Public Property Invest ASA – Strong operational performance and financial position

Public Property Invest ASA delivered net operating income (NOI) of NOK 279 million in the first half-year of 2024, corresponding to an NOI margin of 89.4 per cent. This represents a 6.5 per cent increase from NOK 262 million in the same period last year, driven by new acquisitions and CPI adjustments.

During the reporting period, Public Property Invest (PPI) completed the acquisition of 13 properties from Samhällsbyggnadsbolaget i Norden AB. The annualised run rate at 30 June, including the newly acquired properties, was NOK 692 million, based on signed agreements at period-end.

Public Property Invest ASA was listed on the Oslo Stock Exchange on 29 April 2024. In connection with the IPO, the company raised NOK 1 336 million in net proceeds, of which NOK 1 020 million will be used to repay debt. In parallel, PPI refinanced all its liabilities and 70 per cent of its debt is now at fixed rates, with extended maturities. During the first half-year, LTV improved to 40.2 per cent from 64.9 per cent at the end of 2023.

“In connection with the IPO, the company refinanced its debt and extended all maturities, raised new equity and closed a large real estate transaction with Samhällsbyggnadsbolaget. PPI will position itself as a leading consolidator with low leverage, high growth ambitions and an attractive dividend policy,” says Ilija Batljan, Interim CEO of Public Property Invest ASA.

Today, PPI owns 61 assets with a total property value of NOK 9.8 billion and an average lease term of 4.8 years (WAULT) and a net yield of 6.3 per cent. Since the peak in 2022, the company has taken fair value adjustments of approximately 22 per cent.

“Over the past few months, we have identified a good pipeline of possible transactions to further grow the company, both in Norway and in the Nordics. With our strong balance sheet and our experienced team, we should be able to take a pole position in consolidating the Norwegian project syndicate market,” Batljan adds.

The presentation material and report for the first half of 2024 are attached to this notice.

CEO Ilija Batljan, CFO Ylva Göransson and EVP Finance and ESG Marianne Aalby will present the results in a webcast at 10:00 CEST today, Thursday 11 July 2024.

Please use the following link to register and view the webcast: https://players.brightcove.net/4628382152001/experience_667d39f5612b25e9853a2df0/share.html.

A Q&A session will follow the presentation, and questions may be submitted by sending an email to [email protected].

For further inquiries, please contact:

Ilija Batljan, interim CEO, [email protected]
Ylva Göransson, CFO, [email protected]

About PPI

Public Property Invest was established in 2021 with a long-term strategy of owning, operating, and developing socially beneficial properties in Norway.

Its portfolio of properties is characterized by strong tenants within the public sector, such as the police, judiciary functions and public health organizations, on long lease contracts and a high occupancy rate.

Public Property Invest's portfolio consists of more than 368,000 sqm across 61 properties which had an aggregate estimated value of around NOK 9,976 million as of 31 December 2023. It has more than 125 tenants in 26 cities.

In the medium to long term, Public Property Invest is expected to generate NOK 690 million in normalised run-rate rental income, of which public tenants constitute approximately 92 per cent. The company intends to be an active consolidator in the market. With a strong balance sheet, it pursues an opportunistic growth strategy.

This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act. The information was submitted for publication, through the agency of the contact person set out above, at 07:00 CEST on 11 July 2024.