Public Property Invest : Strong operational performance and financial position

2024 HALF YEAR REPORT JANUARY - JUNE

January - June 2024

Highlights

Public Property Invest ASA (PPI) is a real estate company focusing on community service assets. The Company was listed on the Oslo Stock Exchange on 29 April 2024.

During the first half year PPI completed the acquisition of 13 properties and the Norwegian organisation in Samhällsbyggnadsbolaget i Norden AB (SBB) was transferred to the Company.

Public Property Invest ASA has a long-term strategy to own, operate and develop socially impactful properties in a sustainable manner. Today, the Group owns 61 assets with more than 92 per cent public sector tenants, strategically located in cities across Norway.

PPI's business is characterised by strong tenants within the public sector, such as the police, judiciary functions and public health organisations with long lease contracts. The Group has a low vacancy rate. The property portfolio consists of more than 368 000 sqm across 61 properties which had a total estimated value of around NOK 9 847 million. The Group has more than 125 public tenants in 25 Norwegian cities.

First half year of 2024

• Rental income increased with 8 per cent to NOK 312 million (289).
• Net income from property management amounted to NOK 129 million (131).
• Net value changes had an impact on profit of NOK -215 million (-408).
• Loss before tax of NOK -203 million (-290).
• LTV improved to 40.2 per cent from 64.9 per cent by the end of 2023.
• Net debt/Run-rate EBITDA at 7.8.
• Full refinancing of NOK 4 698 million secured bonds and bank loan improving key figures. Share of debt at fixed rate including bonds of 70 per cent.
• Acquisition of a portfolio of 13 properties with settlement in shares completed at the end of April.
• Public offering with cash proceeds from IPO of NOK 1 523 million. Net proceeds from the offering amounted to NOK 1 336 million, of which NOK 1 020 million will be used to repay existing debt.
• The completion of above financial transactions has provided the Company with total new equity of NOK 2 785 million.

KEY FIGURES

Portfolio value	WAULT	Net yield	LTV
NOK 9 847	4.8 YEARS	6.3%	40%
MILLION

2

Words from the Interim CEO

Starting point for a new PPI

On the 29th of April, Public Property Invest ASA (PPI) was listed on the Oslo Stock Exchange. In connection with this IPO, the company refinanced its debt and extended all maturities, raised new equity, closed a large real estate transaction with Samhällsbyggnadsbolaget ("SBB") and created a new organisation, merging with SBB's Norwegian organisation. All of this was accomplished during one of the most difficult IPO markets over the recent years, and as the first new listing on the Oslo Stock Exchange in 2024. The current 1H 2024 report is the company's first report after its IPO and a starting point for a new PPI.

Operations

PPI is performing strongly, and its tenant base is unique, with 92% of income ultimately coming from the government of Norway, which is AAA-rated. Net operating income (NOI) for the first half year of 2024 was NOK 279 million with a NOI-margin of 89.4%. EBITDA (adjusted for non-recurring administrative expenses) came in at NOK 263 million, and net income from property management at NOK 129 million. Cash flow from operations (adjusted for non-recurring transaction costs) for the period amounted to NOK 254 million. Annual Net Income from property management per share is estimated to NOK 1.49 according to our annual normalised run rate.

Sustainability

Sustainability is the core of PPI's business. Over the past few months, we have carried out mapping of energy consumption and water consumption in all our buildings. To monitor these factors and to establish how well the portfolio is performing each day, we use an energy management system (EMS).

In addition, we are preparing an environmental strategy for each individual building. Together with our tenants, we are establishing which measures will produce the most sustainable solutions and produce the best and most

sustainable results in the short and long term. PPI is a certified Eco-lighthouse. We are also on track to obtain Breem in Use - Excellent for one of our properties in Fredrikstad.

Financing

PPI has one of the strongest balance sheets in the Nordic real estate market. Its Running Net debt/EBITDA is 7.8 times. Net debt to total assets was 40.2 per cent and EPRA LTV 45.5 per cent at the end of the first half year 2024. All near-term maturities have been extended and 70 per cent of the interest expenses on the Group's liabilities are either issued at fixed rates or have been hedged.

Outlook

PPI is delivering a strong operational performance. After the IPO and capital raise, we do have a strong balance sheet and available liquidity. Our valuations have come down to historically low levels. PPI has taken fair value adjustments of about 22 per cent since the peak, which is substantially more than its peers have done.

There is a great team and a scalable platform in place. Over the last few months, we have also identified a good pipeline of possible transactions to further grow the company, both in Norway and in the Nordics. Interest rates are at the top or close to it. Valuations are at the bottom or close to it. Financing is available. Market conditions within real estate in the Nordics have gradually improved last months. Lower interest rates and decreasing risk premiums lead to lower financial costs and higher property values in the long run. With our strong balance sheet and our experienced team, we should be able to take the pole position in consolidating the Norwegian project syndicate market.

I look forward to deliver.

Ilija Batljan, Interim CEO

3

KEY FIGURES

Public Property Invest ASA reports EPRA financial key figures in accordance with EPRA guidlines.

Property related key figures	Half year 2024	Half year 2023	Full year 2023
Number of properties	61	48	48
Lettable area (thousand square meters)	368	307	307
Occupancy rate (%)	93%	95%	95%
Yield (%) - normalised	6.33%	5.90%	6.39%

Financial key figures, amounts in NOK million	Half year 2024	Half year 2023
Rental income	312	289
Net operating income	279	262
Net realised financials	(126)	(119)
Net income from property management	129	131
Profit (loss) before tax	(203)	(290)
Profit (loss) after tax	(225)	(268)
Fair value of the Investment properties portfolio	9 847	9 022
Net debt	4 480	5 495
EPRA LTV (%)1)	45.5%	60.9%
Interest coverage ratio (multiples)	2.0	2.1

2023

575

501

(247)

223

(969)

(900)

8 336

5 430

65.1%

1.9

Data per share, amounts in NOK per share	Half year 2024	Half year 2023	2023
Number of shares end of period	208 591 169	71 931 660	71 931 660
EPRA Earnings per Share2)	0.62	0.75	2.71
EPRA NRV2)	26.02	49.27	40.58
Share price end of period3)	15.02	-	-
Share price3) / EPRA NRV2)	0.58	-	-

1. As calculated in EPRA LTV, refer to section concerning "Alternative performance measures" for calculation of the key figure.
2. Refer to section concerning "Alternative performance measures" for calculation of the key figure.
3. Intraday volume-weighted average price (VWAP).

4

ANNUAL RUN RATE RESULT

The normalised annual run rate presents 12-months rolling numbers covering the Group's total portfolio.

The condensed consolidated statement of comprehensive income and related key figures in this report only include the financials for 13 properties acquired end of April 2024 for the periods May and June 2024, and not for six months.

For the 13 properties acquired on 29 April 2024, the Group has reported rental income, and related expenses,

from the acquisition date until the end of the interim period. The Group has a positive change of value for these properties of NOK 21 million due to contribution of result from

1 January 2024 until the acquisition date, since the properties were taken over with economic effect as per 1 January 2024.

To illustrate the effects following from the listing and transactions made in second quarter, the overview below has been prepared to show the normalised run rate

12 months forward. The run rate rental income for PPI is contracted rental agreements as of 30 June 2024 measured in annual rent. The normalised run rate expenses are targets in the medium to long term, and not for any particular financial year. Net realised financials are based on interest rates and swap agreements after refinancing carried out in second quarter and agreed refinancing that will be carried out in third quarter. PPI has a fixed interest rate for the bond debt until maturity and a partial repayment in September. Net financials do not include amortisation of capitalised borrowing costs.

NORMALISED ANNUAL RUN RATE

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

Amounts in NOK million

Rental income1)

Other income

Property expenses

Net operating income

Administration expenses

Reimbursed property management fee2)

Run rate EBITDA

Net realised financials3)

Net income from property management

Q2 2024

Q4 2023

692591

0

0

1. (59)

623532

1. (24)

18

-

575509

1. (255)
   310254

Net income from property management per share (NOK)

Net debt/Run rate EBITDA

1.49

7.8

3.53

10.7

1. Based on signed agreements at period end.
2. PPI receives reimbursal of property management fees from managment of properties not owned by the Group. The organisation in PPI manages SBB's remaining Norwegian portfolio as well as Nordiqus AB's Norwegian portfolio.
3. Based on interest rates and swap agreements after closed refinancing in April and September 2024. Does not include amortisation of capitalised borrowing cost.

5

FINANCIAL REVIEW

Financial results

Rental income for the first half year of 2024 was

NOK 312 million, an increase of NOK 23 million compared to the corresponding period last year. The majority of the increase relates to income from new acquisitions and CPI adjustments from 2023 to 2024.

PPI acquired 13 properties during the first half year of

2024. The properties are located in Lillestrøm, Tønsberg, Fredrikstad and Kirkenes. The annualised lease for the contracts amounts to NOK 99 million for 2024. The contracts had a WAULT of approximately 5.0 years and will be subject to 99 per cent CPI adjustments from 1 January 2025. Approximately 12 per cent of the area is currently vacant, enabling a potential for significant additional income.

Rental income Half Year 2024
Amounts in NOK million
From properties owned at period start	295
From properties acquired in period	17
Rental income current period	312

Property expenses for the first half year of 2024 were NOK 33 million as compared to NOK 27 million for the same period of 2023.

Net operating income amounted to NOK 279 million for the first half year of 2024, compared to NOK 262 million for the comparable period of 2023. The change of NOK 17 million relates mainly to purchase of 13 new properties.

Administration expenses amounted to NOK 28 million (12). The increase in expenses is mainly due to non-recurring expenses related to the preparation for listing the Company on Oslo Stock Exchange as well as the cost of audit proceures related to the additional auditing of converting to IFRS Financial statements before IPO.

Reimbursed property management fee consists of

NOK 3 million from management of properties not owned by the Group. PPI entered into two management agreements in second quarter regarding Norwegian properties owned by SBB respectively Nordiqus Education Holdco 1 AS.

Net realised financials for the first half year of 2024 amounted to NOK -126 million (-119). Interest income from financial derivates amount to NOK 15 million and interest expenses amounted to NOK 149 in the first half year. The increase in net realised financials related mainly to higher interest rates compared to the same period last year.

	Half year	Half year
Amounts in NOK million	2024	2023	2023
Interest income	8	1	6
Interest income from financial	15	5	19
derivatives
Interest expense	(149)	(125)	(272)
Net realised financials	(126)	(119)	(247)

Net income from property management amounted to NOK 129 million (131) for the first half year. This represented a decrease of 2 per cent, mainly due to non-recurringcost associated with the transition to IFRS and preparing the Company for the IPO.

Net unrealised financials amounted to NOK -25 million for the first half year, down from NOK -12 million for the corresponding period in 2023. The change in amount relates to refinancing of the Group's bank loan, which caused a onetime cost of remaining amortised borrowing costs on loan of NOK 13 million.

Transaction costs in the first half-year amounted to NOK 92 million and were incurred in connection with the share listing. These costs are non-recurring.

The Company also has other non-recurring costs followed by the IPO reported as administrative expenses.

See note 3 and 8 for further information.

Change in value of investment properties amounted to NOK -240million, compared to NOK -442million for the corresponding period in 2023.

See note 4 for further information.

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Tax expense in the first half of 2024 amounted to NOK -22 million, all of which is change in deferred tax. For the same period last year, the tax expense was NOK 22 million.

Profit (loss) after tax was NOK -225 million for the first half year of 2024 compared to NOK -268 million for the corresponding period in 2023.

EPS bridge Half year 2024

1.04

(1.94)

			(0.74)
						(0.18)
Net income from	Changes in	Unrealised	Change in
property	value of	financials and	deferred tax
management	investment	transaction
	properties		costs

Earnings per share (EPS) is a financial measure, which indicates PPI's profitability. EPS is calculated as Net profit (loss) divided by the average number of outstanding shares for the period. EPRA earnings is a measure of underlying operating performance, excluding fair value gains, disposals and other items not considered to be part of core activity. Thus, to bridge from IFRS earnings to EPRA earnings one must adjust for contributions to Net Asset Value (NAV), which includes changes in value of investment properties and deferred tax on investment properties. In addition value changes of financial items and deferred tax on financial derivatives are added back.

0.420.62

(1.81)2.02

Earnings	Adjustments	Adjustments	Adjusted
per IFRS	for contribution	for values of	EPRA
income	to NAV	financial items	Earnings
statement

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Financial position

Investment properties were valued at the end of period to NOK 9 847 million (8 336). The change in property value is mainly due to purchase of an additional 13 buildings.

See note 4 and 9 for further information.

Amounts in NOK million	30.06.2024
Opening balance 31.12.2023	8 336
Purchase of investment properties	1 593
Purchase price adjustment	72
Kunnskapsveien 55
Upgrade of investment properties	86
Changes in value of	(240)
investment properties
Value at period end	9 847

The portfolio is valued by Cushman & Wakefield quarterly.

Current assets consisted mainly of cash and cash equivalents of NOK 1 108 million, trade receivables of NOK 2 million and NOK 25 million of other current assets.

Non-current liabilities were NOK 4 978 million, consisting of NOK 4 874 million interest-bearingdebt, deferred tax liabilities of NOK 66 million, interest rate derivatives of NOK 13 million and NOK 26 million of other non-currentliabilties.

Current liabilities were NOK 713 million. Current interest- bearing debt of NOK 662 million consisted of the partial repayment of two of the Group's bond loans with maturity in September 2024. In addition, trade payables, tax liabilities and other current liabilities made up the total current liabilities.

The refinancing that occurred in conjunction with the IPO, has improved the Group's financial position, as well as key credit figures. The date of maturity of the bank debt was extended from June 2025 to June 2026 (relating to

NOK 1 000 million) and from June 2025 to June 2027 (relating to NOK 2 300 million).

The bond debt was also refinanced in connection with the IPO. The Group had two bond loans outstanding with maturity in September 2024 (amounts NOK 1100 and 962 million). These have been extended by 2.5 years and 3.5 years respectively, with maturity March 2027 and March 2028. Note that the Group will pay installments of NOK 350 million and NOK 314 million of the bond principals in September 2024, representing approximately 32 per cent of the principal amounts. After the September 2024 repayments, the Group will have reduced its interest-bearing liabilities from

NOK 5 929 million to 4 909 million.

Equity was NOK 5 337 million, representing an equity ratio of 48.4 per cent. EPRA NRV per share was NOK 26.02.

The Group had two issues of shares in kind of NOK 1 191 million and NOK 72 million. The share issues are described in note 9. On the date of the IPO the Group also carried out a capital increase of NOK 1 523 million in cash.

Cash Flow

Cash flow from operating activities generated a cash inflow of NOK 162 million, compared to NOK 229 million for the same period last year.

Operating cash flow includes a non-recurring transaction cost of NOK 92 million. Operating cash flow excluding the NOK 92 million is NOK 254 million.

Cash flow from investment activities activities generated a cash outflow of NOK 83 million consisting of upgrades of investment properties, compared to an outflow of

NOK 16 million for the same period last year.

Cash flow from financing activities generated a cash inflow of NOK 906 million, and consisted mainly of change in interest-bearingliabilities, paid in capital from the IPO and interest payments.

Repayment interest-bearing liabilties consisted of the refinancing of an existing bank loan of NOK 3 256 million. Additionally, the Group repaid debt of NOK 403 million in connection with the acquisition of new properties.

Net proceeds interest-bearing liabilties of NOK 3 272 million consisted of proceeds from the new bank loan, net of refinancing costs.

Paid in capital increase relating to the IPO generated a cash inflow of NOK 1 523 million, partly offset by Transaction costs on issue of shares of NOK -94 million.

Risks and uncertainty factors

PPI's risks and risk management are described in the Group´s annual report for 2023. The Annual Report 2023 can be found at

publicproperty.no

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PROPERTY PORTFOLIO

The property portfolio consists of more than 368 000 sqm across 61 properties with an annual rental income of NOK 692 million. The public sector represents 92 per cent of the total rental income. The occupancy rate per

30 June 2024 is 93 per cent.

The Group has a diversified portfolio where the median asset accounts for merely 1.1 per cent of the total portfolio value, and no asset accounts for more than 8 per cent.

As per 30 June 2024 the portfolio had a market value of NOK 9 847 million.

Property overview

Segment	Number of	Square meters	Market Value	Rental income	Occupancy (%)	WAULT (years)
	properties		(NOK million)	(NOK million)

Central

East

Inland

North

South

West

Sum/average

2	4 574	114	6	39%
33	228 225	6 183	409	91%
8	40 065	848	76	97%
8	41 117	1 081	80	94%
3	22 820	754	59	100%
7	31 293	867	62	99%
61	368 094	9 847	692	93%

13.6

4.6

4.4

6.0

3.0

5.5

4.8

Lease structure

The Group's property portfolio consists primarily of social infrastructure properties located in cities across Norway. PPI's business is characterised by strong tenants within the public sector, such as the police, judiciary functions,

universities, and public health facilities, on long lease contracts and a high occupancy rate. The majority of the buildings in the portfolio are single-use buildings.

Annualised rental income per sector

		6%
	7%	21%
7%
8%
9%		18%
	8%
		16%

Police

Government Agency

Municipality / County Municipality

Courts of Norway

Norwegian Labour and Welfare Administration

Private

Education

Norwegian Tax Administration

Healthcare

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PPI's annual rent at the end of the period was distributed between 197 leases. The table below presents the size of PPI's leases in relation to the Group's annual rent at the end of the period. The table shows that 170 each had a rental value of less than 1 per cent of the Group's annual rent.

The total value for these leases accounted for 50 per cent of

PPI's annual rent. In addition, the Group had 21 leases with a rental value corresponding to 1-2 per cent of the Group's annual rent. Combined, these leases totalled 29 per cent of PPI's total annual rent. Only 6 of PPI's leases had an annual rental value that accounted for more than 2 per cent of the Group's annual rent.

Distribution of leases

Share of contractual	Annualised rent	Annualised rent	Number of leases Average annual rent	WAULT
annual rent	(NOK Million)	(Share %)	(NOK million)

• 2%
  1-2% < 1%
  Sum

145	21%	6	24.2
201	29%	21	9.6
346	50%	170	2.0
692	100%	197	3.5

4.0

4.7

5.1

4.8

To reduce the risk of lower rental revenue, PPI endeavours to create long-term relationships with the Group´s 125 different tenants. Current WAULT in the portfolio is 4.8 years,

with an evenly distributed lease maturity profile for the coming years. Leases representing 74 per cent of the annual rent expire in or after 2027.

Evenly distributed lease maturity profile

% of Gross rental Income	WAULT: 4.8 yrs

					45%
	18%			14%
		11%
		8%
4%
<1y.	<2 yrs.	<3 yrs.	<4 yrs.	<5 yrs.	>5 yrs.

Expiration of contracts

Year of expiry	Area sqm	Annualised rent	Share of
		(NOK million)	annualised rent
2024	11 079	20	3%
2025	52 617	86	12%
2026	33 553	76	11%
2027	33 167	70	10%
>2027	213 030	440	64%
Vacant area	24 648	-	0%
Sum	368 094	692	100%

Letting activity

During the period, PPI signed new and renegotiated leases	•	Renegotiated 10-year lease contract with
with an annual rent totalling NOK 67.9 million (33 300 sqm),		Norgesgruppen for 1 689 sqm in Nordstrandveien 41,
largest contracts being:		Bodø.

• Renegotiated 5-year lease contract with Oslo Met for 27 135 sqm in Kunnskapsveien 55, Lillestrøm.
• Renegotiated 5-year lease contract with the Police for 1 740 sqm in Fjørevegen 20, Sogndal.

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