other business partners, as well as public authorities and society at large. The Board and executive management shall contribute achieving the following core objectives when honouring the Group’s corporate governance policy: • Transparency. Communication with the Group’s shareholders, stakeholders and other interest groups shall be based on transparency and openness on issues relevant for the evaluation of the development and position of the Group. • Independence. The relationship between the Board, executive management and shareholders shall be based on independence principles. Independence shall ensure that all decisions are made on an unbiased and neutral basis. • Equal treatment. A fundamental objective for good corporate governance is equal treatment and equal rights for all of the Group’s shareholders. • Control and management. Sound control and corporate governance mechanisms shall contribute to predictability and reduce the level of risk for the Group’s shareholders, stakeholders and other interest groups. Governance structure PPI’s corporate governance policy ensures a clear division of roles between the company’s shareholders, Board, executive management and committees. The corporate governance policy also provides the structure through which the objectives of PPI are set, and the means of attaining those objectives and monitoring performance are determined. GENERAL MEETING BOARD OF DIRECTORS REMUNERATION COMMITTEE INVESTMENT COMMITTEE AUDIT COMMITTEE CHIEF EXECUTIVE OFFICER EXTERNAL AUDITOR NOMINATION COMMITTEE Election THE COMPANY´S GOVERNANCE STRUCTURE CONSISTS OF: Appointed ElectionElection Nomination Deviations from the Code: None Governance PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 60 61 //ESG The business PPI, founded in 2021, is a real estate company with a long- term strategy of owning, operating and developing socially beneficial property in Norway in a sustainable manner. The strategy is designed to attract reliable, long-term institutions with public-sector financing and the security that this brings. Read more about PPI, its business model and strategy in The Business section of this annual report. PPI’s business objective, as set out in the company’s articles of association, reads as follows: The company’s objective is to own, acquire, dispose of, operate, develop and manage real estate and other related activities. The company can also participate in and own shares or share certificates in other companies that conduct business as mentioned in the first sentence. Further information about the Group’s business can be found in The Business section of this annual report. The Board has defined clear objectives, strategies and risk profiles for the Group’s business activities as an effort to create value for its shareholders in a sustainable manner. These objectives, strategies and risk profiles are evaluated annually. When carrying out this work, the Board has considered financial, social and environmental considerations. PPI has established guidelines and principles which are used to integrate considerations to human rights, employee rights and social matters, the external environment and anti-corruption efforts in its business strategies, its day-to-day operations and in relation to its stakeholders. Read more about the company’s ESG efforts in the ESG section. PPI is subject to the Transparency Act. In accordance with such Act and the OECD Guidelines for Multinational Enterprises, the company conducts due diligence assessments to detect, prevent and mitigate any actual, or any risks of adverse impacts on human rights or decent working conditions in the Group’s own operations, its supply chain and other business relationships. PPI shall also publish a report on such due diligence assessments and upon request provide information to third parties in accordance with the Transparency Act. Deviations from the Code: None Equity and dividends On 31 December 2024, the Group’s book equity was 5 714 million (2 850 million), representing an equity ratio of 47.9 per cent (33.4 per cent). The Board considers the capital structure of the Group to be satisfactory by reference to the Group’s goals, strategy and risk profile. At any given time, PPI’s financial strength and exposure is considered in the light of its objectives, strategy and risk profile. Dividend policy The Board has established and disclosed a clear and predictable dividend policy for the Group. The Group’s dividend policy is to distribute approximately 60 per cent of cash earnings to its shareholders, subject to growth and overall financial position. The dividend will be paid quarterly. However, in the short term, PPI plans to leverage the current market situation and may prioritise acquisitions and therefore may not pay dividends to the extent as outlined in the dividend policy. The Board will propose to the Annual General Meeting that PPI distributes a dividend 0.50 per share for the financial year 2024. The dividend will be split in four quarterly payments: NOK 0.10 per share to be paid in June and October 2025 and NOK 0.15 per share to be paid in January and April 2026. In 2024, the general meeting had not provided the Board with an authorisation of approved distribution of dividends. Authorisations to the Board to increase the company’s share capital or to purchase treasury shares On 12 April 2024, the extraordinary general meeting of PPI granted the Board three separate authorisations to increase the share capital and issue new Shares, being: • An authorisation to increase the share capital by up to 10 per cent of the company’s share capital) to be used in connection with issuance of Shares in connection with acquisitions. The authorisation covers capital increase against non-cash contributions (contribution in kind), including capital increases by way of set-off, and capital increases in connection with mergers. • An authorisation to increase the share capital by up to 10 per cent of the company’s share capital) for the purpose of issuing new Shares to increase the company’s equity. The authorisation covers capital increase against non-cash contributions (contribution in kind), including capital increases by way of set-off, and capital increases in connection with mergers. • An authorisation to increase the share capital by up to NOK 2,403,591 (but in any case, limited to an amount equal to 2 per cent of the company’s share capital) to be used in connection with the contemplated future share incentive programme for key employees and Board Members. The authorization covers potential share capital increases against non-cash contributions (contribution in kind), but not share capital increases in connection with mergers. • The above authorisations are valid until PPI’s annual general meeting in 2025, but in any case, no longer than to 30 June 2025. On 12 April 2024, the extraordinary general meeting of PPI also granted the Board two separate authorisations to acquire shares in the company (treasury shares), on behalf of the company: • An authorisation to acquire shares in the company (treasury shares) with an amount up to 8 per cent of the company’s share capital to enable the use of own shares as settlement in connection with acquisitions. • An authorisation to acquire Shares in the company (treasury shares) with an amount up to 2 per cent of the company’s share capital to enable the use of own shares in connection with future incentive programs. The above authorisations are valid until the company’s annual general meeting in 2025, but in any case, no longer than to 30 June 2025. Deviations from the Code: None Equal treatment of shareholders PPI has only one class of shares. Each share in the PPI carries one vote, and all shares carry equal rights, including the right to participate in general meetings and the right to dividends. All shareholders shall be treated on an equal basis, unless there is a just and factual cause for treating shareholders differently. Deviation from existing shareholders’ pre-emption rights. Any decision to waive the pre-emption rights of existing shareholders to subscribe for shares in a share capital increase, shall be justified by the common interest of the PPI and the shareholders. If the Board resolves to issue new shares and deviate from existing shareholders’ pre-emptive rights pursuant to an authorisation granted to the Board, the stock exchange announcement issued in connection with the share issue shall also include a justification for the deviation. The Board has for the financial year in 2024 resolved to increase the share capital in accordance with the authorizations granted in 2024. These resolutions pertains to the issuance of shares related to acquisitions involving capital increases through non-cash contributions (contributions in kind). Consequently, there has been no waiver of pre-emption rights. Transactions in treasury shares PPI’s transactions in treasury shares shall be carried out through Euronext Oslo Børs’ trading platform at the prevailing trading price or by making a public offer to all shareholders. If the company’s shares suffer from weak liquidity, the Board shall take particular care even when making purchases and sales through the stock exchange, in order to ensure equal treatment of shareholders. The extraordinary general meeting granted authorization to purchase treasury shares in 2024; however, this authorization has not yet been used. Deviations from the Code: None Shares and negotiability The shares of PPI are freely transferable and there are no limitations on any party’s ability to own, trade or vote for shares in PPI. Deviations from the Code: None General meetings Exercising rights The Board shall ensure that PPI’s shareholders can participate and exercise their voting rights in the company’s general meeting, and that the general meeting is an effective forum for shareholders and the Board. This shall, among other actions, be facilitated through the following actions or documents: • the notice of the general meeting and any ancillary documents, the nomination committee’s PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 62 63 recommendation and background information on the resolutions to be considered at the general meeting (if any) shall be available on PPI’s website no later than 21 days prior to the date of the general meeting; • the resolutions and any ancillary documentation shall be sufficiently detailed and comprehensive, thereby allowing shareholders to understand and make an opinion on all matters to be considered at the general meeting; • the deadlines for shareholders to register their attendance at the general meeting shall be set as close to the date of the general meeting as practically possible. The deadline may not expire earlier than two business days before the date of the general meeting. The Board may, prior to sending the notice of the general meeting, determine a later date for the notification; • the Board and the chairperson of the general meeting shall ensure that the shareholders are able to vote separately on each matter and each candidate nominated for election to the Board, the nomination committee and other corporate bodies (if applicable); • the Chair of the Board and the CEO shall be present at general meetings. The company should also ensure that other members of the Board are present at general meetings. The chair of the nomination committee should attend annual general meetings in order to present the committee’s recommendations and answer any questions. The auditor shall be present at general meetings where matters of relevance are on the agenda; and • an independent person to chair the general meeting shall be appointed. Participation without being present General meetings shall be held either physically or electronically or as a combination of the two in compliance with the requirements of the Public Companies Act. PPI shall facilitate electronic participation unless the Board finds that it has reasonable cause to refuse such electronic participation. Shareholders who are unable to attend the general meeting shall be given the opportunity to be represented by proxy and to vote by proxy. The Board shall in this respect, with regards to the notice of the general meeting: • provide information on the procedure for attending by proxy; • nominate a person who will be available to vote on behalf of non-attending shareholders as their proxy (normally being the Chair of the Board); and • prepare a proxy form, which, to the extent possible, shall make it possible to vote separately on each individual matter on the agenda and each candidate nominated for election Minutes of General Meetings are published as soon as practicable via the Euronext Oslo Børs reporting system (newsweb.no, ticker code: PUBLI) and in the Investor Relations section of PPI’s website. Deviations from the Code: None Nomination Committee In accordance with section 7 of PPI’s Articles of Association PPI shall implement a nomination committee following its listing on the Euronext Oslo Børs. In connection with the listing of PPI on Euronext Oslo Børs,, the Board decided that members of nomination committee will be elected at the company’s first Annual General Meeting thereafter. The Board will propose candidates for the Nomination Committee to be elected at the Annual General Meeting in 2025. Furthermore, it follows by section 7 of the PPI’s articles of association that the general meeting elects the chairperson and members of the nomination committee and determines their remuneration. The objectives, responsibilities and functions of the nomination committee shall be in compliance with rules and standards applicable to the company, which are described in PPI’s “Instructions for the Nomination Committee” adopted by the general meeting on April 12, 2024. The company shall ensure that shareholders have information about the composition of the nomination committee and deadlines for submitting proposals to the nomination committee. The composition of the nomination committee should be such that the interests of shareholders in general are represented. Rules for rotation of the nomination committee’s members are set out in the company’s “Instructions for the Nomination Committee”. The nomination committee shall: • recommend candidates for the Board and the nomination committee, and • recommend remuneration for the members of the Board and the nomination committee. • The nomination committee’s recommendation of candidates to the Board shall ensure that the Board is composed to comply with legal requirements and principles of corporate governance. //ESG The nomination committee’s recommendation of candidates to the nomination committee shall ensure that they represent a broad group of the company’s shareholders. The recommendations from the nomination committee shall include a reasoning for the proposal of each individual candidate, as well as a statement on how the committee has carried out its work. The nomination committee’s reasoning for its recommendation shall include information about each candidate’s competence, capacity, independence and other relevant factors for the general meeting to adopt a resolution on a sufficiently informed basis. The recommendation shall be made available 21 days in advance of the general meeting (i.e. the same deadline for distributing the notice for a general meeting). Shareholders shall be given the opportunity to submit proposals to the nomination committee for candidates up for election to the Board and other appointments in a simple and easy manner. A date for when such proposals must be submitted to be considered by the nomination committee shall be communicated. Deviations from the Code: PPI does not currently have a nomination committee but a nomination committee will be up for election on the AGM in May 2025 Composition and independence of the Board The composition of the Board should ensure that the Board has the expertise, capacity and diversity needed to achieve the company’s goals, handle its main challenges and promote the common interests of all shareholders. The Board shall consist of between three and nine board members. The Board currently comprises five members, ensuring diverse perspectives and expertise. Each board member should have sufficient time available to devote to his or her appointment as a board member. The members of the Board shall be willing and able to work as a team, thereby enabling the Board to work efficiently as a collegiate body. The Board shall be composed so that it can act independently of any special interests. A majority of the shareholder-elected members of the Board shall be independent of the executive management and the company’s material business connections. Further, at least two of the shareholder-elected members of the Board shall be independent of the company’s major shareholder(s). A shareholder is considered to be a major shareholder if it owns or controls 10 per cent or more of the company’s shares or votes, and the board members’ independence from such shareholder(s) shall entail that there are no circumstances or relations that may reasonably be expected to influence an independent assessment by the relevant board member(s). All the shareholder-elected members except Sven-Olof Johansson are independent of the company’s major shareholder(s). Neither the CEO, nor any member of PPI’s executive management, shall also be a member of the Board. The composition of the Board shall be in compliance with the gender representation requirements set out in section 6-11a of the Public Companies Act and represent sufficient diversity of experience and expertise to help ensure that the Board is able to carry out its work in a satisfactory manner and in accordance with the Group’s objectives. As per date of this report two of five directors are women. All members of the Board, including the Chair, shall be elected by PPI’s general meeting. The term of office for the respective board members shall not be longer than two years at a time. Members of the Board may be re-elected. The re-election of the members of the Board should be phased, to prevent that the entire Board is replaced at once. The company’s annual report shall provide information on the expertise, experience and independence of the members of the Board, as well as information on their record of attendance at board meetings. Information on the background and experience of the directors is available on PPI’s website and on pages 72-73. Members of the Board are encouraged to own shares in the company as this may contribute to increased economic relations between the shareholders and the members of the Board. Consideration should be given in this respect, to arrange for members to invest part of their remuneration in shares in PPI at market price, cf. section 14 below. However, caution should be taken not to let this encourage a short- term approach, which is not in the best long-term interests of the company and its shareholders. The Board’s composition as of the end of the year included five members, with a balanced representation of genders and a range of competencies to effectively oversee the company’s operations. PPI’s Board consist of Martin Mæland (Chair), Sven-Olof Johannson, Siv Jensen, Silje Hauland and Kenneth Bern, PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 64 65 The work of the Board The Board develops an annual plan for its own work, with particular focus on objectives, strategy and implementation. The Board implements instructions for its own work and the work of the executive management, focusing on determining allocation of internal responsibilities and duties. The objectives, responsibilities and functions of the Board and the CEO shall be in compliance with rules and standards applicable to PPI, [as described in the company’s “Rules of Procedure for the Board”.] The Board of Directors has prepared an instruction on how the Board of Directors and executive management shall deal with agreements with related parties, including whether an independent valuation must be obtained. The Board of Directors presents all such agreements in the company’s annual report. The Chair of the Board chairs board meetings. All board members receive information about the Group’s operational and financial progress in advance of the Board meetings. PPI’s business plan, strategy and risk are regularly reviewed and evaluated by the Board to ensure that the company creates value for shareholders in a sustainable manner. The Board draws up and adopts an annual plan, including topics for the Board meetings. Ordinarily, the CEO proposes the agenda for each individual Board meeting. In addition to the board members, Board meetings are attended by the Executive management team. The Board decides on matters of material importance to the Group. These include, but are not limited to, approval of the annual and quarterly reports, strategies and strategic plans, the approval of significant investments, the approval of significant contracts and the approval of substantial acquisitions and divestments. When carrying out this work, the Board considers the financial, social and environmental aspects. The Board receives quarterly reports and presentations on the Group’s operational and financial status. The reports describe progress and status in the Group’s operative and administrative functions during the reporting period. Each year the Board and its committees shall assess their own work and way of working as a basis for reviewing the need for changes and other measures. This assessment includes an evaluation of the Board’s expertise, collectively and for each member, and how well the Board works as a team. Related party agreements The Board has prepared instructions on how the Board and executive management shall deal with agreements with related parties, including when an independent valuation must be obtained. The Board shall present all such agreements in the company’s annual report. Additionally, PPI’s Articles of Association article 8, states that any agreement between PPI, or a company where PPI has a controlling influence on the one hand, and Samhällsbyggnadsbolaget i Norden AB or a company where Samhällsbyggnadsbolaget i Norden AB has a controlling influence on the other side, must be approved by the company’s general meeting. Sections 3-10 et seq. of the Public Limited Liability Companies Act apply as far as they apply to agreements that are not material according to Section 3-11 of the Public Limited Liability Companies Act, hereunder but not limited to the exceptions in Section 3-16. This paragraph shall apply as long as Samhällsbyggnadsbolaget i Norden AB directly or indirectly controls more than 15% of the shares and votes in the company. Conflict of interests and disqualification A member of the Board or executive management cannot consider matters in which it or any of its related parties has a special financial or prominent personal interest. Each board member shall ensure that the Board and executive management are aware of any material interests that they may have in matters to be considered by the Board, so that these can be considered in an unbiased and satisfactory manner. Committees The Board established an Audit Committee, Remuneration Committee and Investment Committee in 2024, while the Nomination Committee is set to be established at the Annual General Meeting in May 2025. Audit committee PPI’s audit committee currently consist of two members: • Silje Hauland (Chair) • Siv Jensen Both members of the audit committee are independent of PPI, and at least one member of the audit committee is competent in respect to financial reporting and audit. The audit committee shall function as a preparatory and advisory sub-committee of the Board in relation to, among other matters, the Board’ monitoring of the company’s financial reporting and internal audit, systems for internal control and risk management and the work of the statutory auditor. During 2024, the committee had three meetings. The objectives, responsibilities and functions of the audit committee shall be in compliance with rules and standards applicable to the company, as described in PPI’s “Instructions for the audit committee”. Remuneration committee The Board’s remuneration committee consists of two members: • Kenneth Bern (Chair) • Martin Mæland The remuneration committee shall function as a preparatory and advisory sub-committee of the Board in questions relating to the company’s strategy for the compensation of its executive management. The purpose of the remuneration committee is to ensure thorough and independent preparation of matters relating to compensation of the company’s executive management. The remuneration committee shall provide the Board with guidelines for the salary and other remuneration for executive management, which shall be made in accordance with section 6-16a of the Public Companies Act. The members of the remuneration committee are elected by and among the members of the Board for a term of up to two years. The members of the remuneration committee are independent of the company’s executive management. The objectives, responsibilities and functions of the remuneration committee shall be in compliance with rules and standards applicable to PPI, as described in the company’s “Instructions for the Remuneration Committee”. Investment committee PPI’s investment committee currently consist of two members: • Martin Mæland (Chair) • Sven-Olof Johansson The company’s investment committee function as a preparatory and advisory sub-committee for the Board of Directors in questions relating to investment opportunities. The purpose of the investment committee is to ensure that investment opportunities falling within the Group’s investment strategy, including strategic rationale, possible synergies, benefits and issues, are thoroughly assessed before an investment opportunity is presented to the Board of Directors. The committee may also, depending on the project’s significance for the Group, be involved in development projects and establishment of new lease agreements on an ad-hoc basis. The objectives, responsibilities and functions of the investment committee are regulated in separate instructions. Deviations from the Code: None Board representation and participation in Board meetings and committees since election in April 2024: Board Board meetings Audit committee Remuneration committee Board tenure since Up for election Martin Mæland (chair) 7 1 2024 2026 Sven-Olof Johannson 7 2024 2026 Siv Jensen 7 3 2024 2026 Silje Hauland 7 3 2021 2026 Kenneth Bern 7 1 2021 2026 all elected in connection with the company’s IPO in 2024. Information on the Board’s competence and independence are provided in section From the Boardroom. //ESG PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 66 67 Risk management and internal controls The Board of Directors has the responsibility to ensure that the company has sound and appropriate internal control systems in relation to the scope and nature of the Group’s activities. By implementing effective internal control systems and risk management systems, the Group is better protected against situations that could damage its reputation or financial standing. Effective and proper internal control and risk management are important factors when building and maintaining trust, to reach the company’s objectives, and ultimately create value for the Group and its shareholders. The Board of Directors annually reviews the Group’s most important areas of risk exposure and the internal control arrangement in place for such areas. The review pays attention to any material shortcomings or weaknesses in the Group’s internal control and how risks are being managed. The main features of the Group’s risk management is further elaborated in the section Risk Management. The Board of Directors ensures that it is updated on the Group’s financial situation and continually evaluates whether the Group’s equity and liquidity are adequate in relation to the risk associated with the Group’s activities. The Group’s management focuses on frequent and relevant reporting of both operational and financial matters to the Board with the purpose of ensuring that the Board has sufficient information for their decision-making and is able to respond quickly to changing conditions. Deviations from the Code: None Remuneration of Board The general meeting shall each year determine the remuneration of the Board based on the Nomination Committee’s proposal. The Board’s remuneration shall reflect the Board’s responsibilities, expertise, and use of time and the complexity of the Group’s business. Board members or companies to which they are connected shall not normally undertake separate assignments for the Group in addition to the Board appointment. If they nevertheless do, the Board is to be informed, and the fees for such assignments are to be approved by the Board. If remuneration is paid above the normal Board fee, this is to be specified in the annual report. Deviation from the Guidelines The Board may decide to deviate entirely or partly from the Guidelines in individual cases provided that there are special circumstances that make such deviation necessary in order to satisfy the long-term interests of the company or to ensure the financial viability of the company. Pursuant to Section 6-16b of the Public Companies Act, a report on salaries and other remuneration to Senior Executive personnel and the Board will be presented at the Annual General Meeting. The report will also be available on PPI’s website. For the financial year 2024, the Board received remuneration in accordance with what was approved on the EGM in April 2024. No remuneration was paid above the approved Board fee. See also note 1 to the Parent company financial statements for information on Board remuneration in 2024. Deviations from the Code: None Salary and other remuneration for Senior Executives The company has prepared a remuneration policy which supports the company’s prevailing strategy and values, while also aligning the interests of shareholders and executive management. The policy will be approved at the Annual General Meeting in 2025 and will be reviewed and approved at least every four years in accordance with Norwegian law. Performance-related executive remuneration is linked to value creation for shareholders and/or the company’s profit over time. The arrangements are intended to incentivise “the executive management to enhance” company performance and incorporate quantifiable factors under the influence of management. Performance-related remuneration is subject to an absolute limit. More details can be found in the remuneration report for leading personnel for 2024. The principles governing executive salaries, remuneration, and benefits are reviewed by the Remuneration Committee and approved by the Board of Directors. Deviations from the Code: None //ESG //ESG PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 68 //ESG Information and communications PPI has established guidelines for its reporting of financial and other information based on transparency and taking into account the applicable requirements for Euronext Oslo Børslisted issuers, including, but not limited to the requirements of equal treatment. The company is obliged to continually provide its shareholders, Euronext Oslo Børs and the public with timely and precise information about the Group and its operations in accordance with applicable laws and regulations. Relevant information will be given in general meetings or in the form of annual reports, quarterly reports, press releases, stock exchange announcements and/or presentations in accordance with what is deemed appropriate and required at any given time. PPI maintains an open and proactive policy for investor relations, a website based on “sound practices” for communication and information and gives presentations in connection with annual and interim financial results. PPI publishes an annual, electronic financial calendar with an overview of dates for important events, such as the annual general meeting, interim financial reports, public presentations and payment of dividends, if applicable. PPI has separate instructions for handling of inside information and a separate investor relation policy has been drawn up to assist PPI in building trust and awareness in the investor community by ensuring that investor relation activities are conducted in compliance with relevant rules, regulations and recommended practices. Communication with the shareholders should always be in compliance with the provisions of applicable laws and regulations and in accordance with the principle of equal treatment of shareholders Deviations from the Code: None Takeovers The Board of Directors has established main principles for its actions in the event of a takeover offer. In a takeover process, the Board and the executive management each have independent responsibilities to ensure that the company’s shareholders are treated equally and that there are no unnecessary interruptions to the company’s business activities. The Board of Directors has a particular responsibility to ensure that the shareholders are given sufficient information and time to assess an offer. Any transaction that effectively means a divestment of the company’s business should be resolved by the company’s’ general meeting. Main principles for action in the event of a takeover offer In the event of a takeover process, the Board of Directors shall seek to abide by the recommendations of the Code, and ensure that the following actions take place: • the Board shall not seek to hinder or obstruct any takeover offer for the company’s business or shares unless it has valid and particular reasons for doing so, including, but not limited to, the valuation of the company; • the Board of Directors shall not exercise mandates or pass any resolutions with the intention of obstructing the takeover offer unless this is approved by the general meeting following announcement of the bid; • the Board of Directors shall not undertake any actions intended to give shareholders or others an unreasonable advantage at the expense of other shareholders or the company; • the Board of Directors shall not enter into an agreement with any offeror that limits the company’s ability to arrange other offers for the company’s shares, unless it is self-evident that such an agreement is in the common interest of the company and its shareholders; • the Board of Directors and executive management shall not invoke measures with the intention of protecting their own personal interests at the expense of the interests of shareholders; and • the Board of Directors must be aware of the particular duty it has for ensuring that the values and interests of the shareholders are protected. In the event of a takeover offer, the Board shall obtain a valuation from an independent expert and issue a statement making a recommendation as to whether or not the shareholders should accept the offer. The statement shall make it clear whether the views expressed are unanimous, and if this is not the case it shall explain the basis on which specific members of the Board of Directors have excluded themselves from the statement. Deviations from the Code: None Auditor The Audit Committee evaluates and makes a recommendation to the Board and the general meeting regarding the choice of external auditor. When evaluating the auditor, emphasis is placed on the firm’s qualifications, capacity and the auditor’s fee. The General Meeting elects the company’s auditor. PPI’s auditor is PwC. Each year the auditor presents a plan for the execution of the auditor’s work to the Audit Committee that in turn informs the Board of its most important aspects. The company’s auditor attends all meetings of the Audit Committee, as well as the Board meeting in which the annual report and financial statements are considered and approved. At the meetings, the auditor goes through any significant changes in the Group’s accounting principles, the evaluation of material accounting estimates and any material matters where there has been disagreement between the auditor and the management. The auditor reviews the Group’s internal controls and financial reporting. When presenting the results of the audit to the Audit Committee, the auditor also presents an assessment of the Group’s internal controls, identified weaknesses and proposals for improvements. The auditor summarises the findings and assessments of the annual audit for Group management and the Audit Committee. Material issues if applicable are summarised for the Board. Each year the auditor’s independence is assessed by the Audit Committee. The Board has drawn up guidelines on the engagement of the external auditor, governing what work the auditor can do for the Group in view of the requirement for independence. Any major assignments other than statutory audits are approved by the Audit Committee in advance. Management informs the Audit Committee of all additional services supplied by the external auditor at each Audit Committee meeting. Deviations from the Code: None //ESG PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 70 71 Board of Directors //From the Boardroom * directly or indirectly owned Name Martin Mæland Sven-Olof Johansson Siv Jensen Kenneth Bern Silje Cathrine Hauland Board position: Chair Board member Board member Board member Board member Born: 1949 1945 1969 1960 1971 Nationality/Residency: Norwegian/Norway Swedish/Sweden Norwegian/Norway Norwegian/Switzerland Norwegian/Norway Gender: Male Male Female Male Female Member of the Board since: 2024 2024 2024 2021 2021 Independence: Independent Board member of Samhällsbygg- nadsbolaget i Norden AB which holds 35.2 % of the shares in PPI Independent Independent Independent Number of shares / share options in PPI: 100 000 shares / 160 000 options 0 shares / 160 000 options 0 shares /0 options 3 274 320 shares / 160 000 options 40 000 shares / 0 options Education: Cand. mag. and Cand. ocean in mathematics, computer science and economics from the University of Oslo Master in political science from Stockholm University and Stockholm School of Economics. BBA degree in economics from the Norwegian School of Economics (NHH). BSc (Hon) Electronics Eng. from UCNW (UK) MBA from IESE Business School (E). Executive MBA in Energy Manage- ment (EMBA) fra BI Norwegian Busi- ness School and European School of Management, Paris Executive and non executive positions: Martin Mæland has 32 years of expe- rience as CEO of OBOS. He currently serves as chair of the Tax assess- ment board for commercial property in Oslo municipality and as chair of the board of Brimas AS, Strandveien 1 AS, Strandveien Utvikling AS, Consto Holding AS, Consto AS, Fjellhamar Bruk AS, Gjettumgrenda AS, Gjet- tumgrenda KS and Foreningen for Nordre Skøyen Hovedgård. He is also a board member in Bane Nor Eiendom AS, Høvik Stasjonsby AS, Høvik Stasjonsby KS, Snoveien 17-19 AS, Sameiet Grønlibakken 13-15 and as deputy board member in Fornebu Strandsone AS, Fornebu Sentrum Ut- vikling AS and Fornebu Sentrum AS. Sven-Olof Johansson is the founder and managingdirector of Fastpartner AB (publ). He is also serves as chair of the board of Compactor Fas- tigheter AB and as board member of Samhällsbyggnadsbolaget i Norden AB, Autoropa Aktiebolag and STC Interfinans AB. Siv Jensen is a prominent Norwegian politician and served as Minister of Finance from 2013 to 2020. Jensen served as a parliamentary politician for six terms, from 1997 until 2021, and was the party leader for the Pro- gress Party (Nw: Fremskrittspartiet) from 2006 to 2021. Currently, Jensen serves among others as a political advisor to Flyte. She also serves as chair of the board of MeyerHaugen AS and board member of Toluma AS, Pharma Nordics AS and Norboat AS. Kenneth Bern is the owner and CEO of Telecom AS, and co-founder of VitaeLab / NutraQ, NQ Active AS and Algalif ehf. After working for Boston Consulting Group in Germany, he has had various commercial and administrative roles in Norwegian industrial companies i.a. Norsk Hydro ASA. He is invested in and serves as chair of the board of Telecom AS, BC Sport AS, Teleheim AS / Gode- land Boligutvikling AS, MSG Cleaning Systems AS, Grimstad Logistikkbygg AS and Greenaltech S.L. He also serves as board member in Evolys AS, New Normal Group AS, Gaitline AS, GAT Biosciences S.L.U, AdvanSyn BIO S.L. and Algalif EHF. He has more than 10 years of experience within commercial real estate. Silje Hauland is currently the CEO of Chrisanic AS. She hasprevious expe- rience as CFO of Nessco Holding AS, andfinance manager for Norway and Denmark at Chevron. She serves as chair of the board of Marstrandgata 9 AS, Gatekeeper AS and board mem- ber of Sameiet Prof Birkelandsvei 24 A, Forskningsveien Holding AS, Merkur Bygginvest AS, and Elverum Eiendomsinvest AS. Member of Board Committees: Remuneration committee Investment Committee Investment Committee Audit committee Remuneration committee Audit committee PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 72 73 Board of Directors Report //From the Boardroom Geopolitical tension continues to escalate in several regions of the world and makes the macro-economic outlook difficult to navigate. Economic conditions have however started to improve after the inflation and interest rate shocks observed in 2022 and 2023. Inflation has come down in most countries and interest rates have been trending downward in most Western economies. Although confidence has increased somewhat in the real estate and financing markets, the interest rate level continues to pose a risk, especially for investors and property owners with high leverage ratios. In 2024, PPI experienced a significant transformation marked by substantial portfolio growth, listing on Euronext Oslo Børs, balance sheet refinancing, and the establishment of a professional organisation with competence across the real estate value chain. As other investors and companies continue to struggle with high leverage and interest rates, PPI sees the current market environment as an opportunity to be a leading consolidator and to continue growing the company through value accretive transactions. Strategy and objectives PPI’s strategy is to be a sustainable and preferred owner, manager and developer of social infrastructure properties in the Nordics. The Group owns a large and diversified property portfolio of centrally located properties, of which many are built for a special purpose. The properties house essential functions like police stations, courts, public health facilities and various governmental offices. A key advantage for PPI is its government backed tenant base on long leases, ensuring long term financial stability. The Group is committed to continue to strengthen its standing as a provider of socially beneficial properties throughout Norway and the Nordics. Positioned with a clear strategy, the Group aims to be a preferred partner for the governmental sector and will continue growing its portfolio of community service properties in the coming years. Operations The Group’s core activities include managing and operating the Group’s properties on a day-to-day basis. Moreover, the Group proactively engages in real estate investments through upgrades and development of the existing property portfolio, along with the acquisition of new properties. To identify both short-term and long-term development potential within the portfolio, the Board regularly assesses properties where there is an anticipated potential for future development and contracts expiring within 2-3 years. Property Portfolio As of year-end, PPI owned 72 properties totaling 394 569 square meters, with a total value of NOK 10 880 million. The portfolio is centrally located in cities and urban centers across Norway. The occupancy rate of the portfolio was 97 per cent, while 92 per cent of the rental income originated from public sector tenants. Important events in 2024 During the first half year of 2024 PPI went through a major transformation as it 1) acquired a large portfolio of 13 properties from SBB Samfunnsbygg AS (SBB), 2) partly repaid and fully refinanced all outstanding debt, and 3) did a successful Initial Public Offering with cash proceeds to PPI of NOK 1.5 billion with the simultaneous listing of the Group’s shares on Euronext Oslo Børs, in April 2024. In connection with the IPO, Public Property Invest communicated a clear strategy of becoming a leading consolidator of social infrastructure properties with an aim to pursue an opportunistic growth strategy focused on value accretive transactions. During the second half of the year, PPI has delivered on this strategy, acquiring three properties and a portfolio of eight kindergartens for a contractual property value of NOK 812.5 million. In November 2024, PPI established a European Medium Term Note (EMTN) programme and issued its eurobond of 300 million and obtained an Investment Grade rating of BBB from Fitch Ratings. The Group works continuously to strategically position itself with tenants whose leases are about to expire. During 2024, PPI signed new and renegotiated leases for a total of 51 393 square meters and had an occupancy rate of 97 per cent at year-end 2024. Financial review Due to the significant transformation PPI has gone through in 2024, the Group’s financials for 2024 are not directly comparable to those of 2023. The following financial review is based on the consolidated financial statements of Public Property Invest ASA and its subsidiaries. The statements have been prepared in accordance with IFRS Accounting Standards as adopted by the EU. Profit and loss Rental income was up by 15 per cent from NOK 575 million in 2023 to NOK 662 million in 2024 of which the net contribution from acquired properties was NOK 70 million. Other income of NOK 3 million in 2024 (0 in 2023) is mostly related to an income of NOK 2.3 million from expropriation of land at one of the properties. Property expenses were NOK 67 million for the year ended 31 December 2024 compared to NOK 75 million in 2023. Administration expenses increased to NOK 82 million for the year ending 31 December 2024, from NOK 31 million in 2023. As of year-end 2023 PPI had only one direct employee. Through 2024 PPI has built a professional organisation and brought many functions in-house. There were non-recurring costs of NOK 8 million related to the IPO-process and NOK 2 million related to the EMTN-program. Reimbursed property management fee amounted to NOK 15 million in 2024 versus zero in 2023. This fee relates to management fees in connection with property management of SBB’s Norwegian portfolio and Nordiqus Education Holdco 1 AS portfolio. Interest income increased to NOK 26 million for the year ended 31 December 2024, up from NOK 6 million in 2023 and is related to interest income on bank deposits. Interest expenses rose to NOK 317 million for the year ended 31 December 2024, compared to NOK 272 million in 2023. Through 2024, PPI has significantly grown its portfolio, fully refinanced its debt portfolio and issued new equity, so the numbers are to a limited extent comparable. Net interest income from interest rate derivatives was NOK 29 million in 2024, up from NOK 19 million in 2023. Net income from property management was NOK 270 million for the year ended 31 December 2024, up from NOK 223 million in 2023. Net unrealised financials amounted to a loss of NOK 74 million in 2024 compared to a loss of NOK 25 million in 2023 and is related to expensed amortised borrowing costs of the bank loan, which was partially repaid in December and amortisation of bond costs. Transaction costs amounted to NOK 99 million in 2024 vs NOK 0 in 2023. The amount is related to non-recurring costs incurred in connection with the IPO and the listing of the Group’s shares on Euronext Oslo Børs. Changes in the fair value of interest derivatives resulted in a gain of NOK 9 million for the year ended 31 December 2024, contrasting to a loss of NOK 25 million in 2023. Changes in the fair value of investment properties decreased by NOK 34 million for the year ended 31 December 2024 compared to a decrease of NOK 1 143 million in 2023. The decrease in the value of the properties in 2023 and in the first half of 2024 was attributable to changes in market conditions where higher interest rates impacted cost of capital adversely, which was mirrored in higher valuation yields and thus lower value of properties. Since 30 June 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 74 75 this trend has been reversed, and the fair value of investment properties has been written up by approximately 2.1 per cent. Profit (loss) before tax was NOK 73 million for the year ended 31 December 2024, compared to a loss of NOK 969 million in 2023. Income tax expense amounted to a loss of NOK 59 million in 2024 vs NOK 69 million in 2023 and is related to changes in deferred tax. There is no other comprehensive income reported for both the year ended 31 December 2024, and the year ended 31 December 2023, and net profit (loss) and total comprehensive income (loss) came in at NOK 13 million for 2024 compared to a loss of NOK (900) million for 2023. Cash Flow In 2024, net cash flow from operating activities generated an inflow of NOK 467 million, while in 2023, it amounted to NOK 437 million. Net cash flow from investment activities resulted in a cash outflow of NOK 260 million in 2024, with expenditures of NOK 144 million on upgrades to investment properties and NOK 143 million in investment in investment property entities and shares, offset by an inflow of NOK 26 million from interest received on deposits. In 2023, investing activities led to a cash outflow of NOK 26 million, primarily associated with upgrades of investment property entities. Financing activities in 2024 resulted in a cash inflow of NOK 602 million, largely attributed to the full restructuring of the Group’s financing structure. Conversely, financing activities in 2023 generated a cash outflow of NOK 466 million, largely attributed to repayment of interest- bearing liabilities and interest paid. Balance sheet PPI’s total assets amounted to a total of NOK 11 931 million as of 31 December 2024, up from NOK 8 522 million as of 31 December 2023. The increase in total assets is primarily attributed to the property acquisitions made throughout the year. The valuation of the Group’s investment properties increased from NOK 8,336 million as of 31 December 2023, to NOK 10 880 million as of 31 December 2024. This increase is linked to the increased portfolio size. Like for like portfolio values decreased by 0.6 per cent in 2024. The valuation of the Group’s investment properties as of 31 December 2024 was carried out by the external assessor Cushman & Wakefield and as of 31 December 2023 by Cushman & Wakefield Realkapital AS and Newsec AS. As of 31 December 2024, other assets consisted primarily of cash and cash equivalents of NOK 968 million, site leaseholds and right-of-use assets of NOK 35 million, and other current assets of NOK 30 million. Total non-current liabilities increased to NOK 5 926 million as of 31 December 2024, from NOK 3 476 million as of 31 December 2023. The increase in non-current liabilities is mainly due to increased debt. The current liabilities totaling NOK 291 million consisted mainly of outstanding short-term debt of NOK 211 million. The total equity was NOK 5 714 million as of 31 December 2024, representing an equity ratio of 48 per cent, compared to NOK 2 850 million as of 31 December 2023, representing an equity ratio of 41 per cent. Going concern The financial statements have been prepared based on the going concern assumption, and the Board confirms that this assumption is valid. The company and the Group are in a healthy financial position and have good liquidity. Parent company results and allocation of net profit (loss) The parent company achieved a net profit (loss) of NOK (124) million in 2024. By comparison, the parent company reported a net loss of NOK 941 million in 2023. The loss in 2023 was caused by write-down of long-term investments. The Board proposes allocation of the net profit (loss) of NOK (124) million for the parent company as follows: the entire amount to be transferred from other equity, totalling NOK (124) million. The Board will propose to the Annual General Meeting that PPI distributes a dividend 0.50 per share for the financial year 2024. The dividend will be split in four quarterly payments: NOK 0.10 per share to be paid in June and October 2025 and NOK 0.15 per share to be paid in January and April 2026. The Board confirms that the company has sufficient equity and liquidity following payment of the proposed dividend. //From the Boardroom Parent company cash flow In 2024, operating activities generated a cash outflow of NOK 124 million, versus and outflow of NOK 9 million in 2023. Investment activities resulted in a cash outflow of NOK 4 078 million in 2024, consisting of payments on group loan receivables of NOK 3 218 million and NOK 860 million on payments of purchase of shares and capital increases. In 2023, the cash flow from investment activities was NOK 0. Financing activities in 2024 resulted in a cash inflow of NOK 4 898 million, largerly attributed to new long-term financing of NOK 3 462 and cash considerations from capital increases of NOK 1 522 million. The cash inflow from financing activites was NOK 3 million in 2023. Risk factors and risk managment Public Property Invest is subject to several risks, including market, operational and financial risks. The Board assesses risk on an ongoing basis, primarily through an annual comprehensive review of the Group’s risk map. Each risk factor is described and presented with the possible negative outcome and a probability of a situation to occur. The risk assessment also includes a description on how PPI monitors and works to minimise the risks, as well as an assessment of the developments in the last fiscal period on each risk factor. PPI’s main risk factors, both financial and non-financial, are described on pages 24-36. ESG Due to its market share and role as a provider of properties for public tenants, the Group carries a substantial social responsibility. This involves leading industry transformation by prioritising refurbishment over new construction, ensuring tenant objectives are met, and adopting environmentally sustainable practices. The commitment to sustainability focuses on climate and environment, social sustainability, and financial sustainability. Ongoing efforts include mapping energy, water, and waste in buildings, with a commitment to reducing consumption. For social sustainability, the Group ensures favorable working conditions, accessibility, and user involvement. PPI promotes engagement with tenants and complies with the Norwegian Transparency Act through a whistleblowing channel and a code of conduct. The company’s reporting in accordance with the Norwegian Transparency Act can be found on the Group’s website. PPI is also a sponsor of the Norwegian Athletics Federation (Norges Friidrettsforbund), with a special focus on facilitating for more children to be able to participate in organised sports activities. Employees and organisation As of year-end, the Group had 22 full-time employees. The Group has a business management agreement with Arctic Real Estate Management AS to support commercial and financial management for properties and companies within the Group. There are also agreements with several suppliers for the operation and management of the Group’s property portfolio. The head office of PPI is in Oslo. The Group has secured directors’ liability insurance covering the Board of Directors and the CEO’s legal, personal liability for financial damage resulting from the performance of their duties. This insurance extends to both the Group and its subsidiaries. Equal opportunities The Group is dedicated to ensuring equal treatment for all employees, regardless of ethnicity, gender, sexual orientation, age, religion, or faith, both during recruitment and throughout their tenure. Currently, the management team includes two male and three female managers. As for the Board of Directors, it consists of three male members and two female members, reflecting a commitment to diversity and gender equality within the leadership structure. Corporate governance The Group’s Board is dedicated to conducting business in an ethical and responsible manner. The decision- making processes prioritise transparency and efficiency, emphasising honesty in all communication and reporting to ensure clarity and consistency for all our investors. A robust risk-management culture is integral to the Group’s operations, with a proactive approach to identifying and addressing financial, environmental, and social risks. This adaptability enables efficient navigation of changing market dynamics. The Group’s relationships with stakeholders, whether it be shareholders, tenants, employees, or advisors, are built on a foundation of historical performance and trust. The Group remains steadfast in the commitment to act responsibly and maintain a high level of engagement on behalf of stakeholders. PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 76 77 PPI adheres to the guidelines for good corporate governance in accordance with the Norwegian Code of Practice for Corporate Governance issued by the Norwegian Corporate Governance Board (NUES). The Governance section of this annual report provides a more detailed description of the corporate governance principles and reporting pursuant to Section 3-3b of the Norwegian Accounting Act. Shareholders As of 31 December 2024, PPI’s share capital is NOK 10 755 191.25 divided into 215 103 825 shares, each with a nominal value of NOK 0.05. All shares have been issued in accordance with the Norwegian Public Limited Companies Act and are fully paid. PPI has one class of shares. All shares provide equal rights, including the right to any dividends. Each of the shares carries one vote. As of 31 December 2024, PPI had 2 172 shareholders. Investors residing in Norway held 53.4 per cent of the share capital and international investors 46.6 per cent. Outlook Going into 2025, PPI will diligently continue its important work as a responsible owner, manager and developer of social infrastructure properties in the Nordics and as a competent and reliable partner to the public sector. The increased geo-political uncertainty and its impact on the global economy will likely prevail and makes the macro- economic outlook difficult to predict. However, PPI’s long- term cash flows stemming mainly from government tenants on long leases is to a limited extent affected by this and should as such provide a safe haven for investors. With its solid balance sheet, PPI is well set to take advantage of the prevailing market conditions and the attractive growth opportunities in the market. The Group aims to continue to be a leading consolidator and to pursue an opportunistic growth strategy focused on value accretive transactions. //From the Boardroom Oslo, Norway, April 22, 2025. The Board of Public Property Invest ASA This document is signed electronically Martin Mæland Chair of the board Sven-Olof Johansson Member of the board Siv Jensen Member of the board Kenneth Bern Member of the board Silje Cathrine Hauland Member of the board Statement from the Board and the CEO On this date, the Board of Directors and the CEO have considered and approved the annual report, including the annual financial statements for Public Property Invest ASA, the Group and the parent company, for the 2024 financial year and as of 31 December 2024. Oslo, Norway, April 22, 2025. The Board of Public Property Invest ASA This document is signed electronically Martin Mæland Chair of the board Sven-Olof Johansson Member of the board Siv Jensen Member of the board Kenneth Bern Member of the board Silje Cathrine Hauland Member of the board André Gaden CEO • the consolidated financial statements for the Group for 2024 have been prepared in accordance with IFRS Accounting Standards and IFRICs as adopted by the European Union, and additional Norwegian disclosure requirements in the Norwegian Accounting Act, and that • the financial statements for the parent company for 2024 have been prepared in accordance with the Norwegian Accounting Act and generally accepted accounting prac- tice in Norway, and that • the information presented in the financial statements gives a true and fair view of the assets, liabilities, financial position and results for the Group and the parent compa- ny for period as a whole, and that • the Board of Directors’ Report includes a true and fair review of the development, performance and financial position of the Group and the parent company, together with a description of the principal risks and uncertainties that they face. We declare to the best of our knowledge that PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 78 79 FINANCIAL STATEMENTS 2024 Table of content Consolidated statement of comprehensive income 82 Consolidated statement of financial position 83 Consolidated statement of cash flow 84 Consolidated statement of changes in equity 85 Notes to the consolidated financial statements 86 Note 01 Company information 86 Note 02 Basis of preparation and accounting principles 86 Note 03 Summary of significant accounting policies 87 Note 04 Segment information 89 Note 05 Tenancy agreements 91 Note 06 Financial instrument - risk management 92 Note 07 Property and administration expenses 95 Note 08 Financials 97 Note 09 Critical accounting estimates and judgements - Investment Property 98 Note 10 Other receivables 100 Note 11 Cash and Bank deposits 101 Note 12 Leasing 101 Note 13 Shareholder capital and shareholders 102 Note 14 Tax 103 Note 15 Interest bearing liabilities 105 Note 16 Current and non-current liabilities 110 Note 17 Entities and subsidiaries 111 Note 18 Related-party transactions 113 Note 19 Earnings per share 113 Note 20 Subsequent events 114 Financial statement - Public Property Invest ASA 116 Notes to the financial statement - Public Property Invest ASA 121 Independent Auditor's report 126 Alternative Performance Measures 131 EPRA reporting 132 Property Portfolio 134 Definitions 137 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 80 81 Amounts in NOK million Note 2024 2023 Rental income 4, 5 662 575 Other income 3 0 Operating income 665 576 Property expenses 7 (67) (75) Net operating income 598 501 Administration expenses 7 (82) (31) Reimbursed property management fee 7, 18 15 - Interest income 8 26 6 Interest expenses 8 (317) (272) Net interest income from interest rate derivatives 8 29 19 Net income from property management 270 223 Net unrealised financials 8 (74) (25) Transaction costs 8 (99) - Changes in fair value of interest rate derivatives 15 9 (25) Changes in fair value of investment properties 9 (34) (1 143) Profit (loss) before tax 73 (969) Income tax expense 14 (59) 69 Net profit (loss) 13 (900) Net profit (loss) attributable to: Equity holder of the parent 10 (900) Non-controlling interests 3 - EPS primary and diluted Net profit (loss) 19 0.06 (12.51) Basic=Diluted (NOK) Other comprehensive income - - Total comprehensive income (loss) 13 (900) Total comprehensive income (loss) attributable to: Equity holder of the parent 10 (900) Non-controlling interests 3 - Consolidated statement of COMPREHENSIVE INCOME Amounts in NOK million Note 31.12.2024 31.12.2023 ASSETS Non-current assets Investment properties 9 10 880 8 336 Right-of-use assets 12 35 - Investment in shares 1 - Interest rate & FX derivatives 15 6 37 Other non-current assets 8 7 Total non-current assets 10 929 8 380 Current assets Trade receivables 4 5 Other current assets 10 30 15 Cash and cash equivalents 11 968 123 Total current assets 1 002 142 Total assets 11 931 8 522 EQUITY AND LIABILITIES Equity Share capital 13 11 4 Share premium 13 6 419 3 591 Retained earnings 13 (734) (745) Non-controlling interests 9 19 - Total equity 5 714 2 850 LIABILITIES Non-current liabilities Deferred tax liabilities 14 101 66 Non-current interest-bearing liabilities 15 5 752 3 353 Interest rate & FX derivatives 15 0 34 Other non-current liabilities 15 38 23 Non-current lease liability 12 35 - Total non-current liabilities 5 926 3 476 Current liabilities Current interest-bearing liabilities 15 211 2 152 Trade payables 23 17 Current tax liabilities 2 - Other current liabilities 16 55 27 Total current liabilities 291 2 196 Total liabilities 6 218 5 672 Total equity and liabilities 11 931 8 522 Consolidated statement of FINANCIAL POSITION PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 82 83 Amounts in NOK million Note 2024 2023 Profit (loss) before tax 73 (969) Changes in fair value of investment properties 9 34 1 143 Changes in fair value of interest rate derivatives 8 (9) 25 Interest paid net of interest rate derivatives 8 279 253 Accrued interest on bonds 9 - Interest received on bank deposits (26) (6) Financial costs in profit before tax without cash effect 8 74 25 Change in working capital: Change in current assets (15) 13 Change in current liabilities 6 (4) Change in other working capital 43 (42) Net cash flow from operating activities 467 437 Investment in investment property entities 9 (142) - Investment in shares (1) - Upgrades of investment properties 9 (144) (32) Interest received on bank deposits 26 6 Net cash flow from investment activities (260) (26) Proceeds interest-bearing liabilities net of transaction costs 15 6 714 616 Repayment interest-bearing liabilities 15 (7 274) (828) Interest paid net of interest rate derivatives 8 (279) (253) Net cash flow from interest rate derivatives termination 8, 15 12 - Payments on lease liabilities 12 0 - Paid in capital increase 13 1 523 - Transaction costs on issue of shares (94) - Net cash flow from financing activities 602 (466) Effects of exchange rate changes on cash and cash equivalents 37 - Net change in cash and cash equivalents 845 (55) Opening balance of Cash and Cash equivalents 123 177 Cash and cash equivalents at period end 968 123 Consolidated statement of CASH FLOWS Amounts in NOK million Note Subscribed share capital Share premium Retained earnings Non-controlling interests Total equity Total equity at 31 December 2022 4 3 591 155 - 3 750 Changes in equity in 2023 Profit (loss) for the period - - (900) - (900) Total equity at 31 December 2023 4 3 591 (745) 0 2 850 Changes in equity in 2024 Issue of shares in-kind 12.04.2024 13 1 1 189 - - 1 191 Issue of shares in-kind 12.04.2024 13 0 72 - - 72 Issue of shares IPO 25.04.2024 13 5 1 517 - - 1 523 Issue of shares in-kind 21.10.2024 13 0 37 - - 37 Issue of shares in-kind 27.12.2024 13 0 68 - - 68 Issue of shares in-kind 27.12.2024 13 0 18 - - 18 Transaction cost issue of shares net of tax - (74) - - (74) Non-controlling interests on acquisition of subsidiary - - - 16 16 Profit (loss) for the period - - 10 3 13 Total equity at 31 December 2024 11 6 419 (734) 19 5 714 Consolidated statement of CHANGES IN EQUITY The accompanying notes are an integral part of the condensed consolidated interim financial statements. Oslo, Norway, April 22, 2025. The board of Public Property Invest ASA Silje Cathrine Hauland Member of the board Sven-Olof Johansson Member of the board Martin Mæland Chairman of the board Siv Jensen Member of the board Kenneth Bern Member of the board Andre Gaden CEO This document is signed electronically PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 84 85 NOTE 01 COMPANY INFORMATION Public Property Invest ASA (PPI) is a Norwegian property company with a long-term strategy of owning, operating and developing social infrastructure properties in a sustainable manner. PPI’s portfolio mainly consists of community service properties with public-sector tenants, centrally located in significant cities in Norway. The properties house functions of essential importance to society such as police stations, courts, health and other public services. PPI offers high-quality and specially adapted premises that enable our tenants to fulfill their social man- date. The administration of Public Property Invest ASA and its subsidiaries is located in Oslo. The consolidated financial statements were approved by the company’s board on 22 April 2025. NOTE 02 BASIS OF PREPARATION AND ACCOUNTING PRINCIPLES 2.1 BASIS OF PREPARATION The consolidated financial statements are prepared in accordance with IFRS® Accounting standards as adopted by the EU. In addition, the consolidated financial statements are prepared in accordance with Norwegian reporting require- ments pursuant to the Norwegian Accounting Act that are effective as of 31 December 2024, the end of the Group’s IFRS reporting period. The consolidated financial statements include Public Property Invest ASA and its subsidiaries. Acquired properties are included in the financial statements from the date of acquisition. Management makes estimates and assumptions concerning the future. The accounting estimates will by definition seldom be fully in accordance with the final outcome. Estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities relate primarily to the valuation of investment property. Refer to note 3.1 and 9 related to critical accounting estimates and judgements. The consolidated financial statements are presented in Norwegian kroner (NOK). The note disclosures are presented in NOK millions, unless otherwise indicated. The consolidat- ed financial statements for 2024 with comparatives for 2023 have been prepared on a going concern basis. 2.2 ACCOUNTING PRINCIPLES The consolidated financial statements are based on histori- cal cost, except for the following: • Derivative financial instruments at fair value through profit or loss • Investment properties which are measured at fair value 2.3 BASIS OF CONSOLIDATION AND BUSINESS COMBINATIONS Subsidiaries are all entities over which the Group has control. Control exists when the Group is exposed to, or has rights to, variable returns as a result of involvement with the company, and the Group is able to impact returns through its power over the company. All acquired companies are included in the consolidated financial statements from the date on which the Group obtains control over the company. In the same way, the company is deconsolidated when control over the company ceases. For accounting purposes, acquisitions of subsidiaries that do not constitute a business as defined in IFRS 3, such as acquisitions where substantially all of the fair value of the gross assets acquired is concentrated in a single property or group of similar properties, are treated as asset acquisitions. The cost of acquisition is then attributed to the individual identifiable assets and liabilities based on their relative fair values on the acquisition date. Expenses associated with the transaction are capitalised under the investment property. In such cases, deferred tax liabilities or assets are not recognised, except for deferred taxes related to losses carried forward, in accordance with the exceptions in IAS 12. Intra-company transactions, balances, and unrealised gains and losses on transactions between group companies are eliminated. The financial statements of subsidiaries are restated where necessary to achieve consistency with the Group’s accounting policies. NOTE 03 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 3.1 INVESTMENT PROPERTY Investment property comprises completed property held to generate rental income or for capital appreciation or both. Investment property is recognised initially at cost including transaction costs. Transaction costs include transfer taxes, professional fees for legal services and initial leasing commis- sions to bring the property to the condition necessary for it to be capable of operating. The carrying amount also includes the cost of replacing part of an existing investment property at the time that cost is incurred if the recognition criteria are met. Subsequent to initial recognition, investment property is measured at fair value. Gains or losses arising from changes in fair value are included in the income statement in the reporting period in which they arise. Investment property at fair value, continues to be measured at fair value until disposal even if comparable market trans- actions become less frequent or market prices become less readily available. Gains and losses on the disposal of an Invest- ment property is the difference between the selling price and the fair value of the investment property measured at the date of the disposal. 3.2 LEASING The Group assesses whether a contract is or contains a lease, at inception of the contract. The Group recognises a right-of-use asset and a corresponding lease liability for all lease contracts in which it is the lessee, except for leases with a lease term of 12 months or less, and leases of low-value assets for which the Group applies the applicable recognition exemptions. For these leases, the Group recognises the lease payments as an operating expense on a straight-line basis over the lease term. Only fixed payments are included in the initial measurement of the lease liability, and the lease term corresponds to the non-terminable period. The discount rate used to calculate the lease liability is determined, based on the Group’s incre- mental borrowing rate for each specific lease. The entire lease liability is presented as a non-current liability in the balance sheet. 3.3 FINANCIAL ASSETS 3.3.1 Classification, recognition and measurement Financial assets at amortised cost are subsequently meas- ured using the effective interest (EIR) method and are subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified, or impaired. 2.4 FUNCTIONAL CURRENCY AND PRESENTATION CURRENCY The Group’s presentation currency is NOK. Each entity in the Group determines its own functional currency, and items included in the income statement of each entity are meas- ured using that functional currency. The functional currency is the currency within the primary economic environment in which the entity operates. Transactions in foreign currencies are initially recorded in the functional currency at the rate on the transaction date. Monetary items denominated in foreign currencies are translated using the functional currency spot rates of exchange on the reporting date. Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rate at the date of the initial transaction. Non-monetary items measured at fair value in a foreign currency are translated using the rate on the reporting date. All currency translation differences are recognised in the income statement and statement of comprehensive income. Refer to list of Entities and subsidiaries in note 17. 2.5 SEGMENT INFORMATION The Group has one main operational unit. The property port- folio is divided into six different geographical regions; East, Inland, North, West, South and Central in Norway with management monitoring and following up on each region. Furthermore, the property portfolio is divided in six different groups of tenants based on significant contracts related to the total rental income. The different geographical areas are supported by support functions within accounting, finance and legal, investment and other support functions from the external service providers. The different geographical regions do not have their own profit responsibility. The regions are instead followed up on economic and non-economic key figures (“key performance indicators”) where revenue per geographical region is the most important performance metric. These key figures are analysed and reported to the chief operating decision maker, that is the Board and CEO, for the purpose of resource allocation and assessment of geographical region performance. Hence, the Group reports information based upon these geographical regions. Since the investment properties have multiple tenants across the regions in the table below, and the investment properties are appraised building by building, the reporting does not include investment property value on tenant counter- parts. PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 86 87 Since the Group’s financial assets (trade (rent) and other receivables, cash, and short-term deposits) meet these con- ditions, they are subsequently measured at amortised cost. The Group has entered interest rate swaps, the derivatives is carried at fair value through profit or loss. All the Group’s interest rate swaps are used as economic hedges. Hedge accounting is not applied for the interest rate swaps. In 2024 the Group has aquired currency derivatives and designated these derivatives as hedge accounting instruments. Derivatives not designated as hedging instruments are recognised at fair value through profit or loss. Changes in the fair value of the interest rate derivatives are recognised in the income statement as part of changes in fair value of interest derivatives. The settlement of swap rates are recorded as a reduction or increase of financial expenses in the income statement. 3.3.2 Impairment of trade (rent) receivables For trade (rent) receivables the Group applies a simplified approach in calculating expected credit losses (ECLs). ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive, discounted at an approximation of the original effective interest rate. Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at the recognition date of the receivable. 3.3.3 Trade (rent) receivables Rent receivables are recognised at their original invoiced value except where the time value of money is material, in which case rent receivables are recognised at fair value and subsequently measured at amortised cost. There are no lease receivables with a significant time value of money component. Refer to accounting policies on financial assets in note 3.3. 3.3.4 Cash and cash equivalents Cash and cash equivalents include deposits held with banks. 3.4 FINANCIAL LIABILITIES 3.4.1 Classification, recognition and measurement All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Group’s financial liabilities include trade and other payables and loans and borrowings including bank overdrafts. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method (EIR). Gains and losses are recognised in profit or loss when the liabilities are derecognised. Amortised cost is calculated by considering any discount or premium related to the debt and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance expenses in the statement of profit or loss. 3.4.2 Derecognition A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The gain or loss on the derecognition is recognised in the statement of profit or loss. 3.5 SHARE CAPITAL Ordinary shares are classified as equity. Costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. 3.6 TAXES PAYABLE AND DEFERRED TAX The tax expense for the period comprises taxes payable and change in deferred tax. However, deferred tax is not recorded if it arises on initial recognition of an asset or liability in a transaction, other than a business combination, that affects neither accounting nor taxable profit or loss on the transaction date. Deferred tax assets are recognised only to the extent that it is probable that there will be future taxable income against which the temporary differences can be utilised. Deferred tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the reporting date and are expected to apply when the related tax asset is realised, or the deferred tax liability is settled. The provision for deferred tax is based on the expected manner of realisation or settle- ment of the carrying amounts of assets and liabilities. Pursuant to the exception in IAS 12, deferred tax is not recognised when buying a company which is not a business. A provision for deferred tax is made after subsequent in- creases in the value beyond initial cost, while a fall in value below initial cost will only reverse previous provisions for deferred tax. Furthermore, an increase in temporary differences related to tax depreciation will give grounds for a recognition of deferred tax. 3.7 RENTAL INCOME The Group earns revenue from acting as a lessor in operating leases which do not transfer substantially all of the risks and rewards incidental to ownership of an investment property. Rental income arising from operating leases on investment property is accounted for on a straight-line basis over the lease term. Variable rental income is recognised when it arises. Initial direct costs incurred in negotiating and arranging an operating lease, when deemed as material, are added to the investment property carrying value and are recognised as an expense over the lease term. Initial direct costs are the incremental costs to obtain the lease, and includes any commissions, as well as legal and consulting fees incurred in connection with obtaining the lease agreement. Lease incen- tives are recognised as a reduction of rental revenue on a straight-line basis over the lease term. 3.8 INTEREST INCOME Interest income is recognised in income as it is earned using the effective interest method. 3.9 DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES The Group uses derivative financial instruments to manage certain exposures to fluctuations in foreign currency exchange rates and interest rates. These derivative financial instruments are recognised initially at fair value on the date on which a derivative contract is entered into and subsequently remeas- ured at fair value. Derivatives are carried as assets when the fair value is positive and as liabilities when the fair value is negative. Gains or losses arising from changes in the fair value of derivatives that are not designated as effective hedging instruments are recognised in the income statement. Changes in valuation subsequent to the initial valuation at inception of a contract are recognised immediately in the income statement. For the purpose of hedge accounting, hedges are classified as: • Fair value hedges when hedging exposure to changes in the fair value of a recognised asset or liability. Hedge relationships are formally designated and documented at inception, together with the risk management objective and strategy for undertaking the hedge. The documentation includes identification of the hedging instrument, the hedged item or transaction, the nature of the risk being hedged, the existence at inception of an economic relationship and subse- quent measurement of the hedging instrument’s effectiveness in offsetting the exposure to changes in the hedged item’s fair value, the hedge ratio and sources of hedge ineffectiveness. Hedges meeting the criteria for hedge accounting are ac- counted for as described below. Fair value hedges The change in fair value of a hedging derivative is recognised in the consolidated statement of comprehensive income and netted against fair value change of the hedged item. The change in the fair value of the hedged item attributable to the risk being hedged is recorded as part of the line Interest rate & FX Derivatives and is also recognised in the consolidated statement of comprehensive income, where it offsets the forreign currency exchange effects. The Group applies fair value hedge accounting for currency risks on fixed rate finance debt. Fair value hedge accounting is discontinued only when the hedging relationship or a part thereof ceases to meet the qualifying criteria. This includes when the risk management objective changes or when the hedging instrument is sold, terminated or exercised. NOTE 04 SEGMENT INFORMATION See Basis of preparation and accounting principles 2.5 for information related to segment information. Total rental income by geographic region Amounts in NOK million 2024 2023East 383 309 Inland 71 73 North 77 72 West 64 59 South 61 57 Central 6 6 Total rental income 662 575 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 88 89 Total rental income grouped by tenant Amounts in NOK million 2024 2023Police 136 108 Education 47 53 Courts of Norway 58 49 Norwegian Labour and Welfare Administration 47 41 Norwegian Tax Administration 42 35 Government agency 118 109 Municipality / County 110 96 Healthcare 50 31 Private 54 50 Total rental income 662 575 Investment properties by region Amounts in NOK million 31.12.2024 31.12.2023East 6 269 4 649 Inland 819 871 North 1 128 1 033 West 1 397 865 South 973 805 Central 109 114 Total management portfolio 10 694 8 336 1)Development sites186 - Total investment properties 10 880 8 336 1) Development sites include development potential for properties within the managment portfolio and properties defined as development sites. The Group's future accumulated rent from operational lease contracts at 31.12. Amounts in NOK million 2024 2023< 1 year 753 585 Between 1 and 2 years 608 532 Between 2 and 3 years 541 461 Between 3 and 4 years 415 393 Between 4 and 5 years 195 327 ≥ 5 years 1 438 776 Total 3 951 3 075 The Group's lease contracts at 31 December 2024 have the following maturity structure measured in annual rent. Amounts in NOK million No of contracts Total contract rent< 1 year 11 21 Between 1 and 5 years 123 558 ≥ 5 years 92 195 The Group’s lease contracts at 31 December 2023 have the following maturity structure measured in annual rent. Amounts in NOK million No of contracts Total contract rent< 1 year 6 7 Between 1 and 5 years 80 257 ≥ 5 years 101 327 NOTE 05 TENANCY AGREEMENTS The Group mainly enters into long-term lease agreements with solid counterparties. The table displays the number of contracts ending in the period and the expiring annual lease of the contracts. The table displays the number of contracts ending in the period and the expiring annual lease of the contracts. The remaining contract rent is undiscounted. PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 90 91 Financial assets Fair value Fair value Amortised through Amortised through cost profit or loss Total cost profit or loss Total Amounts in NOK million31.12.202431.12.202431.12.202431.12.202331.12.202331.12.2023Cash and cash equivalents 968 - 968 123 - 123 Investments in shares 1 - 1 - - - Interest rate & FX derivatives - 6 6 - 37 37 Trade receivables (non-interest 4 - 4 5 - 5 bearing)Other current assets 30 - 30 15 - 15 Total financial assets 1 003 6 1 009 142 37 179 Financial liabilities Fair value Fair value Amortised through Amortised through cost profit or loss Total cost profit or loss Total Amounts in NOK million31.12.202431.12.202431.12.202431.12.202331.12.202331.12.2023Non-current interest-bearing 5 752 - 5 752 3 353 - 3 353 liabilitiesOther non-current liabilites 11 - 11 11 - 11 Interest rate & FX derivatives - 0 0 - 34 34 Current interest-bearing 211 - 211 2 152 - 2 152 liabilitiesTrade payables (non-interest 23 - 23 17 - 17 bearing)Other current liabilities 55 - 55 27 - 27 Total financial liabilities 6 052 0 6 052 5 560 34 5 594 Net financial assets and (5 049) 5 (5 044) (5 418) 3 (5 415)liabilities 6.1 FINANCIAL ASSETS MEASURED AT FAIR VALUE The Group’s policy is to recognise transfers into and out of the fair value hierarchy levels at the end of the reporting period. Level 2: The fair value of the interest derivatives that are not traded in active markets (e.g., over-the-counter derivatives) is determined using valuation techniques that maximise the use of observable market data and minimise reliance on entity-specific estimates. If all significant inputs required to value an instrument fairly are observable, the instrument is classified as level 2. Interest rate derivatives are measured at level 2. NOTE 06 FINANCIAL INSTRUMENT - RISK MANAGEMENT 6.2 FINANCIAL RISK The Group’s tenants are entities with very good credit ratings and liquidity. The expected credit loss and late payment risk is assessed as very low. As of year-end 2024 and 2023 there is no loss allowance recognised for the trade receivables. The Group regularly monitors liquidity risk by setting up cash flow forecasts based on the liquidity reserves, including cash equivalents, and borrowing facilities. The forecasts are set by the individual subsidiaries, and is regularly monitored by the board on a company- and group-level. The Group’s approach to liquidity risk management is grounded in maintaining a consistently sufficient liquidity level to meet all financial liabilities at maturity. This commitment applies under both standard and exceptional circumstances, with the aim of avoiding unacceptable losses and safeguarding the Group’s reputation. PPI is in process of establishing unutilised credit facilities as back-up for its short term debt maturities. See details in note 15. Interest rate risk holds significant relevance in the Group’s financing structures and property investments. The Group closely monitors real estate operations and collectively strives to assess and mitigate both liquidity and interest rate risks. The Group is exposed to cash flow interest rate risk from long-term borrowings at variable rate, and the risk is hedged using interest rate swaps, see details in note 8 and 15. The Group has a significant portion of its debt on fixed-rate terms. To limit interest rate risk on loans at floating interest rate terms, financial interest rate hedging instruments such as interes-rate swaps are being utilised. On 31 December 2024, 90.4 per cent of PPI’s interest-bearing liabilities were fixed-rate loans. An increase in market interest rates is thus deemed to have a limited effect on PPI’s interest expenses in the short and medium-term. Maturity structure Amounts in NOK million Total cash flow Year 1 Year 2 Year 3-5 After year 5 Financial liability as of 31 December 2024Principal payment on loans from 628 1 2 584 41 credit institutionsPrincipal payment on bond loans 5 376 211 226 1 398 3 541 Interest rate payments net of inter-1 221 317 299 566 39 est rate dericativesOther long-term liabilities 38 2 2 6 28 Trade payables 23 23 - - - Other current liabilities 57 57 - - - Total 7 343 611 529 2 555 3 648 Maturity structure Amounts in NOK million Total cash flow Year 1 Year 2 Year 3-5 After year 5 Financial liability as of 31 December 2023Principal payment on loans from 5 529 2 160 3 370 - - credit institutionsPayment of interest at fixed hedge 550 268 282 - - rateOther long-term liabilities 23 2 2 2 17 Trade payables 17 17 - - - Other current liabilities 27 27 - - - Total 6 146 2 474 3 653 2 17 The table above are prepared under assumption that the Group will meet the requirements in the sustainability linked bank facility. PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 92 93 Amounts in NOK million 31.12.2024 31.12.2023Bond loan 5 376 2 273 Bank loan 628 3 256 Interest-bearing liabilities at period end 6 004 5 529 Amount of debt at fixed interest rate 5 426 3 901 Share of bank loans at fixed rate 8.0 % 50.0 %Share of loans at fixed rate including bonds 90.4 % 70.6 % Last Twelve Months figures Amounts in NOK million 2024 2023Rental income 662 575 Other income 3 0 Operating income 665 576 Property expenses (67) (75)Net operating income 598 501 Administration expenses (82) (31)Reimbursed property management fee 15 - Consolidated adjusted EBITDA 532 470 Interest income 26 6 Interest expenses (317) (272)Net interest income from interest rate derivatives 29 19 Consolidated net interest expenses (261) (247)Net income from property management 270 223 ICR 2.0 1.9 6.3 FOREIGN EXCHANGE RISK The Group has entered into a fixed rate euro-denominated bond loan during the fourth quarter of 2024, in order to capitalise on favorable interest rates in the eurozone. In conjunction with the FX exposure on this loan, the Group has entered into a euro FX derivative contract in order to mitigate the exposure to foreign exchange risk on the bond debt. See note 15 for further information. A sensitivity analysis based on a EUR 142.2 million unhedged exposure, with a 10 per cent exchange rate movement, would result in an exchange gain or loss impact on net profit (equity) of NOK 130.9 million. The Group had EUR 57.8 million in cash & cash equivalents at year end. The majority of the euro cash amount was used to purchase properties in Finland in the first quarter of 2025. See note 20 for further information. 6.4 CAPITAL RISK MANAGEMENT The main purpose of the Group’s capital management is to maintain a reasonable balance between debt and equity. The Group targets to have a LTV ratio below 50 per cent over time. The target is set with consideration to value develop- ment in the Group and the opportunity to obtain the neces- sary financing. There are covenants on existing financing related to; loan to value, interest cover ratio and level of secured indebtedness. Both during 2024, and as of 31 December 2024, the group was in compliance with all financial covenants, and the group expects to be in compliance going forward. 6.5 CLIMATE RISK Physical climate risk is the danger that climate-related events such as extreme weather cause damage to buildings or interruptions in operations. This can lead to losses and affect the return on investments negative. Furthermore, in the transition to the low-emission society, there is a risk that buildings that are not assessed as sustainable will receive regulatory restrictions, yield lower or lost rental income, and become more difficult to sell in the future. The Board and Group management monitor developments in the market regarding the importance of climate risk for the development in the market value of the investment properties. So far, climate risk has not affected the valua- tions, but it is assumed that the buyer group is somewhat smaller for properties that have a higher risk linked to climate change. The information provided to the appraisers on a quarterly basis also includes sustainability and energy related information on the properties. The estimated effect of this information is reflected in the appraisers’ Capital Expenditures estimates, expected future market rents and the discount rates, and is reflected in the valuations as of the balance sheet date. INTEREST COVERAGE RATIO Property expenses Amounts in NOK million 2024 2023Insurance premium 4 3 Property tax 8 7 Maintenance 27 38 Environmental, social and governance 2 3 Property related common costs 19 13 Other property expenses 7 10 Total property expenses 67 75 NOTE 07 PROPERTY AND ADMINISTRATION EXPENSES PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 94 95 Administration expenses Amounts in NOK million 2024 2023Personnel expenses 30 3 Legal, agency and consultancy fees 2 2 Accounting 16 15 Auditors 9 5 Other operating expenses 24 7 Total administration expenses 82 31 Reimbursed property management fee (15) - Net administration expenses 66 31 Non-recurring expenses relating to IPO (8) - Net adm. expenses excluding non-recurring expenses 59 31 * The reimbursed property management fee consists mainly of management services delivered to SBB Samfunnsbygg AS. See related-party transactions note 18 for further information. ** The non-recurring expenses amounting to NOK 8 million are related to the IPO process. The main components include accounting, audit procedures associated with the IPO, and the use of two external appraisers. Auditor fees full year basis Amounts in NOK million 2024 2023Statutory audit 8 5 Other services not related to auditing 0 0 Other assurance services 1 0 Total auditor expenses (inc. VAT) 9 5 Personnel expenses Amounts in NOK million 2024 2023Salaries, performance-related pay and other taxable benefits 28 2 Employer's natural insurance contributions 5 -Pension expenses 2 -Other personnel costs 0 -Board & committee fees 2 1 Total gross personnel expenses 37 3 Of which capitalised on projects under development (2) -Of which classified as transaction costs (5) -Personnel expenses 30 -Number of full-time equivalent employees 15 1Number of employees at 31.12. 22 1 Amounts in NOK million 2024 2023Salaries 12 2 Cash-based variable remuneration 1 - Share-based variable remuneration - 1 Extraordinary items 2 -Other benefit 0 - Pension expenses 0 0 Other personnel costs - - Total remuneration of Senior Executives 15 2 Board & committee fees 2 1 Total remuneration of Senior Executives and the Board 17 3 Of which classified as transaction costs (5) - Net management personnel expenses 12 3 The table below provides an overview of total remuneration of Senior Executives and the Board. All amounts in the table are subject to National Insurance contributions. RENUMERATION TO SENIOR EXECUTIVES The total remuneration of the CEO and other Senior Executives consists of a fixed package of salary and benefits pension and insurance arrangements. Please refer to the Remuneration Report 2024 for more information. The report can be found on Public Property Invest ASA website: publicproperty.no Net realised financials Amounts in NOK million 2024 2023Interest income 26 6 Net interest income from interest rate derivatives 29 19 Interest expenses accrued and paid on borrowings (317) (272)Net realised financials (261) (247) NOTE 08 FINANCIALS PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 96 97 Net unrealised financials Amounts in NOK million 2024 2023Net currency gains and losses (8) - Amortised borrowing costs bank loan** (46) (9)Amortised bond costs (20) (16)Lease interest expense (0) - Net unrealised financials (74) (25) Transaction costs incurred Amounts in NOK million 2024 2023Legal, agency and consultancy fees (30) - Other transaction fees (19) - Contract termination fee (50) - Total transaction costs (99) - The net currency gains and losses are related to the euro bond and euro cash and cash equivivalents, this amount includes the effect of currency hedge accounting. See note 15 for further information. Includes NOK 46 million unamortised from the previous bank loan which is expensed due to refinancing in Q2 2024 and Q4 2024. *** See note 12 for additional information. Total transaction costs are due to the IPO-process in 2024. These are considered as non-recurring. These transaction costs of NOK 99 million are classified in the cash flow statement as operating cash flows. Amounts in NOK million 2024 2023Opening balance 8 336 9 447 1)Purchase of investment properties 2 362 - 2)Purchase price adjustment Kunnskapsveien 55 72 - Upgrades of investment properties 144 32 Change in fair value of investment properties (34) (1 143)Value at period end 10 880 8 336 1) Ingoing balances on purchased properties throughout the year have been netted towards change in assets/liabilities/working capital and payments related to purchase of properties, hence net investments in investment properties will differ from the net cash flow. The purchase of Bergen Etatbygg AS in Q4 2024, has resulted in a non-controlling interest. See note 17 for ownership structure. 2) The change in value of NOK 72 million related to the five-year extension of the lease contract for OsloMet in Kunnskapsveien 55 . The new contract triggered a purchase price adjustment of NOK 72 million. See note 10 for further information. At year end, all of Group’s investment properties are valued by one independent, external appraiser. The valuations as of 31 December 2024 were obtained from Cushman & Wakefield Realkapital AS, and the market value of the portfolio in the Group’s balance sheet is based on the appraisers’ valuation. The valuations as of 31 December 2023 were obtained from Newsec AS and Cushman & Wakefield Realkapital AS, and the market value of the portfolio in the Group’s balance sheet was based on the average of the appraisers’ valuations. The valuations are performed on a property-by-property basis, assuming that the properties are sold individually over time. The valuations are performed using the discounted cash flow method, which involves discounting future cash flows over a specified period using an estimated discount rate and then adding a residual value at the end of the period. Future cash flows are calculated on the basis of cash flows from signed leases, as well as estimated future cash flows based on an expected market rent at the end of the lease terms. The fair value of investment properties is therefore mainly affected by: - expected market rents - discount rates - inflation - capital expenditures When carrying out their valuations, the appraisers receive comprehensive details on the properties, lease contracts, floor space and details of any vacant premises, and up-to- date and comprehensive information about all ongoing and NOTE 09 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS - INVESTMENT PROPERTY planned projects. Any uncertainties relating to the properties, projects and leases are also clarified verbally and in writing as and when required. The Group’s management ensures that all relevant information is included in the valuations and in order to fully understand the changes in value of investment properties from the previous period end. The appraisers perform their valuations on the basis of the information they have received, and estimate future market rents, yields, inflation and other relevant parameters. Each individual property is assessed in terms of its market position, rental income (contractual) rents versus market rents and ownership costs, with estimates being made for anticipated vacancy levels and the need for alterations and upgrades. The remaining term of the leases is also assessed for risk, along with any special clauses in the contracts. Each property is also compared with recently sold properties in the same segment (location, type of property, technical standard, mix of tenants etc.) The table below shows to what extent the value of the management property portfolio is affected by market rents, exit yields (market yields), operating costs and discounts rates, assuming that all other factors are equal. However, there are interrelationships between these variables, and it is expected that a change in one variable may influence the other variable. The negative value change in 2024 and 2023 is predominantly due to an adjustment of the appraisers’ estimated discount rate, with some offsetting effects from other factors such as market rent expectations. 2024 Variables Change of variables Value change (+) Value change (-)Exit yield +/- 0.25 per cent points (144) 156 Discount rate +/- 0.25 per cent points (225) 236 Operating costs +/- 10 per cent (49) (49)Market rent +/- 10 per cent 813 (813)Average rental growth (CPI) +/- 0.5 percentage points next 10 years 327 (327) The calculations have been performed by Cushman & Wakefield Realkapital AS in connection with the valuations at 31 December 2024. PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 98 99 2023 Variables Change of variables Value change (+) Value change (-)Exit yield +/- 0.25 per cent points (185) 201 Discount rate +/- 0.25 per cent points (161) 166 Operating costs +/- 10 per cent (67) 67 Market rent +/- 10 per cent 697 (697) Input for valuations – overview Investment propertyValuation method, reference is made to note 3.1 Level 3Valuation model DCF DCFWAULT 5.1Net yield (interval) 4.19% - 14.15% Contract rent at 31 December 2024, measured in annual rent (NOK million) 774 Input for valuations – overviewInvestment propertyValuation method, reference is made to note 3.1 Level 3Valuation model DCF DCFWAULT 5.1Net yield (interval) 5.74% - 38.58%Contract rent at 31 December 2023, measured in annual rent (NOK million) 591 The calculations have been performed by Newsec AS and Cushman & Wakefield Realkapital AS in connection with the valuations at 31 December 2023. WAULT : Weighted average unexpired lease term. Measured without separate parking rent contracts. Right-of-use-assets Amounts in NOK million 2024Beginning of year - Additions 36 Amortisation (0)Book value at year-end 35 NOTE 12 LEASING The Group on 01 December 2024 entered into a 10-year lease agreement as a lessee for premises in Haakon VIIs gate 1 in Oslo. Amounts in NOK million 2024 2023Bank deposits 966 122 Restricted bank deposits 2 0 Total bank deposits 968 123 Restricted bank deposits relate to the withholding tax account. NOTE 11 CASH AND BANK DEPOSITS Other receivables Amounts in NOK million 2024 20231)Trade receivables (non-interest bearing)4 5 2)Other receivables30 15 Total other receivables 35 20 NOTE 10 OTHER RECEIVABLES 1) The Group’s tenants are entities with very good credit ratings and liquidity. The expected credit loss and late payment risk is assessed as very low. As of year-end 2024 and 2023 there are no loss allowance recognised for the trade receivables. 2) The other receivables consists of VAT-receivables, settlement of common costs, swap-interest receivables, and provision for parking rent. Historically there has been very low payment risk related to outstanding other receivables. Lease liability Amounts in NOK million 2024Beginning of year - Additions 36 Lease interest expense (0)Payment less interest expense (0)Book value at year-end 35 The Group’s future cash outflows for the lease liability as of 31.12. Amounts in NOK million 2024 2023≤ 1 year 5 - 1 year > 5 years 18 - 5 years > 23 - Total 45 - PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 100 101 NOTE 13 SHAREHOLDER CAPITAL AND SHAREHOLDERS Share capital and nominal value 31.12.2024Shares issued 215 103 825 Nominal amount in NOK 0.05 Share capital in NOK 10 755 191 No of shares as at 31.12.2023 71 931 660 Capital increase in connection with IPO 105 000 000 Capital increase in connection with acquisition of portfolio from SSB Samfunnsbygg AS 31 659 509 Acquisition of Jærveien 1 802 486 Acquisition of Rigedalen 815 119 Acquisition of Strandgaten 229 3 895 051 No of shares at 31.12.2024 215 103 825 Shares controlled by board members Position Control directly % holding Shares1)Martin MælandBoard Chariman Directly 0.05% 100 000 2)Kenneth Frode Goovaerts BernBoard Member Directly 1.52% 3 274 320 3)Sven-Olof JohanssonBoard Member Indirectly 0.00% - 4)Silje Cathrine HaulandBoard Member Directly 0.02% 40 000 Siv Jensen Board Member Indirectly 0.00% - Sum shares controlled by board members 1.6% 3 414 320 Shares controlled by senior executives per Shares at 31.12.2024 Position Control directly % Holding31 December 2024 OptionsIlija Batljan Interim CEO Directly 0.1 % 125 000 160 000 Ylva Göransson CFO Directly 0.0 % 1 900 50 000 André Gaden COO Directly 0.0 % 1 724 50 000 EVP Finance and Marianne AalbyDirectly 0.0 % 5 500 50 000 ESGEVP IR and Tone Kristin OmstedDirectly 0.0 % - 100 000 Corporate FinanceSum shares controlled by 132 224 410 000 senior executives 1) Martin Mæland represents 0.05 per cent, directly through Brimar AS. 2) Kenneth Frode Goovaerts Bern represents 1.52 per cent directly through Telecom AS. 3) Sven-Olof Johansson represents 2.54 per cent indirectly through Samhällsbyggnadsbolaget i Norden AB 4) Silje Cathrine Hauland represents 0.02 per cent directly through Gatekeeper AS, and 0.32 per cent indirectly as CEO of Chrisanic Eiendom AS. Shareholder % holding Country Type of shareholder SharesSamhällsbyggnadsbolaget i Norden AB 35.16% Sweden Ordinary 75 631 366 Skagen Vekst Verdipapirfond 4.18% Norway Ordinary 8 991 411 Verdipapirfondet DnB Norge 2.99% Norway Ordinary 6 441 107 Avanza Bank AB 2.18% Sweden Ordinary 4 684 082 Kverva Finans AS 2.06% Norway Ordinary 4 427 618 Centra Capital AS 1.76% Norway Ordinary 3 793 103 First Nordic Real Estate 1.76% Norway Ordinary 3 777 980 Centra Invest AS 1.74% Norway Ordinary 3 747 950 Sagacia AS 1.67% Norway Ordinary 3 598 320 Verdipapirfondet Fondsfinans Norge 1.57% Norway Ordinary 3 372 931 Total 10 largest shareholders 55% 118 465 868 Other shareholders 45% 96 637 957 Total 100% 215 103 825 Income tax expense Amounts in NOK million 2024 2023Tax payable, current year (0) - Change in deferred tax (59) 69 Income tax expense (59) 69 Income tax payable is calculated as followsProfit (loss) before tax 73 (969)Other permanent differences 23 0 Permanent differences transaction costs issue of shares recognised in balance sheet (94) - Fair value change of investment properties below initial cost tax effect 175 654 Changes in temporary differences (160) 315 Tax position acquired at time of purchase (5) - Profit for tax purposes 11 - Tax payable on the balance sheet 2 - NOTE 14 TAX Reconciliation of income tax expense Amounts in NOK million 2024 2023Profit (loss) before tax 73 (969)Estimated tax based on 22% (16) 213 Tax effects of:Deferred tax assets that are not recognised in the balance sheet - - Changes in fair value investment properties below initial cost tax effect (38) (144)Permanent differences (5) 0 Income tax expense (59) 69 Effective tax rate 81.89% 7.15% PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 102 103 Amounts in NOK millions 2024 2023Deferred tax liability 141 75 Deferred tax assets 40 9 Net deferred tax 101 66 DEFERRED INCOME TAX The Group has offset deferred tax assets and deferred tax liabilities on the balance sheet as the Group has a legally enforceable right to set off current tax assets against current tax liabilities, and the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority. The following net value was recognised: Change in deferred tax (+) deferred tax assets (-) Movement in temporary differences Investment Interest Current Loss carried Amounts in NOK millionproperty derivativesassets forward Other Total 01 January 2023 696 28 0 (135) 27 615 Recognised in profit and loss (371) (25) - 95 (14) (315)Acquisition of subsidiaries - - - - - - 31 December 2023 325 3 0 (41) 13 300 Recognised in profit and loss 296 3 (49) 8 257 Acquisition of subsidiaries - - - 3 (6) (3)Transaction costs on issue of shares - - - (94) - (94)31 December 2024 621 6 0 (181) 15 460 Change in temporary differences based on 160 nominal tax rate Change in deferred tax based on nominal (35)tax rateOther differences (24)Change in deferred tax (59) NOTE 15 INTEREST BEARING LIABILITIES Amounts in NOK million 31.12.2024 31.12.2023Bond loans 5 376 2 273 Bank loans 628 3 256 Nominal interest bearing liabilities at period end 6 004 5 529 Less capitalised borrowing costs (41) (24)Carrying amount interest bearing liabilities 5 963 5 505 Maturity structure Total Amounts in NOK millioncash flow Year 1 Year 2 Year 3-5 After year 5 Financial liabilities as of 31 December 2024Principal payment on bank loans 628 1 2 584 41 Principal payment on bond loans 5 376 211 226 1 398 3 541 Interest rate payments net of interest rate derivatives 1 221 317 299 566 39 Other current liabilities 57 57 - - - Total 7 343 611 529 2 555 3 648 The maturity structure is based on undiscounted cash flows. The input used for the maturity structures on interest rate payments are based on NIBOR3M forward curve as per 31 December 2024. Maturity structure Total Amounts in NOK millioncash flow Year 1 Year 2 Year 3-5 After year 5 Financial liabilities as of 31 December 2023Principal payment on bank loans 3 467 98 3 370 - - Principal payment on bond loans 2 062 2 062 - - - Interest rate payments net of interest rate derivatives 550 268 282 - - Other long-term liabilities 23 2 2 2 17 Trade payables 17 17 - - - Other current liabilities 27 27 - - - Total 6 146 2 474 3 653 2 17 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 104 105 Interest-bearing liabilities at 31 December 2024 Nominal Weighted Base Amount Carrying average Current Currency (NOK Fair Value amount current Interest downpay-(EUR million)million)(NOK million)(NOK million)interesttermsment plan Maturity dateBond loan 1 750 745 746 6.51% 6.51% fixed None 23.03.2027Bond loan 2 648 632 644 5.90% 5.90% fixed None 23.03.2028Bond loan 3 211 206 211 4.16% 4.16% fixed None 01.09.2025Bond loan 4 300 3 541 3 507 3 507 4.63% 4.625% fixed None 12.03.2030Bond loan 5 226 215 226 3.60% 3.60% fixed None 09.08.2026NIBOR3M Bank loan 1 485 485 485 7.07%+ 2.38% None 30.06.2027marginNIBOR3M Bank loan 2 93 93 93 6.94%+ 2.25% None 10.10.2027marginNIBOR3M + 1)Bank loan 3 50 50 50 6.99%25 years 17.12.20312.3% marginTotal 6 004 5 934 5 963 5.20%Interest rate (0.02%) 1)derivativesTotal including 5.18%interest rate derivatives Bond loan 1 was renegotiated and the new maturity and interest rate was extended to 23 March 2027. On 23 September 2024, NOK 350 million of the original loan was repaid. Bond loan 2 was renegotiated and the new maturity and interest rate was extended to 23 March 2028. On 23 September 2024, NOK 314 million of the original loan was repaid. Bank loan 1 has a one-year extension option. 1) In connection with purchase of Rigedalen Invest AS, the Group acquired an existing bank loan with a nominal amount of NOK 124.9 million. The Group did a repayment of NOK 74.9 million immediately after acquiring the property. The bank loan is hedged 100% with an interest rate derivative of 2.27% with maturity in December 2032. are NOK 6 714 million. Changes in liabilities arising from financing activities New liabilities including Amortisation Foreign Amounts in capitalised Reclassfica-of capitalised exchange NOK million 31.12.2023borrowing costs Repaymenttion liabilitiesborrowing costmovements 31.12.2024Non-current 211 207 - 1 187 12 1 617 bond loansNon-current euro-denominated 3 462 45 3 507 bond loansNon-current 3 240 3 952 (6 610) - 46 628 bank loansCurrent bond 2 054 - (664) (1 187) 8 211 loansCurrent bank loans - - - - - - Total 5 505 7 621 (7 274) - 66 5 963 The Group has purchased properties with existing debt of NOK 908 million, hence the net proceeds interest-bearing liabilities Compliance As reported to As reported to reporting bond holders at bond holders at date after compliance date compliance date Covenant Calculation level Calculation method Covenantperiod end20252024Outstanding loans to Loan-to-value Not to exceed Sub-GroupProperty value, adjusted 120 days 48.9% 71.3%Bond loan 175%for working capitalLoan-to-value Outstanding loans to Not to exceed Sub-Group120 days 49.6% 74.1%Bond loan 2Property value75%Outstanding loans to Loan-to-value Not to exceed Sub-GroupProperty value, adjusted 120 days 61.7% 61.4%Bond loan 375%for working capitalLoan-to-value Outstanding loans to Not to exceed Sub-Group150 days N/A 71.1%Bond loan 5Property value75% BOND LOANS COVENANTS Financial covenants in connection with Bond Loan 1, Bond Loan 2, Bond Loan 3 and Bond Loan 5 covenants are measured at year-end and reported according to the compliance date as listed in the table below. A right to cure breaches of the loan-to-value are possible through new equity injections or a separate deposit account. Interest-bearing liabilities at 31 December 2023 Weighted Nominal Carrying average Current Amount Fair Value amount current downpayment (NOK million)(NOK million)(NOK million)interest Interest termsplan Maturity dateBond loan 1 1 100 1 067 1 097 3.00% 3% fixed None 23.09.2024Bond loan 2 962 937 957 3.48% 3.48% fixed None 23.09.2024Bond loan 3 211 202 211 4.16% 4.16% fixed None 01.09.2025NIBOR3M + Bank loan 3 256 3 256 3 240 6.76%33 years 28.06.20251.88% marginTotal 5 529 5 462 5 505 5.34%Interest rate (0.49%)derivativesTotal including interest rate 4.85%derivatives PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 106 107 Interest rate & FX derivatives at reporting date 31 December 2024 Principal amount Amounts in millions(NOK million) Fair value (NOK million) Start date Maturity date Fixed interestInterest rate swap 50 6 03.12.2018 01.12.2032 2.27%Total interest swap assets 50 6 EURO BOND LOAN COVENANTS The Group entered into a bond loan agreement of Euro 300 million at 12 December 2024 (Bond loan 4). Compliance with financial covenants in connection with Bond Loan 4 are measured and reported within 30 days of the last day of each quarter. Profit and loss key figures as presented in the table below are calculated on the basis of Last Twelve Months (LTM). As calculated for current Covenant Calculation level Calculation method Covenantcompliance dateConsolidated Adjusted EBITDA Consolidated Coverage Groupdivided by Consolidated Net Interest Not less than 1.5 2.0RatioExpensesConsolidated Financial Indebetness Consolidated Solvency (less cash and cash equivalents and GroupNot to exceed 65% 42.2%Ratiolisted shares) divided by Consolidated Total AssetsSecured indebetness to Total Value of Secured Indebetness GroupNot to exceed 45% 20.6%Total Assets ratiodivided by Consolidated Total Assets As reported at Covenant Calculation level Calculation method Covenantcompliance date 2025Loan-to-value Bank Secured Assets/Outstanding loans to Property value of Not to exceed 65% 58.4%Loan 1Sub-Groupsecured assetsSecured Assets/Weighted average unexpired lease WAULT Bank Loan 1Minimum 4 years 6.2 years Sub-GrouptermsLoan-to-value Bank Outstanding loans to Property value of Secured AssetsNot to exceed 65% N/A Loan 2secured assets any Financial Indebtedness or any guarantee and/or indemnity in respect of any Financial Indebtedness that is secured in whole or in part by a Security Interest granted over any assets of any member of the Group. BANK LOAN COVENANTS Financial covenants in connection with the bank loan for Bank Loan 1, are reported and measured on a quarterly basis in connection with the issuance of the Group's interim reports. Additionally, the Group reports semi-annually a Compliance Certificate on the basis of the second- and fourth quarter report and annual report within 90 days of the period end. Due to the repayment of loan Bank Loan 1 Tranches A and C in December 2024 with a total principal of NOK 2 814 million, and the substantial reduction in secured assets, comparables for previous reporting periods are not applicable as the year-end reporting only covers the remain- ing Loan Tranche B. See note 20 for further information regarding the repayment of the remaining loan Tranche B in February 2025. Financial covenants in connection with Bank Loan 2 are reported annually. The covenants are measured at an ongoing basis, and reported first time in October 2025. The Bank Loan has a covenant based on the outstanding loan to property value. Compliance reporting is due by 10 October each year. An equity cure is available, i.e. a right to cure breaches of the Group Interest coverage ratio, the Sub-Group Interest coverage ratio, the Group Equity ratio and the Sub-Group Loan-to-value by new equity injections, subject to applicable conditions and time limits. The Group is in compliance with all financial covenants at year-end 2024. See note 6 for additional information about financial risk management. The Group was in compliance with all Financial Covenants at year-end 2024. Principal amount Amounts in millions(NOK million) Fair value (NOK million) Start date Maturity date Fixed forward rateCurrency derivatives designated for fair value 100 (0.25) 17.12.2024 12.03.2030 12.85hedge accountTotal currency derivatives 100 (0.25)liablities In connection with the placement of Euro-bond EUR 300 million, the Group has purchased currency derivatives amounting to one third of the nominal value of the bond. The Group applies fair value hedge accounting under IFRS 9 to mitigate exposure to changes in the fair value of foreign currency- denominated liabilities due to exchange rate fluctuations. The hedged item, the euro-bond, is adjusted for changes in fair value attributable to FX risk. The corresponding hedging instruments, are measured at fair value, with gains or losses recognised in profit or loss towards net currency exchange differences. Interest rate derivatives at period end 31.12.2023 Amounts in millions NOK amount Fair value (NOK million) Start date Maturity date Fixed interestInterest Nordea 239 15 30.06.2016 30.06.2026 1.34%Interest Nordea 100 5 27.03.2020 27.03.2025 1.03%Interest Nordea 150 11 15.04.2021 18.04.2028 1.65%Interest CAP 57 0 01.03.2019 15.04.2024 2.75%Interest CAP - 0 16.04.2018 17.04.2023 2.75%Interest Nordea 388 3 30.09.2022 30.06.2025 3.46%Interest Danske 388 3 06.10.2022 30.06.2025 3.39%Interest Nordea 153 (16) 30.06.2023 30.06.2028 3.93%Interest Danske 153 (18) 30.06.2023 30.06.2028 3.98% In connection with the refinancing in December 2024, the Group terminated all interest rate derivatives held as of 31 December 2023. Net cash flow from termination of interest derivatives amounted to NOK 12 million. The interest rate derivative outstanding at the year end listed in the table above was acquired in connection with the acquisition of investment property entities in the fourth quarter 2024. PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 108 109 Other current liabilities Amounts in NOK millions 2024 2023Bond loans short term 211 2 054 Bank loan amortisation - 98 Trade payables (non-interest bearing) 23 17 Taxes payable 2 -Value added taxes payable 4 1 Other current liabilities (non-interest bearing) 51 26 Sum other current liabilities 291 2 196 Other non-current liabilities Amounts in NOK millions 2024 2023Bond loans 5 123 211 Bank loans 628 3 142 Deferred tax liabilities 101 66 Interest rate & FX derivatives 0 34 Other non-current liabilities 38 23 Non-current lease liability 35 - Sum other non-current liabilities 5 926 3 476 NOTE 16 CURRENT AND NON-CURRENT LIABILITIES Subsidiaries Country Business office Voting percentage OwnershipPublic Property Drift AS Norway Oslo 100% 100%PPI Forvaltning AS Norway Oslo 100% 100%Public Property Holding AS Norway Oslo 100% 100%Public Property Sub-Holding 1 AS Norway Oslo 100% 100%Røynebergsletta I Holding AS Norway Oslo 100% 100%Røynebergsletta I AS Norway Oslo 100% 100%Søebergkvartalet Holding AS Norway Oslo 100% 100%Søebergkvartalet AS Norway Oslo 100% 100%Gunnar Nilsens gate 25 AS Norway Oslo 100% 100%Prins Chr. Augusts Pl. AS Norway Oslo 100% 100%Brochs gate 3 AS Norway Oslo 100% 100%Fjørevegen 20 AS Norway Oslo 100% 100%Njøsavegen 2 AS Norway Oslo 100% 100%SBB Kongsvinger AS / Otervegen 23 AS Norway Oslo 100% 100%Statlige Bygg AS Norway Oslo 100% 100%Statlige Bygg II AS Norway Oslo 100% 100%Offentlig Bygg Namsos AS Norway Oslo 100% 100%Sandgata Eiendom Namsos AS Norway Oslo 100% 100%Postgården Eiendom Namsos AS Norway Oslo 100% 100%Public Property Sub-Holding 2 AS Norway Oslo 100% 100%Offentlig Eiendom AS Norway Oslo 100% 100%Arendal Eiendomsinvest AS Norway Oslo 100% 100%Unninvest AS Norway Oslo 100% 100%Unninvest II AS Norway Oslo 100% 100%Unninvest III AS Norway Oslo 100% 100%Stangevegen 109 Eiendom AS Norway Oslo 100% 100%Rosenkrantzgata 17 AS Norway Oslo 100% 100%Grønnegata 122 AS Norway Oslo 100% 100%Kvartal 48 Næring AS Norway Oslo 100% 100%Haakon VIIs gate 98 AS Norway Oslo 100% 100%Kongensgate 14-18 AS Norway Oslo 100% 100%Bernt Ankers gate 17 AS Norway Oslo 100% 100%Lervigsveien 32 og Tinngata 8 AS Norway Oslo 100% 100%Kammerherreløkka Næring B1 AS Norway Oslo 100% 100%Dunderland Eiendom AS Norway Oslo 100% 100%Sliptomta Eiendom AS Norway Oslo 100% 100%Mellomvika 5 AS Norway Oslo 100% 100%Askveien 4 Hønefoss AS Norway Oslo 100% 100%Rambergveien 9 AS Norway Oslo 100% 100% NOTE 17 ENTITIES AND SUBSIDIARIES The Group comprises the following legal entities at 31 December 2024. All entities, besides Bergen Etatbygg AS and Terningen Invest AS, are directly or indirectly owned 100%. PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 110 111 Subsidiaries Country Business office Voting percentage OwnershipKaldnes Park AS Norway Oslo 100% 100%Kunnskapsveien 55 AS Norway Oslo 100% 100%Jærveien 12 AS Norway Oslo 100% 100%Vogts Gate 17 AS Norway Oslo 100% 100%Jul Pettersens gate 2 AS Norway Oslo 100% 100%Public Property Sub-Holding 3 AS Norway Oslo 100% 100%HGF Invest AS Norway Oslo 100% 100%Ski Florø AS Norway Oslo 100% 100%Ski Hønefoss AS Norway Oslo 100% 100%Ski Gjøvik AS Norway Oslo 100% 100%Public Property Sub-Holding 4 AS Norway Oslo 100% 100%Anton Jenssens gate 2 AS Norway Oslo 100% 100%Heian AS Norway Oslo 100% 100%Lillehammer Politibygg AS Norway Oslo 100% 100%Ibsensgate 1 AS Norway Oslo 100% 100%Eiendomsgruppen Fredrikstad AS Norway Oslo 100% 100%Olav V Gt 4 AS Norway Oslo 100% 100%Borgergata 10 AS Norway Oslo 100% 100%Castelar Prosjekt 22 AS Norway Oslo 100% 100%Gyldengården AS Norway Oslo 100% 100%Leikanger Eiendom AS Norway Oslo 100% 100%Farmannsveien 50 AS Norway Oslo 100% 100%Olav Trygvasons Gate 4 AS Norway Oslo 100% 100%Wilbergjordet 1 AS Norway Oslo 100% 100%Jkgt2 AS Norway Oslo 100% 100%Jonas Lies Gate 20 AS Norway Oslo 100% 100%Newco 1 AS Norway Oslo 100% 100%Sandnes Offentlige Helsebygg AS Norway Oslo 100% 100%Rigedalen Invest AS Norway Oslo 100% 100%Newco 2 AS Norway Oslo 100% 100%Bergen Etatbygg AS Norway Oslo 82.6% 82.6%Newco 3 AS Norway Oslo 100% 100%Newco 4 AS Norway Oslo 100% 100%PPI CARE PROPERTIES AS Norway Oslo 100% 100%Newco 6 AS Norway Oslo 100% 100%Newco 7 AS Norway Oslo 100% 100%Newco 8 AS Norway Oslo 100% 100%Newco 9 AS Norway Oslo 100% 100%Newco 10 AS Norway Oslo 100% 100% NOTE 18 RELATED-PARTY TRANSACTIONS The Group had related transactions 2024 mentioned below: INVESTMENT PROPERTIES In April 2024 the Group completed its purchase of 13 properties, based on a property value of approximately NOK 1 640 million, and a net purchase price of shares of NOK 1 191 million, from SBB Samfunnsbygg AS. The property value of NOK 1 640 million corresponds to the average gross property value of SBB Samfunnsbygg AS’ properties (including development potential) pursuant to external valuations as of 31 December 2023. The net purchase price was reduced due to a bank loan of NOK 403 million held in the property companies acquired by the company, and adjusted for findings made in the financial, legal and technical due diligence, and balance sheet adjustments. The consideration to SBB Samfunnsbygg AS consisted of 29 855 320 shares in the company. ADJUSTMENT TO PRIOR PURCHASE PRICE OF INVESTMENT PROPERTIES Unrelated to the aforementioned property transaction, The Group also paid an additional consideration to SBB Samfunnsbygg AS due to a tenant extension, agreed on 22 March 2024, in Kunnskapsveien 55, a property acquired from SBB Samfunnsbygg AS on 28 April 2022. The extension entailed that SBB Samfunnsbygg AS was entitled to an additional consideration of NOK 72 million pursuant to the share purchase agreement originally entered into for the sale and purchase of all the shares in Kunnskapsveien 55 AS. It was agreed that the additional consideration was to be settled in the form of 1 804 189 shares. PROPERTY MANAGEMENT FEE The company receives property management fees from management agreements with Samhällsbyggnadsbolaget i Norden AB, as the company performs property, financial and other management functions for the Norwegian properties partly or wholly owned by Samhällsbyggnadsbolaget i Norden AB. OWNERSHIP Samhällsbyggnadsbolaget i Norden AB priorly owned shares of the company indirectly through SBB Samfunnsbygg AS. In the third quater of 2024, Samhällsbyggnadsbolaget i Norden AB purchased the shares from SBB Samfunnsbygg AS and now owns the shares directly. The group had no material related parties transactions in 2023. NOTE 19 EARNINGS PER SHARE Basic earnings per share is calcuated by dividing the net profit attributable to shareholders by the weighted average number of ordinary shares outstanding during the year. Public Property Invest ASA has not issued options or other financial instruments which have a dilutive effect on outstanding shares. Amounts in NOK million except for Net profit (loss) per share 2024 2023Net profit (loss) attributable to ordinary equity holders of parent company (NOK million) 10 (900)Weighted average number of shares in million 167 72 Earnings per share Net profit (loss) 0.06 (12.51) Number of shares per 31 December 2023 have been adjusted due to share split in 2024 of 1/20, to make figures comparable. PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 112 113 Number of sharesNumber of shares at 31 December 2022 71 931 660 Number of shares at 31 December 2023 71 931 660 Issue of shares in-kind 12.04.2024 1 804 189 Issue of shares in-kind 12.04.2024 29 855 320 Issue of shares IPO 25.04.2024 105 000 000 Issue of shares in-kind 14.10.2024 1 802 486 Issue of shares in kind 19.12.2024 815 119 Issue of shares in kind 20.12.2024 3 895 051 Number of shares at 31 December 2024 215 103 825 NOTE 20 SUBSEQUENT EVENTS On 1 January 2025 André Gaden assumed the position as CEO for Public Property Invest ASA. Ilija Batljan assumed the position as CIO. On 2 January 2025 PPI signed an agreement to acquire two elementary schools in Espoo in Finland for a total property value of EUR 37.1 million. The properties are approximately 10 000 sqm and are fully let, of which 94 per cent is let to the Municipality of Espoo. Both properties are newly refurbished and are certified BREEAM Very Good. The transaction was closed on 10 January 2025. On 27 January 2025 PPI signed an agreement to acquire the property Damsgårdsveien 106 in Bergen for a total property value of NOK 130.6 million. The property is approximately 4 100 sqm and is fully let to the Municipality of Bergen and the University of Bergen. The transaction was closed on 14 February 2024. On 29 January 2025, PPI issued a NOK 300 million and a SEK 250 million bond, both with 3-year tenors. The senior unsecured bonds were priced with a floating rate of NIBOR3M +175 bps and STIBOR3M +174 bps respectively. On 25 November 2024 the Group signed a share purchase agreement of a pre-school in Trelleborg for a total property value of SEK 102 million. Trelleborg is located in Skåne county in Sweden. The transaction was closed on 28 February 2025. On 28 Febuary 2025 the Group made a downpayment of Tranche B of the bank loan of NOK 485.1 million. On 7 March 2025, the Group acquired a school and a pre-school in central Helsinki in Finland with a total lettable area of approximately 5 000 square meters. On 03 April 2025, PPI tapped a NOK 200 million and a SEK 550 million bond, both with 3-year tenors. The senior unsecured bonds were priced with a floating rate of NIBOR3M +185 bps and STIBOR3M +185 bps respectively. On 03 April 2025 the Group acquired two property companies with a total lettable area of approximately 7 050 square meters. PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 114 FINANCIAL STATEMENT - PUBLIC PROPERTY INVEST ASA All amounts in NOK Note 2024 2023 OPERATING INCOME AND OPERATING EXPENSES Other income 13 568 481 0 Total income 13 568 481 0 Payroll expenses 1 (33 777 366) (2 911 023) Other operating expenses 1 (123 172 166) (8 927 920) Total expenses (156 949 532) (11 838 944) Operating profit (143 381 051) (11 838 944) Financial income and expenses Interest income from Group companies 3 923 508 0 Other interest income 18 120 779 131 034 Other financial income 36 976 590 0 Write-down of long-term investments (16 592 648) (932 319 120) Other interest expenses (8 524 581) 0 Other financial expenses (44 608 922) 0 Net financial items (10 705 274) (932 188 086) Profit (loss) before tax (154 086 325) (944 027 030) Income tax expense 2 30 242 629 2 566 515 Net profit (loss) (123 843 695) (941 460 515) Net profit (loss) attributable to: Other equity 3 (123 843 695) (941 460 51) Total income (loss) (123 843 695) (941 460 515) REVENUE STATEMENT PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 116 117 All amounts in NOK Note 2024 2023 ASSETS Non-current assets Intangible assets Deferred tax assets 2 28 122 366 961 985 Total intangible assets 28 122 366 961 985 Non-current financial assets Investments in subsidiaries 4 5 166 653 327 2 619 675 280 Loan to Group companies 2 814 900 000 0 Investment in shares 552 085 0 Total non-current financial assets 7 982 105 412 2 619 675 280 Total non-current assets 8 010 227 778 2 620 637 265 Current assets Trade receivables 15 625 0 Other current assets 12 869 709 170 577 Receivables from Group companies 198 407 363 36 474 480 Cash and cash equivalents 734 659 823 2 346 593 Total current assets 945 952 520 38 991 650 Total assets 8 956 180 298 2 659 628 915 BALANCE SHEET All amounts in NOK Note 2024 2023 EQUITY AND LIABILITIES Equity Share capital 3, 5 10 755 191 3 596 583 Share premium reserve 3 6 418 943 111 3 591 130 552 Other equity 3 (1 093 378 890) (969 535 194) Total equity 5 336 319 412 2 625 191 940 Liabilities Non-current liablities Bonds 6 3 506 910 317 0 Total non-current liabilities 3 506 910 317 0 Current liabilities Trade payables 8 214 328 2 520 298 Public duties payable 3 021 007 130 415 Liabilities to group companies 84 398 269 29 274 480 Other current liabilities 17 316 964 2 511 781 Total current liabilities 112 950 569 34 436 975 Total liabilities 3 619 860 886 34 436 975 Total equity and liabilities 8 956 180 298 2 659 628 915 BALANCE SHEET Oslo, Norway, April 22, 2025. The board of Public Property Invest ASA This document is signed electronically Silje Cathrine Hauland Member of the board Sven-Olof Johansson Member of the board Martin Mæland Chairman of the board Siv Jensen Member of the board Kenneth Bern Member of the board Andre Gaden CEO PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 118 119 All amounts in NOK Note 2024 2023 CASH FLOW FROM OPERATING ACTIVITIES Profit (loss) before tax (154 086 325) (944 027 030) Write-down of financial assets 16 592 648 932 319 120 Group interest 3 923 508 0 Change in receivables (15 625) 36 938 Change in current liabilities 5 694 030 2 447 034 Change in other working capital 4 088 249 (200 027) Exchange Rate Effects 7 630 131 0 Net cash flow from operating activities (124 020 400) (9 423 965) Cash flow from investment activities Payments on loan receivables group (short / long term) (3 217 999 666) 0 Payments on purchase of shares and capital increases (860 194 201) 0 Net cash flow from investment activities (4 078 193 867) 0 Cash flow from financing activities Group debt inflows 47 200 000 2 800 000 Group debt outflows (40 000 000) 0 Other debt inflows (Short/Long-term) 3 462 330 317 0 Paid in capital increase 1 522 500 000 0 Capital reduction (94 452 689) 0 Net cash flow from financing activities 4 897 577 628 2 800 000 Net change in liquidity in the period 695 363 361 (6 623 965) Net foreign exchange difference 36 949 869 0 Cash and cash equivalents at beginning of period 2 346 593 8 970 558 Cash and cash equivalents at end of period 734 659 823 2 346 593 The cash and cash equivalents relates to: Cash and bank deposits 734 659 823 7 146 815 Unused operating credit also amounts to 0 0 CASH FLOW STATEMENT NOTES TO THE PARENT FINANCIAL STATEMENTS ACCOUNTING PRINCIPLES The financial statements comprise of the income statement, balance sheet, cash flow and notes and are prepared in accordance with accounting, company law and generally ac- cepted accounting principles in Norway. The financial state- ments are based on the basic principles of historical cost. Transactions are booked at the value of the consideration on the transaction date. GENERAL INFORMATION Public Property Invest ASA (the "Company") and its subsidiaries' (together, the "Group") business is related to ownership of properties in Norway, and rental of office spaces, primarily to public tenants. The company was incorporated 16 August 2018, and is domiciled in Oslo, Norway. The company has 22 employees. On 22 June 2021, the company acquired all the shares in Public Property Holding AS. Following the acquisi- tions, the group was formed. CLASSIFICATION OF BALANCE SHEET ITEMS Assets intended for long term ownership or use have been classified as non current assets. Assets relating to the trading cycle have been classified as current assets. Other receivables are classified as current assets if they are to be repaid within one year after the transaction date. Similar criteria apply to liabilities. First year's instalments on long term liabilities and long-term receivables are, however, not classified as short-term liabilities and current assets. CURRENT ASSETS & LIABILITIES Current assets are valued at the lowest of acquisition cost and fair value. Short term debt is capitalised at the nominal amount at the time of borrowing. Fixed assets are valued at acquisition costs. Other fixed assets than operating assets are written down to fair value in the event of a decrease in value that is not expected to be temporary. Long- term debt is capitalised net of establishment cost at the time of establishment. Establishment cost is amortised over the commitment period. Receivables from customers and other receivables are entered at par value after deducting a pro- vision for expected losses. The provision for losses is made on the basis of an individual assessment of the respective receivables. DERIVATIVES When hedging future interest costs, where the hedging instruments are to hedge the group against variations in future cash flows, the hedging instrument is not booked in the balance sheet as long as the hedging is considered to be effective. Gains or losses are recognised as net interest income or interest expense, in line with the recognition of the hedged item in the income statement INVESTMENTS IN OTHER COMPANIES The cost method is applied to investments in other compa- nies. Transaction costs are included in the cost price. Com- panies acquired or sold during the year are included in the consolidated financial statements from the date that control is achieved and until control ceases. On consolidation, the parent company shares in subsidiaries replaced with the subsidiaries' assets and liabilities and are grouped according to the same principles as the parent company accounts. Subsidiaries are all entities over which the group has control. See note 17 in Group financial statement for a comprehen- sive list of subsidiaries. Control of an entity occurs when the group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the day on which control is trans- ferred to the group. They are deconsolidated from the date that control ceases. The cost price is increased when funds are added through capital increases or when group contributions are made to subsidiaries. Dividends received are taken directly as deduction in purchase cost. Dividend/group contribution from subsidiaries are reflected in the same year as the subsidiary makes a provision for the amount. Dividend from other companies is reflected as financial income when it has been approved. ASSET IMPAIRMENTS Impairment tests are carried out if there is indication that the carrying amount of an asset exceeds the estimated recoverable amount. The test is performed on the lowest level of fixed assets at which independent cashflows can be identified. If the carrying amount is higher than both the fair value less cost to sell and value in use (net present value of future use/ownership), the asset is written down to the high- est of fair value less cost to sell and the value in use. Previous impairment charges, except write-down of goodwill, are reversed in later periods if the conditions causing the write-down are no longer present. CASH FLOW The cash flow statement has been prepared according to the indirect method. Cash and cash equivalents include cash and bank deposits. TAXES The tax charge in the income statement includes both payable taxes for the period and changes in deferred tax. The current income tax charge is calculated on the basis of the tax laws enacted or substantially enacted at the end of the reporting period. Deferred tax is calculated at relevant tax rates on the basis of the temporary differences which ex- ist between accounting and tax values, and any carry-forward losses for tax purposes at the year-end. Tax enhancing or tax reducing temporary differences, which are reversed or may be reversed in the same period, have been eliminated. The disclosure of deferred tax benefits on net tax reducing dif- ferences which have not been eliminated, and carry-forward losses, is based on estimated future earnings. Deferred tax and tax benefits which may be shown in the balance sheet are presented net. * The Group has issued both cash and non-cash distributions throughout the year. Only the cash issued is counted towards the presented amount. PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 120 121 Income tax expense All amounts in NOK 2024 2023 Payable tax - tax effect of group contribution 0 0 Change in deferred tax (30 242 629) (2 566 515) Income tax expense (30 242 629) (2 566 515) NOTE 1 PAYROLL EXPENSES, REMUNERATION AND OTHER OPERATING EXPENSES Board of Directors Amounts in NOK Board Fees Committee fees Social security contributions Total 2024 Martin Mæland 370 685 33 699 57 018 461 402 Kenneth Frode Goovaerst Bern 266 849 47 178 44 278 358 305 Silje Cathrine Hauland 237 753 74 137 43 977 355 867 Siv Jensen 202 192 57 288 36 587 296 067 Sven-Olof Johansson 202 192 0 28 509 230 701 Arnt Rolf Hillestad 35 562 0 5 014 40 576 Gerd Ylva Göransson 35 562 0 5 014 40 576 Henrik Melder 14 164 0 1 997 16 161 Total 1 364 959 212 302 222 394 1 799 655 Overview of total renumeration to senior executives 2024 Amounts in NOK Salary Pension cost Other compensations and social costs Total remuneration 2024 Morten Kjeldby (CEO until 29.04) 1 275 000 26 000 1 786 000 3 087 000 Ilija Batljan (CEO from 29.04) 3 226 667 100 049 56 334 3 383 050 Number of employees 20 No loans have been granted or guarantees given to the board or other related parties. The company has a group pension insurance that covers all employees. The scheme is a defined contribution scheme. The company’s pension schemes satisfy the requirements of the OTP - Mandatory Occupational Pensions Scheme. Other operating costs Amounts in NOK 2024 2023 Auditors 7 792 249 3 171 081 Legal, agency and consultancy fees 21 547 105 Accounting 16 271 933 0 Other operating expenses 27 544 279 0 Contract termination fee 50 016 600 0 Total 123 172 166 3 171 081 Remuneration to auditor Amounts in NOK 2024 2023 Statutory audit 6 936 987 3 171 081 Tax advice 0 0 Other assurance services 855 261 0 Other non-audit services 0 0 Total 7 792 249 3 171 081 Income tax payable is calculates as follows All amounts in NOK 2024 2023 Profit / loss before tax (154 086 325) (944 027 030) Permanent differences (77 832 856) 932 361 050 Change in temporary differences (29 668 726) 0 Change in temporary differences (261 587 906) (11 665 980) Allocation of loss to be carried forward 153 124 997 24 808 501 Group contribution received 108 462 909 36 474 480 The year's tax base - - Overview of temporary differences All amounts in NOK Difference 2024 2023 Accounting accrual (33 869 683) 33 869 683 0 Fixed assets 4 200 957 (4 200 957) 0 Loss carried forward 153 124 997 (157 497 660) (4 372 663) Sum 123 456 272 (127 828 934) (4 372 663) Not included in the deferred tax calculation 0 0 0 Total 123 456 272 (127 828 934) (4 372 663) Deferred tax assets (22%) 27 160 380 (28 122 366) (961 985) Equity 31.12.2024 All amounts in NOK Share capital Share premium Other equity Total Total equity at 31 December 2023 3 596 583 3 591 130 552 (969 535 194) 2 625 191 940 Issues of shares in-kind 12.04.2024 1 582 975 1 261 282 957 1 262 865 933 Issue of shares IPO 25.04.2024 5 250 000 1 517 250 000 1 522 500 000 Issue of shares in-kind 21.10.2024 90 124 37 167 261 37 257 386 Issue of shares in-kind 27.12.2024 194 753 67 812 059 68 006 811 Issue of shares in-kind 27.12.2024 40 756 17 973 379 18 014 135 Issue costs net of tax (73 673 097) (73 673 097) Profit (loss) for the period (123 843 695) (123 843 695) Total equity at 31 December 2024 10 755 191 6 418 943 111 (1 093 378 890) 5 336 310 412 NOTE 2 TAX NOTE 3 EQUITY CAPITAL Deferred tax asset is recognised as it is probable that future taxable profits will be sufficient to utilise the tax benefit. PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 122 123 All amounts in NOK Ownership Net profit of the year Share capital Carrying amount Public Property Holding AS 100% (727 249 044) 5 144 334 941 5 161 765 778 Public Property Drift AS 100% 208 605 539 236 337 200 PPI Forvaltning AS 100% (923 358) 4 189 411 4 550 349 Loan facility Loan origination date Principal in local currency Carrying value 31.12.2024 Carrying value 31.12.2023 Bond loan 12.12.2024 NOK (3 540 780 000) 0 Accrued financing costs 31.12.2024 NOK 33 869 683 0 Total NOK (3 506 910 317) 0 Shares owned by the Directors of the Board and the CEO Shares controlled by board members Position Control directly % holding Shares Martin Mæland 1) Board Chariman Directly 0.05% 100 000 Kenneth Frode Goovaerts Bern 2) Board Member Indirectly 1.52% 3 274 320 Sven-Olof Johansson 3) Board Member Indirectly 0% - Silje Cathrine Hauland 4) Board Member Directly 0.02% 40 000 Siv Jensen Board Member Indirectly 0% - Ilija Batljan Interim CEO Directly 0.1% 125 000 Sum shares controlled by board members and CEO 1.65% 3 539 320 Ownership structure Shareholder % holding Country Shares Samhällsbyggnadsbolaget i Norden AB 35.16% Sweden 75 631 366 Skagen Vekst Verdipapirfond 4.18% Norway 8 991 411 Verdipapirfondet DnB Norge 2.99% Norway 6 441 107 Avanza Bank AB 2.18% Sweden 4 684 082 Kverva Finans AS 2.06% Norway 4 427 618 Centra Capital AS 1.76% Norway 3 793 103 First Nordic Real Estate 1.76% Norway 3 777 980 Centra Invest AS 1.74% Norway 3 747 950 Sagacia AS 1.67% Norway 3 598 320 Verdipapirfondet Fondsfinans Norge 1.57% Norway 3 372 931 Total 10 largest shareholders 55.07% 118 465 868 Other shareholders 44.93% 96 637 957 Total 100% 215 103 825 NOTE 4 INVESTMENTS IN SUBSIDIARIES NOTE 6 INTEREST BEARING LIABILITIES NOTE 7 SUBSEQUENT EVENTS NOTE 5 SHARE CAPITAL AND SHAREHOLDER INFORMATION The company is located in Oslo Municipality. The consolidated financial statements are prepared by Public Property Invest ASA. 1) Martin Mæland represents 0.05 percent, directly through Brimar AS. 2) Kenneth Frode Goovaerts Bern represents 1.52 per cent indirectly through Telecom AS. 3) Sven-Olof Johansson represents 2.54 per cent indirectly through Samhällsbyggnadsbolaget i Norden AB 4) Silje Cathrine Hauland represents 0.02 per cent directly through Gatekeeper AS, and 0.32 per cent indirectly as CEO of Chrisanic Eiendom AS. On 12 December 2024, the company secured a bond loan of EUR 300 million. The euro-bond is issued under the Groups EMNT-program and is listed on Euronext Dublin. The loan has a term of five years and three months, with an option for extension. The interest rate is 4.625 percent per annum, fixed rate. The share capital in Public Property Invest ASA as of 31/12/2024 consists of: Ordinary shares issued 215 103 825 Nominal amount in NOK 0.05 Share capital in NOK 10 755 191 On 1 January 2025 André Gaden assumed the position as CEO for Public Property Invest ASA. Ilija Batljan assumed the position as CIO. On 29 January 2025, PPI issued a NOK 300 million and a SEK 250 million bond, both with 3-year tenors. The senior- unsecured bonds were priced with a floating rate of NIBOR3M +175 bps and STIBOR3M +174 bps respectively. On 03 April 2025, PPI tapped a NOK 200 million and a SEK 550million bond, both with 3-year tenors. The senior- unsecuredbonds were priced with a floating rate of NIBOR3M +185 bpsand STIBOR3M +185 bps respectively. PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 124 125 PricewaterhouseCoopers AS, Dronning Eufemias gate 71, Postboks 748 Sentrum, NO-0106 Oslo T: 02316, org. no.: 987 009 713 MVA, www.pwc.no Statsautoriserte revisorer, medlemmer av Den norske Revisorforening og autorisert regnskapsførerselskap To the General Meeting of Public Property Invest ASA Independent Auditor’s Report Report on the Audit of the Financial Statements Opinion We have audited the financial statements of Public Property Invest ASA, which comprise: ● the financial statements of the parent company Public Property Invest ASA (the Company), which comprise the balance sheet as at 31 December 2024, the revenue statement and cash flow statement for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and ● the consolidated financial statements of Public Property Invest ASA and its subsidiaries (the Group), which comprise the statement of financial position as at 31 December 2024, the statement of comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended, and notes to the financial statements, including material accounting policy information. In our opinion ● the financial statements comply with applicable statutory requirements, ● the financial statements give a true and fair view of the financial position of the Company as at 31 December 2024, and its financial performance and its cash flows for the year then ended in accordance with the Norwegian Accounting Act and accounting standards and practices generally accepted in Norway, and ● the consolidated financial statements give a true and fair view of the financial position of the Group as at 31 December 2024, and its financial performance and its cash flows for the year then ended in accordance with IFRS Accounting Standards as adopted by the EU. Our opinion is consistent with our additional report to the Audit Committee. Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company and the Group as required by relevant laws and regulations in Norway and the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. To the best of our knowledge and belief, no prohibited non-audit services referred to in the Audit Regulation (537/2014) Article 5.1 have been provided. We have been the auditor of Public Property Invest ASA for 4 years from the election by the general meeting of the shareholders on 11 August 2021 for the accounting year 2021. Key Audit Matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. 2 / 5 Key Audit Matters How our audit addressed the Key Audit Matter Valuation of investment properties The majority of the Group’s assets consist of investment properties. Primarily these are socially beneficial properties with public -sector tenants. As at 31 December 2024, the book value of the investment properties is MNOK 10 880. Investment properties are measured at fair value. Fair value adjustments can significantly impact the Group's results , and consequently its equity. F air value is estimated using assumptions and property specific information, such as lease terms, expected future cash flows, and yield . Estimating fair values and determining the underlying assumptions require application of management's judgment . Management uses an external valuation firm to prepare the estimate. We consider ed the valuation of investment properties to be a key focus area due to the substantial amounts involved and the considerable management judgment required. For details on the valuation methodology and further information on investment properties, please refer to the Board of Directors' report and note 3 (summary of significant accounting policies), and 9 (critical accounting estimates and judgements - investment property) to the consolidated financial statements. We obtained, read, and understood the valuation reports prepared by the external valuation firm and met with them independently of the Group's management. We assessed whether the reports were prepared in accordance with the relevant accounting framework and were suitable for determining the fair value of the Group's investment properties. We evaluated the qualifications, competence, and objectivity of the valuation firm. Additionally, we reviewed their terms of engagement to identify any unusual terms that might affect their objectivity or impose scope limitations on their work. In our meetings with the valuation firm, we discussed and challenged the applied assumptions , particularly assumptions relating to cash flows and yield. We compared the assumptions to observable market data and our industry knowledge. We also evaluated whether assumptions not readily observable in the marketplace were reasonable. For a sample of investment properties, we tested whether the property specific information provided by management to the valuation firm, such as lease terms, duration, and vacant areas, was consistent with the underlying property information and contracts . Furthermore, we agreed the underlying information to the received valuation reports. We obtained the valuation reports directly from the valuation firm and compared them to the reports we received from management . We noted no material deviations or inconsistencies during our audit procedures. We assessed the disclosures in notes 3 and 9 to the consolidated financial statements and found them to be adequate and appropriate. PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 126 127 3 / 5 Other Information The Board of Directors and the Managing Director (management) are responsible for the information in the Board of Directors’ report and the other information accompanying the financial statements. The other information comprises information in the annual report but does not include the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the information in the Board of Directors’ report nor the other information accompanying the financial statements. In connection with our audit of the financial statements, our responsibility is to read the Board of Directors’ report and the other information accompanying the financial statements. The purpose is to consider if there is material inconsistency between the Board of Directors’ report and the other information accompanying the financial statements and the financial statements or our knowledge obtained in the audit, or whether the Board of Directors’ report and the other information accompanying the financial statements otherwise appears to be materially misstated. We are required to report if there is a material misstatement in the Board of Directors’ report or the other information accompanying the financial statements. We have nothing to report in this regard. Based on our knowledge obtained in the audit, it is our opinion that the Board of Directors’ report ● is consistent with the financial statements and ● contains the information required by applicable statutory requirements. Our opinion on the Board of Directors' report applies correspondingly to the statement on Corporate Governance. Responsibilities of Management for the Financial Statements Management is responsible for the preparation of financial statements of the Company that give a true and fair view in accordance with the Norwegian Accounting Act and accounting standards and practices generally accepted in Norway, and for the preparation of the consolidated financial statements of the Group that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU. Management is responsible for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Company’s and the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern. The financial statements of the Company use the going concern basis of accounting insofar as it is not likely that the enterprise will cease operations. The consolidated financial statements of the Group use the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations or has no realistic alternative but to do so. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also: 4 / 5 ● identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error. We design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. ● obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's and the Group's internal control. ● evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. ● conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's and the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company and the Group to cease to continue as a going concern. ● evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves a true and fair view. ● obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with the Board of Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the Audit Committee with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied. From the matters communicated with the Board of Directors, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 128 129 ALTERNATIVE PERFORMANCE MEASURES PPI’s financial information is prepared in accordance with IFRS Acccounting standards as adopted by EU. In addition, the Group reports Alternative Performance Measures (APMs) that are regularly reviewed by management to enhance the understanding of the Group’s performance as a supplement, but not as a substitute, to the financial statements prepared in accordance with IFRS. Net Operating Income (NOI) Amounts in NOK million 2024 2023 Rental income 662 575 Other income 3 0 Property expenses (67) (75) NOI 598 501 NOI% 90% 87% EBITDA Amounts in NOK million 2024 2023 Net income from property management 270 223 Net realised financials 261 247 EBITDA 532 470 Interest Coverage Ratio (ICR) Amounts in NOK million 2024 2023 EBITDA 532 470 Net realised financials (261) (247) ICR 2.0 1.9 Unencumbered Asset Ratio Amounts in NOK million 31.12.2024 Unencumbered asset 6 278 Financial Assets 1 Accounts Receivable and Other Receivables 28 Derivatives 6 Total Unencumbered Assets 6 312 Unsecured Loans 3 541 Cash and Cash Equivalents (968) Net Unsecured Senior Debt 2 573 Unencumbered Asset Ratio 2.45 5 / 5 Report on Other Legal and Regulatory Requirements Report on Compliance with Requirement on European Single Electronic Format (ESEF) Opinion As part of the audit of the financial statements of Public Property Invest ASA, we have performed an assurance engagement to obtain reasonable assurance about whether the financial statements included in the annual report, with the file name ppiasa-2024-12-31-en.zip, have been prepared, in all material respects, in compliance with the requirements of the Commission Delegated Regulation (EU) 2019/815 on the European Single Electronic Format (ESEF Regulation) and regulation pursuant to Section 5-5 of the Norwegian Securities Trading Act, which includes requirements related to the preparation of the annual report in XHTML format, and iXBRL tagging of the consolidated financial statements. In our opinion, the financial statements, included in the annual report, have been prepared, in all material respects, in compliance with the ESEF regulation. Management’s Responsibilities Management is responsible for the preparation of the annual report in compliance with the ESEF regulation. This responsibility comprises an adequate process and such internal control as management determines is necessary. Auditor’s Responsibilities For a description of the auditor’s responsibilities when performing an assurance engagement of the ESEF reporting, see: https://revisorforeningen.no/revisjonsberetninger Oslo, 22 April 2025 PricewaterhouseCoopers AS Chris H. Jakobsen State Authorised Public Accountant (This document is signed electronically) PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 130 131 Summary table EPRA performance measures Unit 2024 2023 A EPRA Earnings per share NOK 0.89 2.03 B EPRA NRV per share NOK 27.18 40.58 C EPRA LTV % 46.7% 65.1% EPRA REPORTING The following performance indicators have been prepared in accordance with best practices as defined by EPRA (Europe- an Public Real Estate Association) in its latest edition of the Best Practices Recommendations Guidelines. The EPRA Best Practices Recommendations Guidelines focus on making the financial statements of public real estate companies clearer and more comparable across Europe. For further information about EPRA, see epra.com The details for the calculation of the performance measures are shown on the following pages. A. EPRA EARNINGS EPRA Earnings is a measure of the operational performance of the property portfolio. EPRA Earnings is calculated based on the condensed consolidated statement of comprehen- sive income and the condensed consolidated statement of financial position. EPRA earnings are adjusted for fair value changes on investment properties, changes in the fair value of interest derivatives, and non-recurring costs not considered a part of core business, as well as the associated tax effects. Amounts in NOK millions 2024 2023 Net profit (loss) 13 (900) Adjustments to calculate EPRA Earnings: Changes in fair value of investment properties (34) (1 143) Changes in fair value of interest rate derivatives 9 (25) Transaction costs (99) - Deferred tax investment properties (32) 116 Deferred tax interest rate derivatives (2) 5 Deferred tax transaction costs 22 - EPRA earnings 149 146 Weighted average number of shares in millions 167 72 EPRA Earnings per Share (EPRA EPS) (NOK) 0.89 2.03 Number of shares per 31 December 2023 have been adjusted due to share split in 2024 of 1/20, to make figures comparable. Amounts in NOK million 31.12.2024 31.12.2023 Bond loans (nominal) 5 376 2 273 Bank loans (nominal) 628 3 256 Capitalised borrowing costs (41) (24) Net Payables 84 47 Cash and cash equivalents (968) (123) Net debt 5 078 5 430 Fair value of investment properties 10 880 8 336 EPRA LTV 46.7% 65.1% *Net payables is defined as trade payables, other current and non-current liabilities, less trade receivables, and other current assets. C. EPRA LTV EPRA LTV is a metric to determine the percentage of net debt compared to the ap- praised value of the properties. B. EPRA NET ASSET VALUE (NAV) METRICS EPRA Net Reinstatement Value (NRV) The objective of the EPRA NRV measure is to highlight the value of net assets on a long-term basis and assumes that no sales of assets takes place. Assets and liabilities that are not expected to be realised as cash in normal circumstances such as the fair value movements on financial derivatives and deferred taxes on property valuation surpluses are therefore excluded. Amounts in NOK millions 31.12.2024 31.12.2023 IFRS Equity attributable to shareholders 5 714 2 850 Net Asset Value (NAV) at fair value 5 714 2 850 Deferred tax investment properties 137 71 Deferred tax interest rate & FX derivatives 1 1 Interest rate & FX derivatives (5) (3) Net Reinstatement Value (EPRA NRV) 5 846 2 919 Outstanding shares at period end (million) 215.1 71.9 EPRA NRV per share (NOK) 27.18 40.6 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 132 133 Name/Adress Segment City Largest tenant segment Tenure Built / Redeveloped No of sqm Occupancy Carl Gulbransons gate 4 Central Namsos Vacant Freehold 1991 2 804 0% Sandgata 13 Central Namsos Police Freehold 2018 1 669 100% Rosenkrantzgata 17 East Drammen Healthcare Freehold 1960, 2000 5 143 100% Wilbergjordet 1 East Fredrikstad Municipality / County Municipality Freehold 2000/2004 6 364 97% Bryggeriveien East Fredrikstad Municipality / County Municipality Freehold 1970 5 592 100% Gunnar Nilsens 25 East Fredrikstad Police Freehold 1992 4 370 100% Brochs Gate 3 East Fredrikstad Courts of Norway Freehold 1967 4 134 96% Olav Vs gate 4 East Halden Police Freehold 1979 3 470 100% Borgergata 10 East Halden Vacant Freehold 1750 950 0% Kvartsveien 14 East Halden Education Freehold 2008 687 100% Norderhovsgate 23 East Hønefoss Courts of Norway Freehold 2000 2 366 100% Kunnskapsveien 55 East Lillestrøm Education Freehold 1972, 2000 27 135 100% Jonas Lies Gate 20 East Lillestrøm Police / Courts of Norway Freehold 1990/2009 12 660 100% Vogts gate 17 East Moss Government agency Freehold 1993 10 887 89% Bernt Ankers gate 17 East Moss Norwegian Tax Admin- istration Freehold 2019 9 502 100% Prins Chr. Augusts plass East Moss Police Freehold 2003 5 042 98% Kammerherreløkka 2 East Porsgrunn Municipality / County Municipality Freehold 2000 4 439 95% Rådhusgata 5 East Porsgrunn Municipality / County Municipality Freehold 1984 4 074 80% Søebergtorget 4 East Sandefjord Police Freehold 1981 16 671 98% Teksleåsen 3 East Sandefjord Education Freehold 2009 1 014 100% Sigvat Skalds gt. 5 East Sarpsborg Police / Courts of Norway Freehold 1997 6 960 100% Myren 7 East Skien Police Freehold 1980/1990 8 702 100% Gjerpensgate 14 East Skien Healthcare Freehold 1970, 1993, 1997 6 909 88% Gjerpensgate 18 og 16 East Skien Courts of Norway Freehold 1970, 1993, 1997 6 679 100% Gjerpensgate 10 East Skien Government agency Freehold 1970, 1993, 1997 5 392 100% Myren 12 East Skien Norwegian Tax Admin- istration Freehold 2010 4 233 100% PROPERTY PORTFOLIO Name/Adress Segment City Largest tenant segment Tenure Built / Redeveloped No of sqm Occupancy Gjerpensgate 20 East Skien Government agency (parking) Freehold - - 100% Anton Jenssens gate 2 East Tønsberg Healthcare Freehold 1991, 2017, 2019 15 729 98% Rambergveien 9 East Tønsberg Government agency Freehold 2005 9 560 100% Olav Trygvasons gate 4 East Tønsberg Healthcare Freehold 1916/1989 8 381 44% Anton Jenssens gate 8 East Tønsberg Norwegian Tax Admin- istration Freehold 1970/2003 5 487 100% Anton Jenssens gate 5 East Tønsberg Government agency Freehold 1970/1994 5 251 92% Anton Jenssens gate 4 East Tønsberg Healthcare Freehold 1975/2007 5 165 100% Anton Jenssens gate 1 East Tønsberg Municipality / County Municipality Freehold 1981/1999 3 570 99% Anton Jenssens gate 7 East Tønsberg Government agency Freehold 1973/1986 2 701 72% Anton Jenssens gate 3 East Tønsberg Vacant Freehold 1970/1994 2 499 1% Anton Jenssens gate 9 East Tønsberg Courts of Norway Freehold N/A 2 190 100% Rambergveien 5 East Tønsberg Private Freehold 1994 1 065 48% Anton Jenssens gate 13 East Tønsberg Private Freehold 1927/2019 513 100% Ibsensgate 1 Inland Gjøvik Police Freehold 2000 4 742 100% Gjøvik Tingrett Inland Gjøvik Courts of Norway Freehold 2009 2 197 100% Torggata 44 Inland Hamar Norwegian Tax Admin- istration Freehold 1970 6 129 97% Stangeveien 109 Inland Hamar Government agency Freehold 2009 4 514 100% Askveien 4 Inland Hønefoss Police Freehold 1986 3 531 100% Otervegen 23 Inland Kongsvinger Government agency Freehold 1987 12 265 100% Storgata 129 Inland Lillehammer Police Freehold 1978 4 179 100% Lillehammer Tinghus Inland Lillehammer Courts of Norway Freehold 2000 2 507 100% Altaveien 220C North Alta Education Freehold 2003 557 100% Komsahøyden 5 North Alta Education Freehold 1994 515 100% Nordstrandveien 41 North Bodø Municipality / County Municipality Freehold 1975, 1988 10 190 99% Haakon VIIs gate 98 North Bodø Norwegian Labour and Welfare Administration Freehold 2000 5 898 100% Johan Knudtzens gate 2B North Kirkenes Police Freehold 2021 1 643 100% Mellomvika 5 North Mo i Rana Municipality / County Municipality Freehold 1990 4 552 100% Nytorget 1 North Mo i Rana Courts of Norway Freehold 2000 2 878 75% Midtre gate 9 North Mo i Rana Police Freehold 2000 2 800 100% Kongensgate 14-18 North Narvik Police Freehold 1970/1980 7 309 82% PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 134 135 Name/Adress Segment City Largest tenant segment Tenure Built / Redeveloped No of sqm Occupancy Grønnegata 122 North Tromsø Norwegian Labour and Welfare Administration Freehold 1961 5 848 99% Jervvegen 128 North Tromsø Education Freehold 2006 556 100% Holthes vei 4 South Arendal Norwegian Labour and Welfare Administration Freehold 2000 3 548 100% Holthes vei 1 South Arendal Norwegian Labour and Welfare Administration Freehold 2000 3 251 100% Blødekjær 1 South Arendal Courts of Norway Freehold 2000 2 836 100% Gyldenløves gate 23 South Kristiansand Municipality / County Municipality Freehold 2010 13 185 93% Rigedalen 5 / Rigetjøn- nveien 31 South Kristiansand Government agency Freehold 2008 6 421 100% Josefinestien 16 South Sokndal Education Freehold 1999/2004- 2009/2013 674 100% Strandgaten 229 West Bergen Government agency Freehold 1989 8 748 100% Underbakken 27 West Etne Education Freehold 2008 1 480 100% Strandveien 13 West Florø Police Freehold 2000 4 163 100% Njøsavegen 2 West Leikanger Government agency Freehold 2000 5 881 100% Leikanger Eiendom West Leikanger Norwegian Labour and Welfare Administration Freehold 1974 4 491 100% Jærveien 33 West Sandnes Municipality / County Municipality Freehold 1961/2024 4 690 100% Jærveien 12 West Sandnes Government agency Freehold 2010 2 569 80% Fjørevegen 20 West Sogndal Police Freehold 2000 3 557 100% Novarmen 10 West Sola Education Freehold 1991 1 231 100% Chr Thorings veg 12 West Stavanger Government agency Freehold 2000 5 005 100% Tinngata 8 West Stavanger Norwegian Labour and Welfare Administration Freehold 1980/1990 4 491 100% Lervigsveien 32 West Stavanger Municipality / County Municipality Freehold 1980/1990 1 136 71% Total management portfolio 390 127 Jonas lies Gate East Lillestrøm Freehold Farmannsveien East Tønsberg Freehold Wilbergjordet 1 East Fredrikstad Freehold Anton Jenssens gate 11 East Tønsberg Freehold 4 438 Total development portfolio 4 438 Total portfolio 394 565 EPRA LTV Net debt divided by total property value. Property values are included at fair value, net debt at nominal value. EPRA NAV Net Asset Value, the total equity that the company manages for its owners. PPI presents NAV calculations in line with EPRA recommendation, where the difference mainly is explained by the expected turnover of the property portfolio. Fair value of portfolio The fair value of all properties owned by the parent company and subsidiaries assessed by an inde- pendent appraiser. ICR Interest Cover Ratio, the ratio of EBITDA to Net Interest Cost based on last twelve months. Independent appraiser Cushman & Wakefield. LTV Net debt divided by total assets. Occupancy Annual rental income of the management properties, divided by the annual rental income and estimated market rent of vacant area. Property related expenses Property related expenses include administrative costs related to the management of the proper- ties as well as operating and maintenance costs. Swap A swap is an agreement between two parties to exchange sequences of cash flows for a set period of time. Unencumbered Asset Ratio Unencumbered assets divided by unsecured loans minus, cash and cash equivalents. Used to assess unencumbered assets in relation to unsecured senior interest-bearing debt. WAULT Weighted Average Unexpired Lease Term measured as the remaining contractual rent amounts of the current lease contracts of the investment properties of the Group, including areas that have been re-let and signed new contracts, adjusted for termination rights and excluding any renewal options, divided by Contractual rent, including renewed and signed new contracts. Yield % - normalised Annualised net rent divided by the market value of the management properties of the Group DEFINITIONS PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 136 137 publicproperty.no 254900QSCB9T0W2KE8862024-01-012024-12-31254900QSCB9T0W2KE8862023-01-012023-12-31254900QSCB9T0W2KE8862024-12-31254900QSCB9T0W2KE8862023-12-31254900QSCB9T0W2KE8862022-12-31254900QSCB9T0W2KE8862022-12-31ifrs-full:IssuedCapitalMember254900QSCB9T0W2KE8862023-01-012023-12-31ifrs-full:IssuedCapitalMember254900QSCB9T0W2KE8862023-12-31ifrs-full:IssuedCapitalMember254900QSCB9T0W2KE8862022-12-31ifrs-full:SharePremiumMember254900QSCB9T0W2KE8862023-01-012023-12-31ifrs-full:SharePremiumMember254900QSCB9T0W2KE8862023-12-31ifrs-full:SharePremiumMember254900QSCB9T0W2KE8862022-12-31ifrs-full:RetainedEarningsMember254900QSCB9T0W2KE8862023-01-012023-12-31ifrs-full:RetainedEarningsMember254900QSCB9T0W2KE8862023-12-31ifrs-full:RetainedEarningsMember254900QSCB9T0W2KE8862022-12-31ifrs-full:NoncontrollingInterestsMember254900QSCB9T0W2KE8862023-01-012023-12-31ifrs-full:NoncontrollingInterestsMember254900QSCB9T0W2KE8862023-12-31ifrs-full:NoncontrollingInterestsMember254900QSCB9T0W2KE8862024-01-012024-12-31ifrs-full:IssuedCapitalMember254900QSCB9T0W2KE8862024-12-31ifrs-full:IssuedCapitalMember254900QSCB9T0W2KE8862024-01-012024-12-31ifrs-full:SharePremiumMember254900QSCB9T0W2KE8862024-12-31ifrs-full:SharePremiumMember254900QSCB9T0W2KE8862024-01-012024-12-31ifrs-full:RetainedEarningsMember254900QSCB9T0W2KE8862024-12-31ifrs-full:RetainedEarningsMember254900QSCB9T0W2KE8862024-01-012024-12-31ifrs-full:NoncontrollingInterestsMember254900QSCB9T0W2KE8862024-12-31ifrs-full:NoncontrollingInterestsMemberiso4217:NOKiso4217:NOKxbrli:shares