Q3 -24: Solid results and financial position, growth agenda on track

Rental income was up by 18.6% to NOK 173 million in Q3 2024 compared to NOK 145 million in Q3 2023. The increase is driven by the acquisition of 13 properties in Q2 2024 and from CPI adjustments of the lease contracts. Net operating income (NOI) was NOK 157 (NOK 129) million in the quarter, net income from property management was NOK 81 million (NOK 56 million) and profit (loss) before tax came in at NOK 30 million (NOK -305 million).

Since peak in 2022, the company has taken negative fair value adjustments of the portfolio of approximately 22 per cent. The valuations are now expected to have reached the bottom of the cycle, and the portfolio had slightly positive underlying value changes in the quarter. EPRA NRV per share increased from 26.0 to 26.2 in the quarter.

PPI renewed leases for 4,640 sqm in the quarter and as of 30.09.24 the portfolio occupancy was 96.7%, stemming from 92% government tenants. As of the same date, PPI owned 61 properties with a total value of NOK 9.9 billion, an average lease term of 4.6 years (WAULT) and a net yield of 6.5 per cent.

PPI has a strong balance sheet and loan to value was 42.5 per cent at 30.09.24. PPI has a conservative financial policy and a target to maintain the Net debt/ EBITDA multiple below 9. As of 30.09.24 the Net debt/Run rate EBITDA multiple was 7.8.

In October, PPI announced the acquisition of Jærveien 33 in Sandnes/Stavanger for a total of NOK 139 million, where the equity was settled through issuing approximately 1.8 million new shares in PPI. In line with the communicated strategy of being a leading consolidator of social infrastructure properties in the Norwegian market, PPI is continuously pursuing further transactions.

Management will present the results in a webcast, followed by a Q&A session today at 10:00 CET. The webcast may be followed from: https://publicproperty.no/en/investor-relation.

Questions may be submitted by sending an email to [email protected].