Public Property Invest : Half Year Presentation January June 2024

Public Property Invest ASA

Half-year results presentation - 11 July 2024	1

AGENDA

1. Highlights

II.

III.

IV.

V.

Operations

Financial update

Summary and concluding remarks

Q&A

2

Highlights

Key Figures H1 2024

NOK 312m	NOK 279m	NOK 129m	NOK 0.62
Rental income	NOI	Income from	EPRA Earnings
		property management	per share

NOK 692m	NOK 1,872	4.8 years	93%
Normalized GRI	GRI / BTA	WAULT	Occupancy

NOK 9.8bn	NOK 26.7k	6.3 %	NOK 26.02
Investment properties	Property value / BTA	NOI yield	EPRA NRV per share

Key Events

• Net operating income (NOI) NOK 279m with NOI-margin 89.4%.
• Adjusted cashflow from operations NOK 254m.
• Negative portfolio value changes from Q1 affecting results H1 2024.
  Values flat Q2.
• 92% income from public tenants
• Prolonged or new leases NOK 67.9m positive net letting NOK 11m.
• IPO, SBB acquisition and refinancing: Strong balance sheet, Run-rate NET DEBT/EBITDA 7.8x, LTV 40.2%.

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Highlights

Normalised annual run rate

Run rate figures below are presented on a 12 months basis from period end.

Amounts in NOK million	Q2 2024	Q4 2023
Rental income 1)	692	591
Other income	0	0
Property expenses	-69	-59
Net operating income	623	532
Administration expenses	-66	-24
Reimbursed property management fee 2)	18	-
Run rate EBITDA	575	509
Net realised financials 3)	-265	-255
Net income from property management	310	254
Net income from property management per share (NOK)	1.49	3,5
Net debt/Run Rate EBITDA	7.8x	10,7
Run rate ICR	2.2x
LTV	40.2%

1) Based on signed agreements at period end. 2) PPI receives reimbursement of property management fees from management of properties not owned by the Group. The organisation in PPI manages SBB's remaining Norwegian portfolio as well as

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Nordiqus AB's Norwegian portfolio. 3) Based on interest rates and swap agreements after closed refinancing in April and September 2024. Does not include amortisation of capitalised borrowing cost.

PPI will position itself as a leading consolidator with low leverage, high growth ambitions and an attractive dividend policy

Low		Growth
Leverage		Focused

	▪ Strong balance sheet to claim		▪	Opportunistic growth	strategy
	consolidator position		▪	Focused on the four largest
	▪ Capital structure:			Norwegian cities
	✓ Approximately 45% loan to		▪	High deal flow expected in 24-25
	value			as refinancing wave hits the
	✓ ≥3 years average loan tenor			market

Attractive

dividend policy

• Quarterly dividend payments of approx. 60% of cash-earnings 1

1. Subject to growth and overall financial position. The dividend will be paid quarterly. In the short term, the Company intends to take advantage of the current market situation and may prioritise acquisitions and therefore not pay dividends in

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accordance with the dividend policy

AGENDA

1. Highlights

1. Operations

III.

IV.

V.

Financial update

Summary and concluding remarks

Q&A

6

OPERATIONS

Portfolio overview

Strategic	92% public
tenants
locations in
backed by
local
AAA-rated
communities
state credit

No single asset constitutes more than 8% of the total portfolio

10%

9%

8%

7%

6%

5%

4%

3%

2%

1%

0%

Evenly distributed lease maturity profile

Median: 1.1%

Geographically, the group's assets are strategically distributed:

62.8% in Eastern Norway

11.0% in Northern Norway

8.8% in Western Norway

8.6% in the Inland

7.7% in Southern Norway

1.2% in Central Norway

% of GAV

% of GRI

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OPERATIONS

Letting & Occupancy

• New and renewed leases of NOK 67.9 million (33,000 sqm)
• No terminated contracts first half year
• Net letting of NOK 10.8 million
• Occupancy at 93%
• Wault at 4.8 years

Largest new and renegotiated tenants
	Property	Tenant	Sqm	Contract
	Kunnskapsveien 55, Kjeller	Oslo Met	27,000	Renegotiation
	Fjørevegen 20, Sogndal			Police			1,740	Renegotiation
	Nordstrandveien 41, Bodø	Norgesgruppen	1,689	Renegotiation

PPI's competitive rent levels vs. newbuild alternative is a key

factor in ensuring costumers retention - and one of the main reasons why OsloMet prolonged its contract at Kunnskapsveien 55

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OPERATIONS

Detailed and concrete sustainability strategy, with goal to be climate neutral by 2030

• 1) Framework and strategy

Certified Eco-lighthouse in December 2023 Corresponds with the EU's EMAS eco-labelling (ISO 14001)

Company commitments and requirements to be certified:

1. Develop policies for their property operations
2. Map environmental aspects of the properties
3. Set goals and measures for sustainability improvement
4. Involve tenants in reducing emissions
5. Set requirements for suppliers

Overall strategy:

• PPI's board of directors has resolved that PPI must become a climate- neutral company within 2030
• The goal is to reduce greenhouse gas emissions by 20% by 2030, of which 16% will come from lower energy use and 4% will come from installation of local solar power, and increased use of renewable energy in the energy mix
• Mechanisms to offset remaining carbon footprint will be:
• • Purchase of Guarantees of Origin (GoO) of Norwegian power for all electricity use in the real estate portfolio
  • Purchase of CO2 allowances for other residual emissions

Share of renewable energy in the energy mix and

greenhouse gas emission goals set in line with Carbon Risk Real Estate Monitor (CRREM) Global Pathways

• 2) KPIs and goals

Energy consumption

kWh/sqm/yr
-14%
174	-2% p.a.
150
2024	2030

Baseline consumption of 174kwh set based on last 3 years (avg)

Water consumption

cbm/sqm/yr
-14%
		-2% p.a.
0.27	0.23
2024	2030

Baseline consumption of 0.27m3 set based on last 3 years (avg)

Waste handling

% share recycled
TBU
		>60%
TBU
2024	2030

Baseline to be set in 2024. Working with suppliers to get data in

• 3) Measuring and reporting

PPI has mapped out the entire property portfolio using Malling and Co's Energy and Environment tools and created a reporting framework for its KPIs and goals. The mapping of waste handling is still ongoing.

Energy consumption

kWh/sqm/yr		Our properties		Baseline: 174kwh		Target by 2030: 150 kwh

Water consumption

cbm/sqm/yr		Our properties		Baseline: 0.27cbm		Target by 2030: 0.23cbm

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AGENDA

I.

II.

Highlights

Operations

1. Financial update

IV.

V.

Summary and concluding remarks

Q&A

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