ANNUAL REPORT
2024
Pioneer Property Group ASA
3
Board of directors’ report
Notes to the consolidated statements
10
Consolidated statement of Comprehensive Income
48
Alternative Performance Measures (APMs)
11
Consolidated statement of Financial Position - Assets
49
Annual report Pioneer Property Group ASA (parent)
12
Consolidated statement of Financial Position - Equity
and Liabilities
61
Auditors report
13
Consolidated statement of Change in Equity
14
Consolidated statement of Cash Flow
Contents
3
PIONEER PROPERTY GROUP ASA
The board of directors’ report for Pioneer Property Group ASA
(PPG) 2024
Highlights of the report
Contractual revenue for 2024 was MNOK 134.4 compared to
MNOK 108.2 in 2023, an increase of 24%. The rental income has
increased due to the acquisition of Norlandia Holding,
accounted as an subsidiary from October 24. In addition to the
acquisitions, the rent is also CPI-adjusted, which was 4.8% for
2024.
Total revenue for 2024 was MNOK 134.8 (MNOK 126.2 in 2023).
Pre-tax profit for 2024 was MNOK 145.1 compared to MNOK
26.6 for 2024.
PPG acquired shares in Norlandia Holding As, bringing total
shareholdings up to 85% and the company is now regarded as a
subsidiary. Furthermore, PPG added two development
properties over the period and acquired 50% ownership in
Havna Tjøme AS.
PPG paid four quarterly dividends to the holders of preference
shares in total NOK 10 per preference share and additional
dividends of 6.09 per share held by Eidissen Consult AS and
Grafo AS.
Operations and strategy
. PPG is a
, the
Company's registered office is Rådhusgata 23, 0158
,
. PPG has since the beginning of 2020 expanded its real
estate activities into new area s. The current portfolio contains
different segments, PPG reports based on the characteristics of
the properties and hence report on the following segments:
1.
Preschools
2.
Hotel Properties
3.
Retail Properties
4.
Property Development
5.
Office Properties
The focus area for PPG will be to continue to invest in real estate
within these segments and seek to enter into long-term triple-
net leases with leading operators. The market conditions for
2024 has been demanding for real estate on a general basis with
increasing interest rates, resulting in less net cash flow from the
investment portfolio. The general conditions for the real estate
market are viewed as stable . The cash flows and result going
forward are impacted by the uncertainty related to the interest
rate levels.
On the other hand, other factors such as higher estimated CPI
adjustments and market rent expectations is positive factors for
real estate investments. The board expects an increase in rent
levels for 2025 for the investment properties.
PPG's real estate portfolio per year-end 2024 consisted of three
properties in the Preschools segment, eight properties in the
Retail properties segment, one office property , eight properties
in the Property development segment and seventeen properties
in the Hotel properties segment, an increase of eleven
properties from 2023 due to the acquisition of Norlandia
Holding AS.
Key material events during 2024
During 2024, PPG has declared quarterly dividends to the
holders of preference shares in total NOK 10.00 per preference
share. As per the articles of association §5, the annual preferred
dividend to the holders of preference share is 2.500 per quarter.
Furthermore PPG paid additional dividends of NOK 6.09 per
share held by Eidissen Consult AS and Grafo AS.
In 2024, PPG has increased the real estate income mainly due to
the acquisition of Norlandia Holding AS. PPG has further
increased its investments within the hotel segment, entering
into a joint venture with Rica Eiendom AS of owning a hotel
located in Tjøme. This investment was made through the joint
venture company JV Havna Tjøme AS and is recognized
according to the equity method.
Norlandia Holding AS is a hotel property company owning 11
hotel properties with total assets of MNOK 884 and total debt of
MNOK 491. The book value of the properties are MNOK 717 and
the portfolio consist of approx. 52 000 sqm. The properties
generated a total lease income of MNOK 63.9 in 2024, of which
MNOK 21.1 is accounted as total income after the transaction.
The transaction is regarded as an asset purchase. The hotels are
in Norway and are mainly operated by Norlandia Hotel Group.
The second largest transaction was the purchase of land in close
proximity to Gardermoen, let out to Dalen Parking. The property
value was MNOK 50.
Additionally, PPG added one development property in Mo i Rana
nearby to the new airport in Mo i Rana, Fagerlia Airport.
Preschools
ANNUAL REPORT 2024
4
Preschool (NOKt)
2024
2023
Total Income
7 029
6 719
Fair value adjustment on investment properties
2 500
-9 500
Operating profit/loss (EBIT)
9 039
-3 436
Investment properties
109 000
106 500
Cash and cash equivalents
3 877
6 852
Retail Properties (NOKt)
2024
2023
Total Income
34 581
33 345
Fair value adjustment on investment properties
-306
-25 370
Operating profit/loss (EBIT)
28 670
502
Investment properties
473 000
438 000
Cash and cash equivalents
5 696
8 105
Hotel Properties (NOKt)
2024
2023
Total Income
68 390
57 758
Fair value adjustment on investment properties
131 173
-60 404
Operating profit/loss (EBIT)
180 783
-5 236
Investment properties
1 523 078
766 000
Cash and cash equivalents
46 256
23 953
Office Properties (NOKt)
2024
2023
Total Income
4 344
3 774
Fair value adjustment on investment properties
2 554
-9 760
Operating profit/loss (EBIT)
5 969
-6 966
Investment properties
63 000
61 000
Cash and cash equivalents
8
354
Property Development (NOKt)
2024
2023
Total Income
20 316
11 891
Fair value adjustment on investment properties
-2 530
58 471
Operating profit/loss (EBIT)
4 483
65 467
Investment properties
474 528
385 756
Cash and cash equivalents
17 856
30 737
The Preschool segment consists of three preschool properties
owned by PPG as of 31.12.2024. Total lease income for the
Preschool segment amounted to MNOK 6.9 in 2024, compared
to MNOK 6.7 in 2023, with a fair property value based on third
party valuation of the properties owned by PPG per 31.12.24 of
MNOK 109.0
Retail Properties
Pioneer Retail Properties AS was established to procure and
build facilities for retail business, mainly for the Ferda group all
over Norway. The Retail Properties segment consists of 8
properties owned by PPG. The building of premises for Ferda in
Evenes was completed in May 2024. Currently, premises for
Tesla are under construction at Evenes, a Bare house lease
contracts with Tesla ahave been signed for this properties. Ferda
Tesla Evenes will be completed in Q2 2025.
Total lease income for 2024 for the retail properties segment
amounted to MNOK 34.5, with a fair property value based on
third party valuations per 31.12.24 of MNOK 437.
Hotel Properties
Pioneer Hotel Properties AS was established in 2021 with the
acquisitions of Brennemoen Hotel, Guard Hotel, Vossevangen
Park Hotel and Forum Hotel. The Hotel Properties segment now
consists of seventeen hotel properties owned by PPG. During
2024, eleven hotels in Norway was consolidated through the
acquisition of additional shares in Norlandia Holding, which is
now recognised as an subsidiary. In addition, five other hotel
properties are owned in joint venture with local partners, and
regarded as Joint Ventures in the financial statement. Total
income for 2024 for the Hotel Properties segment amounted to
MNOK 68.4 (MNOK 57.8 in 2023. The fair property value for the
hotel segment based on third party valuations per 31.12.24
amounted to MNOK 1,523.0.
Office Properties
The first office property was acquired in March 2022, a seven
stories tall building in Bodø. PPG has an ownership of 52 % in
the property, controlling the acquired subsidiary that owns the
property
Total lease income for 2024 for the office properties segment
amounted to MNOK 4.3 with a fair property value based on
third party valuations per 31.12.24 of MNOK 63.
Property Development
Through Pioneer Property Development AS, PPG develop
properties within general commercial real estate and housing.
The segment consists of 8 development properties and the lease
income income for the segment is related to parking and
tenants in properties that can be developed long term. PPG
added two development properties, one in Gardermoen and
one in Mo i Rana. The main asset is Evenes Holding AS, which
holds two properties in Evenes in close proximity to Evenes
Airport. In 2024, PPG reduced its ownership in Evenes Holding
AS by 10%.
In addition, PPG currently holds two plots together with local
partners, treated as associate company in the accounts. One is
located at Ramstadsletta in Bærum. The other is located in Mo i
Rana with a potential of 400 residential units.
Subsequent events since the end of 2024
There has not been any significant material subsequent events
since the end of 2024.
Overview of the financial accounts for 2024
Total revenue was MNOK 134.8 in 2024, compared to MNOK
126.2 in 2023. Revenues consisted of rental income of MNOK
5
PIONEER PROPERTY GROUP ASA
134.4 (MNOK 108.2 in 2023) and other income of 0.4 MNOK
(18.0 in 2023. All rental income origins from investment
properties in Norway. The increase in revenue is mainly
explained by rental income from acquisitions made in 2024, with
the first whole year of rental income being 2025. The decrease
in other income is due to a one time effect of compensation
received and the sale of subsidiaries, both in 2023.
Operating profit (EBIT) for 2024 amounted to MNOK 217.4,
compared to MNOK 46.6 in 2023. The difference can primarily
be explained by a positive fair value revision of existing
properties of MNOK 40.9 and a fair value revision of 85.9 related
to the properties in Norlandia Holding AS in 2024 , versus a
negative adjustment of MNOK 46.5 in 2023, as interest rates
increased, affecting the yields on the properties.
In 2024, a loss of MNOK 3.9 from joint ventures and associated
companies was recognised. In 2023, a gain of MNOK 49.1 from
joint ventures and associated companies was recognised. MNOK
34.0 was related to a sale of land in Ramstadsletta and MNOK
11.6 was recognized due to a value increase of the properties
acquired together with Västerkulla in Sweden. In 2024, the
derecognition of Norlandia Holding AS an associated provided a
negative result of -12.5 MNOK. In 2024, the largest positive
contribution from associates was from JV Västerkulla with
MNOK 2.4.
Net financial expense for the year was MNOK 78.4 compared to
a net financial expense of MNOK 20.0 in 2023, where the gain
recognized from joint ventures and associates was offset by
increasing interest rates. In 2024, interest expenses further
increased and the contribution from associated companies was
negative.
Income taxes increased from MNOK 1.6 to MNOK 27.1.
There have not been any discontinued operations in 2024 or
2023.
This year’s net profit for the group was MNOK 118.1, compared
to MNOK 25.0 in 2023. Adjusted for the fair value adjustment
related to tax in Norlandia Holding of 85.9, the net profit is 32.2.
Total equity amounted to MNOK 1,268.9 (1,283.5), the
difference being explained by the profit for 2024, and the
dividends on the ordinary and preference shares paid during the
year, and the capital reduction through redemption of shares
which was not registered at year end.
The Group had total assets of MNOK 3,526.2 (2,573.8 in 2023).
where MNOK 2.642.6 (2,165.4 in 2023) were related to
investment property and shares in associated companies. The
additions in investment property and associated company has
increased non-current borrowings in PPG. Further PPG had a
cash balance of MNOK 260.3 (112.3 in 2023) and MNOK 68.5
(117.6 in 2023) in other short-term investments related to
bonds and high yield funds held by PPG.
Net cash flows from operating activities were MNOK 77.0
(MNOK 7.7 in 2023). The increase is explained by a decrease in
working capital, increase in lease income, but offset by an
increase in interest rate
Net cash flows used in investing activities were MNOK 85.3
(MNOK 247.6 in 2023). Most of the cash flow used is related to
the investment in properties such as the renovation of Forum
and development of land in Evenes, and the purchase of Sør
Gardermoen Invest. Cash received from investing activites is
related to sale of bonds and shares.
Net cash flows from financing activities were MNOK 156.3
(MNOK 87.0 in 2023).
The net change in cash and cash equivalents was MNOK 147.9 (-
152.9 in 2023).
The annual report gives an accurate overview of the Group’s
financial development throughout the year. There have not
been any events after the end of the fiscal year 2024 which have
had any material impact on the financial status of the Group.
Work Environment, Equal opportunities and Discrimination
There was at year end 5 employees in Pioneer Property Group
ASA, all men. The sick absence rate in PPG was approx imately
1%. There are no employees in any other Group -companies,
except in Norlandia Holding AS who currently has 4 employees.
PPG had no reported incidents of discrimination in 2024. The
Board of Directors consists of three women and two men.
PPG strive for a safe work environment, both for our employees
and for our properties and construction projects.
The Company works systematically with corporate social
responsibility within the areas human rights, employee rights,
environment, anti-corruption and social responsibility and
integrates these in its business strategy and daily operations
through including these considerations into its decision-making
process. To ensure human rights and decent working conditions
in its operations PPG has developed guidelines and policies.
Managers’ remuneration
The board of directors has prepared a declaration on salary and
other remuneration for the Company's executive management
ANNUAL REPORT 2024
6
pursuant to Section 6-16a of the Norwegian Public Limited
Liability Companies Act. The declaration is based on the
guidelines for the determination of salaries and other remuneration
of leading personnel in the Company. The guidelines include the
policies which the Company will use for the determination of
salary and other remuneration to its executive management in
the calendar year 2025. The declaration of salary and the
guidelines guidelines for the determination of salaries and other
remuneration of leading personnel are made available at the
Group's webpage
www.pioneerproperty.no
External Environment
The Group’s operation consists of investing in and providing
high-quality properties and is considered to have limited
environmental impact. The company focuses on making
investment and operational decisions that are in line with
sustainable environmental practices.
Risks related to nature
Risks related to nature are becoming more relevant and will be
monitored closely for our properties. In general, many areas
could be affected: from impairment testing, to provisions to fair
value measurement.
The location of PPG’s properties is on a
general level not seen as particularly exposed to flooding.
However, the property in Voss has experienced flood, and
regarding the development and the refurbishment of the
property, the management is considering, together with the
local authorities, measurements to reduce the risk and potential
damage from flooding.
Storms and floods are long-term risks, with potential to
physically 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. On a
general basis, we observe increased premium on insurance due
to cost of the incidents and the number of incidents due to
extreme weather conditions.
With respect to our portfolio of investment property, PPG
actively work to reduce the CO2 emissions together with the
tenants, especially within the area of energy efficiency. During
2024 a number of activities were carried out, such as installation
of systems of ventilation and heating of the buildings that
maintains a healthy and comfortable indoor climate while
improving energy efficiency and reducing energy costs.
Reduction of the energy used per square meter is a goal the
management is working towards. In addition, bank and lending
institutions are providing green financing which has lower
interest rates than traditional financing.
Going concern
The financial statements have been prepared based on the
going concern assumption, and the Board confirms that this
assumption is valid.
Corporate Governance
Pioneer Property Group AS has prepared a report on Corporate
Governance in accordance with the Norwegian Accounting Act
Section 2 and the Norwegian Code of Practice for Corporate
Governance dated 17 October 2018, and a report on Corporate
Social Responsibility in accordance with the Norwegian
Accounting Act Section 2, both of which are made available at
the Group's webpage
www.pioneerproperty.no .
The Transparency Act has been incorporated in PPG and the
company is reporting on the Transparency Act for 2024. The
report will be available on the company’s webpage
www.pioneerproperty.no . The report will be published no later
than the 30
th
Financial Risks
The Company is exposed towards various financial risks, yet the
Board of Directors view the total exposure to be at a
manageable level. Some of the most important risk factors are:
The market risk, a risk of a general increase in interest rate
levels. Increasing interest rates will reduce the cashflow from
the properties, as lease income is not adjusted for increasing
interest rate. PPG is exposed to variable interest rates for its
borrowings linked to the different investment properties. The
group does not have bank loans with fixed NIBOR-rates.
The risk relating to banks or other financial institutions’
willingness to lend money, which may restrict the Company’s
ability to take up new loans in the future.
Credit risk, the risk that one party to a financial instrument will
cause a loss for the other party by failing to pay for its
obligation.
Liquidity risk in the case of unforeseen delay of cash payments
on income and/or unexpected costs.
Changes in valuation of financial assets that is owned to meet
future cash needs. When managing the capital, PPG will take
into account the need for sufficient liquidity reserves to meet
PPG's financial obligations. These assets are subject to financial
risk as price of the assets may vary.
The Board of Directors and management performs continuous
assessments of the most important financial risk factors and
evaluates the necessity of implementing specific measures.
Specific measures are evaluated considering the Company’s
7
PIONEER PROPERTY GROUP ASA
total financing risk exposure. PPG has a financing policy that
secures a diversified debt maturity profile.
The board of directors
The Articles of Association provide that the Board of Directors
shall consist of 3 to 7 board members elected by the general
meeting.
Name
Position
Served
since
Term
expires
Roger Adolfsen
Chairperson
2015
2025
Sandra Henriette
Riise
Board member
2015
2025
Geir Hjorth
Board member
2015
2025
Ane Nordahl Carlsen
Board member
2023
2025
Nina Torp
Høisæther
Board member
2015
2025
The directors Sandra Henriette Riise and Ane Nordahl Carlsen
are independent of the majority shareholder of the Company,
Hospitality Invest AS, and all board members are independent of
the Management. All board members attended all board
meetings. The composition of the Board of Directors is in
compliance with the independence requirements of the
Corporate Governance Code. Effective from June 1
st
directors and officers are covered by a liability insurance
covering personal liabilities caused by performing their duties
for the group.
Brief description of the board of directors
Roger Adolfsen, Chairperson
Roger Adolfsen has broad experience from serving on various
boards. Currently, he holds various board positions and has
more than 30 years of experience from business and real estate
development. Adolfsen is a business graduate from BI
Norwegian Business School. He also holds a Master in Business
and Administration (MBA) from the University of Wisconsin.
Sandra Henriette Riise, Board member
Sandra H. Riise is educated as public accountant and is former
Chief Executive Officer of Accounting Norway, the Norwegian
Association of Authorized Accountants, and has held the
position of Chief Municipal Executive (
Nw. Kommunedirektør
) of
Andøya municipality. Riise has also served as chair on the
Norwegian Better Regulation Council. Riise is educated from BI
Norwegian School of Management
Geir Hjorth, Board member
Geir Hjorth currently serves on the board of directors of several
different companies (including several chairperson positions).
He has extensive experience from the hotel industry and has
participated in several courses pertaining to marketing and
human resource management.
Ane Nordahl Carlsen, Board member
Carlsen is a partner in the investment company Arctic
Investment Group AS and the CEO of Grafo AS which owns 1 642
024 ordinary shares in Pioneer Property Group ASA. She has
experience from various commercial positions for Philip Morris
International. Carlsen has held various board positions in private
companies and is currently a board member in, among others,
Otiga Group AS.
Carlsen has a MSc in Economics and Business administration, an
Executive MBA from the Stockholm School of Economics and has
extensive experience from early- stage investing.
Nina H. Torp Høisæther, Board member
Nina Torp Høisæter (born 1956) Høisæter is currently working
with business development in Norlandia Health and Care Group
AS, but will go into retirement on April 11 2025. Prior to
assuming her current position Høisæter was chief executive
officer at Aberia Healthcare AS and Norlandia Care AS. Høisæter
is a nurse and has her management education from the
University of Oslo. Høisæter has held various board positions
within the confederation of Norwegian Enterprises ("NHO")
(Nw: Næringslivets Hovedorganisasjon), including chair of the
board of directors of Health and Welfare within NHO Service
and Trade. Høisæter has been a board member since 2015 and
holds 0 ordinary shares and 0 preference shares in the
Company.
ANNUAL REPORT 2024
8
Oslo, 27 March 2025
Board of Directors of Pioneer Property Group ASA
Roger Adolfsen
Chairman of the Board
Sandra Henriette Riise
Member of the Board
Ane Nordahl Carlsen
Member of the Board
Nina Hjørdis Torp Høisæter
Member of the Board
Geir Hjorth
Member of the Board
John Ivar Busklein
Chief Executive Officer
9
PIONEER PROPERTY GROUP ASA
Responsibility Statement
We confirm to the best of our knowledge, that the set of Financial statements for the financial year ending 31. December 2024 have
been prepared in accordance with IFRS® Accounting Standards and gives a fair view of the Group’s assets, liabilities, financial position
and profit or loss.
We also confirm to the best of our knowledge, that the management report includes a fair review of important events that have
occurred during the financial period and their impact on the set of financial statements, a description of the principal risks and
uncertainties, and major related parties’ transactions
Oslo, 27 March 2025
Board of Directors of Pioneer Property Group ASA
Roger Adolfsen
Chairman of the Board
Sandra Henriette Riise
Member of the Board
Ane Nordahl Carlsen
Member of the Board
Nina Hjørdis Torp Høisæter
Member of the Board
Geir Hjorth
Member of the Board
John Ivar Busklein
Chief Executive Officer
ANNUAL REPORT 2024
10
PIONEER PROPERTY GROUP - CONSOLIDATED
Consolidated Statement of Comprehensive Income
NOK thousand
Note
2024
2023
Contractual rental income
5, 13
Other operating income
5, 8
Total income
Operating expenses
Employee expenses
14
Property expenses
Other operating expenses
15
Total operating expenses
Fair value adjustments on investment properties
5, 6
-46 563
Operating profit (EBIT)
Share of profit (loss) of joint ventures and associates
8
-3 936
Interest income
9
Interest expense
11
Other financial gains/losses (-)
9, 16
-18 255
Net Finance income (+) /expenses (-)
-78 774
-19 999
Profit before tax
Income taxes
17
Profit
Profit/(loss) attributable to
Shareholders of the parent
Non-controlling interest
-1 699
Profit/(loss) for the period
Other comprehensive income
Items to be reclassified to P&L in subsequent periods:
Exchange differences, from translation of foreign operations
Other comprehensive income
Total comprehensive income
Comprehensive income attributable to
Shareholders of the parent
Non-controlling interests
-1 699
Comprehensive income
11
PIONEER PROPERTY GROUP ASA
PIONEER PROPERTY GROUP
Consolidated Statement of Financial Position
NOK thousands
Note
2024
2023
ASSETS
Investment properties
6
Deferred tax asset
17
Project in progress, investment property
7
Other interest in property
Other investment
9
Associated companies and joint ventures
8
Loan to associated companies and joint ventures
9, 20
Loan to other companies
9
TOTAL NON-CURRENT ASSETS
Trade and other receivables
9
Other short-term investments
9
Cash and cash equivalents
10
TOTAL CURRENT ASSETS
TOTAL ASSETS
ANNUAL REPORT 2024
12
PIONEER PROPERTY GROUP
Consolidated Statement of Financial Position
NOK thousands
Note
2024
2023
EQUITY AND LIABILITIES
Share capital
21
Treasury shares
21
-988
-988
Share premium
21
Capital reduction, not registered
21
-155 073
Other reserve and retained earnings
Non controlling interest
TOTAL EQUITY
LIABILITIES
Non-current borrowings
11, 4
Deferred tax
17
TOTAL NON-CURRENT LIABILITIES
Current borrowings
11, 4
Current tax payable
17
Other current liabilities
12
TOTAL CURRENT LIABILITIES
TOTAL LIABILITIES
TOTAL EQUITY AND LIABILITIES
13
PIONEER PROPERTY GROUP ASA
PIONEER PROPERTY GROUP - CONSOLIDATED
Statement of Changes in Equity
Attributable to owners of the parent
NOK thousands
Notes
Share
capital
Treasury
shares
Share
premium
Other*
Retained
earnings
Total
Non-contr.
Interest
Total Equity
Balance at 1 January 2023
-988
-4 443
Profit/(loss) for the period
Exchange diff. from foreign operations
Total comprehensive
Income for the period
Transactions with non-
controlling interests
21
-7 087
-7 087
-117
-7 204
Dividends on preference
shares and ordinary shares
21
-98 146
-98 146
-98 146
Balance at 31 December
2023
-988
Profit/(loss) for the period
-1 698
Exchange diff. from foreign operations
Total comprehensive
Income for the period
-1 698
Other changes**
-155 073
-155 073
-155 073
Transaction with non-
controlling interests
20
Dividends on ordinary shares
and preference shares
21
-58 806
-58 806
-58 806
Balance at 31 December
2024
-988
-155 073
*) Other reserves in 2023 and capital reduction not registered 2024
**) On the December 3, 2024, the general assembly passed a resolution of a capital reduction through redemption of shares. The capital reduction was registered in January
2025.
ANNUAL REPORT 2024
14
PIONEER PROPERTY GROUP - CONSOLIDATED
Statement of Cash Flow
NOK thousands
Note
2024
2023
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax
Adjustments for:
Fair value adjustments on investment property
6
-133 392
Fair value adjustments on financial instruments
9
Other adjustments
Share of profit (loss) of joint ventures and associates
8
-49 224
Interest net
Taxes paid
-4 168
-7 359
Exchange gains/(losses)
-2 552
Gain on sale bonds/shares
-1 634
-14 653
Changes in working capital
Trade receivables
4
-4 112
Trade payables
12
Other accruals
-20 790
CASH GENERATED FROM OPERATIONS
Interest received
Interest paid
-116 892
-64 097
NET CASH FLOW FROM OPERATING ACTIVITIES
INVESTING ACTIVITIES
Proceeds from sale of shares
9
Proceeds from sale of bonds and funds
9
Proceeds from loan to other companies
11
Loans to other companies
11
-3 500
-4 213
Purchase/sale of subsidiaries / properties
19
-163 542
-200 968
Purchase of shares in associated companies
8
-1 703
-163 047
Purchase of funds
9
-9 071
Proceeds from sale of properties
9
Purchase/sale of other items
4
-2 826
NET CASH USED IN INVESTING ACTIVITIES
-85 396
-247 627
FINANCING ACTIVITIES
Proceeds from debt to financial institutions
11
Repayments of debt to financial institutions
11
-269 132
-189 202
Repayments other debt
11
-101 219
-42 855
Loans from other companies
11
Dividends on ordinary shares
20
-63 902
-39 881
Dividends on preference shares
20
-19 403
-38 806
NET CASH (USED IN) / FROM FINANCING ACTIVITES
Net increase in cash and cash equivalents
-152 895
Cash and cash equivalents at beginning of year
CASH AND CASH EQUIVALENTS AT END OF YEAR
15
PIONEER PROPERTY GROUP ASA
1. About the business
Pioneer Property Group ASA (the 'Company') and its subsidiaries (together, the 'Group') invests mainly in a broad range of
properties including retail properties; hotel properties; preschool properties, office properties and property development
within commercial and residential real estate (currently under development). The Group leases out the investment properties
on long-term leases. The current real estate portfolio is situated in Norway and Sweden.
Pioneer Property Group ASA is a public limited company incorporated and
. The address of the Company's
registered office is
.
The consolidated annual financial statements cover the period from
.
These consolidated financial statements are approved by the Board of Directors 27. March 2025.
2. Key transactions and events in 2024
In 2024, PPG has increased the real estate income mainly due to the acquisition of Norlandia Holding AS. PPG has further increased
its investments within the hotel segment, entering into a joint venture with Rica Eiendom AS of owning a hotel located in Tjøme. This
investment was made through the joint venture company JV Havna Tjøme AS and is recognized according to the equity method.
Norlandia Holding AS is a hotel property company owning 11 hotel properties in Norway with total assets of MNOK 884 and total
debt of MNOK 491. The book value of the properties are MNOK 717 and the portfolio consist of approx. 52 000 sqm. The properties
generate a total lease income of MNOK 64 on an annual basis. The hotels are in Norway and are mainly operated by Norlandia Hotel
Group.
The second largest transaction was the purchase of land in close proximity to Gardermoen, let out to Dalen Parking. The property
value was MNOK 50.
Additionally, PPG added one development property in Mo i Rana nearby to the new airport in Mo i Rana, Fagerlia Airport.
.
3. General Accounting Principles
Basis of preparation
The consolidated financial statements of the Group have been prepared in accordance with IFRS® Accounting standards and
interpretations by the IFRS Interpretations Committee (IFRIC) as adopted by the EU. The consolidated financial statements
have been prepared under the historical cost convention, except for fair value adjustments of bonds, funds, shares and
investment properties.
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also
requires management to exercise its judgement in the process of applying the Group's accounting policies. The areas involving
a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated
financial statements are related to valuation of investment properties as described in note 6 and the valuation of financial
instruments measured at fair value as described in note 9.
The statement of cash flow has been prepared using the indirect method.
.
Consolidation
Subsidiaries are entities over which the group has control. The group controls an entity 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 date on which control is transferred to the Group. They are
deconsolidated from the date that control ceases.
ANNUAL REPORT 2024
16
Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated statement of
comprehensive income, statement of changes in equity and balance sheet, respectively.
Foreign currency translation.
Transactions in foreign currencies are initially recognised in the functional currency at the exchange rate at the date of the
transaction. Monetary assets and liabilities denominated in foreign currencies are translated to the functional currency using
the exchange rate at the reporting date. All exchange differences are recognised in the consolidated income statement.
Dividend
Pioneer Property Group ASA has two classes of shares, ordinary shares and preference shares. The preference shares are
entitled to annual dividend payments amounting to NOK 10.00 per preference share , in accordance with the company’s
Articles of Association. The board of directors approves payment of dividends based on an authorisation from the Annual
General Meeting. The dividend payments have been made quarterly with NOK 2.50 over the course of 2024. The Preference
shares are currently redeemable at a price of NOK 100 per share, which was valid from 1 July 2020, when it was stepped down
from NOK 130 per preference share. The coupon for the preference share has reached its maximum coupon, which is set to
NOK 10 per share.
Dividend distribution to Ordinary shares and Preference Shares is recognised as a liability in the Group's financial statement in
the period in which the dividend is approved by the Board of Directors based on the authorisation given by the Company's
shareholders in the General Assembly.
The use of estimates and assessment of accounting policies when preparing the annual accounts
Estimates and assumptions
Estimated and assumptions are used by the management to asses the value of investment property and financial instruments.
These estimates may have affected assets, liabilities, revenues, expenses and information on potential liabilities. Future events
may lead to these estimates being changed. Estimates and their underlying assumptions are reviewed on a regular basis and
are based on best estimates and historical experience. Revisions to accounting estimates are recognised in the period in which
the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision
affects both current and future periods.
Judgements
Management has, when preparing the financial statements; made certain significant assessments based on critical judgment
when it comes to application of the accounting principles.
Material exercise of judgment and estimates relate to the following matters:
●
Investment properties, note 6
●
Financial instruments, note 9
4. Financial risk management
The Group’s activities expose it to a variety of financial risks: market risk (including fair value interest rate risk and cash flow
interest rate risk), credit risk, currency risk and liquidity risk. The Group’s overall risk management program focuses on the
unpredictability of financial markets and seeks to minimize potential adverse effects on the Group’s financial performance.
Risk management is carried out by management under guidance by the Board of Directors. Management identifies, evaluates
and act upon financial risks.
a) Market risk
Market risk for the Group is the risk that future cash flows in the form of interest payments change as a result of changes in
market interest rates in addition to fluctuations in currencies. The level of interest rate exposure and currency risk exposure
are determined based on an assessment by management and the Board of Directors of existing cash flows, general assessment
of financial condition and available liquidity.
(i) Fair value interest rate risk
17
PIONEER PROPERTY GROUP ASA
The Group holds interest bearing assets in terms for cash deposits and bonds. Fluctuations in interest rates would yield a
higher or lower interest income. At the current level of cash deposits, a change in interest rate of +/- 1 % will not be material
for the financial statements. Further, a change in interest levels may cause changes in the fair value of the real estate portfolio
in addition to the performance of the bonds and bond funds held on PPG's balance sheet.
(ii) Cash flow interest rate risk
Exposure to cash flow interest rate risk is assessed when necessary. As of 31.12.2024, the Group is exposed to variable interest
rates for its borrowings linked to the different investment properties. The Group also holds borrowings with fixed interest
rates. See note 11 for further details.
The need for a fixed rate is periodically assessed, depending on the effects of adverse fluctuations in interest payment cash
flows due to higher interest rates. Management's assessment is that the Group's current financial position does not indicate a
further need for fixed interest rates.
The following table summarises how the equity and profit or loss, before tax effects in the 2024 reporting period would have
been affected by changes in the interest rate that Management considers are reasonably possible:
Interest rate sensitivity for reporting year 2024
(in TNOK)
-0,50 %
-0,25 %
0,25 %
0,50 %
Change P&L/Equity
3 874.4
-3 874.4
-7 748.8
Interest rate sensitivity or reporting year 2023
(in TNOK)
-0,50 %
-0,25 %
0,25 %
0,50 %
Change P&L/Equity
5 302.7
2 651.3
-2 651.3
-5 302.7
(iii) Currency risk
Currency risk is a financial risk that exists when a financial transaction is denominated in a currency other than that of the base
currency of the company. Currency risk also exists when the foreign subsidiary of a firm maintains financial statements in a
currency other than the reporting currency of the consolidated entity. The risk is that there may be an adverse movement in
the exchange rate of the denomination currency in relation to the base currency before the date when the transaction is
completed.
Monetary assets and liabilities are sensitive to movements in foreign exchange rates. As the operations of the Group are
located in Norway and only some of the joint venture operations are carried out in SEK, and all financing activities are
denominated in NOK (see note 11), Management considers that the exposure to foreign exchange risk is low. All loans are
nominated in NOK and there are no consolidated cash funds in Swedish Krona at year end as PPG no longer has subsidiaries in
Sweden.
b) Credit risk
Credit risk is the loss that the Group would suffer if a counterparty fails to perform its financial obligations. Credit risk is
managed on Group basis. Credit risk arises from cash and cash equivalents; loans granted and trade receivables, including
committed transactions. The Group assess the expected credit losses in relation to its financial assets taking into account its
past experience and also taking into account forwards looking information
Management assesses the credit quality of the customer, taking into account its financial position, past experience and other
factors. Management does not expect any losses from non-performance by the contractual counterparties. The impairment
analysis on trade receivables is performed at each reporting period based on a provision matrix, grouping its receivables in the
number of days past due. As of the end of the 2024 and 202 3 reporting periods, there has not been recorded any loss and
there are no significant amount of trade receivables past due at the date of the approval of the financial statements.
Receivables due
Total
Not due
between 1 and 60 days overdue
more than 60 days
overdue
Trade Receivables
-4 039
210
ANNUAL REPORT 2024
18
Other Receivables
63 754
63 754
-
As per 31.12.2024
210
Total
Not due
between 1 and 60 days overdue
more than 60 days
overdue
Trade Receivables
1 311
2 393
Other Receivables
41 658
-
As per 31.12.2023
2 393
The credit quality of the issuer is also taken into consideration when acquiring bonds.
With respect to the loans to associates and other parties, the Groups applies general approach to assess the impairment of
financial assets measured at amortised cost. In 2024, the change in provisions was TNOK 7 533 in Bm3 Eiendom AS, the book
value of the related receivable in Bm3 Eiendom is 0 at the end of 2024. Loans to associates are closely monitored by
Management, and concludes that the credit risk, including the probability of default within the next 12 months is very low.
There has not been a significant increase in the credit risk since the initial recognition.
c) Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its obligations at maturity without incurring a significant
increase in finance cost or not being able to meet its obligations at all. The risk also includes that the Group must forfeit
investment opportunities. Cash flow forecasting is performed at Group level.
Group management monitors the Group's liquidity requirements to ensure that it has sufficient cash to meet operational
needs while maintaining sufficient headroom to pay out quarterly dividends to holders of preference shares. The monitoring
takes into account the possibility to raise external debt, as the Group keeps unleveraged assets and properties. The Group also
keeps its liquid funds in cash and cash equivalents, and in high yield funds with high liquidity.
The table below analyses the Group’s financial liabilities into relevant maturity groupings based on the remaining period at the
balance sheet date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash
flows:
Maturity of financial liabilities at the end of the 2024 reporting period:
31.12.2024
NOK thousand
<1y
1y-2y
2y-5y
>5y
Total
Borrowings
67 028
225 713
775 201
896 730
1 964 672
Interest on borrowings
139 747
137 981
251 024
330 196
858 949
Other current liabilities
236 383
236 383
Total
443 158
363 694
1 026 225
1 226 926
3 060 003
During 2024, the Group became the counterparty to a number of loan agreements, mostly in connections with its acquisitions
of investment properties. See Note 11 for further details.
As of the end of the 2024 reporting period, Management considers it highly likely that the Group will enter into refinancing
agreement for one or more of the loans maturing in less than 12 months. The new agreements are expected to be paid in
periodic payments over a term of 5 years. However, since at the end of the 2024 reporting period the Group has not
completed the agreement (i.e. no unconditional right to defer settlement for at least 12 months after the reporting period),
the loan is presented as current liabilities.
Maturity of financial liabilities at the end of the 2023 reporting period:
31.12.2023
NOK thousand
<1y
1y-2y
2y-5y
>5y
Total
19
PIONEER PROPERTY GROUP ASA
Borrowings
223 195
48 431
507 923
354 347
1 133 896
Interest on borrowings
78 196
65 390
135 903
155 090
434 578
Other current liabilities
78 679
Total
380 070
113 821
643 826
509 437
Capital management
The group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern; to maintain
an optimal capital structure to reduce the cost of capital; and to comply with all covenants agreed with the lenders to the
Group. Compliance with covenants is further described in note 11.
When managing the capital, PPG will take into account the need for sufficient liquidity reserves to meet PPG's financial
obligations.
Management determines that the current liquidity in the Group and the current liquidity forecasts as of 31.12.24 grants the
Group enough resources to meets its obligations and continue with its current investment plan. Management continues to
monitor the optimal capital structure going forward, depending on operational needs. In order to maintain or adjust the capital
structure, the Group may return capital to shareholders, issue new shares or sell assets to repay debt.
5. Segments
Accounting principles
An operating segment is a component of an entity that engages in business activities from which it may earn revenues and
incur expenses. Furthermore, the entity’s component’s operating results are regularly reviewed by the entity’s chief operating
decision maker to make decisions about resources to be allocated to the segment and to assess its performance, and thus
separate financial information is available. The company has determined that the Board of Directors is collectively the chief
operating decision maker.
Description
During 2024, the Group has increased its investments across a broad range of properties, both in Norway and Sweden. As of
the end of the reporting period, the Group’s real estate portfolio was comprised of retail properties; hotel properties;
preschool properties; office properties and development properties with both commercial and residential use. The hotel
segment has increased significantly over the course of 2024 due to the acquisition of Norlandia Holding AS (see Note 19 for
further information).
Management has therefore identified five different segments, all of them held with a view to enter into lease agreements
where the Group acts as a lessor.
Preschools
The Preschool segment consists of three preschool properties owned by PPG, located in Bergen and Oslo. Total lease income
for the Preschool segment amounted to MNOK 6.9 in 2024, an increased from MNOK 6.7 in 2023. The increase is due to CPI
adjustment of the rent. The fair property value based on third party valuation of the property owned by PPG per 31.12.24 was
MNOK 109.0.
Retail Properties
The retail property segment constitutes of properties owned by the subsidiary Pioneer Retail Properties AS, which was
established to procure and build facilities for retail properties, mainly for the Ferda group all over Norway. The segment
consists currently of 8 retail properties owned by PPG. Total lease income for 2024 for the retail properties segment amounted
to MNOK 34.6 with a fair property value based on third party valuations per 31.12.24 of MNOK 473.
ANNUAL REPORT 2024
20
Property Development
Pioneer Property Development AS develop general commercial real estate and housing. The segment consists of 8
development projects at the end of 2024, increased from 6 properties at the end of 2023.
Currently, the Group is building new premises of 2 000 m
2
barehouse lease agreement. Annual lease when finished is expected to be MNOK 5.6 MNOK. The building of new premises for
Tesla commenced in late 2023, and is expected to open in Q2 2025.
The existing development projects includes amongst others a greenfield area in Evenes, Nordland of 400 000 m
2
proximity to Harstad/Narvik airport in Northern Norway, in addition to a plot of 51 500 m
2
, mainly used for parking. For 2023,
the parking activity generated an income of MNOK 12,5. PPG also owns a parking lot close to Gardermoen Airport and
acquired a greenfield area close to the new airport in Mo i Rana in 2024. Total lease income for 2024 for the development
properties segment amounted to MNOK 19.8 with a fair property value based on third party valuations per 31.12.24 of MNOK
474.5.
Hotel Properties
The hotel properties segment included four hotels in Norway in the beginning of 2024. The hotels in this segment are rented
out to Norlandia Hotel Group AS and Up North Hospitality AS, who has a management agreement with Norlandia Hotel Group,
or directly to Norlandia Hotel Group. Norlandia Hotel Group operates the hotels on franchise agreements with leading hotel
brands. Norlandia Hotel Group is owned by Hospitality Invest AS.
The properties are owned by subsidiaries of Pioneer Hotel Properties AS, which was established to acquire hotel properties
through the downturn following the Covid-19 pandemic across the Nordics and Europe. The Hotel Properties segment consists
of four hotel properties owned by PPG. Total lease income for 2024 for the Hotel Properties segment amounted to MNOK 68.9
with a fair property value based on third party valuations per 31.12.24 of MNOK 1,523.1. The rent has increased from MNOK
57.8 to 68.9 due to completed renovation of Forum and the acquisition of Norlandia Holding.
PPG also has established Up North Property AS, which is 90.1% owned by Pioneer Hotel Properties and 9.9% indirectly owned
by Svein Arild Mevold, who was the previous CEO of Scandic Norway. Up North Property’s strategy is to acquire hotel
properties in the Nordics and Europe, where there is an opportunity to change the hotel ’s market position through
reconfigurations and renovations of the hotel to adapt it to a changed hotel market. The hotels in Voss and Stavanger is owned
through Up North Property AS, and the hotels of JV Västerkulla, Havna Tjøme and Scandic Forus is held as an joint venture
investment.
Office Properties
The first office property was acquired in March 2022, a seven stories tall building in Bodø. PPG has an ownership of 52 % in the
property, controlling the acquired subsidiary that owns the property. Total lease income for 2024 for the Office Properties
segment amounted to MNOK 4.3 with a fair property value based on third party valuations per 31.12.24 of MNOK 63.
Other
“Other” includes activities and revenue in the parent company PPG that does not fall into the other categories.
The information provided to the chief operating decision maker during 2024 includes:
NOK thousand
Properties
Properties
Properties
Properties
Properties
Group
Contractual rental income
20 316
150
Other income
377
377
Profit/loss (-) sale of property
21
PIONEER PROPERTY GROUP ASA
Fair value adjustment
on investment properties
Operating profit/loss (EBIT)
223 958
Investment properties
Cash and cash equivalents
.
NOK thousand
Properties
Properties
Properties
Properties
Properties
Group
Contractual rental income
Other income
5 287
5 287
Profit/loss (-) sale of property
12 668
12 668
Fair value adjustment
on investment properties
Operating profit/loss (EBIT)
46 585
Investment properties
Cash and cash equivalents
.
.
6. Investment properties
Accounting principles
Property held with the purpose of achieving rental income, increase in value or both are classified as investment property.
Investment property also include property under development for future use as investment property. Investment property is
initially recognised at cost including transaction costs.
After initial recognition the investment property is subsequently recognised at fair value. Changes in fair value are presented in
the consolidated statement of comprehensive income in the reporting period when change occurs.
Subsequent costs relating to investment property are included in the carrying amount if it is probable that they will result in
future economic benefits for the investment property and the costs can be measured reliably. Expenses relating to operations
and maintenance of the investment property are charged to the income statement during the financial period in which they
are incurred.
Investment properties are derecognised when they are sold or are permanently out of operations and have no expected
future economic benefit. All gains or losses relating to sales or disposal are presented as “other operating income” in the
statement of comprehensive income the same year as disposal.
Critical accounting estimates
The investment properties are valued in accordance with the fair value method and all have been valued in accordance with
valuation Level 3 in the fair value hierarchy (Level 3 - where inputs for the asset or liability that are not based on observable
market data (that is, unobservable inputs)), see also note 9.
The yield level of the property has been determined on the basis of the unique risk and transactions based on the respective
locations.
ANNUAL REPORT 2024
22
At the end of the year, the Group commissioned external cash -flow valuations for the properties from an independent valuer,
except some properties that are under development or immaterial. For these properties, the Management has estimated the
property value. The property value is estimated on an individual basis using a combination of discounted cash-flow analysis
and property yield level. When estimating the value, key metrics, such as price per sqm and rent levels, together with market
transactions is used as reference points. The level of transactions thus influences the level of uncertainty in the assumptions
used in the valuation.
The discounted cash flow method 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, and capex.
Individual factors for the properties such as relevant country, the property's location in relation to a major city, net-population
change, size of the property, year of build and whether the property is on leased land (Norwegian: festetomt) were applied to
assess the yield for the respective property/location.
PPG provides comprehensive details on the properties, lease contracts, floor space, built year and details of any vacant
premises, and up-to-date and comprehensive information about all ongoing and planned projects.
The external valuer has set the following net yields and market rent per square meter in their valuation report:
Preschool
Properties
Retail
Properties
Development
Properties*
Hotel
Properties
Office
Properties
Total
Net yield 2024
6.2%
7.8%
7.8%
7.2%
7.2%
7.2%
Net yield 2023
6.2%
7.6%
8.1%
6.0%
6.4%
6.8%
Market rent in NOK per sqm 2024
3 301
1 484
n/a
1 793
2 126
1 811
Market rent in NOK per sqm 2023
3 214
1 215
n/a
2 211
2 102
1 872
*For the development property segment, the only property included is the property in Evenes which generates lease income
from parking for the net yield calculation. The market rent per square meter is not relevant for this segment as most of the
value is related to larger plots without buildings or rental income.
As of the end of the 2024 reporting period, the following gross yield for the investment properties is observed for the
properties and the valuation of the properties implies the following gross yields:
Preschool
Properties
Retail
Properties
Development
Properties
Hotel
Properties
Office
Properties
Total
Gross yield range 2024
4.8% - 6.7%
7.3% - 9.4%
8.0% -
8.0%
5.7% - 9.0%
7.3% - 7.3%
4.7% - 9.0%
Weighted average gross yield 2024
6.4%
8.3%
n/a
7.6%
7.3%
7.7%
Gross yield range 2023
4.8% - 6.7%
7.3% - 8.5%
n/a
6.0% - 8.5%
7.2% - 7.2%
4.8% - 8.5%
Weighted average gross yield 2023
6.4%
7.9%
n/a
7.0%
7.2%
7.2%
The calculated weighted average gross yield is based on annual contractual lease income of 2025 of MNOK 166.0 and is based
on an CPI-adjustment of contractual lease of 2.4%.
Description
As of 31.12.24 the Groups investment property portfolio consists of three preschool properties, eight retail properties,
seventeen hotel properties, one office property, two parking properties, a warehouse and different greenfield projects in Oslo,
Rana, Evenes and Indre Østfold. The Group owns and manages a total area of approximately 114.500 square meters, not
including associated companies and development properties.
Overview of account movements 2024
NOK thousand
Preschool
Properties
Retail
Properties
Development
Properties
Hotel
Properties
Office
Properties
Group
Fair value in the beginning of the
year
106 500
438 000
385 756
766 000
61 000
1 757 256
23
PIONEER PROPERTY GROUP ASA
Changes between segments
46 222
-46 222
Investment in subsidiaries
/properties
6 084
131 324
632 104
-544
768 958
Sale of operations
-17 000
-9 420
Fair value adjustments on
investment properties
-306
3 670
133 392
Fair value in the end of the year
473 000
474 528
2 642 606
Net change in unrealized gain
2 500
-306
3 670
124 974
The segment of hotel properties represented the biggest share of value of properties in the Group at year end of 2024. The
largest acquisitions in 2024 were purchase of additional shares in Norlandia Holding AS representing a property value of MNOK
708. Included in the property value of MNOK 708 is a tax value adjustment of MNOK 86.0 related to deferred tax of the
properties. This has has been positively affecting the profits of the group through a fair value adjustment.
For the retail property segment , the divestment of Døvikveien 22, in addition to a negative fair value adjustment resulted in a
fair value year end of MNOK 473.0.
With respect to the development properties , the purchase of 650 parking spaces in Gardermoen, the building of Tesla Evenes
and 550 new parking spaces in Evenes represented an investment of MNOK 131.3.
In summary the total Group’s portfolio as of 31 December 2024 was valued to MNOK 2 642.6 MNOK, an increase from MNOK
1 757.3 from year-end 2023.
Overview of account movements 2023
As of 31.12.23 the Groups investment property portfolio consist ed of three preschool properties, seven retail properties, four
hotels in Norway, one office property, one large parking lot and a warehouse, and land in Oslo, Rana, Evenes and Indre
Østfold. The Group owns and manages a total area of approximately 60.500 square meters, not including associated
companies and development properties
NOK thousand
Preschool
Properties
Retail
Properties
Development
Properties
Hotel
Properties
Office
Properties
Group
Fair value in the beginning of the
year
116 000
461 000
227 681
924 029
70 000
1 798 710
Investment in subsidiaries
/properties
2 370
115 516
51 693
760
170 338
Effect of curr. exch. differences in
foreign operations
11 653
11 653
Sale of operations
-15 912
-160 970
-176 882
Fair value adjustments on
investment properties
-46 563
Fair value in the end of the year
1 757 256
Net change in unrealized gain
-9 500
-22 000
-60 404
Commitments
As of the end of the 2024, the refurbishments ongoing in Forum Hotel and Guard Hotel has been completed. There is a
planned renovation of Park Hotel Vossevangen. Until the hotel is renovated , there is limited rent income contributions from
the property as the rent is based on a lower percentage of the hotel turnover in the renovation period, agreed with its tenant.
When renovation is completed, the annual minimum rent will increase, as well the turnover -based rent.
Total property operating expenses
ANNUAL REPORT 2024
24
The Group did not incur any direct operating expenses (including repairs and maintenance) in any investment property that
did not generate rental income during the 2024 and 2023 reporting periods. As for the investment properties that did
generate rental income during the 2024 and 2023 reporting periods, there were no material direct operating expenses
incurred during the period, as most of the contracts are triple net (i.e. net of insurance, taxes and maintenance).
Climate related matters
Storms and floods are long-term risks, with potential to inflict physical damage to properties, something that could severely
reduce property value. However, all properties are insured. In general, extreme weather, flood and drought are potential risks
to our business. Two years ago, a flood in Voss caused damage on some equipment and installations, however all costs have
been covered by the insurance company. However, climate change and extreme weather lead to increased insurance cost .
Another flood occurred in 2024, thankfully it did not reach the same levels as in 2022, making no damage to the property.
Sensitivity analysis
A property analysis is an estimate of the value that an investor is willing to pay for the property at a given time. The valuation
is made on the basis of generally accepted models and certain assumptions on different parameters.
The tables below give an indication of the effects on the value of the property portfolio if yield levels change with 0.5% or
rental income change with 5% NOI is defined as net operating income, meaning all revenue from properties minus all
reasonable operating expenses.
Preschool properties
As of 31 December 2024, the Group had the following sensitivity to changes in these identified significant inputs:
NOK million
Yield sensitivity
NOI sensitivity
-5 %
0 %
5 %
Preschool properties - Comparative period 2023
As of 31 December 2023, the Group had the following sensitivity to changes in these identified significant inputs:
NOK million
Yield sensitivity
-0,5%
0,0%
0,5%
NOI sensitivity
-5 %
0 %
5 %
Retail properties
As of 31 December 2024, the Group had the following sensitivity to changes in these identified significant inputs:
NOK million
Yield sensitivity
NOI sensitivity
-5 %
0 %
5 %
Retail properties - Comparative period 2023
As of 31 December 2023, the Group had the following sensitivity to changes in these identified significant inputs:
NOK million
Yield sensitivity
25
PIONEER PROPERTY GROUP ASA
NOI sensitivity
-5 %
0 %
5 %
Development properties
The fair value of the properties classified as property development use the same significant unobservable inputs as the other
categories presented. However, for this segment, most of the properties does not generate lease income. The valuation of the
properties in this segment is not to the same extent as the other segments yield based valuations. Hence, sensitivity regards
change in yield and NOI is not considered relevant .
Hotel properties
As of 31 December 2024, the Group had the following sensitivity to changes in these identified significant inputs:
NOK million
Yield sensitivity
NOI sensitivity
-5 %
0 %
5 %
Hotel Properties - Comparative period 2023
As of 31 December 2023, the Group had the following sensitivity to changes in these identified significant inputs:
NOK million
Yield sensitivity
NOI sensitivity
-5 %
0 %
5 %
Office properties
As of 31 December 2024, the Group had the following sensitivity to changes in these identified significant inputs:
NOK million
Yield sensitivity
NOI sensitivity
-5 %
0 %
5 %
Office properties – Comparative period 2023
As of 31 December 2023, the Group had the following sensitivity to changes in these identified significant inputs:
NOK million
Yield sensitivity
NOI sensitivity
-5 %
0 %
5 %
ANNUAL REPORT 2024
26
.
.
7. Projects in progress, investment properties
Accounting principles
The Group measures its investment properties under development (“project in progress, investment properties”) following the
same fair value model as for the investment property. There have been no adjustments to the fair value in 2024 and
management anticipates that historical cost reflects the fair value of the projects in progress. For the current projects in
progress, the cost is mainly related to groundworks and engineering in Evenes and Brennemoen, costs that are likely to be
compensated with approximately the same amount as the historical cost of the ground works.
Description
Project in progress, investment properties
NOK in thousand
2024
2023
Cost 1 January
35 513
739
Additions
6 109
34 774
Completed projects, transferred to investment properties
-3 143
Carrying value 31 December
38 480
35 513
The completed projects that has been transferred to investment properties is mainly the construction of 550 new parking
spaces in Evenes.
The project in progress is mainly related to groundworks of the plots in Evenes, and the Studio City Project in Brennemoen,
Indre Østfold.
8. Associated companies and joint ventures
Accounting principles
Associated companies are all entities over which the company has significant influence, but not control or joint control.
Significant influence is the power to participate in the financial and operating policy decisions of the investee, but without the
ability to have control over those policies.
Joint ventures are those companies that are jointly controlled by the Group and another party.
Investments in associates and joint ventures are accounted for using the equity method of accounting, after initially being
recognized at cost.
Description
Kongsparken AS - joint venture
Kongsparken AS was established 11 September 2020 by Eiendomsselskapet Ranheim AS and the Group. Both owns 50% of the
company and contributed each with kroner 50.000. Kongsparken AS have acquired an old closed school, which shall be
demolished and replaced by approximately 400 apartments.
The Group is controlling 50 of the votes in the Board of Directors. The project management and daily operations are
performed by Eiendomsselskapet Ranheim AS, thus it is PPG consideration that the group does not have control in
Kongsparken.
Forus Holdco AS - joint venture
Forus Holdco AS was established by Vico Eiendom AS and Up North Property AS to acquire 100 % of the shares in Forusveien
31 - Hotell AS from Vico Eiendom AS. Forusveien 31 - Hotell AS owns Scandic Forus Hotel in Stavanger municipality. The hotel
is let out to Scandic Hotels AS The owners of Vico Eiendom AS is Hauglandgruppen, a family office located in Bergen.
The Group is controlling 50 % of the votes in the Board of Directors. Project management and daily operations are performed
by Hauglandgruppen. It is the Group’s evaluation that PPG does not have control in Forus Holdco AS, and the investment is
regarded as an associated company. Forus Holdco AS was acquired on 29.12.2021.
27
PIONEER PROPERTY GROUP ASA
Ramstadsletta Utvikling AS – associated company
During the first half of 2021 PPG, through Pioneer Development AS, acquired a 49 000 m2 plot together with local partners at
Ramstadsletta in Bærum, Norway. The plot has an expected potential to develop around 70 000 m2 of residential and
commercial real estate, and PPG has an ownership in the project of 40.08% as of 31.12.2024. Daily operations is carried out by
ORO Eiendom as business manager, which also holds a 10% share of the company. PPG Is represented in the board, wich
consists of four members. It is the Group’s evaluation that PPG does not have control in Ramstadsletta Utvikling AS and is
treated as an associated company .
JV Havna Tjøme AS – associated company
PPG established JV Havna Tjøme AS with Rica Eiendom AS. JV Havna Tjøme AS is regarded as an associated company. The joint
venture company, acquired Havna Tjøme Hotel based on a property value of MNOK 78, settled through a vendor note. The
hotel will undergo refurbishment, expected to be financed by obtaining bank financing. The net profit in the company was
MNOK 2.5 and the total book value of equity was MNOK 3.5. The company is treated as an associated company.
Pancom AS – associated company
Pancom is an investment company within the real estate and construction sector. With the purchase of additional shares in
Norlandia Holding, the Group increased indirectly its investment to Pancom and Pancom is by year end 2024 recognized as an
associated company.
Vossevangen utvikling AS – associated company
In July 2023, PPG acquired 41,49% of the shares in Vossevangen Utvikling. The company owns three properties in Voss which
shall be developed to residentials. The company has four board members, where PPG has one representative in the board. It is
the Group’s evaluation that PPG does not have control in Vossevangen Utvikling and the company is regarded as an associated
company.
JV Nordväst Fastighet AB - joint venture
In July 2023 PPG acquired 50,00% of the shares in JV Norväst AB. JV Nordväst AB was established together with the Swedish
property company Västerkulla Hotell Holding AB, and has acquired three hotels in Jönköping, Eskilstuna and Helsingborg, a
total of 319 hotel rooms and 13.551 sqm. The net profit in the company was MSEK 4.9 and the total book value of equity was
MSEK 159.6.
The Group is controlling 50 % of the votes in the Board of Directors. Project management and daily operations are performed
by Västerkulla Hotell Holding AB. It is the Group’s evaluation that PPG does not have control in JV Nordväst Fastighet AB and is
regarded as an associated company.
Strand Hotell Borgholm AB - joint venture
PPG sold 50% of the shares in Strand Hotell Borgholm to Norlandia Fastighet AB in December 2023. The sale of the 50% share
and reclassification in the accounts to joint venture company was made in December 2023.
The company owns a hotel property in Sweden. The net profit in the company was MSEK 2.1 and the total book value of equity
was MSEK 4.6. The Group is controlling 50 % of the votes in the Board of Directors. Project management and daily operations
are performed by Norlandia Fastighet AB. It is the Group’s evaluation that PPG does not have control in Strand Hotell
Borgholm AB and the company is regarded as an associated company.
Köping Hotellfastighet AB - joint venture
PPG sold 50% of the shares in Köping Hotellfastighet AB to Norlandia Fastighet AB in December 2023. The sale of the 50%
share and reclassification in the accounts to joint venture company was made in December 2023.
The company owns a hotel property in Sweden. The net profit in the company was MNOK 1.6 and the total book value of
equity was MSEK 6.9. The Group is controlling 50 % of the votes in the Board of Directors. Project management and daily
operations are performed by Norlandia Fastighet AB. It is the Group’s evaluation that PPG does not have control in Köping
Hotellfastighet AB and the company is regarded as an associated company.
Norlandia Holding AS – associated company
ANNUAL REPORT 2024
28
Norlandia Holding is an investment company within hotels and development properties. Through its subsidiaries the company
owns 21 properties and has 9 associated companies. At year end 2023 PPG held 47,80% of the shares in Norlandia Holding AS.
In October 2024, PPG acquired an additional 37.20% of the shares increasing its holdings to 85,00%. The company was held as
an associated company in the accounts until the purchase in October 2024. After the transaction, Norlandia Holding AS is
treated as an subsidiary. For further information, please refer to note 19.
The effects from purchase /recognition of Norlandia Holding of associated company to a subsidiary is shown in the table below
NOK thousand
Norlandia Holding
Associate
Associated companies
-184 128.8
Income as associate P&L
9.0
Loss by derecgnition P&L
12.5
As of year end, the Group’s shares of the financial positions in the companies owned is shown below:
NOK thousand
31.12.2024
31.12.2023
Goodwill
Deferred tax
-78 245
Licenses, patents, rights
18 348
Investment property and other investment
1 313 630
Other non-current loans
207 306
Other non-current assets
84 904
Cash
82 721
Other current assets
35 567
4 160
Borrowings (current and non-current)
-1 203 064
Other current liabilities
-28 120
Net assets
401 640
Share of ownership
372 663
Distribution of loss unevenly between share classes
Carrying amount (at percentage of part. by the Group)
286 667
372 663
Changes in the Group’s carrying amount in the periods:
NOK thousand
2024
2023
Carrying amount at 01.01
107 100
Invested capital/Gain of control (-) in Norlandia Holding AS
-193 184
92 884
Invested/repaid (-) capital in Ramstadsletta Utvikling AS
1 002
-2 695
Interest free loan to Ramstadsletta Utvikling AS (refer to note 20)
- 3 256
-1 811
Invested capital in JV Havna Tjøme AS
500
Invested capital in other associated companies
13 535
-
Sale of 1% share in Kongsparken
-1
-
Sale of 1% share in Kongsparken
-
Invested capital in Vossevangen Utvikling AS
-
9 921
Invested capital in JV Nordväst Fastighet AB
-
62 903
Invested capital in Köping Hotellfastighet AB
-
21 619
Invested capital in Strand Hotell Borgholm AB
-
36 895
Share of gain in joint ventures and associated companies
8 582
49 223
29
PIONEER PROPERTY GROUP ASA
Carrying amount at 31.12
286 667
372 663
The share of profit (loss) is calculated in the following table, showing the breakdown by Joint Ventures (JV) and associated
companies and its contribution to the current year consolidated income statement of the Group, for the year 2024:
JV
JV
JV
JV
JV
NOK
thousand
Kongsparken
AS
JV Nordväst
Fastighet AB
Forus Holdco
AS
Köping Hotellfastighet
AB
Strand Hotell
Borgholm AB
Net income
-2 826
4 862
334
1 539
3 152
The Group' share of ownership
49,00 %
50,00 %
50,00 %
50,00 %
50,00 %
Share of profit or loss in the
owner period
-1 413
2 432
167
770
1 576
Associates
Associates
Associates
Associates
Associates
Associates
NOK
thousand
Ramstadsletta
Utvikling AS
Vossevangen
Utvikling AS
JV Havna
Tjøme AS
Pancom
AS
Norlandia
Holding
associates
(15.10.24 – 31.12.24)
Norlandia
Holding AS
(1.1.24 – 15.10.24)
Total
Net income
-9 913
- 967
2 518
0
-540
18 945
The Group' share of
ownership
40,08 %
41,49 %
50%
23,80%
*
47,80%
Share of profit or loss
in the owner period
302
1 259
0
-289
9 056
9 282
*consist of 11 associates.
Share of profit (loss) is calculated in the following table, showing the breakdown by joint venture and associates and its
contribution to the current year consolidated income statement of the Group, for the comparative year 2023 is calculated as:
.
JV
JV
JV
JV
JV
NOK
thousand
Kongsparken
AS
JV Nordväst
Fastighet AB
Forus Holdco
AS
Köping Hotellfastighet
AB
Strand Hotell
Borgholm AB
Net income
3 174
23 132
5 798
The Group' share of ownership
50,00 %
50,00 %
50,00 %
50,00 %
50,00 %
Share of profit or loss in the
owner period
-1 587
11 566
2 899
Associates
Associates
Associates
Associates
NOK
thousand
Ramstadsletta
Utvikling AS
Vossevangen
Utvikling AS
Bm3
Eiendom AS
Norlandia
Holding AS
Total
ANNUAL REPORT 2024
30
Net income
84 754
146
10 083
The Group' share of ownership
40,08 %
41,49 %
50%
47,80%
Share of profit or loss in the
owner period
33 969
45
2 332
49 147
.
9. Financial Instruments
Accounting principles
A financial instrument is a contract that gives rise to both a financial asset for one entity and a financial liability or equity
instrument for another entity. Financial instruments are generally recognized as soon as the group becomes a party to the
terms of the financial instrument.
Financial assets
Financial assets include cash and cash equivalents, trade receivables and other loans and receivables. Financial instrument
classification is based on the business model in which the instruments are held as well as the structure of the contractual cash
flows.
Financial assets measured at amortized cost
Financial assets measured at amortized cost in the Group consist of loans and receivables, trade receivables or cash and cash
equivalents.
After initial recognition, these financial assets are measured at amortized cost using the effective interest method less
impairment.
Financial assets measured at fair value through profit or loss
Financial assets measured at fair value through profit or loss, comprise financial assets whose cash flows do not relate solely to
payments of interest and repayments of principal on the outstanding nominal amount. Gains or losses on these financial
assets are recognized through profit or loss.
Financial liabilities
Financial liabilities regularly give rise to a redemption obligation in cash or another financial asset. These include in particular
bonds and other securitized liabilities, trade payables, liabilities to banks, liabilities to affiliated companies and derivatives
designated as hedges. Financial liabilities are classified into the following categories:
• Financial liabilities measured at fair value through profit or loss, and
• Financial liabilities measured at amortized cost.
Upon initial recognition, all financial liabilities are measured at fair value. Trade payables and other non-derivative financial
liabilities are generally measured at amortized cost using the effective interest method.
Fair Value
The fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date.
Financial instruments and investment properties that are measured at fair value in the financial statements require disclosure
of fair value measurements by level based on the following fair value measurement hierarchy:
●
Level 1 – quoted prices (unadjusted) in active markets for identical assets and liabilities;
●
Level 2 – inputs other than quoted prices included within level 1 that are observable for the asset or liability either
directly (that is, as prices) or indirectly (that is, derived from prices); and
●
Level 3 – inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs).
31
PIONEER PROPERTY GROUP ASA
Critical accounting estimates
For the shares of Hsopitality Invest and Pancom, the estimated value is based on assumptions of future cash flow in the
companies and its subsidiaries. Both companies are investment companies, Pancom within the real estate and construction
sector, and Hospitality Invest within Care, Staffing and Hotel Operations . Key metrics such as pricing in recent capital raise,
yield, future cash flow and EBITDA-multiples are assessed to estimate the value of the investment s. With the purchase of
additional shares in Norlandia Holding, the Group increased indirectly its investment to Pancom and Hospitality Invest. By year
end 2024, Pancom is recognized as an Associate company. For Hospitality Invest, in addition to the estimates made, the book
value of equity of the company is used as a reference point, of which the financial statements have been prepared in
accordance with International Financial Reporting Standards.
Specification of financial assets and liabilities:
The Group holds the following financial assets and liabilities:
NOK thousand
31.12.2024
Financial assets at amortised cost
Loan to associated companies
87 201
Loan to other companies
Cash and cash equivalents
Trade and other receivables
Financial assets at fair value through profit or loss
Other investments
1)
Other Shares
2)
24 492
44 391
Sum
541 138
411 956
Financial liabilities at amortised cost
Borrowings
1 951 768
Other current liabilities
221 634
Sum
2 173 402
1)
Other investments are measured at fair value as level 1 in the fair value hierarchy in accordance with quoted prices
2)
Other Shares included other investments in shares where the company have no significant influence or control, which is measured
according to level 3 in the hierarchy.
Specification of investments measured at fair value held as of 31 December 2024:
1) Bonds are measured at fair value as level 2 in the fair value hierarchy in accordance with observed prices.
2) Funds are measured at fair value as level 1 in the fair value hierarchy in accordance with quoted prices.
3) Investments in shares where the company have no significant influence or control, is measured according to level 3 in the
hierarchy. The shares are not traded, not quoted.
NOK thousand
1) Bonds
2) Funds
3)
Hospitality
Invest AS
3)Pancom
AS*
3) Other
Total
Fair value beginning of
year
54 956
13 650
0
161 967
Purchase in 2024
10 319
58 859
523
Sold in 2024
Fair value adjustments
421
-3 950
-3 529
Derecognition from
Investment, to associate
-85 651
-85 651
Fair value year end
5 922
23 969
0
523
93 454
*Pancom AS is recognized as associated company as of 31.12.2024 with a value of MNOK 85.7.
ANNUAL REPORT 2024
32
Specification of investments measured at fair value held as of 31 December 2023:
NOK
thousand
1) Bonds
2) Funds
3) Hospitality
Invest AS
3)Pancom AS
Total
Fair value in the beginning of the year
56 954
18 212
30 741
167 907
Purchase in 2023
Sold in 2023
Fair value adjustments
620
1 946
-4 562
-1 996
Fair value in the end of the year
13 650
.
10. Cash and cash equivalents
Accounting principles
Cash comprises demand deposits. Cash equivalents are short-term, highly liquid investments that are convertible to cash in
three months or less to known amounts of cash and which are subject to an insignificant risk of changes in value.
The Group
had no cash equivalents as of the end of the periods presented.
Description
Cash and cash equivalents include bank deposits:
NOK in thousand
31.12.2024
31.12.2023
Bank deposits
260 265
Total
260 265
All interest income relates to interest on bank deposits.
The bank deposits include restricted cash related to tax withholding account of TNOK 578 per 31 December 2024 (TNOK 241
per 31 December 2023).
11. Borrowings
Accounting principles
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at
amortised cost using the effective interest method.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for
at least 12 months after the balance sheet date.
Description
Borrowings and available cash and cash equivalents constitute the capital of the Group. The Group's main source of financing
are bank loans and trade credit.
The Group had the following borrowing as of 31 December 2024:
NOK thousand
31.12.2024
31.12.2023
Non-current
Commercial bank loans
Other loans
Total
33
PIONEER PROPERTY GROUP ASA
NOK thousand
31.12.2024
31.12.2023
Current
Commercial bank loans
Other loans
Total
NOK thousand
31.12.2024
31.12.2023
Total non-current and current
Commercial bank loans
Other loans
Total
The borrowings the Group holds as of the end of 2024 and 2023 are linked to the investment properties owned by the Group.
The following assets have been pledged as security for liabilities:
NOK thousand
31.12.2024
31.12.2023
Investment property
1 792 909
Total pledged assets
For the properties that are pledged as security for liabilities, the amount pledged corresponds to the fair value of the
investment properties. (see note 6 for further information).
Relevant terms and conditions
Out of the total amortised cost value of all borrowings held as of 31.12.2024, MNOK 37.9 have a fixed annual interest rate that
ranges from 0 to 3%. The rest of the borrowings are subject to an interest rate structure that is comprised of a variable interest
rate based on the 3-month NIBOR plus a margin that typically approximates 2-3% annually. On average, the annual average
interest rates realised for 2024 has been 7,26%. All loans are denominated in NOK.
See note 4 for the maturity of financial liabilities at the end of the period, and for a description of the financial risks arising
from changes in the interest rates.
Compliance with covenants
The borrowing agreements typically include covenants that the Group must fulfil. The nature and characteristics of the
covenants vary from agreement to agreement, but the typical financial covenants are loan-to-value ratios ranging from 60 to
65%; and minimum liquidity requirements in the subsidiary that is the counterparty to the borrowing agreement with the
lender. The typical measurement date for the company's Loan to Value covenants and minimum liquidity requirements is
December 31, 2024. There are also change-of-control clauses as covenants in the lending agreements. The Group has
numerous covenants as each subsidiary has separate lending agreements with different terms. The loan-to-value covenants
that the Group has is the following:
Company
LTV - requirement
Current LTV
Guard Hotel AS
Max. 60%
54%
Pioneer Retail Properties (Ås Næring AS and Askjem Eiendom AS
Max. 65%
61%
Norlandia Holding AS
Max. 65%
60%
Management has determined that, as of the end of the 2024 reporting period, the Group is in compliance with all the
covenants required by the lenders.
Changes in borrowings from financing activities:
ANNUAL REPORT 2024
34
NOK thousand
Non-current borrowings
Current borrowings
At 1 January 2024
925 924
223 195
1 149 120
Cash flows
Cash flow received
Repayments
Non-cash:
Borrowing classified as non-current at 31 December
2023 becoming current during 2024
-
Purchase of operations
Interest
At 31 December 2024
1 898 734
53 033
1 951 768
At 1 January 2023
Cash flows
Cash flow received
Repayments
Non-cash:
Reclassification from 2022 to 2023
Borrowing classified as non-current at 31 December 2022
becoming current during 2023
Purchase of operations
Interest
At 31 December 2023
925 924
223 195
1 149 120
.
12. Other current liabilities
NOK in thousand
31.12.2024
31.12.2022
Trade payable
37 021
Government taxes
421
Accrued interest
14 636
Dividend
9 701
Accrued cost, Prepaid revenues
797
Other current liabilities
173 805
Total other current liabilities
236 383
Dividend relates to Q4 2024 dividend approved by the board 12. October 2024, with payment date in January 2025 Other
current liabilities relates to share capital reduction by redemption of ordinary shares with payment date in January 2025.
13. Rental income
Accounting principles
The Group enters into lease agreements where it acts as a lessor. This constitutes the Group’s main source of income. This
constitutes the Group’s main source of income. All leases held by the Group are considered operating leases. This is the case
because, even though lease agreements have a typical duration of several years, the lease term is substantially shorter than
the asset’s economic life, and the minimum lease payments does not amount to substantially all of the fair value of the
investment property. Management has not identified any other indications that the Group has transferred substantially all of
the risks and rewards incidental to ownership of its investment properties.
35
PIONEER PROPERTY GROUP ASA
Revenue consists of rental income, which is typically recognised on a straight -line basis over the period of the lease
agreements with its lessees (see note 3 for further information). Revenues are presented net of VAT, discounts, and rebates.
Service charge expenses are charged to tenants and recognised in the balance sheet together with payments on account of
tenants, and therefore does not affect the result beyond an administrative premium recognised under revenue.
Description
contracts.
The group is the lessor of investment properties. The group’s contractual rental income is distributed as follows, where the
numbers are adjusted annually to reflect the change in CPI. The rent in the table below are adjusted with an annual CPI-
adjustment of 2%:
.
NOK in thousand
31.12.2024
31.12.2023
Within 1 year
153 591
Year 2
Year 3
104 491
Year 4
101 520
Year 5
98 709
After 5 years
Total
The Group typically rents out the investment properties to tenants on long term triple-net contracts where the operator has
the main responsibility for annual maintenance, insurance, and other directly related property. All agreements are fully
adjusted annually to reflect the change in CPI. However, the hotel investment properties typically have the characteristic that
rental income is subject to certain positive variables over an agreed minimum lease payment: lease payments are based on the
highest of a minimum rent and a percentage of the hotel’s turnover.
All revenue during 2024 and 2023 has been originated in Norway and Sweden.
14. Employee expenses and management remuneration
NOK
2024
2023
Salary
7 963 725
6 091 596
Payroll tax
1 350 637
967 781
Pension benefits
289 339
Other benefits
104 016
Total salary and pension costs
9 665 184
7 257 505
Average Employees
5
4
The remuneration to the management in 2024:
NOK
Salary
Other
benefits
Bonus*
Pension benefits
Total compensation
John Ivar Busklein (CEO)
585 040
Øystein B. Grini (CFO)
Total management remuneration
4 392
*The bonus was paid in Q1 2025.
ANNUAL REPORT 2024
36
The remuneration to the management in 2023:
NOK
Salary
Other
benefits
Bonus
Pension benefits
Total compensation
John Ivar Busklein (CEO)
Øystein B. Grini (CFO)
Total management remuneration
John Ivar Busklein has been CEO of Pioneer Property Group ASA in a part time position at 28,4%.
No member of the management has in their agreement that they will get any right to compensation after termination of
employment. No loans or guarantees have been given to any members of the management, the Board of directors or other
corporate bodies.
The board of directors of PPG has prepared a determination of salary and other remuneration to the executive management,
in accordance with applicable law. The declaration includes the policies which PPG uses for the determination of salary and
other remuneration to its executive management in the calendar year 2024 as published on the company's web page
pioneerproperty.no.
The remuneration to the Board of Directors:
NOK
2024
2023
Roger Adolfsen (Charirman of the board)
100 000
120 000
Geir Hjorth (board member)
110 000
130 000
Sandra Riise (board member)
110 000
130 000
Ane Carlsen (board member)
90 000
Even Carlsen (resigned board member)
10 000
110 000
Nina Høisæter (board member)
110 000
130 000
Total remuneration
530 000
620 000
.:
15. Other operating expenses
NOK in thousand
2024
2023
Accounting fees, auditing, legal expenses and other fees
Other operating expenses
Total other operating expenses
.
Fees from the auditor:
Fees from the auditor
NOK in thousand
2024
2023
Auditing fees
3 529
Other fees from the auditor
Total auditing fees
.
16. Other financial gains (losses)
NOK thousand
2024
2023
Currency gain/loss
236
2 227
Gain on sale shares
9 527
Gain on sale bonds
37
PIONEER PROPERTY GROUP ASA
Loss on sale funds
Loss on sale of properties
-61
Changes in fair value (see note 9)
-11 645
Other adjustments
6 672
Other financial income
38
Other financial expenses
7 675
Sum
The gain on sale of shares is related to sale of shares in Holberg kreditt, Døvikveien 22 AS and 10% of the shares in Evenes
Holding AS.
Other adjustments are related to increased value of the option to buy additional land in Brennemoen.
Write down of receivables to B-G Entreprenør AS (previous tenant in BM3 Eiendom AS) is presented as other financial
expenses.
The change in fair value is mainly related to the shares in Pancom AS.
17. Income taxes
Accounting principles
The tax expense for the period comprises current and deferred tax.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet
date in the countries where the company and its subsidiaries operate and generate taxable income.
Deferred tax assets are recognized to the extent that it is probable that future taxable profits will be available against which
the deductible temporary differences can be utilized.
Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their
carrying amounts in the consolidated financial statements.
The Group has applied the main rule for recognition of deferred tax in connection with the purchase of shares in property
companies that are not acquired through a business combination. This means that deferred tax is recognised as the difference
between the tax value and accounting value of investment property in the subsidiary, and value changes of the investment
property. Not recognised deferred tax linked to initial recognition exemption for investment properties per 31 December 2024
is MNOK 162.8 (MNOK 155.5 in 2023).
Changes in deferred tax liabilities:
NOK in thousand
Investment property
Other items
Total
01.01.2023
Recognized deferred tax
-3 630
-2 549
-6 179
Loss of control in subsidiary
-5 722
-5 722
31.12.2023
54 615
46 437
Recognized deferred tax
25 337
-2 549
22 013
31.12.2024
68 450
Changes in deferred tax assets:
NOK in thousand
Investment property
Other items
Total
31.12.2023
0
0
0
Acquired deferred tax asset from acquired
subsidiary
0
7 888
7 888
Recognized deferred tax
0
1 721
1 721
31.12.2024
0
9 609
9 609
ANNUAL REPORT 2024
38
Income tax expense:
NOK in thousand
2024
2023
Tax payable
633
Change in deferred tax
Changes related to loss of control in subsidiary
1 690
Other changes
Income tax expense
1 550
.
Reconciliation of tax expense:
NOK in thousand
2024
2023
Profit before income tax
Tax expense based on standard rate of
Norwegian (22%)
Adjustments for:
Effect of tax rates outside Norway
Permanent differences
Other differences
6 997
Income tax expense for the period
1 550
.
18. Earnings per share
Accounting principles
The Group's preference shares are entitled to a fixed dividend of NOK 10.00 per annum from 01 July 2022, if the General
Assembly approves payment of dividends. To calculate the earnings per share the entitled dividend to the preference shares is
deducted from comprehensive income for the period. The earnings per ordinary share is the remaining comprehensive income
deducted the preference share dividend divided by the weighted average number of shares in issue during the period.
Earnings per share from total operations
NOK
31.12.2024
31.12.2023
Profit/(loss) attributable to shareholders of parent
119 817 261
19 238 251
Less pref share dividends
-38 805 870
Profit attributable to ord shares
81 011 391
-19 567 619
Weighted average ordinary shares
9 814 470*
9 814 470
EPS to ordinary shares
8,25
-1,99
*On 3 December 2024, the extraordinary general meeting of Pioneer Property Group ASA passed a resolution to reduce the Company's share capital by NOK
3,284,048, through the redemption of a total of 3,284,048 ordinary shares. Furthermore, the extraordinary general meeting passed a resolution to reduce the
Company's share capital by NOK 500,000, through the redemption of a total of 500,000 preference shares held in treasury by the Company. The share capital
reductions were registered 22 January 2025 and is not included in the weighted average ordinary share calculation above.
Diluted
As per 31 December 2024 no rights are issued which would cause diluted earnings per share to be different to basic earnings
per share. Refer to note 21 for information related to the classes of shares.
39
PIONEER PROPERTY GROUP ASA
19. Group structure and acquisition of companies
Accounting Principles
Acquisition of subsidiaries not viewed as a business combination
Upon purchase of property management assess whether the purchase constitute purchase of a business or purchase of an
asset in accordance with IFRS 3. The Group assesses whether companies acquired constitute a business, which is when the
acquired set of activities and assets include an input and a substantive process that together significantly contribute to the
ability to create outputs.
An acquisition of entities not comprising any business activities is viewed as a purchase of assets. The acquisition cost is
allocated to the acquired assets and no deferred tax is calculated for temporary differences that arise at their initial
recognition. Acquisition related costs are capitalized with the asset.
All acquisition of subsidiaries made by the Group were classified as purchase of assets, as no substantive processes have been
identified.
Acquisition of companies regarded as asset purchase:
Sør Gardermoen Invest AS
Within the property development segment, PPG acquired Sør Gardermoen Invest, a plot used for parking close to Gardermoen
Airport.
Norlandia Holding AS
Within the hotel segment, PPG increased it shareholdings in Norlandia Holding AS to 85% and is by year end 2024 recognized
as an subsidiary. Norlandia Holding AS is a real estate company owning 11 hotel properties in Norway. The acquisition was
made on the 16. October, PPG acquired an additional 37.2% ownership interest in Norlandia Holding AS, increasing its total
ownership from 47.8% to 85%. The shares were acquired from associated companies controlled by Kristian Adolfsen and Roger
Adolfsen.
The transaction was conducted at an arms length pricing, based on property values assessed by third-party valuations.
The purchase price for the additional ownership interest was MNOK 144.6 settled through a seller credit.
The consolidation of Norlandia Holding AS's financial statements occurred on 16. October, the date on which control was
obtained. Norlandia Holding AS was classified as an associate company accounted for using the equity method at the
beginning of 2024.
To determine the accounting treatment of the acquisition, the concentration test in IFRS 3 was used to assess whether the
acquisition should be treated as an asset purchase or a business combination. The result of the concentration test was that the
group of identifiable assets acquired constitutes more than 90% of the fair value of what is purchased, and the test is therefore
passed. Consequently, the acquisition is treated as an asset purchase in accordance with IFRS 3.
The accounting treatment of the acquisition involves Norlandia Holding AS first being derecognized as an associate company
with the corresponding gain/loss calculation. See note 8 for details on the matter .
Upon recognition of an asset purchase, the purchase price is allocated pro-rata to the acquired assets.The purchase price was
determined based on the fair value of the subsidiary's assets, as assessed by independent third -party valuers. The purchased
share of the book equity has been entirely allocated to investment property.
Upon initial recognition of the properties, previous tax positions on the properties are derecognized as a consequence of the
initial recognition exemption in IAS 12. This results in a reduction of property values by NOK 85.9 million at the time of
acquisition. Subsequent measurement of the properties is at fair value. This means that the reduction in value recorded at the
time of acquisition is immediately reversed .
ANNUAL REPORT 2024
40
The effects from purchase of Norlandia Holding at time of acquisition.
Norlandia Holding
NOK in thousand
Deferred tax assets
7 887
Investment property
606 183
Other assets
131 200
Trade and other receivables
8 846
Cash
54 922
Non Current liabilites
399 985
Current liabilities
15 368
Total acquisition/sale of companies regarded as assets purchase /sale:
NOK in thousand
2024
2023
Purchase of subsidiaries/Properties -cash
Cash acquired companies
Debt acquired companies
Sale of subsidiaries/Properties -cash
-18 067
-52 853
Non controlling interest:
The non-controlling interest in PPG is related to the shares in Park Hotel Holdco, Evenes Tomteselskap AS, T10 Holdco AS, Up
North Property AS and BM3 Eiendom AS. For 2024, the transactions with non-controlling interest have been purchase of
additional shares in Norlandia Holding AS and sale of 10% in Evenes Holding AS.
Companies bought or incorporated in 2024:
Company
Location
Share of
Share of
Name
ownership
voting rights
Fagerlia Tomteselskap AS
Norway
70%
70%
Sør Gardermoen Invest AS
Norway
100%
100%
Norlandia Holding AS with subsidiaries
Norway
85%
85%
Companies sold in 2024:
PPG Hylle 3 AS
Norway
100%
100%
Companies bought or incorporated in 2023:
Company
Location
Share of
Share of
Name
ownership
voting rights
BM3 Eiendom AS
Norway
88%
88%
Evenes Utvikling AS
Norway
100%
100%
41
PIONEER PROPERTY GROUP ASA
The Group consists of the following subsidiaries per 31 December 2024:
Company
Location
Share of
Share of
Name
ownership
voting rights
Pioneer Property Group International AS
Norway
100%
100%
Pioneer Preschools AS
Norway
100%
100%
Norway
100%
100%
Norway
100%
100%
Norway
100%
100%
Pioneer Retail Properties AS
Norway
100%
100%
Norway
100%
100%
Norway
100%
100%
Norway
100%
100%
Norway
100%
100%
Norway
100%
100%
Norway
100%
100%
Norway
100%
100%
Norway
100%
100%
Pioneer Property Development AS
Norway
100%
100%
Norway
100%
100%
Norway
100%
100%
Norway
100%
100%
Norway
100%
100%
Norway
70%
70%
Norway
100%
100%
Norway
100%
100%
Norway
43%
53%
Norway
100%
100%
Norway
100%
100%
Norway
100%
100%
Norway
100%
100%
Norway
100%
100%
Norway
100%
100%
Norway
100%
100%
Norway
100%
100%
Norway
85%
85%
Pioneer Hotel Properties AS
Norway
100%
100%
Norway
90%
90%
Norway
100%
100%
Norway
100%
100%
Norway
50%
50%
Norway
50%
50%
Norway
100%
100%
Norway
100%
100%
Norlandia Holding AS
Norway
85%
85%
100 %
100 %
100 %
100 %
100 %
100 %
100 %
100 %
100 %
100 %
100 %
100 %
100 %
100 %
100 %
100 %
ANNUAL REPORT 2024
42
100 %
100 %
100 %
100 %
100 %
100 %
100 %
100 %
100 %
100 %
100 %
100 %
Norway
52%
52%
Norway
100%
100%
The Group consists of the following subsidiaries per 31 December 2023:
Company
Location
Share of
Share of
Name
ownership
voting rights
Pioneer Property Group International AS
Norway
100%
100%
Pioneer Preschools AS
Norway
100%
100%
Norway
100%
100%
Norway
100%
100%
Norway
100%
100%
Pioneer Retail Properties AS
Norway
100%
100%
Norway
100%
100%
Norway
100%
100%
Norway
100%
100%
Norway
100%
100%
Norway
100%
100%
Norway
100%
100%
Norway
100%
100%
Norway
100%
100%
Pioneer Property Development AS
Norway
100%
100%
Norway
100%
100%
Norway
100%
100%
Norway
100%
100%
Norway
100%
100%
Norway
100%
100%
Norway
53%
53%
Norway
85%
85%
Norway
100%
100%
Norway
100%
100%
Norway
100%
100%
Norway
100%
100%
Norway
100%
100%
Norway
100%
100%
Norway
100%
100%
Norway
100%
100%
Pioneer Hotel Properties AS
Norway
100%
100%
Norway
90%
90%
Norway
100%
100%
Norway
100%
100%
Norway
50%
50%
Norway
50%
50%
Norway
100%
100%
Norway
100%
100%
Norway
100%
100%
PPG Hylle 2 AS
Norway
100%
100%
PPG Hylle 3 AS
Norway
100%
100%
T10 Holdco AS
Norway
52%
52%
Norway
100%
100%
43
PIONEER PROPERTY GROUP ASA
.
20. Related party transactions
Balances and transactions between the company and its subsidiaries, which are related parties to the company, have been
eliminated on consolidation and are not disclosed in this note.
The Group has the following related parties as of 31.12.2024:
Related party
Relation to the Group
Roger Adolfsen
Chairman of the Board and owner of Mecca Invest AS
Sandra Henriette Riise
Board member
Geir Hjort
Board member
Ane Nordahl Carlsen
Board member and owner of Grafo AS
Nina Hjørdis Torp Høisæter
Board member
John Ivar Busklein
Chief Executive Officer
Øystein Grini
Chief Financial Officer
Hospitality Invest AS
Substantial shareholder
Grafo AS
Substantial shareholder
Klevenstern AS
Substantial shareholder
Mecca Invest AS
Substantial shareholder
Kongsparken AS
Associated company
JV Nordväst Fastighet AB
Associated company
Forus Holdco AS
Associated company
Köping Hotellfastighet AB
Associated company
Strand Hotel Borgholm AB
Associated company
Ramstadsletta Utvikling AS
Associated company
Vossevangen Utvikling AS
Associated company
JV Havna Tjøme AS
Associated company
Pancom AS
Associated company
Norlandia Health & Care Group AS
Controlled by substantial shareholders, refer to note 21
Oslo Corporate Holding AS
Controlled by substantial shareholders, refer to note 21
Kara Invest AS
Controlled by substantial shareholders, refer to note 21
Ferda Norge AS
Controlled by substantial shareholders, refer to note 21
Acea Invest AS
Controlled by substantial shareholders, refer to note 21
Kidprop AS
Controlled by substantial shareholders, refer to note 21
Caravan Eiendom AS
Controlled by substantial shareholders, refer to note 21
Norlandia Hotel Group AS
Controlled by substantial shareholders, refer to note 21
Up North Hospitality AS
Controlled by substantial shareholders, refer to note 21
The Group had the following related parties as of 31.12.2023:
Related party
Relation to the Group
Roger Adolfsen
Chairman of the Board and owner of Mecca Invest AS
Sandra Henriette Riise
Board member
Geir Hjort
Board member
Ane Nordahl Carlsen
Board member from April 23
Even Carlsen
Board member until April 23 and owner of Grafo AS
Nina Hjørdis Torp Høisæter
Board member
John Ivar Busklein
Chief Executive Officer
Øystein Grini
Chief Financial Officer
Hospitality Invest AS
Substantial shareholder
Grafo AS
Substantial shareholder
ANNUAL REPORT 2024
44
Klevenstern AS
Substantial shareholder
Mecca Invest AS
Substantial shareholder
JV Nordväst Fastighet AB
Associated company
Forus Holdco AS
Associated company
Köping Hotellfastighet AB
Associated company
Strand Hotel Borgholm AB
Associated company
Ramstadsletta Utvikling AS
Associated company
Vossevangen Utvikling AS
Associated company
Norlandia Health & Care Group AS
Controlled by substantial shareholders, refer to note 21
Norlandia Holding AS
Controlled by substantial shareholders, refer to note 21
Kara Invest AS
Controlled by substantial shareholders, refer to note 21
Ferda Norge AS
Controlled by substantial shareholders, refer to note 21
Acea Invest AS
Controlled by substantial shareholders, refer to note 21
Kidprop AS
Controlled by substantial shareholders, refer to note 21
Caravan Eiendom AS
Controlled by substantial shareholders, refer to note 21
Norlandia Hotel Group AS
Controlled by substantial shareholders, refer to note 21
Oslo Corporate Holding AS
Controlled by substantial shareholders, refer to note 21
Up North Hospitality AS
Controlled by substantial shareholders, refer to note 21
Indirect ownership of shares by board member per the balance sheet date:
2024
Ord. Shares
Pref. shares
Ord. Shares
Pref. shares
Roger Adolfsen
-
Ane Nordahl Carlsen
-
The Group had the following material transactions with related parties:
NOK in thousand
2024
Rent revenue from Norlandia Health & Care Group AS including subsidiaries
7 417
Rent revenue from Ferda Norge AS
33 312
Rent revenue from Norlandia Hotel group
68 890
57 738
Rent revenue from BG Entreprenør
2 428
-
Interest income from associated companies
3 417
Interest expense to associated companies
2 782
251
Management fee from Up North Hospitality AS
1 342
Management fee from Oslo Corporate Holding AS
909
M&A services and Management fee to Hospitality Invest AS
4 889
Sale of shares to Norlandia Hotel Group AS
30
-
Purchase of shares and properties from related parties, please refer to note 19
106 132
Transactions made between the related parties are made on terms equivalent to those that prevail in the market at arm’s
length.
Receivables from related parties
NOK in thousand
31.12.2024
31.12.2023
Norlandia companies
Kongsparken AS
18 356
Ramstadsletta Utvikling AS
Smedplassen Eiendom AS
1 432
HI Capital AS
-
Wayfare Invest AS
29 667
45
PIONEER PROPERTY GROUP ASA
Liabilities to related parties
NOK in thousand
31.12.2024
31.12.2023
Norlandia companies
Sellers vendor note to companies controlled by Kristian and Roger Adolfsen
For compensation to key management personnel, see note 14.
Loans to associate entities
During the 2024 reporting period, the Group lent its associates funds in the form of loans to finance its investments, in
agreement with the other shareholders of the associates.
21. Share capital and shareholder information
The Company has two classes of shares, ordinary shares and preference shares. As of 31 December 2024, Pioneer Property
Group ASA had a share capital of NOK 14,683,023, divided into 9,814,470 ordinary shares and 4,868,553 preference shares
with a nominal value of NOK 1 per share for both categories.
On 3 December 2024, the extraordinary general meeting of Pioneer Property Group ASA passed a resolution to reduce the
Company's share capital by NOK 3,284,048, through the redemption of a total of 3,284,048 ordinary shares and to reduce the
Company's share capital by NOK 500,000, through the redemption of a total of 500,000 preference shares held in treasury by
the Company.
The reduction takes place through redemption of in total 3,284,048 ordinary shares each with a nominal value of NOK 1. The
reduction takes place through redemption of the following ordinary shares: 1,642,024 ordinary shares, owned by Grafo AS
(reg. no. 947 195 360); and 1,642,024 ordinary snares, owned by Eidissen Consult AS (reg. no. 916 524 552). After the
redemption, the company has 10 898 975 shares with a book value NOK 1 per share, and total share capital is NOK 10 898 975.
The share capital reductions were registered 22 January 2025 and are not entered into effect as of 31.12.2024, hence the
redemption of shares is not reflected in the table below.
The differences between the share classes are differing voting rights and differing rights to the Company’s profit. The
regulations on voting rights and dividends are decided upon by the Shareholders’ Meeting and can be found in the Articles of
Association.
The ordinary share
The Company's ordinary share confers one vote unlike the preference shares that confer one-tenth of a vote.
The preference shares
The Company’s preference shares confer a preferential right over ordinary shares to an annual dividend of NOK 10.00 per
preference share per annum. Dividend payments are made quarterly with NOK 2.500 per preference share, if approved by the
Board of Directors based on the authorisation given by the General Assembly. The preference share does not otherwise confer
a right to dividend. If the general meeting decided not to pay dividends or to pay dividends that fall below NOK 2.500 per
preference share during a quarter, the difference between paid dividends and NOK 2.500 per preference share shall be
accumulated and adjusted upwards with an annual interest rate of 5 per cent until full dividends have been distributed. No
dividends may be distributed to the ordinary shareholders until the preference shareholders have received full dividends
including the withheld amount.
Share value in NOK
Number of
shares
Ordinary
shares
Preference
shares
Share premium
Treasury shares
Total
At 1 January 2023
Capital reduction
Payment premiums 2023
Acquisition of treasury shares
ANNUAL REPORT 2024
46
At 31 December 2023
Payment premiums 2024
Acquisition of treasury shares
At 31 December 2024
9 814 470
569 331 956
PPG holds 987,966 preference shares in PPG at purchased a price of NOK 102.00 per preference share. This equals
approximately 6.73% of the share capital, which represents 0.96% of the votes. Detailed information regarding dividends,
issues and redemption can be found in the Company's Articles of Association, available in the prospectus at the Company's
website.
During 2024, PPG has declared quarterly dividends to the holders of preference shares, in total MNOK 38.8. Furthermore PPG paid
dividends to holders of the ordinary shares of MNOK 40.0.
10 largest shareholders registered in VPS as of 31 December 2024:
Ordinary
shares
Preference
shares
Voting
share
Hospitality Invest AS
32,62%
0,00%
31,08%
Eidissen Consult AS
16,73%
0,00%
15,94%
Grafo AS
16,73%
0,00%
15,94%
Mecca Invest AS
15,78%
0,00%
15,04%
Klevenstern AS
15,78%
0,00%
15,04%
HI Capital AS
2,34%
0,00%
2,23%
Skandinaviska Enskilda Banken AB
0,00%
0,00%
12,88%
Nordnet Bank AB
0,00%
10,25%
0,39%
Avanza Bank AB
0,00%
8,44%
0,37%
The Bank of New York Mellon
0,00%
7,54%
0,28%
Other Shareholders
0,00%
60,88%
3,21%
Total
100 %
100 %
100%
10 largest shareholders registered in VPS as of 31 December 2023:
Ordinary
shares
Preference
shares
Voting
share
Hospitality Invest AS
32,62%
0,00%
31,08%
Eidissen Consult AS
16,73%
0,00%
15,94%
Grafo AS
16,73%
0,00%
15,94%
Mecca Invest AS
15,78%
0,00%
15,04%
Klevenstern AS
15,78%
0,00%
15,04%
HI Capital AS
2,34%
0,00%
2,23%
Skandinaviska Enskilda Banken AB
0,00%
12,88%
0,61%
Nordnet Bank AB
0,00%
9,85%
0,47%
Avanza Bank AB
0,00%
9,54%
0,45%
The Bank of New York Mellon
0,00%
7,54%
0,36%
Other Shareholders
0,00%
60,18%
2,84%
Total
100 %
100 %
100%
.
22. Contingent liabilities
The group has not been involved in any legal or financial disputes in the period covered by these consolidated financial
statements, where an adverse outcome is considered more likely than remote.
47
PIONEER PROPERTY GROUP ASA
24. Subsequent events
No significant subsequent events has occurred in 2025.
ANNUAL REPORT 2024
48
Alternative Performance Measures
Pioneer Property Group ASA reports Alternative Performance Measures (APMs) as a supplement, but not as a substitute, to the
financial statements prepared in accordance with IFRS. Financial APMs are intended to enhance comparability of the results and cash
flows from period to period. The financial APMs reported by PPG are the APMs that, in management’s view, provide relevant
supplemental information of the company’s financial position and performance. Operational measures such as, but not limited to,
occupancy and WAULT are not defined as financial APMs according to ESMA’s guidelines.
The company reports the following alternative performance measures (APMs):
APM
amounts in NOK
thousand
Explanation
2024
2023
2022
2021
EBIT
Earnings before interest and taxes
223 958
46 586
23 750
251 535
Weighted
average gross
yield
The weighted average gross yield on
estimated rent calculated by adjusting
for property value. Gross yield for a
property or portfolio of properties is
calculated as contractual annualised
rental income for the upcoming
financial year divided by the market
value as of balance sheet date.
Preschool
Hotel
Retail
Office
6.4%
7.6%
8.3%
7.3%
6.4%
7.2%
7.9%
7.2%
5.3%
6.8%
7.1%
6.2%
3.4%
6.2%
6.1%
n/a
NOI
Net Operating Income, meaning all revenue from
properties minus all reasonable direct property
related expenses.
134 810
118 766
69 974
41 256
Market value of
the property
portfolio
The market value of the Groups investment
properties
2 642 606
1 757 256
1 798 709
1 393 041
Effective
leverage
Total interest bearing debt divided by total
assets
55.4%
44.6%
39.5%
31.9%
49
PIONEER PROPERTY GROUP ASA
ANNUAL REPORT
(PARENT COMPANY)
2024
PIONEER PROPERTY GROUP ASA
ANNUAL REPORT 2024
50
PIONEER PROPERTY GROUP ASA
STATEMENT OF INCOME
Note
2024
2023
OPERATING REVENUE AND EXPENSE
Revenue
1
15 455 181
12 092 860
TOTAL OPERATING REVENUE
15 455 181
12 092 860
Employee benefits expense
2
8 333 350
7 191 448
Depreciation and amortisation expense
3
23 264
28
Other operating expenses
2
9 081 490
8 592 853
TOTAL OPERATING EXPENSES
17 438 104
15 811 873
OPERATING PROFIT OR LOSS
-1 982 923
-3 719 013
FINACIAL INCOME AND EXPENSES
Financial income
Changes in market value of fin. cur. assets
4,5
420 830
2 565 674
Income from subsidiaries
5
1 082 552
1 726 910
Interest received from group companies
1,5
17 931 156
16 554 489
Other interest
5
8 073 067
14 715 353
Other financial income
5
1 675 046
2 426 274
Total financial income
29 182 651
37 988 700
Financial expenses
Write down of investments in subsidiaries and shares
4,5
16 962 926
-
Interest paid to group companies
1,5
729 156
528 229
Other interest
5
4 015 450
261 721
Other financial expense
5
50 536
325 460
Total financial expenses
21 758 068
1 115 410
NET FINANCE
7 424 582
36 873 291
ORDINARY RESULT BEFORE TAX
5 441 659
33 154 278
Tax on ordinary result
6
4 328 918
7 291 088
PROFIT
1 112 741
25 863 188
ATTRIBUTABLE TO
To additional dividends payable
9
58 805 870
98 146 187
Given intra-group contribution
9
19 585 325
11 637 716
To other equity
9
-77 278 454
-83 920 715
Net brought forward
1 112 741
25 863 188
51
PIONEER PROPERTY GROUP ASA
PIONEER PROPERTY GROUP ASA
Balance sheet pr. 31.12.2024
Note
2024
2023
ASSETS
Fixed assets
Tangible assets
Fixtures and fittings, office machinery etc.
3
18 167
41 431
Total tangible assets
18 167
41 431
Financial fixed assets
Investments in subsidiaries
7
905 096 357
636 059 247
Loans to group companies
1
243 341 034
252 316 976
Investments in associates
7
-
87 782 718
Investments in shares or units
36 505 142
38 282 669
Total financial fixed assets
1 184 942 533
1 014 441 610
TOTAL FIXED ASSETS
1 184 960 700
1 014 483 041
CURRENT ASSETS
Receivables
Receivables on group companies
1
19 412 079
18 110 418
Other short-term receivables
2 148 421
2 615 318
Total receivables
21 560 500
20 725 736
Investments
Quoted bonds
4
62 620 000
62 620 000
Other financial Instruments
4
5 922 137
54 956 108
Total investments
68 542 137
117 576 108
Cash and bank deposits
8
186 572 425
42 280 425
TOTAL CURRENT ASSETS
276 675 062
180 582 269
TOTAL ASSETS
1 461 635 762
1 195 065 310
ANNUAL REPORT 2024
52
PIONEER PROPERTY GROUP ASA
Balance sheet pr. 31.12.2024
Note
2024
2023
EQUITY AND LIABILITIES
Equity
EQUITY AND LIABILITIES
Share capital
9,10
14 683 023
14 683 023
Treasury shares
9
-987 966
-987 966
Share premium reserve
9
555 636 899
555 636 899
Share capital reduction not registered
9
-155 072 747
-
TOTAL PAID -IN EQUITY
414 259 209
569 331 956
Other equity
9
492 368 162
550 061 290
TOTAL EQUITY
906 627 371
1 119 393 245
Liabilities
Provision
Deferred tax
6
336 728
846 055
Total provisions
336 728
846 055
Other non-current liabilities
Borrowings non-current
193 491 665
-
Other non-current liabilities
146 809 576
-
Liabilities to group companies
1
14 597 336
9 332 054
Total other non-current liabilities
354 898 577
9 332 054
TOTAL NON-CURRENT LIABILITIES
355 235 305
10 178 109
Current liabilities
Accounts payable
108 434
3 137 398
Income tax payable
6
529 473
4 168 415
Public duties payable
4 699 391
411 373
Dividends payable
9 701 468
34 200 466
Liabilities to group companies
1
19 585 325
11 637 716
Other current liabilities
165 148 996
11 938 588
TOTAL SHORT-TERM LIABILITIES
199 773 085
65 493 955
TOTAL LIABILITIES
555 008 390
75 672 064
TOTAL EQUITY AND LIABILITIES
1 461 635 762
1 195 065 310
Oslo, 27 March 2025
Board of Directors of Pioneer Property Group ASA
Roger Adolfsen
Chairman of the Board
Sandra Henriette Riise
Member of the Board
Ane
Member of the Board
Nina Hjørdis Torp Høisæter
Member of the Board
Geir Hjorth
Member of the Board
John Ivar Busklein
Chief Executive Officer
53
PIONEER PROPERTY GROUP ASA
PIONEER PROPERTY GROUP ASA
Statement of Cash Flow
Note
2024
2023
Cash flows from operating activities
Profit before tax
5 441 660
33 154 276
Taxes paid
-4 168 415
-6 961 967
Gains and losses on sale bonds/funds
4
-1 633 932
-1 985 076
Depreciation
3
23 264
27 572
Gains and losses on sale shares
-
-
Group contributions
1
1 082 550
-1 726 910
Exchange gains/(losses)
-
211 497
Fair value adjustment on quoted bonds
4
-420 830
-2 565 674
Trade receivables
-1 301 661
-15 970 711
Trade payables
-3 028 964
-774 946
Other accruals
5 998 923
-13 013 933
Net cash flow from operating activities
18 955 521
-9 605 872
Cash flows from investing activities
Payments for purchase of shares in subsidiaries
-
-42 000 000
Payments for purchase of other investments
3
-1 702 895
-17 209
Payments from other loans
-
-
Net proceeds from loan to group companies
1
-35 404 822
69 030 545
Proceeds from sale of shares
30 000
30 000
Proceeds from sale of funds
4
15 000 000
Proceeds from sale of bonds
4
50 069 171
-
Payments to buy other investments
-9 071 492
Payments for purchase of quoted bonds
-
-
Net cash flow from investments activities
12 991 454
32 971 844
Cash flow from financing activities
Payments for purchase of own shares
-
-
Dividends paid
-83 304 869
-78 686 610
Repayment of share premium reserve
-
-
Group contributions paid
-
-28 637 189
Group contributions received
1 692 676
Proceeds from debt to financial institutions
193 491 665
-
Proceeds from other borrowings
2 158 230
-
Net cash flow from financing activities
112 345 026
-105 631 123
Net change in cash and cash equivalents
144 292 001
-82 265 151
Cash and cash equivalents at the beginning of the period
42 280 425
124 545 576
Cash and cash equivalents at the end of the period
186 572 425
42 280 425
ANNUAL REPORT 2024
54
Notes to the financial statements 2024
Accounting Principles:
The financial statements have been prepared in accordance with the Norwegian Accounting Act and generally accepted accounting principles in
Norway. The Company's financial statements are prepared on a going concern basis.
Sales revenue
Revenue is recognized from the sale of goods at the time of delivery. Services are recognized as revenue as they are delivered.
Balance sheet classification
Current assets and short term liabilities consist of receivables and payables due within one year, and items related to the inventory cycle. Other
balance sheet items are classified as fixed assets / long term liabilities.
Current assets are valued at the lower of cost and fair value. Short term liabilities are recognized at nominal value.
Fixed assets are valued at cost, less depreciation and impairment losses. Long term liabilities are recognized at nominal value.
Subsidiaries and investment in associates
Subsidiaries and investments in associates are valued at cost in the company accounts. The investment is valued as cost of the shares in the
subsidiary, less any impairment losses An impairment loss is recognized if the impairment is not considered temporary, in accordance with
generally accepted accounting principles. Impairment losses are reversed if the reason for the impairment loss disappears in a lather period.
Dividends, group contributions and other distributions from subsidiaries are recognized in the same year as they are recognized in the financial
statement of the provider. If dividends / group contribution exceeds withheld profits after the acquisition date, the excess amount represents
repayment of invested capital, and the distribution will be deducted from the recorded value of the acquisition in the balance sheet for the
parent company.
Accounts receivable and other receivables
Accounts receivable and other current receivables are recorded in the balance sheet at nominal value less provisions for doubtful accounts.
Provisions for doubtful accounts are based on an individual assessment of the different receivables. For the remaining receivables, a general
provision is estimated based on expected loss.
Income tax
The tax expense consists of the tax payable and changes to deferred tax. Deferred tax/tax assets are calculated on all differences between the
book value and tax value of assets and liabilities. Deferred tax is calculated as 22 percent of temporary differences and the tax effect of tax losses
carried forward. Deferred tax assets are recorded in the balance sheet when it is more likely than not that the tax assets will be utilized. Taxes
payable and deferred taxes are recognized directly in equity to the extent that they relate to equity transactions
Financial assets measured at fair value through profit or loss
Financial assets measured at fair value through profit or loss comprise financial assets whose cash flows do not relate solely to payments of
interest and repayments of principal on the outstanding nominal amount. Gains or losses on these financial assets are recognized through
profit or loss.
Foreign currency translation
Transactions in foreign currency are translated at the rate applicable on the transaction date. Monetary items in a foreign currency are translated
into NOK using the exchange rate applicable on the balance sheet date. Non-monetary items that are measured at their historical price
expressed in a foreign currency are translated into NOK using the exchange rate applicable on the transaction date. Non-monetary items that are
measured at their fair value expressed in a foreign currency are translated at the exchange rate applicable on the balance sheet date.
Changes to exchange rates are recognised in the income statement as they occur during the accounting period.
Cash
The cash flow statement is presented using the indirect method. Cash and cash equivalents includes cash, bank deposits and other short term,
highly liquid investments with maturities of three months or less.
55
PIONEER PROPERTY GROUP ASA
Note 1 – Revenues and liabilities to/receivables from group companies
Revenue received is management fee from group companies, except NOK 150.000 from an associated company . Management fee
income from subsidiaries is NOK 15 335 181. All revenues have been generated in Norway.
Interest received from group companies is NOK 17 931 156 and interest paid to group companies is NOK 729 156.
Receivables
2024
2023
Accounts receivable
18 235 909
15 970 711
Group contributions
1 082 552
1 726 910
Other short term receivables
0
412 797
Loans to group companies
243 341 034
252 316 976
Total receivables
262 659 495
276 282 283
Liabilities
Group contributions
19 585 325
11 637 716
Other liabilities
7 960 509
9 332 054
Total Liabilities
22 557 845
20 969 770
Note 2 - Management and auditor compensation
The company's auditor expenses (VAT included):
2024
2023
Statutory audit
1 066 969
749 666
Other services
0
9 090
Total
1 066 969
758 756
2024
2023
Payroll
Payroll expenses (employer tax)
7 046 324
1 113 887
6 091 596
967 781
Pension cost
121 089
94 012
Other payments
52 049
38 060
Total
8 333 350
7 191 448
It's been paid remuneration for directors with NOK 530 000,
Roger Adolfsen (Chairman of the board)
100 000
Geir Hjorth (board member)
110 000
Sandra Riise (board member)
110 000
Ane Carlsen (board member)
Nina Høisæter (board member)
110 000
The company has five employees, four in full time positions and one employee in part time position (28.4%) and is regulated under the Act on
Mandatory occupational pensions act, and the company has established mandatory occupational pensions and contribution pension for the
employees.
ANNUAL REPORT 2024
56
NOK
Salary
Bonus
Other benefits
Pension cost
Total Compensation
Øystein B. Grini (CFO)
1 503 000
4 392
30 953
1 572 794
John Ivar Busklein (CEO)
(28,4% part time position)
585 040
734 919
Total
2 088 040
2 424 737
John Ivar Busklein (CEO) and Øystein Grini (CFO) received a bonus of NOK 166 667 and NOK 126 000 respectively for their performance in
Pioneer Property Group ASA. Both bonuses were paid in first quarter of 2024.
No member of the management have in their agreement that they will get any right to compensation after termination of employment.
No loans or guarantees have been given to any members of the management, the Board of directors or other corporate bodies.
The board of directors of PPG has prepared guidelines for a determination of salary and other remuneration to the executive management, in
accordance with applicable law. The guidelines include the policies which PPG uses for the determination of salary and other remuneration to its
executive management. The guidelines are published on the company’s web page pioneerproperty.no.
Note 3 - Fixtures and fittings, office machinery etc.
Fixtures and fittings, office
machinery
etc.
Acquisition cost as at. 1/1 87 024
+ Additions 0
Acquisition cost as at. 31/12 87 024
Accumulated depreciation 1/1
45 594
+ Depreciation for the year
23 264
Accumulated depreciation 31/12
68 857
Net Value 31/12 18 167
Depreciation percentage / estimated useful life 33% - 3 years
Assets are depreciated on a straight line basis
57
PIONEER PROPERTY GROUP ASA
Note 4 - Quoted bonds
Financial instruments have been assessed at fair value.
The fair value has been set in accordance with the value observable in the market at the balance sheet date.
Quoted bonds:
Acquisition cost
This year change
in value
Market Value
Hospitality Invest AS
62 000 000
62 620 000
Total
62 000 000
62 620 000
Funds:
Acquisition cost
This year change
in value
Market Value
Valmue Private Debt
5 000 000
5 922 137
Total
5 922 137
Funds purchased/redeemed in 2024:
Holberg Kreditt
1 633 932
Total
1 633 932
Note 5 - Financial income and expenses
2024
2023
Financial income:
Change in market value of financial current assets
420 830
2 565 674
Group contribution
1 082 552
1 726 910
Interest received from group companies
17 931 156
16 554 489
Other interest
8 073 067
14 715 353
Currency gain
41 114
15 485
Other financial income
0
425 714
Gain on sale quoted bonds
1 633 933
1 985 075
Total financial income
29 182 651
37 988 700
Financial expenses:
Interest paid to group companies
729 156
528 229
Other interest
4 015 450
261 721
Currency loss
50 536
325 460
Write down of assets
3 949 926
0
Total financial expenses
8 745 068
1 115 410
ANNUAL REPORT 2024
58
Note 6 - Tax
Calculation of this years tax basis:
Net profit/loss before tax expense
18 454 660
+ Permanent differences
3 526 836
+ Changes in temporary differences
10 527
+ Received group contributions
1 082 550
- Paid group contributions
-19 585 325
= Income
3 489 248
This years income tax expense consist of:
Estimated tax of net profit
4 838 245
= Tax payable
4 838 245
+/- Change in deferred tax
-
509 327
= Total tax expense
4 328 918
Tax rate
22%
Current tax liability:
Tax payable
4 600 083
+/- Effect on tax of group contributions
-4 070 611
= Tax payable
522 935
Temporary differences :
2024
2023
Change
Fixed assets
- 11 553
- 1 027
10 527
Quoted bonds and other financial instruments
1 542 137
3 846 730
2 304 593
Sum temporary differences
1 530 584
3 845 704
2 315 120
Deferred tax
336 728
846 055
509 326
59
PIONEER PROPERTY GROUP ASA
Note 7 - Investments in subsidiaries
Subsidiaries are valued at cost in the company’s accounts.
The company has shares in the following subsidiaries:
Subsidiary, office location:
Owner-
ship %
Voting
rights %
Net profit
2024
(100%)
Equity
2024
(100%)
Pioneer Preschools AS, Oslo
100,00 %
100,00 %
-1 912 423
46 124 169
Pioneer Property Group International AS, Oslo
100,00 %
100,00 %
469 789
8 865 765
Pioneer Hotel Properties AS, Oslo
100,00 %
100,00 %
793 023
352 797 552
Pioneer Retail Properties AS, Oslo
100,00 %
100,00 %
-819 186
79 613 952
Pioneer Property Development AS, Oslo
100,00 %
100,00 %
1 686 375
154 982 317
T10 Holdco AS, Oslo
52,00 %
52,00 %
-405 878
9 409 869
Norlandia Holding AS, Oslo
69,32 %
69,32 %
28 052 855
421 309 723
Note 8 - Bank deposits
Employees tax deduction, deposited in a separate bank account with total amount 31.12.24 NOK 257 896.
Note 9 - Other equity
Share
capital
Own Shares
Share premium
Reserve
Share capital
reduction not
registered
Other equity
Total equity
Per 1.1
14 683 023
-987 966
555 636 899
550 061 290
1 119 393 245
Share cap. reduction
-155 072 74
-155 072 746
Ordinary result
1 112 741
Dividends
--58 805 870
Per 31.12
14 683 023
-987 966
555 636 899
-155 072 746
492 368 162
906 627 371
Note 10 - Share capital
The company had 14 683 023 ordinary shares. An extraordinary general assembly were held in Deccember 03. The reduction takes place
through redemption of in total 3,284,048 ordinary shares each with a nominal value of NOK 1. The reduction takes place through redemption of
the following ordinary shares: 1,642,024 ordinary shares, owned by Grafo AS (reg. no. 947 195 360); and 1,642,024 ordinary snares, owned by
Eidissen Consult AS (reg. no. 916 524 552). After the redemption, the company has 10 898 975 shares with a book value NOK 1 per share, and
total share capital is NOK 10 898 975.
The company have two classes of shares, ordinary shares and preference shares:
Class of shares
shares
Total
value
Voting rights
Ordinary shares
6 466 386
6 466 486
Each share has 1 vote
Preference shares
4 868 553
4 868 553
Each share has 0,1 vote
Total
10 898 975
10 898 975
ANNUAL REPORT 2024
60
The company's shareholders ordinary shares:
Shareholders
Ord. shares
Hospitality Invest AS
3 201 926
Klevenstern AS
1 549 214
Mecca Invest AS
1 549 219
Hi Capital AS
230 068
The company's largest shareholders pref.shares (>1%) :
Shareholders:
Pref.Shares
Pioneer Property Group ASA
-987 966
Skandinaviska Enskilda Banken AB
500 000
Nordnet Bank AB
382 109
Avanza Bank AB
370 110
The Bank of New York Mellon
292 714
Union Bancaire Privee
141 304
Danske Bank A/S
124 040
SIX SIS AG
113 000
Skandinaviska Enskilda Banken AB – Lux Branch
96 138
The Bank of New York Mellon
68 307
Nordnet Livsforsikring
63 767
Swedbank AB
59 667
Indirectly owned shares of executives in the company:
Ordinary shares
Pref. shares
Roger Adolfsen (Chairman)
3 160 192
0
Ane Nordahl Carlsen (Board member)
0
Note 11 - Transactions with related parties
The company has various transactions with associated companies. All the transactions have been carried out as part of the ordinary operations and
at arm’s length prices. The most significant transactions are as follows:
Hospitality Invest AS, management fee NOK 3 473 524
Hospitality Invest AS, Other short-term receivables NOK 663 890
GROUP WEB PAGES
PARENT & SUBSIDIARIES
Pioneer Property Group ASA
www.pioneerproperty.no
PIONEER PROPERTY GROUP ASA
RÅDHUSGATA 23
0158 OSLO
NORWAY
WEB:
WWW.PIONEERPROPERTY.NO