2024
ANNUAL REPORT
Table of content
This is PPI 4
Portfolio highlights 5
The year in brief 6
Key figures 8
Words from the CEO 10
The business 12
Strategy 12
The property portfolio 14
Lease structure and letting activity 18
Transactions 21
Funding 22
The share and shareholders 24
Risk management 26
Senior Executives 36
ESG 38
Environment 48
Social 54
Governance 60
From the Board room 72
Board of Directors 72
Board of Directors report 74
Financials 80
Consolidated financial statements 82
Parent company financial statements 116
Auditor’s report 126
Alternative performance measure 131
Appendices 134
The property portfolio 134
Definitions 137
This report presents
an overview of
our 2024 results,
our achievements
and our progress.
PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024
2
This is
Public Property Invest
// //Portfolio Highlights
Public Property Invest (PPI) is a sustainable owner,
operator and developer of social infrastructure
properties. The Group owns a large and diversified
portfolio of centrally located properties in cities in
the Nordics. PPI’s business is characterised by solid
tenants from the Norwegian government and local
municipalities, such as the police, judiciary functions and
public health organisations, on long lease contracts.
PPI’s tenants fulfill crucial societal functions. PPI’s
mission is to do deliver as good service to our tenants, as
they do for our society.
As of 31 December 2024, the property portfolio
consisted of approximately 395 000 square meters
across 72 properties with an annualised run rate rental
income of NOK 774 million and an aggregate book value
of around NOK 10.9 billion. PPI’s property portfolio is
close to fully let with an occupancy rate of around
97 per cent, and the public sector represents 92 per cent
of total rental income.
The PPI team consists of 22 highly competent resources
who aim to deliver with quality and with intrinsic
motivation to create value for its tenants, owners and
for the environment. Public Property Invest is listed on
Euronext Oslo Børs with the ticker PUBLI.
72
Properties
110k
sqm. Development potential
97%
Occupancy rate
5.1
Years WAULT
92%
Government tenants
774m
(NOK) Normalised GRI
27.6k
(NOK) Property Value/BTA
27.2
(NOK) EPRA NRV per share
1 984
(NOK) GRI/BTA
395k
sqm. BTA
10.9bn
(NOK) Portfolio value
6.5%
Net Yield
Geographical distribution Tenant distribution
Private tenants
Government
tenants
8%
92%
East
North
Inland
West
South
Central
58%
8 %
9%
1%
11%
13%
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First half of 2024
The first half year of 2024 was eventful for PPI, and the
Group went through a major transformation. During this
time, the Group acquired a large portfolio of properties
from SBB Samfunnsbygg AS (SBB), refinanced a substantial
part of its long-term debt and listed the Group’s shares on
Euronext Oslo Børs, all in a binary transaction in April.
In brief, PPI acquired 13 properties from SBB with
settlement in shares in PPI for a net purchase price of
approximately NOK 1 191 million. The corresponding property
value was approximately NOK 1 640 million, determined as
the average gross property value of the SBB Properties
(including development potential) pursuant to external
valuations carried out by Newsec AS and Cushman &
Wakefield Realkapital AS as of 31 December 2023.
The Group also made a successful initial public offering
with cash proceeds to the company of NOK 1.5 billion, which
was partly used to refinance debt and partly held as cash
for future transactions. The Group’s shares were listed on
Euronext Oslo Børs in April 2024. After the completion of
these transactions the Group’s Total assets increased from
NOK 8.5 billion to NOK 11.0 billion as of 30 June 2024. EPRA
LTV was reduced from 65.1 per cent to 45.5 per cent, and the
total equity increased by 87 per cent from NOK 2.8 billion to
NOK 5.3 billion.
In connection with the IPO, a new Board of Directors was
established. The Group also established a professional
in-house organisation by transfer of employees from SBB in
Norway.
Second half of 2024
In connection with the IPO, PPI communicated a
clear strategy of becoming a leading consolidator of
social infrastructure properties and aim to pursue an
opportunistic growth strategy focused on value accretive
transactions.
During the second half PPI has delivered on this strategy
and acquired the following properties:
• Jærveien 33 in Sandnes/Stavanger with a triple net
lease with Municipality of Sandnes for a total property
value of NOK 139 million. The property is 4 700 square
meters and is fully let to the Municipality of Sandnes.
• Rigedalen 5 in Kristiansand for a total property value of
NOK 160.8 million. The property is 6 300 square meters
and is fully let, of which 83 per cent to the Norwegian
Roads Administration.
• A portfolio of eight pre-schools for a total property
value of NOK 182.5 million. The properties total
approximately 6 750 square meters and are fully let to
Læringsverkstedet.
• 82.6 per cent of the shares in the Njord syndicate
Bergen Etatbygg AS, which owns the property
Strandgaten 229 in Bergen. The transaction was
based on a total property value of NOK 330 million.
The property is approximately 8 750 square meters
and is fully let to the government agency Directorate of
Fisheries.
In November PPI launched an EUR 2 billion Euro Medium
Term Note Program and placed its first EUR 300 million
senior unsecured bond. PPI was also assigned a BBB
Investment Grade rating from Fitch.
The year in brief
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Key Figures
1) See the section “Definitions” for defintion of occupancy. The Group has changed calculation method for
Occupancy rate % from Q3 2024, comparative figures are reculculated based on this method.
2) As calculated in EPRA LTV, refer to section concerning “Alternative performance measures” for calculation
of the key figure.
3) Refer to section concerning “Alternative performance measures” for calculation of the key figure.
4) Intraday volume-weighted average price (VWAP).
Property related key gures 2024 2023
Number of properties 72 48
Lettable area (thousand square meters) 395 307
Occupancy rate %
1)
97 % 98 %
Yield % - normalised 6.53 % 6.39 %
Data per share, amounts in NOK per share 2024 2023
Number of shares end of period 215 103 825 71 931 660
EPRA Earnings per Share
3)
0.89 2.03
EPRA NRV
3)
27.18 40.58
Share price end of period 4
)
17.57
Share price
4)
/ EPRA NRV
3)
0.65
Financial key gures, amounts in NOK million 2024 2023
Rental income 662 575
Net operating income 598 501
Net realised financials (261) (247)
Net income from property management 270 223
Profit (loss) before tax 73 (969)
Net profit (loss) 13 (900)
Fair value of the Investment properties portfolio 10 880 8 336
Net debt
2)
5 078 5 430
LTV (%) 42.6% 65.1%
EPRA LTV (%)
2)
46.7% 65.1%
Net debt / Run rate EBITDA 8.0 10.7
Interest coverage ratio (multiples)
3)
2.0 1.9
Normalised annual run rate
The run rate rental income for PPI is total annualised contract rent as of
31 December 2024 for properties owned by the Group at year end. The run rate
rental income includes the blended CPI indexation for 2024 that will apply from
1 January 2025. Annualised rental income increased by NOK 157.5 million as a
result of acquisitions during the year.
The normalised run rate expenses are operative 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
during 2024. Net realised financials do not include amortisation of capitalised
borrowing costs.
Run rate figures below are presented on a 12 months basis from period end.
1) Based on signed agreements at period end. Not including new properties acquired after period end. Rents are CPI
adjusted according to specifications in lease agreements.
2) PPI receives reimbursal 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 Nordiqus AB’s Norwegian portfolio.
3) Based on interest rates for existing debt and interest rate derivatives by end of 31.12.2024. Does not include
amortisation of capitalised borrowing cost.
Amounts in NOK million Year end 2024
Rental income
1)
774
Other income 0
Property expenses (77)
Net operating income 698
Administration expenses (80)
Reimbursed property management fee
2)
16
Run rate EBITDA 633
Net realised financials
3)
(291)
Net income from property management 342
Net income from property management per share (NOK) 1.59
Net debt/Run rate EBITDA 8.0
//The year in brief
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Full speed ahead
PPI operates a steady
business with quality
tenants on long
leases. Our properties
house essential
social infrastructure
functions like police
stations, courts,
schools and public
health facilities.
2024 has been an eventful year for
PPI, marked by significant progress.
In April we raised NOK 1.5 billion in a
successful IPO, listed PPI’s shares on
Euronext Oslo Børs and established a
new and professional organisation.
Since the IPO, we have also refinanced
most of our outstanding debt at more
attractive terms. We also obtained
a BBB Investment Grade rating with
stable outlook from Fitch, confirming
the qualitiy of our portfolio, tenants
and cash flows. We have acquired
a total of 24 properties during the
year and renewed and extended
lease contracts with NOK 103 million
in annual rent, thus leaving our
occupancy rate at 97 per cent and
portfolio WAULT at 5.1 years as of
year-end.
As of 1 January 2025, I assumed the
role as the CEO of PPI. I look forward
to continue building on our strategy
to be a sustainable and preferred
owner, operator and developer of
social infrastructure properties in
the Nordics. We have a great team in
place, and we will continue pursuing an
opportunistic growth strategy focused
on value accretive transactions, while
maintaining a conservative balance
sheet.
The market
Geopolitical tension continues to
impact us globally, making the
macro-outlook difficult to navigate.
PPI should however provide a safe
haven as the portfolio is 97 per cent
let on long lease contracts, of which
92 per cent to the government sector.
The transaction market seems
to be picking up, albeit slowly.
Total transaction volume in
//Words from the CEO
the Norwegian market ended
approximately NOK 70 billion in
2024, versus NOK 56 billion in 2023
and NOK 161 billion in the top year
2021. Valuations seem to have started
to slowly pick up again and we were
pleased to see positive value revisions
of 2.1 per cent in the fourth quarter of
2024.
Operations
PPI operates a steady business with
high-quality tenants on long leases.
Our properties house essential social
infrastructure functions like police
stations, courts, schools and public
health facilities. We had a solid year
on the letting side, renewing lease
contracts with a total annual rent of
NOK 103 million in 2024.
Financing
We have taken significant steps
towards improving our financing
structure and terms. We have obtained
a BBB Investment Grade rating from
Fitch, established a EUR 2 billion
EMTN Programme and issued a
EUR 300 million bond. We have also
repaid a significant portion of our
outstanding secured bank loan,
releasing almost NOK 6 billion of
previously secured assets. These
transactions increased the maturity
profile of our debt portfolio to
4.4 years and our average interest rate
decreased to 5.18 per cent as of
31 December 2024.
Sustainability
In PPI we work systematically together
with our tenants to address issues
related to climate change. In 2024,
we managed to reduce the portfolio’s
energy consumption per square meter
by 7 per cent. We also focus on using
low-carbon and/or re-used materials in
our development projects. In the fourth
quarter we finalised a refurbishment
project in Statens Park which in a life
cycle perspective is estimated to give
78 per cent lower CO2 emissions than a
comparable new build project.
Outlook
We continue to deliver strong
operational performance. Our
operations are steady and long-term,
and our customer base provides
low exposure to macro-economic
fluctuations.
We have delivered a strong cash-
flow from operations (adjusted for
non-recurring cost related to the IPO
process) of NOK 574 million in 2024, up
from 437 million in 2023. The company
continues to have positive net letting
and we have completed several
transactions, with more to come.
The BBB investment grade rating and
our EMTN program are supporting our
diversification of funding with lower
financial expenses to follow.
As of 31 December 2024, EPRA NRV
was NOK 27.2 per share, up from
NOK 26.0 per share as of 30 June 2024.
Finally, and as emphasised during
the IPO process, PPI is a dividend
company and our Board is proposing
a dividend of NOK 0.50 per share for
2024, split in four quarterly payments.
NOK 0.10 per share to be paid in
June and October 2025 and
NOK 0.15 per share to be paid in
January and April 2026.
We continue to deliver strong operational
performance. Our operations are steady and
long-term, and our customer base provides low
exposure to macro-economic fluctuations.
André Gaden
CEO
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11
Public Property Invest ASA (PPI) is a Norwegian property
company with a long-term strategy of owning, operating and
developing social infrastructure properties in a sustainable
manner.
PPI’s portfolio mainly consists of community service
properties with public-sector tenants, centrally located
in significant cities in Norway. The properties house
functions of essential importance to society such as police
stations, courts, health and other public services. PPI offers
high-quality and specially adapted premises that enable
our tenants to fulfil their social mandate. PPI’s property
portfolio is close to fully let with an occupancy rate of
97 per cent as of 31.12.2024.
Sustainable property management is an integral part of
PPI’s business, and PPI aims to be a responsible owner,
operator and developer of real estate, with the Norwegian
government and local municipalities as tenants.
PPI has a dedicated strategy for further growth. The Group
has a solid balance sheet and aims to continue consolidating
the market to further strengthen the position as a leading
provider of social infrastructure properties.
Our values are presence, quality and value creation. These
values define how we deliver to and interact with our
tenants, owners, suppliers, partners and society in general.
Presence
Presence ensures understanding,
seamless operation, expectation
management, transparency,
insight and access. We commit to
think with both our heads and our
hearts, by making sound choices
with a clear conscience.
Quality
We are passionate about the
quality of our buildings, and
the experiences the buildings
provide for their users. We are
also passionate about the quality
of our tenants. We believe that
quality builds trust.
Value creation
We create value for our tenants,
their employees and guests, our
owners and local communities.
Our buildings are particularly
valuable for society, because
they are home to multiple
organisations that form the very
fabric of Norwegian democracy
and the welfare state.
Strategy How we build value
Our values
//The business
Our business strategy is focused on maximizing return to our shareholders. We have
pinpointed eight focus areas that we believe will elevate the Group’s overall value and
also builds a resilient and sustainable real estate company that align with the best
interests of our tenants and local communities.
Ensure cash flow by
extending
lease contracts
Progress
development
portfolio
Preserve values and
increase the standard
of the properties
Optimise capital
structure and costs of
financing
Accretive
property
transactions
Build brand and trust
with shareholders,
tenants and the
market
Utilise economies of
scale
Sustainable portfolio
and operations
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As of 31 December 2024, the property portfolio consisted of
approximately 394 569 square meters across 72 properties,
with an annual run rate rental income of NOK 774 million.
Public sector tenants represented 92 per cent of the total
rental income, and the portfolio occupancy rate was
97 per cent. The Group has a diversified portfolio where the
median asset accounts for merely one per cent of the total
portfolio value, and no asset accounts for more than
seven per cent.
The Group uses external valuations to determine the market
value of its properties on a quarterly basis. The portfolio
valuations as of year-end were performed by the inde-
pendent appraiser Cushman & Wakefield and were carried
out in accordance with generally accepted international
valuation methods.
The total market value of PPI’s 72 properties amounted to
NOK 10 880 million on 31 December 2024.
The property portfolio
Portfolio key figures
//The business
Segment
Number of
properties
Square
meters
Market value
(NOK million)
Rental income
(NOK million)
Occupancy
(%)
1)
Wault
(years)
Central 2 4 474 109 6 64.0 % 13.2
East 34 225 488 6 193 430 95.9 % 4.4
Inland 8 40 065 894 78 99.7 % 4.9
North 11 42 745 1 128 84 96.6 % 7.4
South 4 29 241 953 72 100.0 % 3.1
West 12 48 118 1 417 104 99.2 % 6.9
Sum Management portfolio 71 390 131 10 694 774 96.8 % 5.1
Development Sites
2)
1 4 438 187
Sum Property portfolio 72 394 569 10 880 774 96.8 % 5.1
1) See the section "Definitions" for calculation of occupancy.
2) Development sites include development potential for properties within the managment portfolio and properties defined as development sites.
PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024
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72 properties centrally
located in 31 cities
Geographic
presence
Geographical distribution as
of year-end 2024:
58% in Eastern Norway
13% in Western Norway
11% in Northern Norway
9% in Southern Norway
8% in the Inland
1% in Central Norway
(Calculations based on property value)
//The business
SOGNDAL
LEIKANGER
BERGEN
ETNE
STAVANGER
SANDNES
FLORØ
GJØVIK
HAMAR
KONGSVINGER
LILLESTRØM
MOSS
SARPSBORG
FREDRIKSTAD
HALDEN
LILLEHAMMER
NARVIK
BODØ
MO I RANA
NAMSOS
KIRKENES
ALTA
TROMSØ
HØNEFOSS
DRAMMEN
TØNSBERG
SANDEFJORD
PORSGRUNN
SKIEN
ARENDAL
KRISTIANSAND
Our tenants
COURTS OF NORWAY
Local court houses constitute a
significant tenant base for PPI. The
Group owns 12 court houses through-
out Norway. In total they constituted
approximately eight per cent of PPI’s
rental income as of year-end.
MUNICIPALITIES
Municipalities across Norway are
tenants in 18 of PPI’s properties
and accounted for approximately
seventeen per cent of PPI’s rental
income as of year-end. The most
substantial leases PPI has in this
sector are with the municipalities
of Kristiansand, Fredrikstad and
Sandefjord.
NORWEGIAN LABOUR AND
WELFARE ADMINISTRATION (NAV)
The Norwegian Labor and Welfare
Administration (NAV) is a tenant in
seven of PPI’s properties and consti-
tuted approximately six per cent of
PPI’s rental income as of year-end.
NORWEGIAN TAX ADMINISTRATION
The Norwegian Tax Administration
is a tenant in six of PPI’s properties ,
representing approximately six per
cent of PPI’s rental income as of
year-end.
POLICE
PPI owns 18 local police stations
throughout Norway, which makes the
police is PPI’s largest tenant group.
In total, the Norwegian police consti-
tuted approximately nineteen per cent
of PPI’s rental income as of year-end.
EDUCATION
HEALTHCARE INSTITUTIONS
OTHER GOVERNMENT AGENCIES
One of PPI’s largest tenants is Oslo
Metropolitan University (OsloMet)
located on Kjeller/Lillestrøm.
Educational institutions constituted
approximately eight per cent of PPI’s
rental income as of year-end.
Healthcare institutions constituted
approximately eight per cent of PPI’s
rental income as of year-end. Nine
of PPI’s properties house healthcare
institutions, of which Vestfold Hospital,
Drammen Hospital’s emergency room
and Helfo (The State’s Health Econom-
ics Administration) are the largest.
PPI has 17 different government agen-
cies such as the Norwegian Labor
Inspection Authority, The Norwegian
Directorate for Children, Youth and
Family Affairs and The Norwegian
Road Administration as tenants in its
properties. In total they constituted
approximately eighteen per cent of
PPI’s rental income as of year-end.
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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 with a high occupancy rate. The majority
of the buildings in the portfolio are single-use buildings.
Tenants categorised as Private, consist mainly of parking
leases, law firms, accounting firms, banks, insurance
companies and grocery stores.
Lease structure
and letting activity
//The business
Rental Income per sector
POLICE 19.3%
GOVERNMENT AGENCY 18.3%
NORWEGIAN LABOUR AND WELFARE ADMINISTRATION 6.3%
MUNICIPALITY / COUNTY 17.1%
EDUCATION 8.7%
COURTS OF NORWAY 8.0%
NORWEGIAN TAX ADMINISTRATION 6.0%
HEALTHCARE 8.1%
PRIVATE 8.1%
19.3%
8.1%
6.0%
18.7%
6.3%
8.1%
8.0%
18.3%
17.1%
To reduce the risk of lower rental revenue, PPI endeavours to create long-term relationships with the Group´s
different tenants. Current WAULT in the portfolio is 5.1 years, with an evenly distributed lease maturity profile for
the coming years.
Distribution of leases
Expiration of contracts
Share of contractual
rental income
Rental income
(NOK million)
Rental income
(Share %) Number of leases
Average rental income
(NOK million) WAULT
> 2% 204 26% 7 29 3.8
1-2% 276 36% 28 10 4.9
< 1% 294 38% 167 2 6.1
Sum 774 100% 202 4 5.1
Year of expiry
Area
(sqm)
Rental income
(NOK million)
Share of
rental income
2025 51 436 87 11%
2026 33 748 79 10%
2027 31 062 67 9%
2028 52 771 126 16%
>2028 195 227 415 54%
Development area 4 438
Vacant area 25 887
Sum 394 569 774 100%
11%
12%
7%
16%
17%
36%
<1 y.< 2 yrs.< 3 yrs.< 4 yrs.< 5 yrs.> 5 yrs.
% of Rental income
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During 2024 PPI signed new and
renegotiated leases with an annual
rent totaling NOK 103 million and
51 000 square meters.
The largest contracts were:
Letting activity in 2024
//The business
5.83
9.8
Years
Years
Average
lease
term
Average
lease
term
~87
~16
MNOK
MNOK
88%
Public tenants
0%
Private tenants
12%
Private tenants
100%
Public tenants
Tenant split
Tenant split
Extended lease holds in 2024
New lease holds in 2024
Recurring
annualised
rent
Recurring
annualised
rent
19 extended
lease holds
3 new
lease holds
Gross area (sqm)
44 929
Gross area (sqm)
6 464
• Renegotiated 5-year lease contract with Ministry of Education for 27 000
square meters in Kunnskapsveien 55 in Lillestrøm
• New 10-year lease contract with NAV (Norwegian Labour and Welfare
Administration) for 5 920 square meters in Gyldenløves gate, Kristiansand
• Renegotiated 6-year lease contract with Stavanger Municipality for 2 290
square meters in Tinngata 8 in Stavanger
• Renegotiated 10-year lease contract with Courts of Norway for 2 180 square
meters in Sigvat Skalds gate 3 in Sarpsborg
• Renegotiated 5-year lease contract with The Police for 1 740 square meters in
Fjørevegen 20 in Sogndal
• Renegotiated 20-year lease contract with Courts of Norway for 1 560 square
meters in Jul Pettersens gate 2 in Lillehammer
• Renegotiated 5-year lease contract with Porsgrunn Municipality for 1 500
square meters in Rådhusgata in Porsgrunn
Transactions
Public Property Invest aims to be a leading consolidator and
to pursue an opportunistic growth strategy focused on value
accretive transactions, while at the same time maintaining a
low-risk profile in order to attract competitive debt-funding
and allow for a predictable dividend payment strategy going
forward. PPI actively seeks to increase its portfolio size and
quality and focus on community service properties with
public sector tenants, centrally located in significant cities
in the Nordics. Leveraging a vast broker and investment
banking network, PPI has refined its capability in off-market
deal sourcing. This is considered a strategic advantage and
enables PPI to navigate ahead of prevailing market trends
and seize exclusive opportunities.
During 2024 PPI acquired 13 properties in the second
quarter and 11 properties during the fourth quarter.
Annualised rent for these properties is NOK 157.5 million and
the WAULT for the acquired properties is 7.3 years.
Transactions in 2024
Acquisitions Location
Square
meters
WAULT at
closing date
(years)
Rental income
(NOK million)
Contractual
property value
(NOK million) Closing date
Portfolio of 13 properties Across Norway 60 862 5.0 99.0 1 639.7 29.04.2024
Jærveien 33 Sandnes,
Norway
4 690 5.0 10.5 139.0 14.10.2024
Rigedalen 5 Kristiansand,
Norway
6 300 6.3 11.2 160.8 18.12.2024
Pre-school portfolio Across Norway 6 744 35.0 10.8 182.5 13.12.2024
Strandgaten 229 (83 %) Bergen,
Norway
8 748 6.0 26.0 330.0 20.12.2024
Total 87 344 7.3 157.5 2 452.0
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Funding
//The business
The Group’s assets are funded by a combination of bank
loans and bonds. During 2024, PPI’s interest-bearing
liabilities increased from NOK 5 529 million as of
31 December 2023 to NOK 6 004 million as of
31 December 2024. After deduction of cash and liquid
assets, PPI’s net debt was NOK 5 078 million as of
year-end 2024.
During 2024, PPI has almost fully refinanced its capital
structure. In April, the Group refinanced its outstanding
bank loan with a new facility of NOK 3 300 million, and
prolonged and renegotiated the terms of the existing
bond loans. In September PPI partially repaid two of its
outstanding bonds with NOK 664 million.
In December PPI established a EUR 2 billion EMTN
programme, placed an unsecured bond of EUR 300 million
and obtained a BBB Investment Grade rating from Fitch. The
Group also repaid Tranche A and C of the NOK 3 300 million
bank loan with a total amount of NOK 2 815 million. At year-
end 2024, PPI’s debt portfolio consisted of:
• Four secured, fixed-rate bond loans with total principal
amounts of NOK 1 835 million
• One EUR 300 million unsecured, listed bond loan,
calculated at NOK 3 541 million
• Three secured bank loans of NOK 628 million in total.
The adjusted average maturity of the long-term debt
portfolio was 4.5 years, and the current weighted average
interest rate of the debt portfolio was 5.18 per cent as of
31 December 2024.
The Group manages interest rate risk through floating-
to-fixed interest rate swaps and by issuing fixed-rate
bonds. At year-end, the Group had total interest rate hedge
agreements in nominal amounts of NOK 50 million.
As of 31 December 2024, the portfolio of fixed interest
rate bonds consisted of collateralised bonds with a total
volume of NOK 1 835 million and the unsecured Eurobond of
approximately NOK 3 541 million. The total principal amounts
of fixed rate bonds of NOK 5 426 million set the Group’s share
of fixed rate long-term loans at 90.4 per cent.
At year-end PPI had EUR 58 million in cash and had a
currency swap/hedge securing EUR 100 million of the
final maturity amount of the Eurobond. In January 2025,
PPI also acquired two properties in Finland with annual
rental income of EUR 2.9 million, providing a natural hedge
for parts of the interest payments on the outstanding
Eurobond.
The Group’s unencumbered asset ratio was 2.45 by year-end
2024.
Interest-bearing debt
Amounts in NOK million 31.12.2024 31.12.2023
Bond loan 5 376 2 273
Bank loan 628 3 256
Interest-bearing liabilities at period end 6 004 5 529
Amount of debt at fixed interest rate 5 426 3 901
Share of bank loan at fixed rate 8.0 % 50.0 %
Share of debt at fixed rate including bonds 90.4 % 70.6 %
PPI has a conservative financial policy, and the long-term capital
structure has the following targets:
Debt maturity structure
*The bond loan maturing September 2025 will be repaid with cash on maturity
211
226
750
648
3541
578
50
0
500
1 000
1 500
2 000
2 500
3 000
3 500
2025 2026 2027 2028 2029 2030 2031 2032
NOK million
BANKBOND
*
• Net debt/EBITDA maximum 9.0 x
• LTV ratio <50%
• ICR > 2.2x
• Average duration of long-term debt > 5 years
• Unencumbered assets > 2x total outstanding unsecured debt
PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024
22 23
The Share and
Shareholders
//The business
Public Property Invest ASA was listed on Euronext Oslo Børs
(Oslo Stock Exchange) on 29 April 2024, under the ticker
PUBLI. The company had a total of 215 103 825 issued and
outstanding shares by 31 December 2024. PPI has one class
of shares, and all shares provide equal rights, and equal right
to any dividends.
As of 31 December 2024, PPI had more than
2 200 shareholders. Norwegian shareholders held
approximately 53 per cent of the share capital.
The 10 largest shareholders as registered in Euronext VPS
on 31 December 2024 are shown in the table below.
Development in share capital Date
No of new
shares issued
No of shares
outstanding post
transaction Par value Share capital
No of shares outstanding per 31.12.2023 71 931 660 0.05 3 596 583
Share capital increase in connection
with IPO
26.04.2024 105 000 000 176 931 660 0.05 8 846 583
Share capital increase in connection
with acquisition of portfolio
26.04.2024 31 659 509 208 591 169 0.05 10 429 558
No of shares outstanding per 30.06.2024 208 591 169 0.05 10 429 558
Acquisition of Jærveien 21.10.2024 1 802 486 210 393 655 0.05 10 519 683
Acquisition of Rigedalen 27.12.2024 815 119 211 208 774 0.05 10 560 439
Acquisition of Strandgaten 229 27.12.2024 3 895 051 215 103 825 0.05 10 755 191
No of shares outstanding per 31.12.2024 215 103 825 0.05 10 755 191
Name Number of shares Stake
Samhällsbyggnadsbolaget i Norden AB 75 631 366 35.16 %
Skagen Vekst Verdipapirfond 8 991 411 4.18 %
Verdipapirfondet DnB Norge 6 441 107 2.99 %
Avanza Bank AB 4 684 082 2.18 %
Kverva Finans AS 4 427 618 2.06 %
Centra Capital AS 3 793 103 1.76 %
First Nordic Real Estate 3 777 980 1.76 %
Centra Invest AS 3 747 950 1.74 %
Sagacia AS 3 598 320 1.67 %
Verdipapirfondet Fondsfinans Norge 3 372 931 1.57 %
Total 10 largest shareholders 118 465 868 55.07 %
Other shareholders 96 637 957 44.93 %
Total 215 103 825 100.00 %
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24 25
PPI’s overall objective is to provide a high and stable return on equity over time and to
ensure long-term value creation for its shareholders. All business involves a certain
amount of risk-taking, as risks may affect the company’s business, financial position
and earnings. At the same time, good risk management can also generate opportunities.
The purpose of the risk management process is to create a proactive management that
balances risks and opportunities.
PPI is exposed to various risks that may affect the Group’s ability to achieve its overall
strategic targets and goals. A structured process is carried out at least annually by the
Group management and Board to identify the risks relating to PPI’s business. Hereunder
the probability that they will occur, their potential impact on strategy and how individual
risks are to be managed. The analysis is aimed at creating a balance between the desire
to limit uncertainty or risk and the task of generating growth and shareholder value. The
company has guidelines, processes and procedures that aim to minimise risks while
also allowing the company to carry out its business at a healthy pace.
To be able to estimate the impact of identified risks, an internal risk matrix is mapped
where each individual risk is assessed, in terms of both probability and consequence.
The identified risks that are viewed as the most important for the company and the way
in which they are monitored and managed, are presented below.
Risk Management
//The business
P = Probability, where green is low, yellow is medium and red is high
C = Consequences, where green is limited, yellow is moderate and red is significant
Market risk
Risk area: Business cycle and macroeconomic factors
P
C
Description A general economic downturn can lead to reduced demand for premises, increased costs and lower rent
levels in all of the PPI’s local markets. It may also affect the financial market, the availability of capital and
the stock market. Geopolitical instability can have a significant impact on financial markets. In addition to
uncertainty, it can increase prices, complicate deliveries of, or cause a shortage of inputs to the business.
Greater risk aversion in financial markets could limit access to financing and increase the Grooup’s return
requirements.
Risk
Management
A property portfolio with breadth in terms of type of premises, geography and tenants contribute to the
diversification of risk. Properties with central locations in local markets make them attractive to several
customer segments, which further reduces the risk in case the market changes. PPI’s portfolio also consist
of a significant share of special purpose properties such as police stations, court houses etc., making
tenant relocation more difficult. Local presence provides in-depth knowledge of the market conditions
in the locations where PPI operates. Local property management is prioritised in order to maintain close
contact with and knowledge of the market and tenants’ situation. Among other things, the risk is managed
by promoting good financial stability in the company, close relationships with suppliers and well-balanced
agreement terms. The use of multiple sources of capital, maintaining good relationships with banks and
financing institutions, and limiting the loan-to-value ratio reduces the risks of the financial market. The
Group has a conservative finance policy with targets and/or limitations on leverage, hedging, debt maturi-
ties and liquidity management.
Risk area: Market value of the property portfolio
P
C
Description PPI’s properties are measured at their fair value and with changes in value being recognised as profit or loss
in the period in which it arises. The valuations are perfomed on a quarterly basis by the independent third
party external valuer Cushman & Wakefield . Different factors affect the fair value of PPI’s properties. Such
factors could both be property specific, such as rent levels, occupancy ratio and operative expenses, and
market specific, such as macroeconomic effects, general economic trends, growth, unemployment levels,
the rate of production of new premises, population growth, inflation and interest rates. A substantial neg-
ative development in the property value could affect both the profit and loss account through unrealised
changes in value and the balance sheet through an increase in key metrics like the loan to value ratio (LTV).
A too high LTV could have negative effects on the cost of, and access to capital, on PPI’s credit rating and
on shareholders’ interest and attention. It could also potentially impose a breach of the covenants of the
financing agreements.
Risk
Management
PPI monitors the market and follows up the risk quarterly, amongst others things, through active dialogue
with the external appraiser. PPI further works continuously on portfolio optimisation and risk mitigation in
relation to property quality, location and letting profile. The company takes actions to limit its exposure
to company-specific events having a negative impact on the market value, for example, through proactive
management, the signing of property insurance agreements and by formulating leases with adequate
contractual terms.PPI regularly simulate different negative scenarios in the market, which could affect the
market value of its property portfolio. PPI continuously work to upgrade the property portfolio to comply
with new environmental regulations.
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26 27
Risk area: Regulatory risks
P
C
Description New planning regulations and changes in or completion of existing planning regulations and practices by
relevant authorities and changes in infrastructure may affect the operations of PPI’s properties, includ-
ing the interest of potential tenants in future rental of premises or interest of future purchasers of the
property. New laws may be introduced which may be retrospective and affect environmental planning, land
use and development regulations. Furthermore, existing or new planning regulations may limit the possi-
bility to further develop PPI’s properties.The EU has ranked the building sector as the single largest energy
consumer in the EU and aims to improve the energy performance of buildings across the EU, with the aim
to double the rate of renovation by 2030 to lead to better energy and resource efficiency, with estimated
35 million buildings to be renovated under such climate pact. A revised Energy Performance of Buildings
Directive with stricter energy performance and energy efficiency requirements has recently been adopted
in the EU. If the revised Energy Performance of Buildings Directive is adopted and implemented in Norway,
this may require PPI to refurbish properties in its property portfolio to meet new minimum energy perfor-
mance standards and possible requirements to establish solar energy installations. Additionally, changes
in laws and regulations regarding tax and other duties/charges, including could involve new and changed
parameters applicable to PPI and taxation of/charges for PPI at higher levels than as of the date hereof.
Risk
Management
PPI works continuously to monitor and implement new standards and regulations. PPI works to reduce the
CO2 consumption in its portfolio and is in process establishing individual strategies for the properties with
low EPC score, hereunder assess the risk and gain the ability to prioritise and implement adequate mitigat-
ing measures.
Risk area: Environmental and climate risk
P
C
Description Properties are affected by climate change through rising temperatures, extreme weather conditions and
floods. Future investments must therefore take into account possible consequences of climate change.
A changing climate requires pro-active efforts to minimise unforeseen costs and investments that may
ensue from a changed climate. Increased severity of extreme weather events such as storms and floods is
a long-term risk. Property values constitutes most of PPI’s balance sheet, and potential physical 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. Failure to comply and adapt to climate related mat-
ters is also a significant reputation risk.
Transition risks such as new policies and regulations aimed at reducing negative climate impacts (e.g. the
Energy Performance of Buildings Directive), may increase costs and need for investments. Stricter climate
policies and regulations may boost demand for green buildings while making non-green buildings less
attractive for renting, financing, and investing. Adapting to climate change and reducing negative climate
impacts is also important for a business’s competitiveness and reputation.
Risk
Management
PPI is in the process of mapping consequences and probabilities of all properties regarding physical
climate risk to assess the risk and gain the ability to prioritise and implement adequate mitigating meas-
ures. PPI work to reduce the CO2 consumption in its portfolio, and KPIs within energy efficiency and waste
disposal are included in the scorecard for determining variable pay for all employees. Potential damage to
property from e.g., flooding or heavy rain is an integral part of risk management on individual asset level.
PPI aims to design, upgrade, and operate buildings in a manner that minimise GHG emissions and energy consumption.
PPI is currently in process of reviewing the EPC status of all properties and map performance improvement activities for
the properties with low EPC certificates. Additionally, KPIs related to energy consumption and waste management are
included in the scorecard for determining variable pay for all PPI employees.
Financial risks
Risk area: Refinancing risk
P
C
Description PPI’s operations are financed by bond and bank financing. PPI relies on its financing agreements, renewal
of these and/or obtaining new financing agreements to fund its operations, additional acquisitions and
capital expenditures. PPI’s ability to obtain funding in the future will depend upon its business, prospects
and market conditions, and there is a risk that PPI will be unable to secure additional financing or retain or
renew current financing upon expiry on favourable terms or at all. An increase in PPI’s level of debt financ-
ing and/or adverse change in the terms of its current financing agreements, may increase financing costs
and reduce PPI’s profitability.
PPI’s financing arrangements contain a number of covenants which PPI will need to comply with on an
ongoing basis. The conditions in the capital and credit markets can change, which could result in no
refinancing of existing liabilities or that refinancing cannot take place on reasonable terms. In addition, a
weaker economy and changes in supply and demand for the company’s premises could negatively impact
the company’s income statement, balance sheet and key performance indicators, which could lead to a
lower credit rating, thus making it more difficult to refinance existing debt. A reduction in access to funding
could further weaken the company’s global credit rating from Fitch, thus further reducing refinancing
possibilities, and the Group’s ability to finance new investments. In such a case, the company could be
exposed to an increase in financing costs which would weaken the underlying result, debt service ability
and dividend capacity.
Management In order to limit its refinancing risk, PPI endeavours to have a low percentage of short-term interest-bear-
ing funding, to secure refinancing for long-term interest-bearing liabilities in good time before maturity
and to use several different sources of funding, through several financial markets and sectors. The Group
is building a diversified maturity structure for its liabilities which further lowers the interest rate risk. The
development in the company’s financing needs, ability and costs is monitored on a continuous basis and
reported quarterly to ensure that the financing operation supports the overall business strategy. PPI seeks
to maintain strong relationships with international and Nordic bond investors as well as the Nordic banks.
PPI aims to maintain a diversified financing structure with a balanced maturity profile and financing mix in
order to ensure stable and predictable access to capital. PPI has an investment grade credit rating from
Fitch, currently at BBB. The rating contributes to the Group’ credit availability and is believed to enable PPI
to further extend and enhance its debt maturity profile over time. PPI limit interest rate risk through inter-
est rate hedges and by issuing fixed rates bonds. PPI monitor closely, and act upon, any new regulations in
the bank and debt capital market with respect to possible implications for the Group’s future financing.
Risk area: Interest rate risk
P
C
Description Interest expense is the Group’s largest current cost item. Interest rate risk is defined as the risk that
changes in market interest rates will affect PPIs financing costs and cash flow. The interest-rate risk is
attributable to the trend in current interest rates. Conditions in the fixed income market could change,
which could in turn impact the interest rate scenario. The interest rates have increased significantly over
the recent years, and may increase further. The interest rates available to PPI in the future are uncertain.
Any increase in interest rates may increase PPI’s costs and have a negative effect on PPI’s property portfolio
and may require PPI to record fair value adjustment losses. Such losses would result in a corresponding
decrease in the value of PPI’s properties as reported on its balance sheet and in PPI’s fair values and
increases in PPI’s loan to value. Materialisation of any of the above risks could have a material adverse
impact on PPI’s business, financial position, results of operations and prospects.
Management The Group has a significant portion of its debt on fixed-rate terms, to reduce exposure to a potential rise
in interest rates. To limit interest-rate risk on loans at floating interest rate terms, financial interest-rate
hedging instruments such as interes-rate swaps are being utilised. On 31 December 2024, 90.4 of PPI’s
interest-bearing liabilities were fixed-rate loans. An increase in market interest rates is thus deemed to
have a limited effect on PPI’s interest expenses in the short and medium-term.
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Risk area: Currency risk
P
C
Description PPI is exposed to exchange-rate risks due to investments and liabilities in SEK and in EUR. PPI’s presenta-
tion currency is NOK and all balance-sheet items that are in SEK or EUR are translated to NOK. Exchange
rate fluctuations could have a material effect on the Group’s financial position and earnings in NOK.
Management Currency risk is managed by using derivaties and by natural hedges, such as financing acquisitions of
properties in the same currency as they are acquired. Transaction exposure in the Group is managed by
matching revenue and expenses in the same currency. To hedge future foreign exchange risk related to the
parent company’s Eurobond, a currency swap/hedge securing EUR 100 million of the final maturity amount
is in place.
Risk area: Liquidity risk
P
C
Description The Group defines liquidity risk as the risk of not having access to liquidity to cover its payment obligations,
including interest payments. A shortage of liquidity to cover due payments would have a negative impact on
the Group’s operations and financial position.
Management The Group’s approach to liquidity risk management is grounded in maintaining a consistently sufficient
liquidity level to meet all financial liabilities at maturity. This commitment applies under both standard and
exceptional circumstances, with the aim of avoiding unacceptable losses and safeguarding the Group’s rep-
utation. As of 31 December 2024 PPI had Cash and Cash equivalents on balance sheet of NOK 968 million.
PPI has a positive operating cash flow and limited refinancing requirements over the next 24 months. PPI
is in process of establishing unutilised credit facilities as back-up for its short term debt maturities.
Operational risks
Risk area: Rental revenue and rent trends
P
C
Description PPI’s commercial success depends on its ability to maintain and increase its rental income generated from
its properties. Rental income constitutes PPI’s main source of current earnings. This income needs to cov-
er operation and maintenance costs, administration costs and financing expenses. The amount of rental
income PPI is able to generate is dependent on occupancy rates and to a lesser extent tenant turnover,
which in turn depend on factors such as macroeconomic conditions, demographic trends, availability of
suitable tenants for PPI’s properties and the level of new construction, which could increase the supply
of rental properties relative to demand. Furthermore, if the condition, location or other characteristics of
the properties in PPI’s property portfolio are not responsive to the demand, this may negatively affect PPI’s
ability to maintain and increase rent levels and total rental income. PPI considers that some of its office
properties located on the outskirts of city centres can be challenging to lease out to new tenants. Some of
the office properties are located in cities where the general demand for office space is low, such as Halden,
Leikanger and Sogndal. The properties identified as being difficult to let as offices will therefore have to be
considered to be converted and refurbished to other uses, such as housing. Rent-level risk is attributable
to trends in current market rents that are affected by the economic climate, demographic growth and the
extent of new builds in the market.
Management To limit PPI’s exposure to vacancies and rent losses, PPI endeavours to offer leases with long-term custom-
er relationships and to prioritise tenants with a high credit rating. This is particularly important in relation
to major tenants. PPI works continuously to renegotiate existing leases with the aim of minimising the
short-term risk.The public sector represents 92 per cent of the total rental income. The occupancy rate
per 31 December 2024 was 97 per cent. The majority of PPI’s leases are indexed to the CPI or the equiva-
lent. Annual indexation may, in certain cases, be limited by a ceiling or floor. Some leases have annual fixed
rental adjustments. The portfolio is also well diversified geographically. The average lease term is 5.1 years
and PPI’s lease structure helps reduce the risks of vacancies and rent losses.
Risk area: Operating and maintenance costs
P
C
Description The most significant operating expenses include electricity and heating costs for the properties and
property tax. If increases in expenses cannot be offset by lease terms, this may have a negative effect on
the company’s earnings. In the event of vacancies, the company’s profit is not only impacted by lost rental
revenue but also by expenses for such items as energy, which were previously paid by the tenants
Management Regarding the rental situation for premises in the specialised public property segment, tenants in this area
normally assume responsibility for a significant portion of operations and maintenance. PPI’s exposure to
changes in operating expenses is thus limited.
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Risk area: Occupancy ratio
P
C
Description The occupancy ratio in the management portfolio affects PPI’s profitability through rental income and
operating costs. It relates mainly to lease expiries and to what extent PPI is able to renegotiate with existing
tenants, and relet vacant space. In the long term, the occupancy ratio is also affected by how flexible and
adaptable our buildings are to changes in customer demand. Fluctuating energy costs in combination with
high CPI adjustments on leases may increase tenant focus on total costs of renting space and may have
adverse effect on rent levels and on tenant appetite for less energy efficient buildings.
Management The occupancy ratio is an important key metric in all external and internal reporting. Vacancies and market
opportunities are monitored on a continuous basis. Risks regarding upcoming lease expiries are evaluated
quarterly. Customers are followed up closely by the property managers.
Risk area: Credit risk
P
C
Description The primary credit risk to which PPI is exposed is that tenants could fail to make the payments required by
their lease.
Management PPI’s tenant base with 92 per cent public tenants has low counterparty risk. The largest tenants are funded
by the State of Norway, which carries a AAA rating. In conjunction with acquisitions and leases, counter-
party risk assessments are carried out and, if necessary, contracts are supplemented by collateral in the
form of deposits, bank guarantees, or a similar instrument.
Risk area: Organisational risk
P
C
Description The knowledge, experience and commitment of PPI’s employees are important success criteria for PPI’s
future development. If PPI is unable to retain members of management and other key personnel or recruit
new members of management or other key personnel to replace people who leave PPI, this could have a
material adverse effect on PPI’s operations, earnings and financial position. PPI’s future development is
highly dependent on the expertise, experience and commitment of company management and other key
individuals. The company could be negatively impacted should one or more key individuals terminate their
employment or if the company is unable to attract competent personnel.
Management The work environment is followed up through employee interviews. The employment contracts are consid-
ered to be on commercially competitive terms. PPI has also established annual incentive programmes to
retain, and attract new, employees. The development and management of competence is an integral part
of the business strategy.
Risk area: Transaction related risks
P
C
Description A key part of PPI’s strategy is to capitalise on the current situation in the real estate market and to consol-
idate its market position through acquisitions. The acquisition and integration of properties and property
companies may however not be successful. When deciding to make an acquisition, PPI performs financial,
legal and technical due diligence and makes certain assumptions and determinations based on its due dil-
igence of the properties to be acquired, as well as other information then available, including assumptions
regarding future rental income, operating costs and synergies. However, these assumptions and deter-
minations are based on the information available to PPI and may later prove to be incorrect, and therefore
PPI may not realise the full benefits resulting in economies of scale and cost savings not being realised or
occurring later than anticipated. Also, any material errors or inaccuracies in the due diligence reports could
result in significant costs to PPI.
Management Risks are prevented by ensuring that PPI carries out relevant controls and investigations and that the right
skills are found internally in the organisation or engaged externally as necessary. Key employees have sig-
nificant M&A and transaction experience, combined with deep commercial real estate market knowledge.
PPI evaluates each investment case by reference to strategy, risk and profitability. This is done at several
levels, by transaction professionals, by group management and by the Board of Directors. All investments
and divestments exceeding NOK 100 million must be approved by the Board of Directors.
Risk area: Operational and IT security risk
P
C
Description PPI’s operations are dependent on information systems sourced from certain suppliers. The informa-
tion systems are mainly standard solutions and include telecommunication systems as well as software
applications that PPI uses to control business operations, manage its property portfolio and risks, prepare
operating and financial reports and to execute treasury operations. Shortcomings in IT security or inade-
quate routines could result in the destruction or loss of data, which could have a negative impact on PPI’s
operations.
Management PPI works continuously on preventive measures and on developing its administrative procedures, policies
and guidelines for IT security. PPI makes use of firewalls, e-mail filters, back-up systems and
anti-virus programmes to prevent IT-related service interruptions. PPI focus on security and employees’
knowledge and attitudes, including training of employees. Nanolearning (short, internet-based learning
sessions) are implemented for all employees to increase focus and improve understanding of ICT threats.
PPI use suppliers with certifications that focus on security and has outsourced the operational part of ICT
security to one of Norway’s top-of-class companies.
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32 33
Risk area: Compliance
P
C
Description Compliance is a compilation of PPI’s specific assessment of risk factors within the compliance area.
PPI’s key risk factors within compliance are considered to be the following: Corruption and financial crime,
Ethics, Social responsibility, Personal data protection, Insider rules, Information security.
Management Risk assessment, monitoring, and follow-up is an integral part of PPI’s operations on all levels, including at the
Board of Directors level. The Board discusses compliance risk on a regular basis. PPI is working to prevent
corruption and financial crime. PPI’s strategy includes an e-training program for employees, rigorous
purchase and invoice controls, and both internal and external whistleblower channels. We encourage ethical
decision-making and behaviour through dilemma training. The company’s external and internal whistleblower
channels ensure transparency and accountability. We are committed to socially responsible purchasing
practices, guided by a comprehensive procurement policy. Stringent supplier controls are in place to uphold
these standards. We are working with personal data protection through data processing agreements and the
establishment of internal routines. Our insider rules dictate strict guidelines for employees regarding
confidential information. PPI complies with and reports in accordance with the Transparency Act.
Risk area: Risk of conflicts of interest
P
C
Description A lack of transparency regarding the Board’s and company management’s potential conflicts of interest
with PPI could affect the capital market’s confidence in PPI and thus negatively impact the company’s
financial position. Following the Listing on the Euronext Oslo Børs, SBB Samfunnsbygg AS became PPI’s
largest shareholder, holding approximately 35 per cent of the Shares. SBB Samfunnsbygg AS transferred
the Shares to its indirect parent company Samhallsbyggnadsbolaget i Norden (“”SBB””) in July 2024. With
such a shareholding, SBB will be able to exert a certain degree of influence over certain matters, including
the election of the Board of Directors and approval of significant corporate transactions.
The commercial interests of SBB may not always be aligned with the interests of the Issuer’s other stake-
holders.
Management PPI treats all shareholders equally and reports to its largest shareholder on the same level and in the same
manner as to other shareholders. The relationship is further outlined in PPI’s by-laws which state that any
agreement between the company, or a company controlled by PPI on the one hand, and SBB or a company
controlled by SBB on the other hand, must be approved by the company’s general meeting. This applies as
long as Samhällsbyggnadsbolaget i Norden AB directly or indirectly controls more than 15 per cent of the
shares and votes of the General Assembly of PPI ASA.
Risk area: Health and Safety
P
C
Description There is an inherent risk that PPI’s own employees, tenants in PPI’s buildings and workers on PPI’s
construction sites may be injured due to PPI’s activities.
Management A central element in PPI’s HSE work is a continuous focus on identifying, reporting and processing risk,
and to take appropriate measures to avoid unwanted incidents on all levels. PPI has internal routines and
systems to ensure compliance with HSE requirements. To motivate a proactive HSE culture, reporting
of precautionary safety or unwanted HSE incidents, is included as one of the KPIs in PPI’s scorecard for
performance-related pay for both management and other employees. Severe incidents are followed up
and investigated to ensure both learning and future avoidance. Reported incidents are used to identify
and mitigate risk areas.
PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024
34
Name André Gaden Ylva Göransson Ilija Batljan Marianne Aalby Tone K Omsted
Position: CEO CFO CIO EVP Finance and ESG EVP IR and Corporate Finance
Nationality/Residency: Norwegian/Norway Swedish/Norway Swedish/Sweden Norwegian/Norway Norwegian/Norway
Gender: Male Female Male Female Female
With PPI since: 2024 2024 2024 2024 2024
Number of shares / share options in PPI* 1 724 shares / 50,000 options 1 900 shares / 50 000 options 125 000 shares / 160 000 options 5 500 shares / 50 000 options 0 shares / 100 000 options
Education: MBA from BI Norwegian Business
School
Master of Business Administration
fromLund University
PhD in Demography and Planning for
elderly care and a Bachelor in eco-
nomics from Stockholm University
BBA and MSc Finance from Tex-
as A&M University and Chartered
European Financial Analyst (CEFA/
AFA), NHH
BA with Honours in Finance from
University of Strathclyde
Prior positions: André Gaden has held the position
as CEO of PPI since 1 January 2025.
From January to December 2024 he
held the position as COO of PPI.
Prior to his positions in PPI,
Gaden has served as Property Director
for Samhällsbyggnadsbolaget i
Norden AB (publ) and Hemfosa
Samfunnsbygg AS. Gaden has also
served as Commercial Director for
Citycon Oyj.
Ylva Göransson has held the position
as CFO of PPI since 1 January 2024.
She has vast experience from the
real estate sector from companies
such as SBB Samfunnsbygg AS,
ICA Eiendom Norge AS, Peritus
Entreprenør AS and Union Eiendoms-
kapital. She also has experience from
Accenture. She has served as chair
of the board/board member in several
property companies within the SBB
Group and currently serve as board
member in several property
companies within Public Property
Invest.
lija Batljan has held the position as CIO
of PPI since January 2025. Prior to
that, and since the IPO in April 2025he
held the position asinterim CEO in
PPI.Ilija Batljan is the founder and a
member of the board ofdirectors
of Samhällsbyggnadsbolaget i Norden
AB (publ)and has served as the CEO,
chairperson and board member
inover 1,000 companies within
the SBB Group. Batljan has among
others, also served as the Vice Chair
forStockholm Regional Council and
as vice CEO of Rikshem AB. He is
currently chair of the board of Health
Runner AB and PSOMRI Holding AB
and board member in Samhällsbygg-
nadsbolaget i Norden AB, Cryptzone
Group AB and Emergy Holding.
Marianne Aalby has previously served
as CFO of Attivo AS, SVP, Head of
Group Finance and Treasury at OBOS
as well as held senior roles in JP
Morgan, Nordea, Telenor and Statnett.
She has also had many non-executive
directorships in companies in the real
estate and financial industries.
She currently serves as board member
in Söderberg & Partners Wealth
Management AS and in several
property companies within Public
Property Invest.
Tone Omsted has long experience
from the finance and real estate
sector and She has previously held
the position as Head of Investor
Relations at Entra ASA. Prior to that
she was an Investment Banking
executive at SEB Enskilda for 14 years.
She currently serves as board
member of Bluenord ASA.
Senior Executives
//The business
* directly or indirectly owned
PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024
36 37
ESG
General
Disclosures
//ESG
During 2024 PPI has established the Group’s double
materiality analysis, hereunder established which
sustainability topics that have a material impact on the
Group’s business model, its value chain and stakeholders
and where the company has significant impact on people
and the environment.
PPI has initiated and will continue to develop a more
structured ESG reporting process for the Group. Actions for
increased data quality are important to undertake in order
for the Group to be able to present a more representative
view of the ESG work. Further actions involve internal
training in reporting requirements and systems with the
ambition to continue to develop processes for the collection,
control and follow-up of data.
PPI reports on sustainability in accordance with the
Norwegian Annual Accounts Act. There are uncertainties as
to if and when the Group will be subject to the EU’s Corporate
Sustainability Reporting Directive (CSRD).
PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024
38
Governance
Sustainability work is integrated in PPI’s day-to-day
operations. Governance is based on policy documents in
the forms of the Code of Conduct, the Group’s ESG policy
and other governance and policy documents. Focus is on
sustainability areas as identified in PPI’s double materiality
analysis. The company’s process for governance and follow-
up involves identification and management of sustainability
risks and opportunities and securing progress towards the
targets and commitments that have been adopted.
The Board of Directors
PPI’s Board is responsible for the Group’s ESG strategy,
priorities, targets and risk profile. The Board and the CEO
are also ultimately responsible for ensuring that PPI’s ESG
Report is prepared in accordance with the Norwegian Annual
Accounts Act and is adapted continually in line with laws and
directives.
Every year, the Board adopts policy documents linked to
sustainability work, such as the Code of Conduct and the ESG
Policy. The ESG Policy regulates PPI’s approach and actions
with regard to environmental, social sustainability and
governance. The Board monitors progress towards defined
targets and the company’s risks and potential impact relating
to the environment, social aspects and general governance.
The Board has also set ESG key performance indicators that
are reflected in the variable remuneration of all employees.
The Board is presented with information about the
company’s sustainability work on a regular basis. Significant
deviations and actions associated with PPI’s ESG Policy and
Code of Conduct are reported to the Board if they occur.
The Board strives to ensure that sustainability reporting is
transparent, relevant and reliable.
The Audit Committee is assigned special responsibility for
ESG-related matters on behalf of the Board. The Board will
continue to undertake training on sustainability topics and
reporting requirements .
Management and organisation
PPI’s CEO and management team are responsible for
ensuring that the business is operated in a sustainable
manner, hereunder to implement and follow up on PPI’s ESG
strategies, policies and general risk management. The CEO
and management team shall revise the materiality analysis
annually and follow up on compliance with the ESG policy and
progress towards defined targets. Executive management
is responsible for ensuring that the Group’s operations are
performed in accordance with sound business ethics and
for the Group’s management framework, including climate
related risks.
All of PPI’s employees are subject to policies that have been
adopted by the Board of Directors and are expected to sign
the Code of Conduct on an annual basis. The employees
within the property managment and property development
departments are responsible for ensuring that material
environmental aspects are taken into account in the day-
to-day operations, as well as aspects relating to social
sustainability and governance.
1. INPUT
The materials resources, products
and services needed to run PPI´s
operations.
2. OWN OPERATIONS
The values that PPI´s operations create
and the factors that affect the company
and the impact the company has on
external environment.
3. OUTPUT
The footprint and effects to which PPI´s
operations contribute.
PPI´s owns,
manages and
develops
properties
S
o
c
i
a
l
i
m
p
a
c
t
E
n
v
i
r
o
n
m
e
n
t
a
l
i
m
p
a
c
t
F
i
n
a
n
c
i
a
l
r
e
s
u
l
t
• Material
• Water
• Energy
• Land use
E
S
G
• Own employees
• Workers in the value
chain
• Supplier requirements
• Ethical business
conduct
• Climate
• Waste
• Biodiversity
• Sosial area development
• Safety and well-being
• Business ethics
• Corporate culture
PPI’s value chain and impact
Through its own activities and the company’s value chain,
PPI has an impact on, and is impacted by, social, environmental
and governance-related sustainability issues. The company
is dependent on various resources, products and services
to enable it to run its operations and create value for its
customers and owners. In terms of the environment,
this relates primarily to energy and water consumption
in the day-to-day operation of properties as well as the
procurement and use of materials in connection with
renovations and tenant alterations.
PPI also has social impact through the working conditions
of its own employees and employees in the supply chain,
as well as safety and well-being for those who work in the
company’s properties. The way the company is governed,
for example through policy documents, routines and supplier
requirements, has an impact on corporate culture and on
business ethical conduct.
PPI’s sustainability focus must consider the entire value chain
and therefore, also include business partners, customers and
other stakeholders who are involved in the Group’s business,
products and services.
The illustration below describes PPI’s value chain from a
sustainability perspective, and the material sustainability
issues in the areas of environment, social responsibility and
governance. PPI has a direct and indirect impact in the value
chain, which has been addressed in the compilation of the
double materiality analysis
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40 41
Stakeholders and stakeholder dialogue
Identifying and analysing stakeholder expectations are
important elements of achieving defined goals and creating
long-term value from both a financial and sustainability
perspective. PPI has a structured approach towards
understanding and managing the company’s impact
on the environment and society, as well as stakeholder
requirements and expectations.
PPI’s process for identifying stakeholders and stakeholder
dialogue involves analysis of various stakeholder groups and
interaction with them to get their input on risk, opportunities
and materiality. The main groups of stakeholders that PPI
has identified includes customers, employees, owners and
lenders, suppliers and society. Dialogues with stakeholder
groups take place in many different forums, see the table
on the next page for examples. PPI has also interviewed
representatives for the different stakeholders in connection
with the materiality analysis. Different topics are important
for each stakeholder group, and the different topics have
been weighted to contribute to the materiality analysis and
as such forms the basis for PPI’s sustainability work.
Stakeholder group: Material topics: Channels for dialogue:
Customers • Energy efficiency and environmental building
qualities
• Workplace health and well-being
• Security in the premises
• Tenant adaptation of premises and material selec-
tion
• Services provided by PPI and its partners
• Opportunity for sustainable choices, such as e.g.
waste sorting
• Customer dialogue meetings
• Relationship management
• Customer satisfaction surveys and feedback
• Advisory within energy and waste management
• Customer service
Employees • Performance and goals
• Working conditions and work environment
• Strategy and opportunities
• Equality
• Social events and outside work activities
• Manager - employee dialogue on performance,
career development and opportunities
• Employee surveys
• Intranet and social media channels
• Day to day direct dialogue
Owners and lenders • Strategy and priorities
• Growth opportunities and outlook
• Operational and financial performance
• Availability and price of funding
• Asset valuations
• Macro impact
• Office market dynamics and development in occu-
pancy rate
• ESG related risks and capex
• Business ethics governance
• Shareholder structure and handling of conflicts of
interest
• Risks and uncertainties
• Regular, direct dialogue
• Quarterly and annual financial reporting and pres-
entations
• Stock exchange releases, press releases and pres-
entations
• Roadshows, conferences and meetings with ana-
lysts, investors and lenders
• ESG reporting
Suppliers • Commercial and responsible business relationships
• Compliance with Code of Conduct, supplier require-
ments and Transparency Act
• Good working conditions and work-related rights in
the supply chain
• Technology and environmental solutions
• Accuracy and timely deliveries
• Risk mitigation
• Cost savings
• Regular, direct dialogue
• Procurement processes, tenders and negotiations
• Supplier audits
• Follow-up on Code of Conduct and supplier require-
ments
Society • Society
• Decarbonisation of the value chain
• Impact of new regulations
• Real estate market and industry trends
• Engaging in living and working conditions in local
communities
• Long-term, sustainable property development
• Long-term, ethical business relationships
• Reduced environmental impact, for example from
transport operations, improved waste management
• Transparency and reporting of corporate responsi-
bility
• Urban planning processes
• Dialogue meetings with politicians, municipalities,
public/government agencies, and regulators
• Website and social media
• Engagement in industry associations and confer-
ences
• Sponsor of Norwegian Athletics Federation (Norges
Friidrettsforbund) with focus on the National Athlet-
ics School (Landslagets Friidrettsskole), organised by
sports clubs in over 80 municipalities around Norway
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42 43
Double materiality analysis
- Impacts, Risks and Opportunities
PPI conducted its first double materiality analysis in 2024.
The purpose of the analysis is to identify sustainability topics
that have material, actual or potential and positive or negative
impacts for people or the environment in the short, medium
and long term (impact materiality). The double materiality
analysis also aims to identify sustainability topics that have,
or may be reasonably expected to have, material financial
effects for the company and thereby generate risks or
opportunities in the short, medium and long term (financial
materiality).
The analysis was based on the requirements specified in the
EU’s Corporate Sustainability Reporting Directive (CSRD).
The scope and timing of implementation of the CSRD and
corresponding ESRS standards are however subject to
change and PPI has not implemented the ESRS standards on
its reporting on the individual topics.
The materiality analysis was based on stakeholder dialogue
and interviews and an analysis of the value chain and
markets in which PPI operate against, and the sustainability
topics included in the ESRS standards. The outcome of the
double materiality analysis was approved by the PPI’s Board
of Directors in February 2025.
The outcome of the double materiality analysis is summarised
in the table below. The materiality of each sustainability topic
is expressed as high or low financial materiality on the y-axis,
and as high or low impact materiality on the x-axis in the
matrix shown above.
Sustainability topics with high materiality are prioritised and
reported on. The topics will be monitored and revised annually
in case circumstances results in the materiality of the topics
increasing, meaning that reporting is required.
THE PROCESS FOR THE DOUBLE MATERIALITY
ANALYSIS WAS DIVIDED INTO FOUR PHASES:
1
2
3
4
8, 9, 12
10
24, 25
16
26, 27, 33
5, 7, 13, 17
18, 36
19, 22, 32
28
26
30
31
6, 11, 15, 21
24, 28
24, 29, 25
Financial sustainability
Impact materiality
Double materiality analysis
PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024
44 45
PPI’s work, actions and resources related to the material sustainability topics identi-
fied are summed up below and further described in the respective sub-chapters on
Environment, Social and Government on the following pages.
Focus
area
ESRS
topic Why is the topic important PPI policy Our way of working
Key
performance
indicators
Reference
chapter
Climate
change
adapta-
tion and
mitigation
ESRS E1 Society is facing a major
transition in order to greatly
reduce emissions and managing
the consequences of climate
change. The construction and
real estate sector accounts
for a large share of the world's
total emissions and thus has an
important role in the transition,
while at the same time it is
important to manage the risks of
its own property portfolio
ESG policy. Action plan for reduced
energy use at the prop-
erty level.
EMS system for daily
control of energy use
Climate risk manage-
ment.
Reduce
portfolio
energy
consumption
by 2 % per sqm
p.a.
Environment
Circular
economy
ESRS E5 The construction and real estate
sector uses large amounts of
natural resources in the form of
building materials in connec-
tion with new construction and
renovation. This has an impact
on both the environment and the
climate.
ESG policy. Conservation and
maintenance of existing
buildings.
Requirements for sorting
and disposal of con-
struction waste during
projects
Provision for recycling.
90 % waste
sorting in
projects
Environment
Own
workforce
ESRS S1 Competent and committed staff
are prerequisites for successful
business and long-term entre-
preneurship. The work environ-
ment, conditions and benefits
are important for securing the
supply of skills, while making a
big difference for the individual.
HR-policy
Code of
conduct.
Good working conditions
and benefits.
Low staff
turnover
Social
Workers in
the value
chain
ESRS S2 Construction and real estate op-
erations can involve health and
safety risks that must be man-
aged carefully. For PPI, it goes
without saying that everyone
who performs work for the com-
pany, whether it is its own staff
or suppliers, should have good
and safe working conditions
ESG -policy
Code of
conduct for
suppliers.
Supplier code of
conduct and Sup-
plier Requirements
Safety training
Follow-up of accidents
and incidents.
Zero tolerance
for any kind
of fraud or
corruption
Zero serious
accidents in
construction
projects
Average num-
ber of reported
precaution-
ary safety
incidents in
the manage-
ment portfolio
reported per
property per
month should
be >/= 2.5.
Social
Business
conduct
and
corporate
culture
ESRS G1 Corporate culture affects the
company in many ways: work
environment, drive, business
ethics, risk-taking and much
more. It is therefore central for
the company to have a good
corporate culture and business
ethics.
ESG-policy
Code of
conduct
Whistle
blower rou-
tines.
Review of Code of Con-
duct in all major projects
Access to external
whistleblower policy
Training in Code of Con-
duct and anti-corruption
for employees.
100% of
employees
comply with
the code of
conduct and
sign off on this
annually
Governance
# ESRS Topic Sub Topics Materiality assessment
1. E1 Climate change Climate change adaptation High
2. E1 Climate change Climate change mitigation High
3. E1 Climate change Energy High
4. E2 Pollution Pollution of air Low
5. E2 Pollution Pollution of water Low
6. E2 Pollution Pollution of soil Low
7. E2 Pollution Pollution of living organisms and food resources Low
8. E2 Pollution Substances of concers Low
9. E2 Pollution Substances of very high concern Low
10. E2 Pollution Microplastics Low
11. E3 Water and marine resources Water Low
12. E4 Biodiversity and ecosystems Direct impact drivers of biodiversity loss Low
13. E4 Biodiversity and ecosystems Impacts on the state of species Low
14. E4 Biodiversity and ecosystems Impacts on the extent and condition of ecosystems Low
15. E4 Biodiversity and ecosystems Impacts and dependencies on ecosystem services Low
16. E5 Circular economy Resources inflows, including resource use High
17. E5 Circular economy Resources outflows related to products and services Low
18. E5 Circular economy Waste Medium
19. S1 Own workforce Working conditions High
20. S1 Own workforce Equal treatement and opportunities for all Low
21. S1 Own workforce Other work-related rights Low
22. S2 Workers in the value chain Working conditions High
23. S2 Workers in the value chain Equal treatement and opportunities for all High
24. S2 Workers in the value chain Other work related rights Low
25. S3 Affected communities Communities’ economic, social and cultural rights Low
26. S3 Affected communities Communities’ civil and political rights Low
27. S3 Affected communities Rights of indigenous peoples Low
28. S4 Consumers and end- users Information-related impacts for consumers and/or end-users Low
29. S4 Consumers and end- users Personal safety of consumers and/or end-users Low
30. S4 Consumers and end- users Social inclusion of consumers and/or end-users Low
31. G1 Business conduct Corporate culture High
32. G1 Business conduct Protection of whistle-blowers Low
33. G1 Business conduct Animal welfare Low
34. G1 Business conduct Political engagement and lobbying activities Low
35. G1 Business conduct Management of relationships with suppliers including payment practices Low
36. G1 Business conduct Corruption and bribery Medium
Materiality assessment
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46 47
//ESG
Sustainability is integrated in PPI’s overall business
strategies and corporate conduct, including in investment
decisions. The Group also aims for continous improvements.
This chapter describes PPI’s sustainability strategy, its
targets and performance, related to climate-change
mitigation and adaptation.
Strategy
PPI works actively to reduce its negative impact on the
climate through sustainable property management and
portfolio quality. Having a sustainable property portfolio is
important for future-proofing PPI’s business and property
values while also reducing operational costs, and ensuring
the best product for the customers.
PPI aims to work smart and with the most efficient climate
change mitigating solutions. PPI’s most significant sources
of greenhouse gas emissions are from energy consumption
in its property portfolio and from the use of materials in
its development and renovation projects. Therefore, PPI
systematically works on reducing energy consumption and
energy efficiency in its property portfolio and strives to use
low carbon materials/reuse as much building material and
inventory as possible in its development and renovation
projects. The main indirect greenhouse gas emissions that
occur in the value chain stem from production of purchased
materials and inventory.
PPI seeks to work together with its customers and to co-
invest in implementing efficiency measures that increase
environmental qualities and reduce operating costs. This
intention is also included in PPI’s lease contracts which state
that the parties shall cooperate to raise and further develop
the environmental standards of the leasehold during the
lease period. PPI also works with suppliers who share its
values and all suppliers must adhere to PPI’s sustainable
supplier requirements and ethical guidelines.
Sustainability targets linked to energy reduction and waste
sorting are included in the overall company performance
targets, also serving as a basis for performance-related pay
for both executive management and other employees.
Net zero target
A cornerstone of PPI’s climate work is to reduce greenhouse
gas emissions from its own operations and value chain
in accordance with the 1.5-degree target set by the Paris
Agreement, with the goal of achieving climate neutrality
by 2050. An important task for PPI going forward will be to
prepare transition plans with quantitative decarbonisation
measures to reach net-zero. PPI will investigate whether the
targets should be validated by the Science Based Targets
initiative (SBTi).
Priorities and achievements in 2024 PPI is a relatively new
company and therefore does not have a long history of
measuring emission data, but has during 2024:
• Established a new Energy Management System for
management and follow-up of energy, water and waste
management on all properties in the portfolio.
• Established GHG accounting (Scope 1 and 2) for in-use
operations of the property portfolio.
• Reduced the energy consumption per square meter by
seven per cent
• Performed physical climate risk analysis of the
individual properties in the portfolio.
• Reviewed the EPC status of all properties and mapped
performance improvement activities for the properties
with low EPC certificates.
• BREEAM In-Use certified one property
• In 2025, PPI will measure progress based on the
strategies and KPI’s described in the following sections.
Climate risk mitigation
Property management
PPI has set the following overarching targets for climate risk
mitigation in its portfolio and property management:
• Reduce energy consumption in the property portfolio by
at least 2 per cent per year
• Work and invest together with the customers to
implement effective climate measures and improve the
environmental qualities of the property portfolio
• Increase the amount of energy produced from
renewable sources
• Reduce water consumption in the property portfolio
• Reduce waste and increase sorting rates
- Goal of a sorting rate of >70% in property
management
- Goal of a sorting rate of >90% in development and
renovation projects
• Review mitigating measures to reduce effects from
potential physical climate risks
Energy use and GHG emissions
Reducing GHG emissions from property management and
related operations are essential for PPI in order to reach the
overarching target of achieving climate neutrality by 2050.
PPI includes energy used by tenants in Scope 2 and when
considering the total emissions from the in-use operations
of its property portfolio. In 2024, approximately 80 per cent
of the Scope 1 and 2 GHG emissions stems from energy
consumption. Focused and systematic work and technical
upgrades over time are important drivers for how PPI will
succeed in this work, supported by the energy management
system which makes it possible to measure, compare and
follow up various initiatives. PPI aims to build a corporate
culture where energy management is an integrated part of
the business operations.
Although PPI is not yet in the position to measure its Scope
3 emissions it is known that the main source of scope 3
emissions in property management stems from use of
materials in refurbishment and development projects.
Environment
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48 49
Energy use (kWh) Like-for-Like 2024 2023 % change
Electricity 37 126 181 39 885 125 -7%
Heating and cooling 10 245 825 11 234 968 -9%
Fuel 4 985 156 953 -97%
Total energy use 47 376 991 51 277 046 -8%
Energy intensity kWh per rentable sqm [Energy-Int-LfL] 154 164 -6%
Of which from renewable sources 88% 88%
Percentage measured 100% 100%
Data coverage (no of properties) 53 53
GHG emissions (tonnes CO2e) 2024 2023 % change
Scope 1, total [GHG-Dir-Abs] 0.1 0
Biofuels for heating
Fossile fuels for heatiing
Company cars 0.1
Scope 2 market based, totalt [GHG-Indir-Abs] 418 451 -7%
Electricity 334 359 -7%
District heating and cooling 84 92 -9%
Scope 2 location based, totalt [GHG-Indir-Abs] 418 451 -7%
Electricity 334 359 -7%
District heating and cooling 84 92 -9%
Data coverage (no of properties) 53 53
Scope 1+2 market based (kg CO2 per rentable sqm, GHG-int) 1.33 1.44 -7%
Scope 1+2 location based (kg CO2 per rentable sqm, GHG-int) 1.33 1.44 -7%
Estimated GHG emissions in 2023 and 2024
Sustainable assets
PPI works on increasing the percentage of buildings in the
property portfolio which can be proven sustainable through
objective criteria, such as the EU Taxonomy and/or BREEAM.
The EU Taxonomy is a classification system established by
the European Union to provide a clear framework for identify-
ing environmentally sustainable economic activities. For the
building sector, the EU Taxonomy sets specific criteria and
thresholds that construction and real estate activities must
meet to be considered environmentally sustainable. Accord-
ing to the criteria in CCM 7.7 Acquisition and ownership of
buildings under the EU Taxonomy a building must either have
an Energy Performance Certificate (EPC) class A or be within
the top 15 per cent of the national or regional building stock to
screen as aligned with the EU Taxonomy. As of date, such top
15 per cent threshold has not yet been determined in Norway.
However, the threshold values recommended by NVE (‘Norges
vassdrags- og energidirektorat) in a report delivered to the
Ministry of Energy in September 2023 states that a theoretical
threshold value for the top 15 per cent of the Norwegian office
buildings is to should include buildings with current EPC A and
B and the upper part of EPC C. This should therefore provide
constitute a as a guideline, while the final threshold may differ.
BREEAM is a globally recognised certification system for
assessing the sustainability of buildings and infrastructure.
BREEAM evaluates a building’s performance across various
categories, including energy efficiency, water usage, health
and well-being, pollution, transportation, materials, waste,
ecology, and management processes.
PPI is currently in process of reviewing the EPC status of all
properties and map performance improvement activities for
the properties will low EPC status. Currently four per cent
of the portfolio values is certified EPC A, 18 per cent EPC B,
23 per cent EPC C, 34 per cent EPC D and 23 per cent EPC E
or lower. In 2024, the property Wilbergjordet 1 was certified
BREEAM In-Use Excellent.
Renewable energy
PPI will gradually seek to produce more renewable energy by
installing solar panels on the roofs and facades of existing
buildings and in connection with development projects, when
applicable. For roofs which are identified as less appropriate
for solar panels, alternative solutions such as blue-green roofs
for better stormwater management and increased biodiversity
may be considered.
Waste management
Waste generated from PPI’s own operations includes waste
from PPI’s offices and waste generated from development
projects, and maintenance of buildings owned by the compa-
ny. PPI is in the process of implementing systems for man-
agement and follow-up of waste both from own operations
and customers operations and will implement measures for
increased waste sorting.
Water consumption
Even though availability of clean water is not a constraint in
Norway, PPI will focus on reducing water consumption. The
aim is to minimise water wastage due to possible leakages and
have meters to monitor water use in the properties, which is
followed up through the EMS system. Where possible, auto-
mated leak detection systems should be installed as well as
flow control devices that regulate water supply to demand.
Additionally, whenever new water appliances must be installed
or old ones replaced, water-efficient products should be
chosen. Whenever tenants are responsible for their own
appliances, they should be encouraged to install water-
efficient products.
Refurbishment and
development projects
PPI is primarily involved in smaller projects involving renova-
tion of (parts of) existing buildings and/or refurbishment pro-
jects for its tenants. Generally, PPI always works to increase
the energy efficiency in its property portfolio and strives to
use low carbon materials/reuse as much building material
and inventory as possible in its development and renovation
projects.
In the project phase PPI analyses potential measures that can
be made to improve the property’s energy performance and
hence the Energy Performance Certificate. PPI investigates
the climate shell, technical facilities, and the potential to
reduce the Global Warming Potential (GWP) of existing cooling
machines in particular.
All materials that are dismantled are registered, and a full
assessment of what building components, materials and
inventory that can be maintained and/or reused is carried out.
The most used materials for renovation projects are glass,
insulation, façade materials, gypsum boards, and technical
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50 51
equipment. Refurbishment projects and tenant alteration
projects primarily involve materials such as drywall, glass, var-
ious flooring materials, lighting fixtures, porcelain for sanitary
equipment, and paint.
PPI encourages their customers’ awareness of the significant
emission reductions that are associated with increasing the
level of reused materials and inventory in the project, and
hence to promote reuse also in the choices that are made
by the customers. The intention to cooperate to raise the
environmental standard of the building/leasehold is also
included in the lease contracts.
Material usage is managed sustainably where possible. For
instance, recycled steel and insulation materials are incorpo-
rated, and timber is sourced from sustainable suppliers.
In large redevelopment projects that also involves building fa-
cades, PPI will target to reduce energy consumption (Primary
Energy Demand) by at least 30 per cent in accordance with the
Substantial Contribution criteria for climate change mitigation
in the EU and to increase the Energy Performance Certificate
to at least B.
PPI requires contractors working for the company to adhere to
the EU Taxonomy criteria for transitioning to a circular econ-
omy. According to these criteria, at least 70 per cent of the
non-hazardous construction and demolition waste generated
on construction sites must be prepared for reuse, recycling
and other material recovery. PPI strives to exceed the EU
Taxonomy criteria of 70 per cent waste sorting on construc-
tion sites and has established an internal goal of achieving a
sorting rate of at least 90 per cent in its projects.
Climate risk adaptation
PPI’s operations may be impacted by effects resulting from
climate change. The Group is therefore working actively to
manage exposure to and mitigation of climate risk. Examples
of climate risks that can affect buildings are acute physical
climate changes, such as extreme weather events such as
flooding from heavy rainfall, heavy snowfall or landslides and
chronic climate changes such as higher temperatures, more
extreme weather and rising sea levels. The purpose of climate
adaptation is to strengthen the resilience of operations and
buildings to climate change.
Climate risk analysis
In 2024 PPI has performed climate risk analyses for the indi-
vidual assets in the property portfolio. The analysis covers dif-
ferent emission scenarios (RCP 4.5, RCP 6.0 and RCP 8.5) and
a short-, medium- and long-term time horizon and provides a
broad understanding of how the portfolio risks are affected by
different climate scenarios. The analysis is based on third-par-
ty software services and will be followed up by property-spe-
cific analysis carried out by PPI’s property management. On
overall the analysis shows that the most significant physical
climate risk facing PPI’s portfolio is fluvial flooding, i.e poten-
tial damage to property values from heavy rainfall. The overall
financial effects of fluvial flooding are, however, estimated to
be limited.
Four properties are to a limited extent exposed to pluvial
flooding where the long-term financial effects are estimated
to be around 0.3 per cent of property values in a high emission
scenario. One property is potentially exposed to coastal flood-
ing from long-term effects of rising sea water.
Mitigating measures
PPI will utilise the findings from the climate risk assessment
to consider necessary implementation of mitigation measures
to increase resilience to effects from climate change. Such
measures could involve installing backflow valves, sealing
cellar windows and doors, diverting water that might reach
garages, creating blue-green roofs, constructing stormwater
retention basins, and/or deploying mobile flood barriers. These
measures effectively manage water-related climate hazards
and ensure structural integrity during extreme weather events.
Ongoing measures taken in property management involves in-
spections and maintenance of outdoor environments, hereun-
der inspecting roofs and stormwater drains before anticipated
heavy rainfall, securing emergency exits, and taking actions to
prevent water intrusion during floods.
PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024
52
Social
//ESG
PPI is a responsible owner, manager and developer of
social infrastructure properties and has established
relevant procedures and initiatives in its daily operations.
PPI’s focus areas involve its employees and their working
environment, working conditions and human rights in the
supply chain, health, safety and community engagement.
PPI works to promote equality and prevent discrimination
in the workplace. PPI has set ethical requirements for its
own operations as well as for suppliers and partners. When
evaluating new initiatives, PPI seeks partners and suppliers
with common values and targets.
Employee motivation
PPI strives to develop a value-based culture characterised
by the company’s core values: Presence, Quality and
Value Creation. It is fundamental for PPI’s success that its
employees consider PPI to be an attractive place to work.
PPI focuses on employee motivation and satisfaction,
which are considered to form the basis for an individual’s
desire and willingness to perform and contribute to the
development of the company. Employees are offered
opportunities for personal and professional development
through close dialogue and follow-up by their immediate
superior and by external courses and seminars.
PPI aims to be a health-promoting workplace. To this
end, the Group has implemented measures to contribute
to the health and wellbeing of its employees, hereunder
exercise- facilities at the office, sponsoring of sport club
memberships, team participation in the Holmenkollen relay
run etc.
Employee rights
Norway has an extensive social welfare system which
is built on a tax-funded model with public services that
provide social security to the population. This ensures that
education, healthcare, parental leave and public childcare is
provided for free or heavily subsidised to the user.
As an employer, PPI must pay employer’s national insurance
contributions, which are taxes employers must pay for its
employees as part of the financing of the National Insurance
Scheme. Generally, all individuals who are either resident
or working as employees in Norway are compulsorily
insured under the National Insurance Scheme. Persons
insured under the National Insurance Scheme are entitled
to retirement pension, survivors’ pension, disability benefit,
basic benefit and attendance benefit in case of disablement,
technical aids etc., work assessment allowance,
occupational injury benefits, benefits to single parents,
cash benefits in case of sickness, maternity, adoption and
unemployment, medical benefits in case of sickness and
maternity and funeral grants where needed.
PPI complies with established standards and employment
legislation. Employees in PPI are free to organise
themselves. Negotiations with employee representatives
and follow-up in the event of an operational change or
restructuring comply with Norwegian law.
PPI’s employees have elected a Safety Representative. The
main function of the Safety Representative is to take care of
the employees’ interests in matters relating to the working
environment. The Safety Representative is elected among
employees with experience and knowledge of the working
conditions in the company.
Wages and working
conditions
Each employee is to be compensated in accordance with the
principles for remuneration applied by PPI, in accordance
with which, the individual’s performance and contribution to
the company’s success are fairly assessed.
PPI applies collective agreements and follows the
appurtenant principles for wages, wage-setting, and
other remunerations and terms. Among other things,
maximum working hours, minimum wage, vacation, pension
and dependent care leave are agreed in the collective
agreements. Applicable regulation in PPI’s markets
regulates and enables sick leave, parental leave among
other things. Salaries are surveyed annually to discover
discrepancies in pay based on gender or other bases for
discrimination. Discrepancies are not tolerated and are
adjusted immediately.
There is equality in the remuneration of men and women,
and all employees are included in a collective bonus scheme.
All employees are included in the pension scheme and have
the same insurance schemes, hereunder additional travel
and health insurance. PPI has no employees involuntarily
working part-time. Evaluation and salary adjustments are
reviewed by the Senior Executive team.
Sick leave
Sick leave in the PPI Group was two per cent in 2024. The
objective is to maintain a continued low level of sick leave.
Freedom of association and human rights
PPI shall always respect human rights and the ILO
Declaration on Fundamental Principles and Rights at Work.
This includes the right to engage in unions and applies both
to employees, suppliers and partners. PPI does not tolerate
any form of forced labour and supports the abolition of
exploitative child labour
Employee demographics
The Board of PPI consists of three men and two women,
where the Chair is a man. The Senior Executive team of PPI
consists of three women and two men, with the CEO being
male. Of other employees in PPI, six are women and 11 are
men. During 2024, PPI hired seven new employees. There
have been two employees that have resigned from their
positions at PPI during 2024. The average age of employees
in PPI is 50.1 years, and the median is 51.2 years.
Equality
Different expertise and experience contribute positively
to PPI’s development and to a broader and better basis
for decision-making. Equal opportunities are an integral
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54 55
Business ethics and
anti-corruption measures
PPI’s Code of Conduct summarises the most important
principles of the company’s social responsibilities, as well
as personal, ethical and professional principles to which all
employees must adhere, and which govern the company’s
relationships with employees, customers, suppliers, society
and shareholders. All managers in the Group are responsible
for informing new employees about the company’s Code
of Conduct. All employees, including managers, are
responsible for adhering to the Code of Conduct and other
applicable company policies, as well as about applicable
legislation.
Based on the company’s core values, PPI has undertaken
to follow the principles of fair competition with zero
tolerance of bribes, extortion, fraud, embezzlement,
facilitation payments or any other kind of corruption. Use
of professional power for personal gain, bribes, or use
Key employee metrics
Indicator Unit of measure 2024
Diversity Gender diversity % of employees Board of Directors (women/men) 40 %
Executive Management (women/men) 60 %
Other managerial positions (women/men) 55 %
Age diversity Number of employees Under 30 years old 0
30-50 years old 9
Over 50 years old 13
Employee training and Training and development Average hours Avg. no of training hours per employee > 40
Development Performance appraisals % of employees Share of direct employees 100
New hires Total number Direct employees 7
Turnover Total number Direct employees 2
part of PPI’s standards. Employees are recruited and
promoted solely on the basis of professional qualifications,
regardless of ethnicity, skin colour, religion or other beliefs,
age, national origin, gender, sexual orientation, political
views, union membership, marital status or disability, or
similar considerations with no bearing on the position in
question , and the measures adopted to attract necessary
competence and to attract a new generation of competent
employees.
of company resources for personal gain are examples of
corruption. This applies to all employees of PPI as well as
suppliers and partners.
PPI acts in line with current competition law, including
applicable regulations against anti-competitive cooperation
(cartel arrangements). Accordingly, PPI does not enter
into anti-competitive agreements and does not apply
dishonest methods when conducting business. For PPI, to
cooperate with the Norwegian Competition Authority and
other authorities is self-evident and, through information
conveyed to new recruits, as well as at company-internal
conferences, the company seeks to keep its employees
abreast of legislation and policies.
PPI complies with current regulations on combating money
laundering. PPI operates in markets with the world’s lowest
levels of corruption and refrains from doing business in
high-risk markets in terms of corruption, child labour,
forced labour, lack of labourer’s rights or other prohibited
behaviours according to the company’s policies.
PPI does not fund political parties, neither at the national
level nor at the EU level. All memberships in trade
organisations shall be disclosed publicly.
PPI always co-operates with tax authorities and other
authorities. The Board appoints an external auditor to audit
the company’s fulfilment of tax obligations annually. All
suspicion of, or knowledge of tax-evasion by any person
associated with PPI are to be reported to the closest
manager immediately. All reported or suspected cases shall
be taken seriously and be investigated accordingly.
Gifts, entertainment, remuneration and personal benefits
can only be offered to a third party if they are of low
monetary value and in accordance with normal business
practices. No gifts, entertainment or personal services
may be offered that violate any applicable law or Code of
Conduct.
Similarly, no employees may receive gifts, entertainment or
personal services that may be believed to have an impact on
business transactions or in other ways give the impression
that business benefits can be achieved in exchange for said
gifts, entertainment or personal favours.
Supply chain management
The Group has implemented a Supplier Code of Conduct
and Supplier Requirements that all PPI’s suppliers need to
sign and that are available on www.publicproperty.no.
This enables PPI to request information more easily from its
suppliers for verification purposes and to conduct reviews
of the suppliers’ conditions as part of its routine control
measures, aligned with the Transparency Act.
All direct suppliers, licensing partners, and relevant indirect
suppliers must contractually agree regarding their own
operations as well as on behalf of their sub-suppliers’
operations to be evaluated on their performance. PPI
conducts regular evaluations of third-party entities, with a
particular focus on safeguarding fundamental human rights
and promoting fair working conditions. These evaluations
are carried out prior to new assignments with suppliers, and
in response to any reports or suspicions of violations related
to fundamental human rights and working conditions.
To ensure effective operations and optimal property
management, PPI collaborates with a wide range of
suppliers and business partners. These include facility
management companies, property maintenance providers,
contractors, architects, engineering consultants, legal and
financial advisors, technology providers and other service
providers.
PPI reviews all of the company’s suppliers and partners, and
assesses the potential for the company to cause, contribute
to, or influence violations of labour rights or human rights.
The company has identified the following groups of trade
workers as more prone to risks of violating human rights
and working conditions: building and construction workers,
plumbers, electricians, craftsmen, caretakers, gardeners,
cleaners, and canteen services.
Most of PPIs suppliers are larger companies that are either
subject to the Transparency Act or have committed to
guidelines such as the OECD Guidelines for Multinational
Enterprises. These suppliers mainly operate in industries
not typically associated with an increased risk of
fundamental human rights violations. Additionally, foreign
suppliers are primarily based in open economies with labour
legislation that largely aligns with Norwegian standards.
PPI has implemented procedures to conduct due diligence
assessments on suppliers and business partners identified
as posing higher risks, incorporating customised measures
to mitigate these risks effectively. For suppliers deemed
high-risk, PPI performs risk-based evaluations, considering
various criteria including geographical considerations.
Internally, we are conducting due diligence on selected
suppliers using publicly available information from the
internet, published documents, and annual reports.
This meticulous process ensures a comprehensive
understanding of our suppliers’ operations, performance,
and adherence to industry standards. By leveraging these
sources, we aim to foster stronger supplier relationships
and maintain our dedication to transparency and
responsible sourcing practices.
PPI has not discovered any deviations in any of its reviews
in 2024. If negative consequences were to be discovered,
PPI would manage, resolve, and engage in dialogue with the
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56 57
relevant supplier. PPI would, through appropriate actions,
ensure that the breaches were not repeated and review our
procedures to prevent potential similar breach or negative
consequences in the future.
PPI counteracts money laundering through surveillance
of payments and prohibition of suspicious payments.
Payments in cash, payments to accounts with a hidden
identity and payments between parties that do not have an
agreement in writing are examples of suspicious payments.
Payments in cash are never to be made to suppliers
and subcontractors. Payment may only be made to the
contracted party and never to a third party. PPI does not
make payments to bank accounts where the identity of
the account holder is concealed. To the greatest extent
possible, payments are disbursed against invoices and
always after checking that the payment matches the agreed
price and/or service performed, and in accordance with the
company’s payment procedures. Cash is never accepted as
payment for services, rent or the like.
Health and safety
No employee, tenant, supplier, contractor, or other partner
shall be injured in PPI’s workplace, projects or properties.
To prohibit injuries, all incidents and near-incidents shall
be reported and investigated. Reported incidents shall be
disclosed. Employees shall cooperate with authorities and
unions to minimise the risk of injury. PPI does not accept any
form of bullying, such as isolation, harassment, or verbal or
physical abuse.
HSE work is central to PPI in all parts of the value chain.
It shall be safe to visit and work in PPI’s properties and
projects and there shall be no injuries with absence in
connection with the Groups development projects. PPI’s
safety focus is a natural part of the day-to-day operations
and PPI works actively to increase awareness about the
registration of all types of incidents, including accidents
and near misses. The reporting of incidents is important
to prevent potential accidents and to increase awareness
internally among PPI’s employees, suppliers and customers.
Safety targets are also included in the Group KPI’s and the
target is that the average number of reported precautionary
safety incidents in the management portfolio reported per
property per month should be >/= 2.5. Senior management
is involved in practical HSE work and is expected to take the
lead through behaviour and leadership.
Conflicts of interest
The PPI organisation is politically independent, and
the company’s funds are not used to support political
campaigns or purposes. The company’s employees work
in the best interests of the company and avoid actions that
can be perceived as favouring companies, organisations,
individuals or other stakeholders at the company’s expense.
Such conflicts of interest may include, for example, holding
external positions or shareholdings in a competitor,
customer, supplier, subcontractor or representative
contrary to the interests of PPI; receiving gifts or hospitality
where there is an expectation or perceived expectation of
a return favour, a decision on employment or promotion of
relatives or friends.
Community engagement
PPI is deeply committed to involvement
in community life. One example of
this commitment is the long-term
sponsorship of the Norwegian
Athletics Federation. Through this
agreement, PPI, in collaboration with the
Norwegian Athletics Federation (Norges
Friidrettsforbund), has a special focus on
making participation in organised sports
activities available for more children.
An important project the parties will
collaborate on is the National Athletics
School (Landslagets Friidrettsskole),
which is organised by sports clubs in
over 80 municipalities around Norway.
This school gives children and young
adolescents a positive, inclusive and
exciting first encounter with the sport of
athletics.
PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024
58
//ESG
The Board of Public Property Invest ASA (the “Board”)
is dedicated to upholding a high standard of corporate
governance, in the pursuit of a long-term sustainable future
for the Public Property Invest ASA (“PPI”) and its subsidiaries
(the “Group”) and its shareholders. This is done by ensuring
that good governance is an integral part of the decision-
making process in matters dealt with by the Board. Moreover,
PPI’s corporate governance standards are subject to at least
annual assessment and discussion by the Board.
PPI is subject to corporate governance reporting
requirements pursuant to section 2-9 of the Norwegian
Accounting Act; the Public Limited Companies Act; chapter
4.4 of the Euronext Oslo Børs Rulebok II - Issuer Rules; and
the Norwegian Code of Practice for Corporate Governance
(the “Code”), issued by the Norwegian Corporate Governance
Board (NUES). The Norwegian Accounting Act and the Public
Limited Companies act can be found (in Norwegian) on
lovdata.no. The Euronext Oslo Børs Rulebook II can be found
on euronext.com and the Code, which was last revised on 14
October 2021, can be found on nues.no.
PPI’s corporate governance statement for 2024 follows the
system used in the Code, issued by the Norwegian Corporate
Governance Board (NUES). The Code covers provisions and
guidance that in part elaborate on company, accounting,
stock exchange and securities legislation. It also covers
areas not addressed by legislation. We follow the ‘comply
or explain’ principle required by the Code and in case of any
deviations from its 15 provisions, we explain the reasons and
the alternative solutions we have adopted.
Governance strategy
The Group believes that good corporate governance involves
transparent and trustful cooperation between all parties
involved with the Group and its business. This includes the
Group’s shareholders, the Board and executive management
team, employees, customers, suppliers, and other business
partners, as well as public authorities and society at large.
The Board and executive management shall contribute
achieving the following core objectives when honouring the
Group’s corporate governance policy:
• Transparency. Communication with the Group’s
shareholders, stakeholders and other interest groups
shall be based on transparency and openness on issues
relevant for the evaluation of the development and
position of the Group.
• Independence. The relationship between the Board,
executive management and shareholders shall be based
on independence principles. Independence shall ensure
that all decisions are made on an unbiased and neutral
basis.
• Equal treatment. A fundamental objective for good
corporate governance is equal treatment and equal
rights for all of the Group’s shareholders.
• Control and management. Sound control and
corporate governance mechanisms shall contribute to
predictability and reduce the level of risk for the Group’s
shareholders, stakeholders and other interest groups.
Governance structure
PPI’s corporate governance policy ensures a clear division of
roles between the company’s shareholders, Board, executive
management and committees. The corporate governance
policy also provides the structure through which the
objectives of PPI are set, and the means of attaining those
objectives and monitoring performance are determined.
GENERAL MEETING
BOARD OF DIRECTORS
REMUNERATION
COMMITTEE
INVESTMENT
COMMITTEE
AUDIT
COMMITTEE
CHIEF EXECUTIVE OFFICER
EXTERNAL
AUDITOR
NOMINATION
COMMITTEE
Election
THE COMPANY´S GOVERNANCE STRUCTURE CONSISTS OF:
Appointed
ElectionElection
Nomination
Deviations from the Code: None
Governance
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60 61
//ESG
The business
PPI, founded in 2021, is a real estate company with a long-
term strategy of owning, operating and developing socially
beneficial property in Norway in a sustainable manner.
The strategy is designed to attract reliable, long-term
institutions with public-sector financing and the security
that this brings. Read more about PPI, its business model
and strategy in The Business section of this annual report.
PPI’s business objective, as set out in the company’s articles
of association, reads as follows: The company’s objective
is to own, acquire, dispose of, operate, develop and manage
real estate and other related activities. The company can
also participate in and own shares or share certificates in
other companies that conduct business as mentioned in
the first sentence. Further information about the Group’s
business can be found in The Business section of this annual
report.
The Board has defined clear objectives, strategies and
risk profiles for the Group’s business activities as an
effort to create value for its shareholders in a sustainable
manner. These objectives, strategies and risk profiles
are evaluated annually. When carrying out this work, the
Board has considered financial, social and environmental
considerations. PPI has established guidelines and
principles which are used to integrate considerations to
human rights, employee rights and social matters, the
external environment and anti-corruption efforts in its
business strategies, its day-to-day operations and in relation
to its stakeholders. Read more about the company’s ESG
efforts in the ESG section.
PPI is subject to the Transparency Act. In accordance
with such Act and the OECD Guidelines for Multinational
Enterprises, the company conducts due diligence
assessments to detect, prevent and mitigate any actual,
or any risks of adverse impacts on human rights or decent
working conditions in the Group’s own operations, its supply
chain and other business relationships. PPI shall also publish
a report on such due diligence assessments and upon
request provide information to third parties in accordance
with the Transparency Act.
Deviations from the Code: None
Equity and dividends
On 31 December 2024, the Group’s book equity was
5 714 million (2 850 million), representing an equity ratio of
47.9 per cent (33.4 per cent). The Board considers the capital
structure of the Group to be satisfactory by reference to the
Group’s goals, strategy and risk profile. At any given time,
PPI’s financial strength and exposure is considered in the
light of its objectives, strategy and risk profile.
Dividend policy
The Board has established and disclosed a clear and
predictable dividend policy for the Group. The Group’s
dividend policy is to distribute approximately 60 per cent
of cash earnings to its shareholders, subject to growth and
overall financial position. The dividend will be paid quarterly.
However, in the short term, PPI plans to leverage the
current market situation and may prioritise acquisitions
and therefore may not pay dividends to the extent as
outlined in the dividend policy.
The Board will propose to the Annual General Meeting that
PPI distributes a dividend 0.50 per share for the financial
year 2024. The dividend will be split in four quarterly
payments: NOK 0.10 per share to be paid in June and
October 2025 and NOK 0.15 per share to be paid in January
and April 2026. In 2024, the general meeting had not
provided the Board with an authorisation of approved
distribution of dividends.
Authorisations to the Board to increase the company’s share
capital or to purchase treasury shares
On 12 April 2024, the extraordinary general meeting of PPI
granted the Board three separate authorisations to increase
the share capital and issue new Shares, being:
• An authorisation to increase the share capital by up to
10 per cent of the company’s share capital) to be used in
connection with issuance of Shares in connection with
acquisitions. The authorisation covers capital increase
against non-cash contributions (contribution in kind),
including capital increases by way of set-off, and capital
increases in connection with mergers.
• An authorisation to increase the share capital by up to
10 per cent of the company’s share capital) for the
purpose of issuing new Shares to increase the
company’s equity. The authorisation covers capital
increase against non-cash contributions (contribution
in kind), including capital increases by way of set-off,
and capital increases in connection with mergers.
• An authorisation to increase the share capital by up to
NOK 2,403,591 (but in any case, limited to an amount
equal to 2 per cent of the company’s share capital) to
be used in connection with the contemplated future
share incentive programme for key employees and
Board Members. The authorization covers potential
share capital increases against non-cash contributions
(contribution in kind), but not share capital increases in
connection with mergers.
• The above authorisations are valid until PPI’s annual
general meeting in 2025, but in any case, no longer than
to 30 June 2025.
On 12 April 2024, the extraordinary general meeting of PPI
also granted the Board two separate authorisations to
acquire shares in the company (treasury shares), on behalf of
the company:
• An authorisation to acquire shares in the company
(treasury shares) with an amount up to 8 per cent of the
company’s share capital to enable the use of own shares
as settlement in connection with acquisitions.
• An authorisation to acquire Shares in the company
(treasury shares) with an amount up to 2 per cent of the
company’s share capital to enable the use of own shares
in connection with future incentive programs.
The above authorisations are valid until the company’s
annual general meeting in 2025, but in any case, no longer
than to 30 June 2025.
Deviations from the Code: None
Equal treatment of
shareholders
PPI has only one class of shares. Each share in the PPI carries
one vote, and all shares carry equal rights, including the right
to participate in general meetings and the right to dividends.
All shareholders shall be treated on an equal basis, unless
there is a just and factual cause for treating shareholders
differently.
Deviation from existing shareholders’ pre-emption rights.
Any decision to waive the pre-emption rights of existing
shareholders to subscribe for shares in a share capital
increase, shall be justified by the common interest of the PPI
and the shareholders.
If the Board resolves to issue new shares and deviate from
existing shareholders’ pre-emptive rights pursuant to an
authorisation granted to the Board, the stock exchange
announcement issued in connection with the share issue
shall also include a justification for the deviation.
The Board has for the financial year in 2024 resolved
to increase the share capital in accordance with the
authorizations granted in 2024. These resolutions pertains
to the issuance of shares related to acquisitions involving
capital increases through non-cash contributions
(contributions in kind). Consequently, there has been no
waiver of pre-emption rights.
Transactions in treasury shares
PPI’s transactions in treasury shares shall be carried
out through Euronext Oslo Børs’ trading platform at the
prevailing trading price or by making a public offer to all
shareholders. If the company’s shares suffer from weak
liquidity, the Board shall take particular care even when
making purchases and sales through the stock exchange, in
order to ensure equal treatment of shareholders.
The extraordinary general meeting granted authorization
to purchase treasury shares in 2024; however, this
authorization has not yet been used.
Deviations from the Code: None
Shares and negotiability
The shares of PPI are freely transferable and there are no
limitations on any party’s ability to own, trade or vote for
shares in PPI.
Deviations from the Code: None
General meetings
Exercising rights
The Board shall ensure that PPI’s shareholders can
participate and exercise their voting rights in the company’s
general meeting, and that the general meeting is an effective
forum for shareholders and the Board. This shall, among
other actions, be facilitated through the following actions or
documents:
• the notice of the general meeting and any
ancillary documents, the nomination committee’s
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62 63
recommendation and background information on the
resolutions to be considered at the general meeting (if
any) shall be available on PPI’s website no later than 21
days prior to the date of the general meeting;
• the resolutions and any ancillary documentation shall
be sufficiently detailed and comprehensive, thereby
allowing shareholders to understand and make an
opinion on all matters to be considered at the general
meeting;
• the deadlines for shareholders to register their
attendance at the general meeting shall be set as
close to the date of the general meeting as practically
possible. The deadline may not expire earlier than two
business days before the date of the general meeting.
The Board may, prior to sending the notice of the general
meeting, determine a later date for the notification;
• the Board and the chairperson of the general meeting
shall ensure that the shareholders are able to vote
separately on each matter and each candidate
nominated for election to the Board, the nomination
committee and other corporate bodies (if applicable);
• the Chair of the Board and the CEO shall be present at
general meetings. The company should also ensure
that other members of the Board are present at general
meetings. The chair of the nomination committee
should attend annual general meetings in order to
present the committee’s recommendations and answer
any questions. The auditor shall be present at general
meetings where matters of relevance are on the agenda;
and
• an independent person to chair the general meeting
shall be appointed.
Participation without being present
General meetings shall be held either physically or
electronically or as a combination of the two in compliance
with the requirements of the Public Companies Act. PPI
shall facilitate electronic participation unless the Board
finds that it has reasonable cause to refuse such electronic
participation.
Shareholders who are unable to attend the general meeting
shall be given the opportunity to be represented by proxy and
to vote by proxy. The Board shall in this respect, with regards
to the notice of the general meeting:
• provide information on the procedure for attending by
proxy;
• nominate a person who will be available to vote on behalf
of non-attending shareholders as their proxy (normally
being the Chair of the Board); and
• prepare a proxy form, which, to the extent possible, shall
make it possible to vote separately on each individual
matter on the agenda and each candidate nominated for
election
Minutes of General Meetings are published as soon as
practicable via the Euronext Oslo Børs reporting system
(newsweb.no, ticker code: PUBLI) and in the Investor
Relations section of PPI’s website.
Deviations from the Code: None
Nomination Committee
In accordance with section 7 of PPI’s Articles of Association
PPI shall implement a nomination committee following its
listing on the Euronext Oslo Børs. In connection with the
listing of PPI on Euronext Oslo Børs,, the Board decided that
members of nomination committee will be elected at the
company’s first Annual General Meeting thereafter. The Board
will propose candidates for the Nomination Committee to be
elected at the Annual General Meeting in 2025.
Furthermore, it follows by section 7 of the PPI’s articles of
association that the general meeting elects the chairperson
and members of the nomination committee and determines
their remuneration.
The objectives, responsibilities and functions of the
nomination committee shall be in compliance with rules and
standards applicable to the company, which are described in
PPI’s “Instructions for the Nomination Committee” adopted
by the general meeting on April 12, 2024. The company
shall ensure that shareholders have information about the
composition of the nomination committee and deadlines for
submitting proposals to the nomination committee.
The composition of the nomination committee should
be such that the interests of shareholders in general
are represented. Rules for rotation of the nomination
committee’s members are set out in the company’s
“Instructions for the Nomination Committee”.
The nomination committee shall:
• recommend candidates for the Board and the
nomination committee, and
• recommend remuneration for the members of the Board
and the nomination committee.
• The nomination committee’s recommendation of
candidates to the Board shall ensure that the Board
is composed to comply with legal requirements and
principles of corporate governance.
//ESG
The nomination committee’s recommendation of candidates
to the nomination committee shall ensure that they
represent a broad group of the company’s shareholders.
The recommendations from the nomination committee
shall include a reasoning for the proposal of each individual
candidate, as well as a statement on how the committee has
carried out its work. The nomination committee’s reasoning
for its recommendation shall include information about
each candidate’s competence, capacity, independence and
other relevant factors for the general meeting to adopt a
resolution on a sufficiently informed basis.
The recommendation shall be made available 21 days in
advance of the general meeting (i.e. the same deadline for
distributing the notice for a general meeting).
Shareholders shall be given the opportunity to submit
proposals to the nomination committee for candidates up
for election to the Board and other appointments in a simple
and easy manner. A date for when such proposals must be
submitted to be considered by the nomination committee
shall be communicated.
Deviations from the Code: PPI does not currently have a
nomination committee but a nomination committee will be
up for election on the AGM in May 2025
Composition and
independence of the Board
The composition of the Board should ensure that the
Board has the expertise, capacity and diversity needed to
achieve the company’s goals, handle its main challenges
and promote the common interests of all shareholders.
The Board shall consist of between three and nine board
members. The Board currently comprises five members,
ensuring diverse perspectives and expertise. Each
board member should have sufficient time available to
devote to his or her appointment as a board member. The
members of the Board shall be willing and able to work as
a team, thereby enabling the Board to work efficiently as
a collegiate body. The Board shall be composed so that it
can act independently of any special interests. A majority
of the shareholder-elected members of the Board shall
be independent of the executive management and the
company’s material business connections.
Further, at least two of the shareholder-elected members
of the Board shall be independent of the company’s major
shareholder(s). A shareholder is considered to be a major
shareholder if it owns or controls 10 per cent or more of
the company’s shares or votes, and the board members’
independence from such shareholder(s) shall entail that
there are no circumstances or relations that may reasonably
be expected to influence an independent assessment by
the relevant board member(s). All the shareholder-elected
members except Sven-Olof Johansson are independent of
the company’s major shareholder(s).
Neither the CEO, nor any member of PPI’s executive
management, shall also be a member of the Board.
The composition of the Board shall be in compliance with
the gender representation requirements set out in section
6-11a of the Public Companies Act and represent sufficient
diversity of experience and expertise to help ensure that the
Board is able to carry out its work in a satisfactory manner
and in accordance with the Group’s objectives. As per date of
this report two of five directors are women.
All members of the Board, including the Chair, shall be
elected by PPI’s general meeting. The term of office for the
respective board members shall not be longer than two
years at a time. Members of the Board may be re-elected.
The re-election of the members of the Board should be
phased, to prevent that the entire Board is replaced at once.
The company’s annual report shall provide information on
the expertise, experience and independence of the members
of the Board, as well as information on their record of
attendance at board meetings.
Information on the background and experience of the
directors is available on PPI’s website and on pages 72-73.
Members of the Board are encouraged to own shares in the
company as this may contribute to increased economic
relations between the shareholders and the members of
the Board. Consideration should be given in this respect, to
arrange for members to invest part of their remuneration in
shares in PPI at market price, cf. section 14 below. However,
caution should be taken not to let this encourage a short-
term approach, which is not in the best long-term interests
of the company and its shareholders.
The Board’s composition as of the end of the year included
five members, with a balanced representation of genders
and a range of competencies to effectively oversee the
company’s operations.
PPI’s Board consist of Martin Mæland (Chair), Sven-Olof
Johannson, Siv Jensen, Silje Hauland and Kenneth Bern,
PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024
64 65
The work of the Board
The Board develops an annual plan for its own work, with
particular focus on objectives, strategy and implementation.
The Board implements instructions for its own work and the
work of the executive management, focusing on determining
allocation of internal responsibilities and duties. The
objectives, responsibilities and functions of the Board and
the CEO shall be in compliance with rules and standards
applicable to PPI, [as described in the company’s “Rules of
Procedure for the Board”.]
The Board of Directors has prepared an instruction on how
the Board of Directors and executive management shall deal
with agreements with related parties, including whether
an independent valuation must be obtained. The Board of
Directors presents all such agreements in the company’s
annual report.
The Chair of the Board chairs board meetings. All board
members receive information about the Group’s operational
and financial progress in advance of the Board meetings.
PPI’s business plan, strategy and risk are regularly reviewed
and evaluated by the Board to ensure that the company
creates value for shareholders in a sustainable manner. The
Board draws up and adopts an annual plan, including topics
for the Board meetings. Ordinarily, the CEO proposes the
agenda for each individual Board meeting. In addition to
the board members, Board meetings are attended by the
Executive management team. The Board decides on matters
of material importance to the Group. These include, but are
not limited to, approval of the annual and quarterly reports,
strategies and strategic plans, the approval of significant
investments, the approval of significant contracts and the
approval of substantial acquisitions and divestments. When
carrying out this work, the Board considers the financial,
social and environmental aspects.
The Board receives quarterly reports and presentations on
the Group’s operational and financial status. The reports
describe progress and status in the Group’s operative and
administrative functions during the reporting period.
Each year the Board and its committees shall assess their
own work and way of working as a basis for reviewing the
need for changes and other measures. This assessment
includes an evaluation of the Board’s expertise, collectively
and for each member, and how well the Board works as a
team.
Related party agreements
The Board has prepared instructions on how the Board
and executive management shall deal with agreements
with related parties, including when an independent
valuation must be obtained. The Board shall present all such
agreements in the company’s annual report.
Additionally, PPI’s Articles of Association article 8, states
that any agreement between PPI, or a company where
PPI has a controlling influence on the one hand, and
Samhällsbyggnadsbolaget i Norden AB or a company
where Samhällsbyggnadsbolaget i Norden AB has a
controlling influence on the other side, must be approved
by the company’s general meeting. Sections 3-10 et seq.
of the Public Limited Liability Companies Act apply as
far as they apply to agreements that are not material
according to Section 3-11 of the Public Limited Liability
Companies Act, hereunder but not limited to the exceptions
in Section 3-16. This paragraph shall apply as long as
Samhällsbyggnadsbolaget i Norden AB directly or indirectly
controls more than 15% of the shares and votes in the
company.
Conflict of interests and disqualification
A member of the Board or executive management cannot
consider matters in which it or any of its related parties has
a special financial or prominent personal interest. Each
board member shall ensure that the Board and executive
management are aware of any material interests that they
may have in matters to be considered by the Board, so that
these can be considered in an unbiased and satisfactory
manner.
Committees
The Board established an Audit Committee, Remuneration
Committee and Investment Committee in 2024, while the
Nomination Committee is set to be established at the Annual
General Meeting in May 2025.
Audit committee
PPI’s audit committee currently consist of two members:
• Silje Hauland (Chair)
• Siv Jensen
Both members of the audit committee are independent
of PPI, and at least one member of the audit committee is
competent in respect to financial reporting and audit. The
audit committee shall function as a preparatory and advisory
sub-committee of the Board in relation to, among other
matters, the Board’ monitoring of the company’s financial
reporting and internal audit, systems for internal control
and risk management and the work of the statutory auditor.
During 2024, the committee had three meetings.
The objectives, responsibilities and functions of the audit
committee shall be in compliance with rules and standards
applicable to the company, as described in PPI’s “Instructions
for the audit committee”.
Remuneration committee
The Board’s remuneration committee consists of two
members:
• Kenneth Bern (Chair)
• Martin Mæland
The remuneration committee shall function as a preparatory
and advisory sub-committee of the Board in questions
relating to the company’s strategy for the compensation of
its executive management.
The purpose of the remuneration committee is to ensure
thorough and independent preparation of matters relating to
compensation of the company’s executive management.
The remuneration committee shall provide the Board
with guidelines for the salary and other remuneration for
executive management, which shall be made in accordance
with section 6-16a of the Public Companies Act. The
members of the remuneration committee are elected by
and among the members of the Board for a term of up to two
years.
The members of the remuneration committee are
independent of the company’s executive management.
The objectives, responsibilities and functions of the
remuneration committee shall be in compliance with
rules and standards applicable to PPI, as described in the
company’s “Instructions for the Remuneration Committee”.
Investment committee
PPI’s investment committee currently consist of two
members:
• Martin Mæland (Chair)
• Sven-Olof Johansson
The company’s investment committee function as a
preparatory and advisory sub-committee for the Board of
Directors in questions relating to investment opportunities.
The purpose of the investment committee is to ensure
that investment opportunities falling within the Group’s
investment strategy, including strategic rationale, possible
synergies, benefits and issues, are thoroughly assessed
before an investment opportunity is presented to the
Board of Directors. The committee may also, depending
on the project’s significance for the Group, be involved
in development projects and establishment of new lease
agreements on an ad-hoc basis.
The objectives, responsibilities and functions of the
investment committee are regulated in separate
instructions.
Deviations from the Code: None
Board representation and participation in Board meetings and committees since election in April 2024:
Board Board meetings
Audit
committee
Remuneration
committee
Board
tenure since
Up for
election
Martin Mæland (chair) 7 1 2024 2026
Sven-Olof Johannson 7 2024 2026
Siv Jensen 7 3 2024 2026
Silje Hauland 7 3 2021 2026
Kenneth Bern 7 1 2021 2026
all elected in connection with the company’s IPO in 2024.
Information on the Board’s competence and independence
are provided in section From the Boardroom.
//ESG
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66 67
Risk management and
internal controls
The Board of Directors has the responsibility to ensure
that the company has sound and appropriate internal
control systems in relation to the scope and nature of
the Group’s activities. By implementing effective internal
control systems and risk management systems, the Group
is better protected against situations that could damage
its reputation or financial standing. Effective and proper
internal control and risk management are important factors
when building and maintaining trust, to reach the company’s
objectives, and ultimately create value for the Group and its
shareholders.
The Board of Directors annually reviews the Group’s most
important areas of risk exposure and the internal control
arrangement in place for such areas. The review pays
attention to any material shortcomings or weaknesses in the
Group’s internal control and how risks are being managed.
The main features of the Group’s risk management is further
elaborated in the section Risk Management.
The Board of Directors ensures that it is updated on the
Group’s financial situation and continually evaluates whether
the Group’s equity and liquidity are adequate in relation to the
risk associated with the Group’s activities.
The Group’s management focuses on frequent and relevant
reporting of both operational and financial matters to the
Board with the purpose of ensuring that the Board has
sufficient information for their decision-making and is able
to respond quickly to changing conditions.
Deviations from the Code: None
Remuneration of Board
The general meeting shall each year determine the
remuneration of the Board based on the Nomination
Committee’s proposal. The Board’s remuneration shall
reflect the Board’s responsibilities, expertise, and use of
time and the complexity of the Group’s business. Board
members or companies to which they are connected
shall not normally undertake separate assignments for
the Group in addition to the Board appointment. If they
nevertheless do, the Board is to be informed, and the fees
for such assignments are to be approved by the Board. If
remuneration is paid above the normal Board fee, this is to be
specified in the annual report.
Deviation from the Guidelines
The Board may decide to deviate entirely or partly from the
Guidelines in individual cases provided that there are special
circumstances that make such deviation necessary in order
to satisfy the long-term interests of the company or to
ensure the financial viability of the company.
Pursuant to Section 6-16b of the Public Companies Act,
a report on salaries and other remuneration to Senior
Executive personnel and the Board will be presented at the
Annual General Meeting. The report will also be available on
PPI’s website.
For the financial year 2024, the Board received remuneration
in accordance with what was approved on the EGM in
April 2024. No remuneration was paid above the approved
Board fee. See also note 1 to the Parent company financial
statements for information on Board remuneration in 2024.
Deviations from the Code: None
Salary and other
remuneration
for Senior Executives
The company has prepared a remuneration policy which
supports the company’s prevailing strategy and values, while
also aligning the interests of shareholders and executive
management. The policy will be approved at the Annual
General Meeting in 2025 and will be reviewed and approved at
least every four years in accordance with Norwegian law.
Performance-related executive remuneration is linked to
value creation for shareholders and/or the company’s profit
over time. The arrangements are intended to incentivise “the
executive management to enhance” company performance
and incorporate quantifiable factors under the influence
of management. Performance-related remuneration is
subject to an absolute limit. More details can be found in the
remuneration report for leading personnel for 2024. The
principles governing executive salaries, remuneration, and
benefits are reviewed by the Remuneration Committee and
approved by the Board of Directors.
Deviations from the Code: None
//ESG //ESG
PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024
68
//ESG
Information and
communications
PPI has established guidelines for its reporting of financial
and other information based on transparency and taking
into account the applicable requirements for Euronext
Oslo Børslisted issuers, including, but not limited to the
requirements of equal treatment. The company is obliged
to continually provide its shareholders, Euronext Oslo Børs
and the public with timely and precise information about the
Group and its operations in accordance with applicable laws
and regulations.
Relevant information will be given in general meetings or in
the form of annual reports, quarterly reports, press releases,
stock exchange announcements and/or presentations in
accordance with what is deemed appropriate and required at
any given time.
PPI maintains an open and proactive policy for investor
relations, a website based on “sound practices” for
communication and information and gives presentations in
connection with annual and interim financial results.
PPI publishes an annual, electronic financial calendar with
an overview of dates for important events, such as the
annual general meeting, interim financial reports, public
presentations and payment of dividends, if applicable.
PPI has separate instructions for handling of inside
information and a separate investor relation policy has been
drawn up to assist PPI in building trust and awareness in
the investor community by ensuring that investor relation
activities are conducted in compliance with relevant rules,
regulations and recommended practices.
Communication with the shareholders should always be
in compliance with the provisions of applicable laws and
regulations and in accordance with the principle of equal
treatment of shareholders
Deviations from the Code: None
Takeovers
The Board of Directors has established main principles for its
actions in the event of a takeover offer.
In a takeover process, the Board and the executive
management each have independent responsibilities to
ensure that the company’s shareholders are treated equally
and that there are no unnecessary interruptions to the
company’s business activities. The Board of Directors has a
particular responsibility to ensure that the shareholders are
given sufficient information and time to assess an offer.
Any transaction that effectively means a divestment of the
company’s business should be resolved by the company’s’
general meeting.
Main principles for action in the event of a takeover offer
In the event of a takeover process, the Board of Directors
shall seek to abide by the recommendations of the Code, and
ensure that the following actions take place:
• the Board shall not seek to hinder or obstruct any
takeover offer for the company’s business or shares
unless it has valid and particular reasons for doing
so, including, but not limited to, the valuation of the
company;
• the Board of Directors shall not exercise mandates or
pass any resolutions with the intention of obstructing
the takeover offer unless this is approved by the general
meeting following announcement of the bid;
• the Board of Directors shall not undertake any actions
intended to give shareholders or others an unreasonable
advantage at the expense of other shareholders or the
company;
• the Board of Directors shall not enter into an agreement
with any offeror that limits the company’s ability to
arrange other offers for the company’s shares, unless it
is self-evident that such an agreement is in the common
interest of the company and its shareholders;
• the Board of Directors and executive management shall
not invoke measures with the intention of protecting
their own personal interests at the expense of the
interests of shareholders; and
• the Board of Directors must be aware of the particular
duty it has for ensuring that the values and interests of
the shareholders are protected.
In the event of a takeover offer, the Board shall obtain a
valuation from an independent expert and issue a statement
making a recommendation as to whether or not the
shareholders should accept the offer. The statement shall
make it clear whether the views expressed are unanimous,
and if this is not the case it shall explain the basis on which
specific members of the Board of Directors have excluded
themselves from the statement.
Deviations from the Code: None
Auditor
The Audit Committee evaluates and makes a
recommendation to the Board and the general meeting
regarding the choice of external auditor. When evaluating
the auditor, emphasis is placed on the firm’s qualifications,
capacity and the auditor’s fee. The General Meeting elects
the company’s auditor. PPI’s auditor is PwC.
Each year the auditor presents a plan for the execution of the
auditor’s work to the Audit Committee that in turn informs
the Board of its most important aspects.
The company’s auditor attends all meetings of the Audit
Committee, as well as the Board meeting in which the
annual report and financial statements are considered and
approved. At the meetings, the auditor goes through any
significant changes in the Group’s accounting principles, the
evaluation of material accounting estimates and any material
matters where there has been disagreement between the
auditor and the management.
The auditor reviews the Group’s internal controls and
financial reporting. When presenting the results of the
audit to the Audit Committee, the auditor also presents
an assessment of the Group’s internal controls, identified
weaknesses and proposals for improvements. The auditor
summarises the findings and assessments of the annual
audit for Group management and the Audit Committee.
Material issues if applicable are summarised for the Board.
Each year the auditor’s independence is assessed by the
Audit Committee. The Board has drawn up guidelines on the
engagement of the external auditor, governing what work the
auditor can do for the Group in view of the requirement for
independence. Any major assignments other than statutory
audits are approved by the Audit Committee in advance.
Management informs the Audit Committee of all additional
services supplied by the external auditor at each Audit
Committee meeting.
Deviations from the Code: None
//ESG
PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024
70 71
Board of Directors
//From the Boardroom
* directly or indirectly owned
Name Martin Mæland Sven-Olof Johansson Siv Jensen Kenneth Bern Silje Cathrine Hauland
Board position: Chair Board member Board member Board member Board member
Born: 1949 1945 1969 1960 1971
Nationality/Residency: Norwegian/Norway Swedish/Sweden Norwegian/Norway Norwegian/Switzerland Norwegian/Norway
Gender: Male Male Female Male Female
Member of the Board since: 2024 2024 2024 2021 2021
Independence: Independent Board member of Samhällsbygg-
nadsbolaget i Norden AB which holds
35.2 % of the shares in PPI
Independent Independent Independent
Number of shares / share options in
PPI*:
100 000 shares / 160 000 options 0 shares / 160 000 options 0 shares /0 options 3 274 320 shares / 160 000 options 40 000 shares / 0 options
Education: Cand. mag. and Cand. ocean in
mathematics, computer science and
economics from the University of
Oslo
Master in political science from
Stockholm University and Stockholm
School of Economics.
BBA degree in economics from the
Norwegian School of Economics
(NHH).
BSc (Hon) Electronics Eng. from
UCNW (UK) MBA from IESE Business
School (E).
Executive MBA in Energy Manage-
ment (EMBA) fra BI Norwegian Busi-
ness School and European School of
Management, Paris
Executive and non executive positions: Martin Mæland has 32 years of expe-
rience as CEO of OBOS. He currently
serves as chair of the Tax assess-
ment board for commercial property
in Oslo municipality and as chair of
the board of Brimas AS, Strandveien 1
AS, Strandveien Utvikling AS, Consto
Holding AS, Consto AS, Fjellhamar
Bruk AS, Gjettumgrenda AS, Gjet-
tumgrenda KS and Foreningen for
Nordre Skøyen Hovedgård. He is
also a board member in Bane Nor
Eiendom AS, Høvik Stasjonsby AS,
Høvik Stasjonsby KS, Snoveien 17-19
AS, Sameiet Grønlibakken 13-15 and
as deputy board member in Fornebu
Strandsone AS, Fornebu Sentrum Ut-
vikling AS and Fornebu Sentrum AS.
Sven-Olof Johansson is the founder
and managingdirector of Fastpartner
AB (publ). He is also serves as chair
of the board of Compactor Fas-
tigheter AB and as board member of
Samhällsbyggnadsbolaget i Norden
AB, Autoropa Aktiebolag and STC
Interfinans AB.
Siv Jensen is a prominent Norwegian
politician and served as Minister of
Finance from 2013 to 2020. Jensen
served as a parliamentary politician
for six terms, from 1997 until 2021,
and was the party leader for the Pro-
gress Party (Nw: Fremskrittspartiet)
from 2006 to 2021. Currently, Jensen
serves among others as a political
advisor to Flyte. She also serves as
chair of the board of MeyerHaugen
AS and board member of Toluma AS,
Pharma Nordics AS and Norboat AS.
Kenneth Bern is the owner and CEO
of Telecom AS, and co-founder of
VitaeLab / NutraQ, NQ Active AS and
Algalif ehf. After working for Boston
Consulting Group in Germany, he
has had various commercial and
administrative roles in Norwegian
industrial companies i.a. Norsk Hydro
ASA. He is invested in and serves
as chair of the board of Telecom AS,
BC Sport AS, Teleheim AS / Gode-
land Boligutvikling AS, MSG Cleaning
Systems AS, Grimstad Logistikkbygg
AS and Greenaltech S.L. He also
serves as board member in Evolys
AS, New Normal Group AS, Gaitline
AS, GAT Biosciences S.L.U, AdvanSyn
BIO S.L. and Algalif EHF. He has more
than 10 years of experience within
commercial real estate.
Silje Hauland is currently the CEO of
Chrisanic AS. She hasprevious expe-
rience as CFO of Nessco Holding AS,
andfinance manager for Norway and
Denmark at Chevron. She serves as
chair of the board of Marstrandgata 9
AS, Gatekeeper AS and board mem-
ber of Sameiet Prof Birkelandsvei
24 A, Forskningsveien Holding AS,
Merkur Bygginvest AS, and Elverum
Eiendomsinvest AS.
Member of Board Committees: Remuneration committee
Investment Committee
Investment Committee Audit committee Remuneration committee Audit committee
PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024
72 73
Board of
Directors Report
//From the Boardroom
Geopolitical tension continues to escalate in several regions
of the world and makes the macro-economic outlook
difficult to navigate. Economic conditions have however
started to improve after the inflation and interest rate
shocks observed in 2022 and 2023. Inflation has come down
in most countries and interest rates have been trending
downward in most Western economies. Although confidence
has increased somewhat in the real estate and financing
markets, the interest rate level continues to pose a risk,
especially for investors and property owners with high
leverage ratios.
In 2024, PPI experienced a significant transformation
marked by substantial portfolio growth, listing on Euronext
Oslo Børs, balance sheet refinancing, and the establishment
of a professional organisation with competence across the
real estate value chain. As other investors and companies
continue to struggle with high leverage and interest rates,
PPI sees the current market environment as an opportunity
to be a leading consolidator and to continue growing the
company through value accretive transactions.
Strategy and objectives
PPI’s strategy is to be a sustainable and preferred owner,
manager and developer of social infrastructure properties in
the Nordics. The Group owns a large and diversified property
portfolio of centrally located properties, of which many are
built for a special purpose. The properties house essential
functions like police stations, courts, public health facilities
and various governmental offices. A key advantage for PPI is
its government backed tenant base on long leases, ensuring
long term financial stability.
The Group is committed to continue to strengthen its
standing as a provider of socially beneficial properties
throughout Norway and the Nordics. Positioned with a clear
strategy, the Group aims to be a preferred partner for the
governmental sector and will continue growing its portfolio
of community service properties in the coming years.
Operations
The Group’s core activities include managing and operating
the Group’s properties on a day-to-day basis. Moreover,
the Group proactively engages in real estate investments
through upgrades and development of the existing property
portfolio, along with the acquisition of new properties.
To identify both short-term and long-term development
potential within the portfolio, the Board regularly assesses
properties where there is an anticipated potential for future
development and contracts expiring within 2-3 years.
Property Portfolio
As of year-end, PPI owned 72 properties totaling 394 569
square meters, with a total value of NOK 10 880 million. The
portfolio is centrally located in cities and urban centers
across Norway. The occupancy rate of the portfolio was 97
per cent, while 92 per cent of the rental income originated
from public sector tenants.
Important events in 2024
During the first half year of 2024 PPI went through a major
transformation as it
1) acquired a large portfolio of 13 properties from SBB
Samfunnsbygg AS (SBB),
2) partly repaid and fully refinanced all outstanding debt, and
3) did a successful Initial Public Offering with cash proceeds
to PPI of NOK 1.5 billion with the simultaneous listing of the
Group’s shares on Euronext Oslo Børs, in April 2024.
In connection with the IPO, Public Property Invest
communicated a clear strategy of becoming a leading
consolidator of social infrastructure properties with an aim
to pursue an opportunistic growth strategy focused on value
accretive transactions. During the second half of the year,
PPI has delivered on this strategy, acquiring three properties
and a portfolio of eight kindergartens for a contractual
property value of NOK 812.5 million.
In November 2024, PPI established a European Medium Term
Note (EMTN) programme and issued its eurobond of 300 million
and obtained an Investment Grade rating of BBB from Fitch
Ratings.
The Group works continuously to strategically position itself
with tenants whose leases are about to expire. During 2024,
PPI signed new and renegotiated leases for a total of 51 393
square meters and had an occupancy rate of 97 per cent at
year-end 2024.
Financial review
Due to the significant transformation PPI has gone through
in 2024, the Group’s financials for 2024 are not directly
comparable to those of 2023. The following financial review
is based on the consolidated financial statements of Public
Property Invest ASA and its subsidiaries. The statements
have been prepared in accordance with IFRS Accounting
Standards as adopted by the EU.
Profit and loss
Rental income was up by 15 per cent from NOK 575 million in
2023 to NOK 662 million in 2024 of which the net contribution
from acquired properties was NOK 70 million. Other income
of NOK 3 million in 2024 (0 in 2023) is mostly related to an
income of NOK 2.3 million from expropriation of land at one
of the properties.
Property expenses were NOK 67 million for the year ended 31
December 2024 compared to NOK 75 million in 2023.
Administration expenses increased to NOK 82 million for
the year ending 31 December 2024, from NOK 31 million in
2023. As of year-end 2023 PPI had only one direct employee.
Through 2024 PPI has built a professional organisation and
brought many functions in-house. There were non-recurring
costs of NOK 8 million related to the IPO-process and
NOK 2 million related to the EMTN-program.
Reimbursed property management fee amounted to
NOK 15 million in 2024 versus zero in 2023. This fee relates to
management fees in connection with property management
of SBB’s Norwegian portfolio and Nordiqus Education Holdco
1 AS portfolio.
Interest income increased to NOK 26 million for the year
ended 31 December 2024, up from NOK 6 million in 2023 and
is related to interest income on bank deposits.
Interest expenses rose to NOK 317 million for the year ended
31 December 2024, compared to NOK 272 million in 2023.
Through 2024, PPI has significantly grown its portfolio, fully
refinanced its debt portfolio and issued new equity, so the
numbers are to a limited extent comparable.
Net interest income from interest rate derivatives was
NOK 29 million in 2024, up from NOK 19 million in 2023.
Net income from property management was NOK 270 million
for the year ended 31 December 2024, up from
NOK 223 million in 2023.
Net unrealised financials amounted to a loss of
NOK 74 million in 2024 compared to a loss of NOK 25 million in
2023 and is related to expensed amortised borrowing costs
of the bank loan, which was partially repaid in December and
amortisation of bond costs.
Transaction costs amounted to NOK 99 million in 2024 vs
NOK 0 in 2023. The amount is related to non-recurring costs
incurred in connection with the IPO and the listing of the
Group’s shares on Euronext Oslo Børs.
Changes in the fair value of interest derivatives resulted in
a gain of NOK 9 million for the year ended 31 December 2024,
contrasting to a loss of NOK 25 million in 2023.
Changes in the fair value of investment properties decreased
by NOK 34 million for the year ended 31 December 2024
compared to a decrease of NOK 1 143 million in 2023. The
decrease in the value of the properties in 2023 and in the
first half of 2024 was attributable to changes in market
conditions where higher interest rates impacted cost of
capital adversely, which was mirrored in higher valuation
yields and thus lower value of properties. Since 30 June 2024
PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024
74 75
this trend has been reversed, and the fair value of investment
properties has been written up by approximately 2.1 per cent.
Profit (loss) before tax was NOK 73 million for the year ended
31 December 2024, compared to a loss of NOK 969 million in
2023.
Income tax expense amounted to a loss of NOK 59 million in
2024 vs NOK 69 million in 2023 and is related to changes in
deferred tax.
There is no other comprehensive income reported for
both the year ended 31 December 2024, and the year
ended 31 December 2023, and net profit (loss) and total
comprehensive income (loss) came in at NOK 13 million for
2024 compared to a loss of NOK (900) million for 2023.
Cash Flow
In 2024, net cash flow from operating activities generated
an inflow of NOK 467 million, while in 2023, it amounted to
NOK 437 million. Net cash flow from investment activities
resulted in a cash outflow of NOK 260 million in 2024, with
expenditures of NOK 144 million on upgrades to investment
properties and NOK 143 million in investment in investment
property entities and shares, offset by an inflow of
NOK 26 million from interest received on deposits. In 2023,
investing activities led to a cash outflow of NOK 26 million,
primarily associated with upgrades of investment property
entities. Financing activities in 2024 resulted in a cash inflow
of NOK 602 million, largely attributed to the full restructuring
of the Group’s financing structure. Conversely, financing
activities in 2023 generated a cash outflow of
NOK 466 million, largely attributed to repayment of interest-
bearing liabilities and interest paid.
Balance sheet
PPI’s total assets amounted to a total of NOK 11 931 million as
of 31 December 2024, up from NOK 8 522 million as of
31 December 2023. The increase in total assets is primarily
attributed to the property acquisitions made throughout
the year. The valuation of the Group’s investment properties
increased from NOK 8,336 million as of 31 December 2023, to
NOK 10 880 million as of 31 December 2024. This increase is
linked to the increased portfolio size. Like for like portfolio
values decreased by 0.6 per cent in 2024.
The valuation of the Group’s investment properties as of
31 December 2024 was carried out by the external assessor
Cushman & Wakefield and as of 31 December 2023 by
Cushman & Wakefield Realkapital AS and Newsec AS.
As of 31 December 2024, other assets consisted primarily of
cash and cash equivalents of NOK 968 million, site leaseholds
and right-of-use assets of NOK 35 million, and other current
assets of NOK 30 million.
Total non-current liabilities increased to NOK 5 926 million as
of 31 December 2024, from NOK 3 476 million as of
31 December 2023. The increase in non-current liabilities is
mainly due to increased debt. The current liabilities totaling
NOK 291 million consisted mainly of outstanding short-term
debt of NOK 211 million.
The total equity was NOK 5 714 million as of
31 December 2024, representing an equity ratio of
48 per cent, compared to NOK 2 850 million as of
31 December 2023, representing an equity ratio of
41 per cent.
Going concern
The financial statements have been prepared based on the
going concern assumption, and the Board confirms that this
assumption is valid. The company and the Group are in a
healthy financial position and have good liquidity.
Parent company results and allocation of net profit (loss)
The parent company achieved a net profit (loss) of
NOK (124) million in 2024. By comparison, the parent
company reported a net loss of NOK 941 million in 2023.
The loss in 2023 was caused by write-down of long-term
investments.
The Board proposes allocation of the net profit (loss) of
NOK (124) million for the parent company as follows: the
entire amount to be transferred from other equity, totalling
NOK (124) million.
The Board will propose to the Annual General Meeting that
PPI distributes a dividend 0.50 per share for the financial
year 2024. The dividend will be split in four quarterly
payments: NOK 0.10 per share to be paid in June and
October 2025 and NOK 0.15 per share to be paid in January
and April 2026.
The Board confirms that the company has sufficient equity
and liquidity following payment of the proposed dividend.
//From the Boardroom
Parent company cash flow
In 2024, operating activities generated a cash outflow of
NOK 124 million, versus and outflow of NOK 9 million in 2023.
Investment activities resulted in a cash outflow of
NOK 4 078 million in 2024, consisting of payments on group
loan receivables of NOK 3 218 million and NOK 860 million on
payments of purchase of shares and capital increases. In
2023, the cash flow from investment activities was NOK 0.
Financing activities in 2024 resulted in a cash inflow of
NOK 4 898 million, largerly attributed to new long-term
financing of NOK 3 462 and cash considerations from
capital increases of NOK 1 522 million. The cash inflow from
financing activites was NOK 3 million in 2023.
Risk factors and risk managment
Public Property Invest is subject to several risks, including
market, operational and financial risks. The Board assesses
risk on an ongoing basis, primarily through an annual
comprehensive review of the Group’s risk map. Each risk
factor is described and presented with the possible negative
outcome and a probability of a situation to occur. The risk
assessment also includes a description on how PPI monitors
and works to minimise the risks, as well as an assessment of
the developments in the last fiscal period on each risk factor.
PPI’s main risk factors, both financial and non-financial, are
described on pages 24-36.
ESG
Due to its market share and role as a provider of properties
for public tenants, the Group carries a substantial social
responsibility. This involves leading industry transformation
by prioritising refurbishment over new construction,
ensuring tenant objectives are met, and adopting
environmentally sustainable practices.
The commitment to sustainability focuses on climate
and environment, social sustainability, and financial
sustainability. Ongoing efforts include mapping energy,
water, and waste in buildings, with a commitment to
reducing consumption.
For social sustainability, the Group ensures favorable
working conditions, accessibility, and user involvement.
PPI promotes engagement with tenants and complies with
the Norwegian Transparency Act through a whistleblowing
channel and a code of conduct. The company’s reporting in
accordance with the Norwegian Transparency Act can be
found on the Group’s website. PPI is also a sponsor of the
Norwegian Athletics Federation (Norges Friidrettsforbund),
with a special focus on facilitating for more children to be
able to participate in organised sports activities.
Employees and organisation
As of year-end, the Group had 22 full-time employees. The
Group has a business management agreement with Arctic
Real Estate Management AS to support commercial and
financial management for properties and companies within
the Group. There are also agreements with several suppliers
for the operation and management of the Group’s property
portfolio.
The head office of PPI is in Oslo. The Group has secured
directors’ liability insurance covering the Board of Directors
and the CEO’s legal, personal liability for financial damage
resulting from the performance of their duties. This
insurance extends to both the Group and its subsidiaries.
Equal opportunities
The Group is dedicated to ensuring equal treatment for
all employees, regardless of ethnicity, gender, sexual
orientation, age, religion, or faith, both during recruitment
and throughout their tenure. Currently, the management
team includes two male and three female managers. As for
the Board of Directors, it consists of three male members
and two female members, reflecting a commitment to
diversity and gender equality within the leadership structure.
Corporate governance
The Group’s Board is dedicated to conducting business
in an ethical and responsible manner. The decision-
making processes prioritise transparency and efficiency,
emphasising honesty in all communication and reporting to
ensure clarity and consistency for all our investors.
A robust risk-management culture is integral to the Group’s
operations, with a proactive approach to identifying and
addressing financial, environmental, and social risks. This
adaptability enables efficient navigation of changing market
dynamics.
The Group’s relationships with stakeholders, whether it be
shareholders, tenants, employees, or advisors, are built on
a foundation of historical performance and trust. The Group
remains steadfast in the commitment to act responsibly
and maintain a high level of engagement on behalf of
stakeholders.
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76 77
PPI adheres to the guidelines for good corporate governance
in accordance with the Norwegian Code of Practice for
Corporate Governance issued by the Norwegian Corporate
Governance Board (NUES). The Governance section of this
annual report provides a more detailed description of the
corporate governance principles and reporting pursuant to
Section 3-3b of the Norwegian Accounting Act.
Shareholders
As of 31 December 2024, PPI’s share capital is
NOK 10 755 191.25 divided into 215 103 825 shares, each with
a nominal value of NOK 0.05. All shares have been issued in
accordance with the Norwegian Public Limited Companies
Act and are fully paid. PPI has one class of shares. All shares
provide equal rights, including the right to any dividends.
Each of the shares carries one vote.
As of 31 December 2024, PPI had 2 172 shareholders.
Investors residing in Norway held 53.4 per cent of the share
capital and international investors 46.6 per cent.
Outlook
Going into 2025, PPI will diligently continue its important
work as a responsible owner, manager and developer of
social infrastructure properties in the Nordics and as a
competent and reliable partner to the public sector.
The increased geo-political uncertainty and its impact on
the global economy will likely prevail and makes the macro-
economic outlook difficult to predict. However, PPI’s long-
term cash flows stemming mainly from government tenants
on long leases is to a limited extent affected by this and
should as such provide a safe haven for investors.
With its solid balance sheet, PPI is well set to take advantage
of the prevailing market conditions and the attractive growth
opportunities in the market. The Group aims to continue to
be a leading consolidator and to pursue an opportunistic
growth strategy focused on value accretive transactions.
//From the Boardroom
Oslo, Norway, April 22, 2025.
The Board of Public Property Invest ASA
This document is signed electronically
Martin Mæland
Chair of the board
Sven-Olof Johansson
Member of the board
Siv Jensen
Member of the board
Kenneth Bern
Member of the board
Silje Cathrine Hauland
Member of the board
Statement from the Board
and the CEO
On this date, the Board of Directors and the CEO have
considered and approved the annual report, including the
annual financial statements for Public Property Invest ASA,
the Group and the parent company, for the 2024 financial
year and as of 31 December 2024.
Oslo, Norway, April 22, 2025.
The Board of Public Property Invest ASA
This document is signed electronically
Martin Mæland
Chair of the board
Sven-Olof Johansson
Member of the board
Siv Jensen
Member of the board
Kenneth Bern
Member of the board
Silje Cathrine Hauland
Member of the board
André Gaden
CEO
• the consolidated financial statements for the Group
for 2024 have been prepared in accordance with IFRS
Accounting Standards and IFRICs as adopted by the
European Union, and additional Norwegian disclosure
requirements in the Norwegian Accounting Act, and that
• the financial statements for the parent company for 2024
have been prepared in accordance with the Norwegian
Accounting Act and generally accepted accounting prac-
tice in Norway, and that
• the information presented in the financial statements
gives a true and fair view of the assets, liabilities, financial
position and results for the Group and the parent compa-
ny for period as a whole, and that
• the Board of Directors’ Report includes a true and fair
review of the development, performance and financial
position of the Group and the parent company, together
with a description of the principal risks and uncertainties
that they face.
We declare to the best of our knowledge that
PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024
78 79
FINANCIAL STATEMENTS 2024
Table of content
Consolidated statement of comprehensive income 82
Consolidated statement of financial position 83
Consolidated statement of cash flow 84
Consolidated statement of changes in equity 85
Notes to the consolidated financial statements 86
Note 01 Company information 86
Note 02 Basis of preparation and accounting principles 86
Note 03 Summary of significant accounting policies 87
Note 04 Segment information 89
Note 05 Tenancy agreements 91
Note 06 Financial instrument - risk management 92
Note 07 Property and administration expenses 95
Note 08 Financials 97
Note 09 Critical accounting estimates and judgements - Investment Property 98
Note 10 Other receivables 100
Note 11 Cash and Bank deposits 101
Note 12 Leasing 101
Note 13 Shareholder capital and shareholders 102
Note 14 Tax 103
Note 15 Interest bearing liabilities 105
Note 16 Current and non-current liabilities 110
Note 17 Entities and subsidiaries 111
Note 18 Related-party transactions 113
Note 19 Earnings per share 113
Note 20 Subsequent events 114
Financial statement - Public Property Invest ASA 116
Notes to the financial statement - Public Property Invest ASA 121
Independent Auditor's report 126
Alternative Performance Measures 131
EPRA reporting 132
Property Portfolio 134
Definitions 137
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80 81
Amounts in NOK million Note 2024 2023
Rental income 4, 5 662 575
Other income 3 0
Operating income 665 576
Property expenses 7 (67) (75)
Net operating income 598 501
Administration expenses 7 (82) (31)
Reimbursed property management fee 7, 18 15 -
Interest income 8 26 6
Interest expenses 8 (317) (272)
Net interest income from interest rate derivatives 8 29 19
Net income from property management 270 223
Net unrealised financials 8 (74) (25)
Transaction costs 8 (99) -
Changes in fair value of interest rate derivatives 15 9 (25)
Changes in fair value of investment properties 9 (34) (1 143)
Profit (loss) before tax 73 (969)
Income tax expense 14 (59) 69
Net profit (loss) 13 (900)
Net profit (loss) attributable to:
Equity holder of the parent 10 (900)
Non-controlling interests 3 -
EPS primary and diluted Net profit (loss) 19 0.06 (12.51)
Basic=Diluted (NOK)
Other comprehensive income - -
Total comprehensive income (loss) 13 (900)
Total comprehensive income (loss) attributable to:
Equity holder of the parent 10 (900)
Non-controlling interests 3 -
Consolidated statement of
COMPREHENSIVE INCOME
Amounts in NOK million Note 31.12.2024 31.12.2023
ASSETS
Non-current assets
Investment properties 9 10 880 8 336
Right-of-use assets 12 35 -
Investment in shares 1 -
Interest rate & FX derivatives 15 6 37
Other non-current assets 8 7
Total non-current assets 10 929 8 380
Current assets
Trade receivables 4 5
Other current assets 10 30 15
Cash and cash equivalents 11 968 123
Total current assets 1 002 142
Total assets 11 931 8 522
EQUITY AND LIABILITIES
Equity
Share capital 13 11 4
Share premium 13 6 419 3 591
Retained earnings 13 (734) (745)
Non-controlling interests 9 19 -
Total equity 5 714 2 850
LIABILITIES
Non-current liabilities
Deferred tax liabilities 14 101 66
Non-current interest-bearing liabilities 15 5 752 3 353
Interest rate & FX derivatives 15 0 34
Other non-current liabilities 15 38 23
Non-current lease liability 12 35 -
Total non-current liabilities 5 926 3 476
Current liabilities
Current interest-bearing liabilities 15 211 2 152
Trade payables 23 17
Current tax liabilities 2 -
Other current liabilities 16 55 27
Total current liabilities 291 2 196
Total liabilities 6 218 5 672
Total equity and liabilities 11 931 8 522
Consolidated statement of
FINANCIAL POSITION
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82 83
Amounts in NOK million Note 2024 2023
Profit (loss) before tax 73 (969)
Changes in fair value of investment properties 9 34 1 143
Changes in fair value of interest rate derivatives 8 (9) 25
Interest paid net of interest rate derivatives 8 279 253
Accrued interest on bonds 9 -
Interest received on bank deposits (26) (6)
Financial costs in profit before tax without cash effect 8 74 25
Change in working capital:
Change in current assets (15) 13
Change in current liabilities 6 (4)
Change in other working capital 43 (42)
Net cash flow from operating activities 467 437
Investment in investment property entities 9 (142) -
Investment in shares (1) -
Upgrades of investment properties 9 (144) (32)
Interest received on bank deposits 26 6
Net cash flow from investment activities (260) (26)
Proceeds interest-bearing liabilities net of transaction costs 15 6 714 616
Repayment interest-bearing liabilities 15 (7 274) (828)
Interest paid net of interest rate derivatives 8 (279) (253)
Net cash flow from interest rate derivatives termination 8, 15 12 -
Payments on lease liabilities 12 0 -
Paid in capital increase 13 1 523 -
Transaction costs on issue of shares (94) -
Net cash flow from financing activities 602 (466)
Effects of exchange rate changes on cash and cash equivalents 37 -
Net change in cash and cash equivalents 845 (55)
Opening balance of Cash and Cash equivalents 123 177
Cash and cash equivalents at period end 968 123
Consolidated statement of
CASH FLOWS
Amounts in NOK million Note
Subscribed
share capital
Share
premium
Retained
earnings
Non-controlling
interests Total equity
Total equity at 31 December 2022 4 3 591 155 - 3 750
Changes in equity in 2023
Profit (loss) for the period - - (900) - (900)
Total equity at 31 December 2023 4 3 591 (745) 0 2 850
Changes in equity in 2024
Issue of shares in-kind 12.04.2024 13 1 1 189 - - 1 191
Issue of shares in-kind 12.04.2024 13 0 72 - - 72
Issue of shares IPO 25.04.2024 13 5 1 517 - - 1 523
Issue of shares in-kind 21.10.2024 13 0 37 - - 37
Issue of shares in-kind 27.12.2024 13 0 68 - - 68
Issue of shares in-kind 27.12.2024 13 0 18 - - 18
Transaction cost issue of shares net of
tax
- (74) - - (74)
Non-controlling interests on acquisition
of subsidiary
- - - 16 16
Profit (loss) for the period - - 10 3 13
Total equity at 31 December 2024 11 6 419 (734) 19 5 714
Consolidated statement of
CHANGES IN EQUITY
The accompanying notes are an integral part of the condensed consolidated interim financial statements.
Oslo, Norway, April 22, 2025.
The board of Public Property Invest ASA
Silje Cathrine Hauland
Member of the board
Sven-Olof Johansson
Member of the board
Martin Mæland
Chairman of the board
Siv Jensen
Member of the board
Kenneth Bern
Member of the board
Andre Gaden
CEO
This document is signed electronically
PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024
84 85
NOTE 01
COMPANY INFORMATION
Public Property Invest ASA (PPI) is a Norwegian property
company with a long-term strategy of owning, operating and
developing social infrastructure properties in a sustainable
manner.
PPI’s portfolio mainly consists of community service
properties with public-sector tenants, centrally located
in significant cities in Norway.
The properties house functions of essential importance to
society such as police stations, courts, health and other
public services. PPI offers high-quality and specially adapted
premises that enable our tenants to fulfill their social man-
date. The administration of Public Property Invest ASA and
its subsidiaries is located in Oslo. The consolidated financial
statements were approved by the company’s board on
22 April 2025.
NOTE 02
BASIS OF PREPARATION AND ACCOUNTING
PRINCIPLES
2.1 BASIS OF PREPARATION
The consolidated financial statements are prepared in
accordance with IFRS® Accounting standards as adopted by
the EU. In addition, the consolidated financial statements are
prepared in accordance with Norwegian reporting require-
ments pursuant to the Norwegian Accounting Act that are
effective as of 31 December 2024, the end of the Group’s
IFRS reporting period. The consolidated financial statements
include Public Property Invest ASA and its subsidiaries.
Acquired properties are included in the financial statements
from the date of acquisition. Management makes estimates
and assumptions concerning the future. The accounting
estimates will by definition seldom be fully in accordance
with the final outcome. Estimates and assumptions which
have a significant risk of causing a material adjustment to
the carrying amounts of assets and liabilities relate primarily
to the valuation of investment property. Refer to note 3.1 and
9 related to critical accounting estimates and judgements.
The consolidated financial statements are presented in
Norwegian kroner (NOK). The note disclosures are presented
in NOK millions, unless otherwise indicated. The consolidat-
ed financial statements for 2024 with comparatives for 2023
have been prepared on a going concern basis.
2.2 ACCOUNTING PRINCIPLES
The consolidated financial statements are based on histori-
cal cost, except for the following:
• Derivative financial instruments at fair value through
profit or loss
• Investment properties which are measured at fair value
2.3 BASIS OF CONSOLIDATION AND BUSINESS
COMBINATIONS
Subsidiaries are all entities over which the Group has control.
Control exists when the Group is exposed to, or has rights to,
variable returns as a result of involvement with the company,
and the Group is able to impact returns through its power
over the company.
All acquired companies are included in the consolidated
financial statements from the date on which the Group obtains
control over the company. In the same way, the company is
deconsolidated when control over the company ceases.
For accounting purposes, acquisitions of subsidiaries that
do not constitute a business as defined in IFRS 3, such as
acquisitions where substantially all of the fair value of the
gross assets acquired is concentrated in a single property or
group of similar properties, are treated as asset acquisitions.
The cost of acquisition is then attributed to the individual
identifiable assets and liabilities based on their relative fair
values on the acquisition date. Expenses associated with the
transaction are capitalised under the investment property.
In such cases, deferred tax liabilities or assets are not
recognised, except for deferred taxes related to losses
carried forward, in accordance with the exceptions in IAS 12.
Intra-company transactions, balances, and unrealised gains
and losses on transactions between group companies are
eliminated. The financial statements of subsidiaries are
restated where necessary to achieve consistency with the
Group’s accounting policies.
NOTE 03
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3.1 INVESTMENT PROPERTY
Investment property comprises completed property held to
generate rental income or for capital appreciation or both.
Investment property is recognised initially at cost including
transaction costs. Transaction costs include transfer taxes,
professional fees for legal services and initial leasing commis-
sions to bring the property to the condition necessary for it to
be capable of operating. The carrying amount also includes
the cost of replacing part of an existing investment property
at the time that cost is incurred if the recognition criteria are
met. Subsequent to initial recognition, investment property is
measured at fair value. Gains or losses arising from changes in
fair value are included in the income statement in the reporting
period in which they arise.
Investment property at fair value, continues to be measured
at fair value until disposal even if comparable market trans-
actions become less frequent or market prices become less
readily available. Gains and losses on the disposal of an Invest-
ment property is the difference between the selling price and
the fair value of the investment property measured at the date
of the disposal.
3.2 LEASING
The Group assesses whether a contract is or contains a lease,
at inception of the contract. The Group recognises a right-of-use
asset and a corresponding lease liability for all lease contracts
in which it is the lessee, except for leases with a lease term
of 12 months or less, and leases of low-value assets for which
the Group applies the applicable recognition exemptions. For
these leases, the Group recognises the lease payments as an
operating expense on a straight-line basis over the lease term.
Only fixed payments are included in the initial measurement
of the lease liability, and the lease term corresponds to the
non-terminable period. The discount rate used to calculate
the lease liability is determined, based on the Group’s incre-
mental borrowing rate for each specific lease. The entire lease
liability is presented as a non-current liability in the balance
sheet.
3.3 FINANCIAL ASSETS
3.3.1 Classification, recognition and measurement
Financial assets at amortised cost are subsequently meas-
ured using the effective interest (EIR) method and are subject
to impairment. Gains and losses are recognised in profit or
loss when the asset is derecognised, modified, or impaired.
2.4 FUNCTIONAL CURRENCY AND PRESENTATION
CURRENCY
The Group’s presentation currency is NOK. Each entity in the
Group determines its own functional currency, and items
included in the income statement of each entity are meas-
ured using that functional currency. The functional currency
is the currency within the primary economic environment in
which the entity operates. Transactions in foreign currencies
are initially recorded in the functional currency at the rate on
the transaction date. Monetary items denominated in foreign
currencies are translated using the functional currency spot
rates of exchange on the reporting date. Non-monetary items
that are measured at historical cost in a foreign currency are
translated using the exchange rate at the date of the initial
transaction. Non-monetary items measured at fair value in a
foreign currency are translated using the rate on the reporting
date. All currency translation differences are recognised in the
income statement and statement of comprehensive income.
Refer to list of Entities and subsidiaries in note 17.
2.5 SEGMENT INFORMATION
The Group has one main operational unit. The property port-
folio is divided into six different geographical regions; East,
Inland, North, West, South and Central in Norway with
management monitoring and following up on each region.
Furthermore, the property portfolio is divided in six different
groups of tenants based on significant contracts related to
the total rental income. The different geographical areas are
supported by support functions within accounting, finance
and legal, investment and other support functions from the
external service providers.
The different geographical regions do not have their own
profit responsibility. The regions are instead followed up on
economic and non-economic key figures (“key performance
indicators”) where revenue per geographical region is the most
important performance metric. These key figures are analysed
and reported to the chief operating decision maker, that is
the Board and CEO, for the purpose of resource allocation and
assessment of geographical region performance. Hence, the
Group reports information based upon these geographical
regions. Since the investment properties have multiple tenants
across the regions in the table below, and the investment
properties are appraised building by building, the reporting
does not include investment property value on tenant counter-
parts.
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86 87
Since the Group’s financial assets (trade (rent) and other
receivables, cash, and short-term deposits) meet these con-
ditions, they are subsequently measured at amortised cost.
The Group has entered interest rate swaps, the derivatives
is carried at fair value through profit or loss. All the Group’s
interest rate swaps are used as economic hedges.
Hedge accounting is not applied for the interest rate swaps.
In 2024 the Group has aquired currency derivatives and
designated these derivatives as hedge accounting instruments.
Derivatives not designated as hedging instruments are
recognised at fair value through profit or loss. Changes in
the fair value of the interest rate derivatives are recognised
in the income statement as part of changes in fair value of
interest derivatives. The settlement of swap rates are
recorded as a reduction or increase of financial expenses
in the income statement.
3.3.2 Impairment of trade (rent) receivables
For trade (rent) receivables the Group applies a simplified
approach in calculating expected credit losses (ECLs).
ECLs are based on the difference between the contractual
cash flows due in accordance with the contract and all the
cash flows that the Group expects to receive, discounted
at an approximation of the original effective interest rate.
Therefore, the Group does not track changes in credit risk,
but instead recognises a loss allowance based on lifetime
ECLs at the recognition date of the receivable.
3.3.3 Trade (rent) receivables
Rent receivables are recognised at their original invoiced
value except where the time value of money is material,
in which case rent receivables are recognised at fair value
and subsequently measured at amortised cost. There are
no lease receivables with a significant time value of money
component. Refer to accounting policies on financial assets
in note 3.3.
3.3.4 Cash and cash equivalents
Cash and cash equivalents include deposits held with banks.
3.4 FINANCIAL LIABILITIES
3.4.1 Classification, recognition and measurement
All financial liabilities are recognised initially at fair value
and, in the case of loans and borrowings and payables, net of
directly attributable transaction costs. The Group’s financial
liabilities include trade and other payables and loans and
borrowings including bank overdrafts. After initial recognition,
interest-bearing loans and borrowings are subsequently
measured at amortised cost using the effective interest
method (EIR). Gains and losses are recognised in profit or
loss when the liabilities are derecognised. Amortised cost is
calculated by considering any discount or premium related to
the debt and fees or costs that are an integral part of the EIR.
The EIR amortisation is included as finance expenses in the
statement of profit or loss.
3.4.2 Derecognition
A financial liability is derecognised when the obligation under
the liability is discharged or cancelled or expires. When an
existing financial liability is replaced by another from the
same lender on substantially different terms, or the terms
of an existing liability are substantially modified, such an
exchange or modification is treated as the derecognition
of the original liability and the recognition of a new liability.
The gain or loss on the derecognition is recognised in the
statement of profit or loss.
3.5 SHARE CAPITAL
Ordinary shares are classified as equity. Costs directly
attributable to the issue of new shares or options are shown
in equity as a deduction, net of tax, from the proceeds.
3.6 TAXES PAYABLE AND DEFERRED TAX
The tax expense for the period comprises taxes payable and
change in deferred tax. However, deferred tax is not recorded
if it arises on initial recognition of an asset or liability in a
transaction, other than a business combination, that affects
neither accounting nor taxable profit or loss on the transaction
date. Deferred tax assets are recognised only to the extent
that it is probable that there will be future taxable income
against which the temporary differences can be utilised.
Deferred tax is provided on temporary differences arising on
investments in subsidiaries and associates, except where
the timing of the reversal of the temporary difference is
controlled by the Group and it is probable that the temporary
difference will not reverse in the foreseeable future. Deferred
tax is determined using tax rates (and laws) that have been
enacted or substantially enacted by the reporting date and
are expected to apply when the related tax asset is realised,
or the deferred tax liability is settled. The provision for deferred
tax is based on the expected manner of realisation or settle-
ment of the carrying amounts of assets and liabilities.
Pursuant to the exception in IAS 12, deferred tax is not
recognised when buying a company which is not a business.
A provision for deferred tax is made after subsequent in-
creases in the value beyond initial cost, while a fall in value
below initial cost will only reverse previous provisions for
deferred tax. Furthermore, an increase in temporary
differences related to tax depreciation will give grounds
for a recognition of deferred tax.
3.7 RENTAL INCOME
The Group earns revenue from acting as a lessor in operating
leases which do not transfer substantially all of the risks and
rewards incidental to ownership of an investment property.
Rental income arising from operating leases on investment
property is accounted for on a straight-line basis over the
lease term. Variable rental income is recognised when it
arises. Initial direct costs incurred in negotiating and arranging
an operating lease, when deemed as material, are added to
the investment property carrying value and are recognised
as an expense over the lease term. Initial direct costs are
the incremental costs to obtain the lease, and includes any
commissions, as well as legal and consulting fees incurred in
connection with obtaining the lease agreement. Lease incen-
tives are recognised as a reduction of rental revenue
on a straight-line basis over the lease term.
3.8 INTEREST INCOME
Interest income is recognised in income as it is earned using
the effective interest method.
3.9 DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING
ACTIVITIES
The Group uses derivative financial instruments to manage
certain exposures to fluctuations in foreign currency exchange
rates and interest rates. These derivative financial instruments
are recognised initially at fair value on the date on which a
derivative contract is entered into and subsequently remeas-
ured at fair value. Derivatives are carried as assets when the
fair value is positive and as liabilities when the fair value is
negative. Gains or losses arising from changes in the fair value
of derivatives that are not designated as effective hedging
instruments are recognised in the income statement. Changes
in valuation subsequent to the initial valuation at inception of a
contract are recognised immediately in the income statement.
For the purpose of hedge accounting, hedges are classified
as:
• Fair value hedges when hedging exposure to changes in the
fair value of a recognised asset or liability.
Hedge relationships are formally designated and documented
at inception, together with the risk management objective
and strategy for undertaking the hedge. The documentation
includes identification of the hedging instrument, the hedged
item or transaction, the nature of the risk being hedged, the
existence at inception of an economic relationship and subse-
quent measurement of the hedging instrument’s effectiveness
in offsetting the exposure to changes in the hedged item’s fair
value, the hedge ratio and sources of hedge ineffectiveness.
Hedges meeting the criteria for hedge accounting are ac-
counted for as described below.
Fair value hedges
The change in fair value of a hedging derivative is recognised
in the consolidated statement of comprehensive income
and netted against fair value change of the hedged item. The
change in the fair value of the hedged item attributable to the
risk being hedged is recorded as part of the line Interest rate
& FX Derivatives and is also recognised in the consolidated
statement of comprehensive income, where it offsets the
forreign currency exchange effects. The Group applies fair
value hedge accounting for currency risks on fixed rate finance
debt. Fair value hedge accounting is discontinued only when
the hedging relationship or a part thereof ceases to meet the
qualifying criteria. This includes when the risk management
objective changes or when the hedging instrument is sold,
terminated or exercised.
NOTE 04
SEGMENT INFORMATION
See Basis of preparation and accounting principles 2.5 for
information related to segment information.
Total rental income by geographic region
Amounts in NOK million 2024 2023East 383 309 Inland 71 73 North 77 72 West 64 59 South 61 57 Central 6 6 Total rental income 662 575
PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024
88 89
Total rental income grouped by tenant
Amounts in NOK million 2024 2023Police 136 108 Education 47 53 Courts of Norway 58 49 Norwegian Labour and Welfare Administration 47 41 Norwegian Tax Administration 42 35 Government agency 118 109 Municipality / County 110 96 Healthcare 50 31 Private 54 50 Total rental income 662 575
Investment properties by region
Amounts in NOK million 31.12.2024 31.12.2023East 6 269 4 649 Inland 819 871 North 1 128 1 033 West 1 397 865 South 973 805 Central 109 114 Total management portfolio 10 694 8 336 1)Development sites186 - Total investment properties 10 880 8 336
1)
Development sites include development potential for properties within the managment portfolio and properties defined as
development sites.
The Group's future accumulated rent from operational lease contracts at 31.12.
Amounts in NOK million 2024 2023< 1 year 753 585 Between 1 and 2 years 608 532 Between 2 and 3 years 541 461 Between 3 and 4 years 415 393 Between 4 and 5 years 195 327 ≥ 5 years 1 438 776 Total 3 951 3 075
The Group's lease contracts at 31 December 2024 have the following maturity structure measured in annual rent.
Amounts in NOK million No of contracts Total contract rent< 1 year 11 21 Between 1 and 5 years 123 558 ≥ 5 years 92 195
The Group’s lease contracts at 31 December 2023 have the following maturity structure measured in annual rent.
Amounts in NOK million No of contracts Total contract rent< 1 year 6 7 Between 1 and 5 years 80 257 ≥ 5 years 101 327
NOTE 05
TENANCY AGREEMENTS
The Group mainly enters into long-term lease agreements with solid counterparties.
The table displays the number of contracts ending in the period and the expiring annual lease of the contracts.
The table displays the number of contracts ending in the period and the expiring annual lease of the contracts.
The remaining contract rent is undiscounted.
PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024
90 91
Financial assets
Fair value Fair value Amortised through Amortised through cost profit or loss Total cost profit or loss Total Amounts in NOK million31.12.202431.12.202431.12.202431.12.202331.12.202331.12.2023Cash and cash equivalents 968 - 968 123 - 123 Investments in shares 1 - 1 - - - Interest rate & FX derivatives - 6 6 - 37 37 Trade receivables (non-interest 4 - 4 5 - 5 bearing)Other current assets 30 - 30 15 - 15 Total financial assets 1 003 6 1 009 142 37 179
Financial liabilities
Fair value Fair value Amortised through Amortised through cost profit or loss Total cost profit or loss Total Amounts in NOK million31.12.202431.12.202431.12.202431.12.202331.12.202331.12.2023Non-current interest-bearing 5 752 - 5 752 3 353 - 3 353 liabilitiesOther non-current liabilites 11 - 11 11 - 11 Interest rate & FX derivatives - 0 0 - 34 34 Current interest-bearing 211 - 211 2 152 - 2 152 liabilitiesTrade payables (non-interest 23 - 23 17 - 17 bearing)Other current liabilities 55 - 55 27 - 27 Total financial liabilities 6 052 0 6 052 5 560 34 5 594 Net financial assets and (5 049) 5 (5 044) (5 418) 3 (5 415)liabilities
6.1 FINANCIAL ASSETS MEASURED AT FAIR VALUE
The Group’s policy is to recognise transfers into and out of
the fair value hierarchy levels at the end of the reporting
period.
Level 2: The fair value of the interest derivatives that are not
traded in active markets (e.g., over-the-counter derivatives)
is determined using valuation techniques that maximise
the use of observable market data and minimise reliance on
entity-specific estimates. If all significant inputs required to
value an instrument fairly are observable, the instrument is
classified as level 2.
Interest rate derivatives are measured at level 2.
NOTE 06
FINANCIAL INSTRUMENT - RISK MANAGEMENT
6.2 FINANCIAL RISK
The Group’s tenants are entities with very good credit ratings
and liquidity. The expected credit loss and late payment risk
is assessed as very low. As of year-end 2024 and 2023 there
is no loss allowance recognised for the trade receivables.
The Group regularly monitors liquidity risk by setting up cash
flow forecasts based on the liquidity reserves, including cash
equivalents, and borrowing facilities. The forecasts are set by
the individual subsidiaries, and is regularly monitored by the
board on a company- and group-level. The Group’s approach
to liquidity risk management is grounded in maintaining a
consistently sufficient liquidity level to meet all financial
liabilities at maturity. This commitment applies under both
standard and exceptional circumstances, with the aim of
avoiding unacceptable losses and safeguarding the Group’s
reputation. PPI is in process of establishing unutilised credit
facilities as back-up for its short term debt maturities. See
details in note 15.
Interest rate risk holds significant relevance in the Group’s
financing structures and property investments. The Group
closely monitors real estate operations and collectively
strives to assess and mitigate both liquidity and interest rate
risks. The Group is exposed to cash flow interest rate risk
from long-term borrowings at variable rate, and the risk is
hedged using interest rate swaps, see details in note 8
and 15.
The Group has a significant portion of its debt on fixed-rate
terms. To limit interest rate risk on loans at floating interest
rate terms, financial interest rate hedging instruments such
as interes-rate swaps are being utilised. On 31 December
2024, 90.4 per cent of PPI’s interest-bearing liabilities were
fixed-rate loans. An increase in market interest rates is thus
deemed to have a limited effect on PPI’s interest expenses in
the short and medium-term.
Maturity structure
Amounts in NOK million Total cash flow Year 1 Year 2 Year 3-5 After year 5 Financial liability as of 31 December 2024Principal payment on loans from 628 1 2 584 41 credit institutionsPrincipal payment on bond loans 5 376 211 226 1 398 3 541 Interest rate payments net of inter-1 221 317 299 566 39 est rate dericativesOther long-term liabilities 38 2 2 6 28 Trade payables 23 23 - - - Other current liabilities 57 57 - - - Total 7 343 611 529 2 555 3 648
Maturity structure
Amounts in NOK million Total cash flow Year 1 Year 2 Year 3-5 After year 5 Financial liability as of 31 December 2023Principal payment on loans from 5 529 2 160 3 370 - - credit institutionsPayment of interest at fixed hedge 550 268 282 - - rate*Other long-term liabilities 23 2 2 2 17 Trade payables 17 17 - - - Other current liabilities 27 27 - - - Total 6 146 2 474 3 653 2 17
*The table above are prepared under assumption that the Group will meet the requirements in the sustainability linked bank facility.
PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024
92 93
Amounts in NOK million 31.12.2024 31.12.2023Bond loan 5 376 2 273 Bank loan 628 3 256 Interest-bearing liabilities at period end 6 004 5 529 Amount of debt at fixed interest rate 5 426 3 901 Share of bank loans at fixed rate 8.0 % 50.0 %Share of loans at fixed rate including bonds 90.4 % 70.6 %
Last Twelve Months figures
Amounts in NOK million 2024 2023Rental income 662 575 Other income 3 0 Operating income 665 576 Property expenses (67) (75)Net operating income 598 501 Administration expenses (82) (31)Reimbursed property management fee 15 - Consolidated adjusted EBITDA 532 470 Interest income 26 6 Interest expenses (317) (272)Net interest income from interest rate derivatives 29 19 Consolidated net interest expenses (261) (247)Net income from property management 270 223 ICR 2.0 1.9
6.3 FOREIGN EXCHANGE RISK
The Group has entered into a fixed rate euro-denominated
bond loan during the fourth quarter of 2024, in order to
capitalise on favorable interest rates in the eurozone. In
conjunction with the FX exposure on this loan, the Group has
entered into a euro FX derivative contract in order to
mitigate the exposure to foreign exchange risk on the bond
debt. See note 15 for further information. A sensitivity
analysis based on a EUR 142.2 million unhedged exposure,
with a 10 per cent exchange rate movement, would result
in an exchange gain or loss impact on net profit (equity) of
NOK 130.9 million. The Group had EUR 57.8 million in cash &
cash equivalents at year end. The majority of the euro cash
amount was used to purchase properties in Finland in the
first quarter of 2025. See note 20 for further information.
6.4 CAPITAL RISK MANAGEMENT
The main purpose of the Group’s capital management is to
maintain a reasonable balance between debt and equity.
The Group targets to have a LTV ratio below 50 per cent over
time. The target is set with consideration to value develop-
ment in the Group and the opportunity to obtain the neces-
sary financing. There are covenants on existing financing
related to; loan to value, interest cover ratio and level of
secured indebtedness. Both during 2024, and as of
31 December 2024, the group was in compliance with all
financial covenants, and the group expects to be in
compliance going forward.
6.5 CLIMATE RISK
Physical climate risk is the danger that climate-related
events such as extreme weather cause damage to buildings
or interruptions in operations. This can lead to losses and
affect the return on investments negative. Furthermore,
in the transition to the low-emission society, there is a risk
that buildings that are not assessed as sustainable will
receive regulatory restrictions, yield lower or lost rental
income, and become more difficult to sell in the future.
The Board and Group management monitor developments in
the market regarding the importance of climate risk for the
development in the market value of the investment
properties. So far, climate risk has not affected the valua-
tions, but it is assumed that the buyer group is somewhat
smaller for properties that have a higher risk linked to
climate change. The information provided to the appraisers
on a quarterly basis also includes sustainability and energy
related information on the properties. The estimated effect
of this information is reflected in the appraisers’ Capital
Expenditures estimates, expected future market rents and
the discount rates, and is reflected in the valuations as of the
balance sheet date.
INTEREST COVERAGE RATIO
Property expenses
Amounts in NOK million 2024 2023Insurance premium 4 3 Property tax 8 7 Maintenance 27 38 Environmental, social and governance 2 3 Property related common costs 19 13 Other property expenses 7 10 Total property expenses 67 75
NOTE 07
PROPERTY AND ADMINISTRATION EXPENSES
PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024
94 95
Administration expenses
Amounts in NOK million 2024 2023Personnel expenses 30 3 Legal, agency and consultancy fees 2 2 Accounting 16 15 Auditors 9 5 Other operating expenses 24 7 Total administration expenses 82 31 Reimbursed property management fee* (15) - Net administration expenses 66 31 Non-recurring expenses relating to IPO** (8) - Net adm. expenses excluding non-recurring expenses 59 31
* The reimbursed property management fee consists mainly of management services delivered to SBB Samfunnsbygg AS.
See related-party transactions note 18 for further information.
** The non-recurring expenses amounting to NOK 8 million are related to the IPO process. The main components include accounting,
audit procedures associated with the IPO, and the use of two external appraisers.
Auditor fees full year basis
Amounts in NOK million 2024 2023Statutory audit 8 5 Other services not related to auditing 0 0 Other assurance services 1 0 Total auditor expenses (inc. VAT) 9 5
Personnel expenses
Amounts in NOK million 2024 2023Salaries, performance-related pay and other taxable benefits 28 2 Employer's natural insurance contributions 5 -Pension expenses 2 -Other personnel costs 0 -Board & committee fees 2 1 Total gross personnel expenses 37 3 Of which capitalised on projects under development (2) -Of which classified as transaction costs (5) -Personnel expenses 30 -Number of full-time equivalent employees 15 1Number of employees at 31.12. 22 1
Amounts in NOK million 2024 2023Salaries 12 2 Cash-based variable remuneration 1 - Share-based variable remuneration - 1 Extraordinary items 2 -Other benefit 0 - Pension expenses 0 0 Other personnel costs - - Total remuneration of Senior Executives 15 2 Board & committee fees 2 1 Total remuneration of Senior Executives and the Board 17 3 Of which classified as transaction costs (5) - Net management personnel expenses 12 3
The table below provides an overview of total remuneration of
Senior Executives and the Board. All amounts in the table are
subject to National Insurance contributions.
RENUMERATION TO SENIOR EXECUTIVES
The total remuneration of the CEO and other Senior Executives
consists of a fixed package of salary and benefits pension and
insurance arrangements.
Please refer to the Remuneration Report 2024 for more information.
The report can be found on Public Property Invest ASA website:
publicproperty.no
Net realised financials
Amounts in NOK million 2024 2023Interest income 26 6 Net interest income from interest rate derivatives 29 19 Interest expenses accrued and paid on borrowings (317) (272)Net realised financials (261) (247)
NOTE 08
FINANCIALS
PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024
96 97
Net unrealised financials
Amounts in NOK million 2024 2023Net currency gains and losses* (8) - Amortised borrowing costs bank loan** (46) (9)Amortised bond costs (20) (16)Lease interest expense*** (0) - Net unrealised financials (74) (25)
Transaction costs incurred
Amounts in NOK million 2024 2023Legal, agency and consultancy fees (30) - Other transaction fees (19) - Contract termination fee (50) - Total transaction costs* (99) -
*The net currency gains and losses are related to the euro bond and euro cash and cash equivivalents, this amount includes the
effect of currency hedge accounting. See note 15 for further information.
**Includes NOK 46 million unamortised from the previous bank loan which is expensed due to refinancing in Q2 2024 and Q4 2024.
*** See note 12 for additional information.
*Total transaction costs are due to the IPO-process in 2024. These are considered as non-recurring.
These transaction costs of NOK 99 million are classified in the cash flow statement as operating cash flows.
Amounts in NOK million 2024 2023Opening balance 8 336 9 447 1)Purchase of investment properties 2 362 - 2)Purchase price adjustment Kunnskapsveien 55 72 - Upgrades of investment properties 144 32 Change in fair value of investment properties (34) (1 143)Value at period end 10 880 8 336
1)
Ingoing balances on purchased properties throughout the year have been netted towards change in
assets/liabilities/working capital and payments related to purchase of properties, hence net investments in
investment properties will differ from the net cash flow. The purchase of Bergen Etatbygg AS in Q4 2024, has
resulted in a non-controlling interest. See note 17 for ownership structure.
2)
The change in value of NOK 72 million related to the five-year extension of the lease contract for OsloMet in
Kunnskapsveien 55 . The new contract triggered a purchase price adjustment of NOK 72 million. See note 10 for
further information.
At year end, all of Group’s investment properties are valued
by one independent, external appraiser. The valuations as of
31 December 2024 were obtained from Cushman & Wakefield
Realkapital AS, and the market value of the portfolio in the
Group’s balance sheet is based on the appraisers’ valuation.
The valuations as of 31 December 2023 were obtained from
Newsec AS and Cushman & Wakefield Realkapital AS, and the
market value of the portfolio in the Group’s balance sheet was
based on the average of the appraisers’ valuations.
The valuations are performed on a property-by-property
basis, assuming that the properties are sold individually over
time. The valuations are performed using the discounted
cash flow method, which 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
- capital expenditures
When carrying out their valuations, the appraisers receive
comprehensive details on the properties, lease contracts,
floor space and details of any vacant premises, and up-to-
date and comprehensive information about all ongoing and
NOTE 09
CRITICAL ACCOUNTING ESTIMATES AND
JUDGEMENTS - INVESTMENT PROPERTY
planned projects. Any uncertainties relating to the properties,
projects and leases are also clarified verbally and in writing
as and when required. The Group’s management ensures that
all relevant information is included in the valuations and in
order to fully understand the changes in value of investment
properties from the previous period end.
The appraisers perform their valuations on the basis of the
information they have received, and estimate future market
rents, yields, inflation and other relevant parameters.
Each individual property is assessed in terms of its market
position, rental income (contractual) rents versus market
rents and ownership costs, with estimates being made for
anticipated vacancy levels and the need for alterations and
upgrades. The remaining term of the leases is also assessed
for risk, along with any special clauses in the contracts.
Each property is also compared with recently sold properties
in the same segment (location, type of property, technical
standard, mix of tenants etc.)
The table below shows to what extent the value of the
management property portfolio is affected by market rents,
exit yields (market yields), operating costs and discounts
rates, assuming that all other factors are equal. However,
there are interrelationships between these variables, and it
is expected that a change in one variable may influence the
other variable. The negative value change in 2024 and 2023
is predominantly due to an adjustment of the appraisers’
estimated discount rate, with some offsetting effects from
other factors such as market rent expectations.
2024
Variables Change of variables Value change (+) Value change (-)Exit yield +/- 0.25 per cent points (144) 156 Discount rate +/- 0.25 per cent points (225) 236 Operating costs +/- 10 per cent (49) (49)Market rent +/- 10 per cent 813 (813)Average rental growth (CPI) +/- 0.5 percentage points next 10 years 327 (327)
The calculations have been performed by Cushman & Wakefield Realkapital AS in connection with the valuations at 31 December 2024.
PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024
98 99
2023
Variables Change of variables Value change (+) Value change (-)Exit yield +/- 0.25 per cent points (185) 201 Discount rate +/- 0.25 per cent points (161) 166 Operating costs +/- 10 per cent (67) 67 Market rent +/- 10 per cent 697 (697)
Input for valuations – overview
Investment propertyValuation method, reference is made to note 3.1 Level 3Valuation model DCF DCFWAULT 5.1Net yield (interval) 4.19% - 14.15% Contract rent at 31 December 2024, measured in annual rent (NOK million) 774
Input for valuations – overviewInvestment propertyValuation method, reference is made to note 3.1 Level 3Valuation model DCF DCFWAULT 5.1Net yield (interval) 5.74% - 38.58%Contract rent at 31 December 2023, measured in annual rent (NOK million) 591
The calculations have been performed by Newsec AS and Cushman & Wakefield Realkapital AS in connection with the valuations at
31 December 2023.
WAULT : Weighted average unexpired lease term. Measured without separate parking rent contracts.
Right-of-use-assets
Amounts in NOK million 2024Beginning of year - Additions 36 Amortisation (0)Book value at year-end 35
NOTE 12
LEASING
The Group on 01 December 2024 entered into a 10-year lease
agreement as a lessee for premises in Haakon VIIs gate 1 in Oslo.
Amounts in NOK million 2024 2023Bank deposits 966 122 Restricted bank deposits 2 0 Total bank deposits 968 123
Restricted bank deposits relate to the withholding tax account.
NOTE 11
CASH AND BANK DEPOSITS
Other receivables
Amounts in NOK million 2024 20231)Trade receivables (non-interest bearing)4 5 2)Other receivables30 15 Total other receivables 35 20
NOTE 10
OTHER RECEIVABLES
1)
The Group’s tenants are entities with very good credit ratings and liquidity. The expected credit loss
and late payment risk is assessed as very low. As of year-end 2024 and 2023 there are no loss allowance
recognised for the trade receivables.
2)
The other receivables consists of VAT-receivables, settlement of common costs, swap-interest
receivables, and provision for parking rent. Historically there has been very low payment risk related to
outstanding other receivables.
Lease liability
Amounts in NOK million 2024Beginning of year - Additions 36 Lease interest expense (0)Payment less interest expense (0)Book value at year-end 35
The Group’s future cash outflows for the lease liability as of 31.12.
Amounts in NOK million 2024 2023≤ 1 year 5 - 1 year > 5 years 18 - 5 years > 23 - Total 45 -
PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024
100 101
NOTE 13
SHAREHOLDER CAPITAL AND SHAREHOLDERS
Share capital and nominal value 31.12.2024Shares issued 215 103 825 Nominal amount in NOK 0.05 Share capital in NOK 10 755 191 No of shares as at 31.12.2023 71 931 660 Capital increase in connection with IPO 105 000 000 Capital increase in connection with acquisition of portfolio from SSB Samfunnsbygg AS 31 659 509 Acquisition of Jærveien 1 802 486 Acquisition of Rigedalen 815 119 Acquisition of Strandgaten 229 3 895 051 No of shares at 31.12.2024 215 103 825
Shares controlled by board members Position Control directly % holding Shares1)Martin MælandBoard Chariman Directly 0.05% 100 000 2)Kenneth Frode Goovaerts BernBoard Member Directly 1.52% 3 274 320 3)Sven-Olof JohanssonBoard Member Indirectly 0.00% - 4)Silje Cathrine HaulandBoard Member Directly 0.02% 40 000 Siv Jensen Board Member Indirectly 0.00% - Sum shares controlled by board members 1.6% 3 414 320
Shares controlled by senior executives per Shares at 31.12.2024 Position Control directly % Holding31 December 2024 OptionsIlija Batljan Interim CEO Directly 0.1 % 125 000 160 000 Ylva Göransson CFO Directly 0.0 % 1 900 50 000 André Gaden COO Directly 0.0 % 1 724 50 000 EVP Finance and Marianne AalbyDirectly 0.0 % 5 500 50 000 ESGEVP IR and Tone Kristin OmstedDirectly 0.0 % - 100 000 Corporate FinanceSum shares controlled by 132 224 410 000 senior executives
1)
Martin Mæland represents 0.05 per cent, directly through Brimar AS.
2)
Kenneth Frode Goovaerts Bern represents 1.52 per cent directly through Telecom AS.
3)
Sven-Olof Johansson represents 2.54 per cent indirectly through Samhällsbyggnadsbolaget i Norden AB
4)
Silje Cathrine Hauland represents 0.02 per cent directly through Gatekeeper AS, and 0.32 per cent indirectly as CEO of Chrisanic Eiendom AS.
Shareholder % holding Country Type of shareholder SharesSamhällsbyggnadsbolaget i Norden AB 35.16% Sweden Ordinary 75 631 366 Skagen Vekst Verdipapirfond 4.18% Norway Ordinary 8 991 411 Verdipapirfondet DnB Norge 2.99% Norway Ordinary 6 441 107 Avanza Bank AB 2.18% Sweden Ordinary 4 684 082 Kverva Finans AS 2.06% Norway Ordinary 4 427 618 Centra Capital AS 1.76% Norway Ordinary 3 793 103 First Nordic Real Estate 1.76% Norway Ordinary 3 777 980 Centra Invest AS 1.74% Norway Ordinary 3 747 950 Sagacia AS 1.67% Norway Ordinary 3 598 320 Verdipapirfondet Fondsfinans Norge 1.57% Norway Ordinary 3 372 931 Total 10 largest shareholders 55% 118 465 868 Other shareholders 45% 96 637 957 Total 100% 215 103 825
Income tax expense
Amounts in NOK million 2024 2023Tax payable, current year (0) - Change in deferred tax (59) 69 Income tax expense (59) 69 Income tax payable is calculated as followsProfit (loss) before tax 73 (969)Other permanent differences 23 0 Permanent differences transaction costs issue of shares recognised in balance sheet (94) - Fair value change of investment properties below initial cost tax effect 175 654 Changes in temporary differences (160) 315 Tax position acquired at time of purchase (5) - Profit for tax purposes 11 - Tax payable on the balance sheet 2 -
NOTE 14
TAX
Reconciliation of income tax expense
Amounts in NOK million 2024 2023Profit (loss) before tax 73 (969)Estimated tax based on 22% (16) 213 Tax effects of:Deferred tax assets that are not recognised in the balance sheet - - Changes in fair value investment properties below initial cost tax effect (38) (144)Permanent differences (5) 0 Income tax expense (59) 69 Effective tax rate 81.89% 7.15%
PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024
102 103
Amounts in NOK millions 2024 2023Deferred tax liability 141 75 Deferred tax assets 40 9 Net deferred tax 101 66
DEFERRED INCOME TAX
The Group has offset deferred tax assets and deferred tax liabilities on the balance sheet
as the Group has a legally enforceable right to set off current tax assets against current tax
liabilities, and the deferred tax assets and the deferred tax liabilities relate to income taxes
levied by the same taxation authority.
The following net value was recognised:
Change in deferred tax (+) deferred tax assets (-)
Movement in temporary differences
Investment Interest Current Loss carried Amounts in NOK millionproperty derivativesassets forward Other Total 01 January 2023 696 28 0 (135) 27 615 Recognised in profit and loss (371) (25) - 95 (14) (315)Acquisition of subsidiaries - - - - - - 31 December 2023 325 3 0 (41) 13 300 Recognised in profit and loss 296 3 (49) 8 257 Acquisition of subsidiaries - - - 3 (6) (3)Transaction costs on issue of shares - - - (94) - (94)31 December 2024 621 6 0 (181) 15 460 Change in temporary differences based on 160 nominal tax rate Change in deferred tax based on nominal (35)tax rateOther differences (24)Change in deferred tax (59)
NOTE 15
INTEREST BEARING LIABILITIES
Amounts in NOK million 31.12.2024 31.12.2023Bond loans 5 376 2 273 Bank loans 628 3 256 Nominal interest bearing liabilities at period end 6 004 5 529 Less capitalised borrowing costs (41) (24)Carrying amount interest bearing liabilities 5 963 5 505
Maturity structure
Total Amounts in NOK millioncash flow Year 1 Year 2 Year 3-5 After year 5 Financial liabilities as of 31 December 2024Principal payment on bank loans 628 1 2 584 41 Principal payment on bond loans 5 376 211 226 1 398 3 541 Interest rate payments net of interest rate derivatives 1 221 317 299 566 39 Other current liabilities 57 57 - - - Total 7 343 611 529 2 555 3 648
The maturity structure is based on undiscounted cash flows. The input used for the maturity structures on interest
rate payments are based on NIBOR3M forward curve as per 31 December 2024.
Maturity structure
Total Amounts in NOK millioncash flow Year 1 Year 2 Year 3-5 After year 5 Financial liabilities as of 31 December 2023Principal payment on bank loans 3 467 98 3 370 - - Principal payment on bond loans 2 062 2 062 - - - Interest rate payments net of interest rate derivatives 550 268 282 - - Other long-term liabilities 23 2 2 2 17 Trade payables 17 17 - - - Other current liabilities 27 27 - - - Total 6 146 2 474 3 653 2 17
PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024
104 105
Interest-bearing liabilities at 31 December 2024
Nominal Weighted Base Amount Carrying average Current Currency (NOK Fair Value amount current Interest downpay-(EUR million)million)(NOK million)(NOK million)interesttermsment plan Maturity dateBond loan 1 750 745 746 6.51% 6.51% fixed None 23.03.2027Bond loan 2 648 632 644 5.90% 5.90% fixed None 23.03.2028Bond loan 3 211 206 211 4.16% 4.16% fixed None 01.09.2025Bond loan 4 300 3 541 3 507 3 507 4.63% 4.625% fixed None 12.03.2030Bond loan 5 226 215 226 3.60% 3.60% fixed None 09.08.2026NIBOR3M Bank loan 1 485 485 485 7.07%+ 2.38% None 30.06.2027marginNIBOR3M Bank loan 2 93 93 93 6.94%+ 2.25% None 10.10.2027marginNIBOR3M + 1)Bank loan 3 50 50 50 6.99%25 years 17.12.20312.3% marginTotal 6 004 5 934 5 963 5.20%Interest rate (0.02%) 1)derivativesTotal including 5.18%interest rate derivatives
Bond loan 1 was renegotiated and the new maturity and interest rate was extended to 23 March 2027. On 23 September 2024,
NOK 350 million of the original loan was repaid.
Bond loan 2 was renegotiated and the new maturity and interest rate was extended to 23 March 2028. On 23 September 2024,
NOK 314 million of the original loan was repaid.
Bank loan 1 has a one-year extension option.
1)
In connection with purchase of Rigedalen Invest AS, the Group acquired an existing bank loan with a nominal amount of
NOK 124.9 million. The Group did a repayment of NOK 74.9 million immediately after acquiring the property. The bank loan is
hedged 100% with an interest rate derivative of 2.27% with maturity in December 2032.
are NOK 6 714 million.
Changes in liabilities arising from financing activities
New liabilities including Amortisation Foreign Amounts in capitalised Reclassfica-of capitalised exchange NOK million 31.12.2023borrowing costs Repaymenttion liabilitiesborrowing costmovements 31.12.2024Non-current 211 207 - 1 187 12 1 617 bond loansNon-current euro-denominated 3 462 45 3 507 bond loansNon-current 3 240 3 952 (6 610) - 46 628 bank loansCurrent bond 2 054 - (664) (1 187) 8 211 loansCurrent bank loans - - - - - - Total 5 505 7 621 (7 274) - 66 5 963 The Group has purchased properties with existing debt of NOK 908 million, hence the net proceeds interest-bearing liabilities
Compliance As reported to As reported to reporting bond holders at bond holders at date after compliance date compliance date Covenant Calculation level Calculation method Covenantperiod end20252024Outstanding loans to Loan-to-value Not to exceed Sub-GroupProperty value, adjusted 120 days 48.9% 71.3%Bond loan 175%for working capitalLoan-to-value Outstanding loans to Not to exceed Sub-Group120 days 49.6% 74.1%Bond loan 2Property value75%Outstanding loans to Loan-to-value Not to exceed Sub-GroupProperty value, adjusted 120 days 61.7% 61.4%Bond loan 375%for working capitalLoan-to-value Outstanding loans to Not to exceed Sub-Group150 days N/A 71.1%Bond loan 5Property value75%
BOND LOANS COVENANTS
Financial covenants in connection with Bond Loan 1, Bond Loan
2, Bond Loan 3 and Bond Loan 5 covenants are measured at
year-end and reported according to the compliance date as
listed in the table below.
A right to cure breaches of the loan-to-value are possible through new equity injections or a separate deposit account.
Interest-bearing liabilities at 31 December 2023
Weighted Nominal Carrying average Current Amount Fair Value amount current downpayment (NOK million)(NOK million)(NOK million)interest Interest termsplan Maturity dateBond loan 1 1 100 1 067 1 097 3.00% 3% fixed None 23.09.2024Bond loan 2 962 937 957 3.48% 3.48% fixed None 23.09.2024Bond loan 3 211 202 211 4.16% 4.16% fixed None 01.09.2025NIBOR3M + Bank loan 3 256 3 256 3 240 6.76%33 years 28.06.20251.88% marginTotal 5 529 5 462 5 505 5.34%Interest rate (0.49%)derivativesTotal including interest rate 4.85%derivatives
PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024
106 107
Interest rate & FX derivatives at reporting date 31 December 2024
Principal amount Amounts in millions(NOK million) Fair value (NOK million) Start date Maturity date Fixed interestInterest rate swap* 50 6 03.12.2018 01.12.2032 2.27%Total interest swap assets 50 6
EURO BOND LOAN COVENANTS
The Group entered into a bond loan agreement of
Euro 300 million at 12 December 2024 (Bond loan 4). Compliance
with financial covenants in connection with Bond Loan 4 are
measured and reported within 30 days of the last day of each
quarter. Profit and loss key figures as presented in the table
below are calculated on the basis of Last Twelve Months (LTM).
As calculated for current Covenant Calculation level Calculation method Covenantcompliance dateConsolidated Adjusted EBITDA Consolidated Coverage Groupdivided by Consolidated Net Interest Not less than 1.5 2.0RatioExpensesConsolidated Financial Indebetness Consolidated Solvency (less cash and cash equivalents and GroupNot to exceed 65% 42.2%Ratiolisted shares) divided by Consolidated Total AssetsSecured indebetness* to Total Value of Secured Indebetness GroupNot to exceed 45% 20.6%Total Assets ratiodivided by Consolidated Total Assets
As reported at Covenant Calculation level Calculation method Covenantcompliance date 2025Loan-to-value Bank Secured Assets/Outstanding loans to Property value of Not to exceed 65% 58.4%Loan 1Sub-Groupsecured assetsSecured Assets/Weighted average unexpired lease WAULT Bank Loan 1Minimum 4 years 6.2 years Sub-GrouptermsLoan-to-value Bank Outstanding loans to Property value of Secured AssetsNot to exceed 65% N/A Loan 2secured assets
*any Financial Indebtedness or any guarantee and/or indemnity in respect of any Financial Indebtedness that is secured in
whole or in part by a Security Interest granted over any assets of any member of the Group.
BANK LOAN COVENANTS
Financial covenants in connection with the bank loan for
Bank Loan 1, are reported and measured on a quarterly
basis in connection with the issuance of the Group's interim
reports. Additionally, the Group reports semi-annually a
Compliance Certificate on the basis of the second- and
fourth quarter report and annual report within 90 days of the
period end. Due to the repayment of loan Bank Loan 1
Tranches A and C in December 2024 with a total principal of
NOK 2 814 million, and the substantial reduction in secured
assets, comparables for previous reporting periods are not
applicable as the year-end reporting only covers the remain-
ing Loan Tranche B. See note 20 for further information
regarding the repayment of the remaining loan Tranche B in
February 2025.
Financial covenants in connection with Bank Loan 2 are
reported annually. The covenants are measured at an
ongoing basis, and reported first time in October 2025.
The Bank Loan has a covenant based on the outstanding
loan to property value. Compliance reporting is due by
10 October each year.
An equity cure is available, i.e. a right to cure breaches of the Group Interest coverage ratio, the Sub-Group Interest coverage
ratio, the Group Equity ratio and the Sub-Group Loan-to-value by new equity injections, subject to applicable conditions and
time limits. The Group is in compliance with all financial covenants at year-end 2024. See note 6 for additional information
about financial risk management.
The Group was in compliance with all Financial Covenants at year-end 2024.
Principal amount Amounts in millions(NOK million) Fair value (NOK million) Start date Maturity date Fixed forward rateCurrency derivatives designated for fair value 100 (0.25) 17.12.2024 12.03.2030 12.85hedge account*Total currency derivatives 100 (0.25)liablities
*In connection with the placement of Euro-bond EUR 300 million, the Group has purchased currency derivatives amounting to one third
of the nominal value of the bond.
The Group applies fair value hedge accounting under IFRS 9 to mitigate exposure to changes in the fair value of foreign currency-
denominated liabilities due to exchange rate fluctuations.
The hedged item, the euro-bond, is adjusted for changes in fair value attributable to FX risk. The corresponding hedging instruments,
are measured at fair value, with gains or losses recognised in profit or loss towards net currency exchange differences.
Interest rate derivatives at period end 31.12.2023
Amounts in millions NOK amount Fair value (NOK million) Start date Maturity date Fixed interestInterest Nordea 239 15 30.06.2016 30.06.2026 1.34%Interest Nordea 100 5 27.03.2020 27.03.2025 1.03%Interest Nordea 150 11 15.04.2021 18.04.2028 1.65%Interest CAP 57 0 01.03.2019 15.04.2024 2.75%Interest CAP - 0 16.04.2018 17.04.2023 2.75%Interest Nordea 388 3 30.09.2022 30.06.2025 3.46%Interest Danske 388 3 06.10.2022 30.06.2025 3.39%Interest Nordea 153 (16) 30.06.2023 30.06.2028 3.93%Interest Danske 153 (18) 30.06.2023 30.06.2028 3.98%
*In connection with the refinancing in December 2024, the Group terminated all interest rate derivatives held as of 31 December 2023.
Net cash flow from termination of interest derivatives amounted to NOK 12 million. The interest rate derivative outstanding at the year
end listed in the table above was acquired in connection with the acquisition of investment property entities in the fourth quarter 2024.
PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024
108 109
Other current liabilities
Amounts in NOK millions 2024 2023Bond loans short term 211 2 054 Bank loan amortisation - 98 Trade payables (non-interest bearing) 23 17 Taxes payable 2 -Value added taxes payable 4 1 Other current liabilities (non-interest bearing) 51 26 Sum other current liabilities 291 2 196
Other non-current liabilities
Amounts in NOK millions 2024 2023Bond loans 5 123 211 Bank loans 628 3 142 Deferred tax liabilities 101 66 Interest rate & FX derivatives 0 34 Other non-current liabilities 38 23 Non-current lease liability 35 - Sum other non-current liabilities 5 926 3 476
NOTE 16
CURRENT AND NON-CURRENT LIABILITIES
Subsidiaries Country Business office Voting percentage OwnershipPublic Property Drift AS Norway Oslo 100% 100%PPI Forvaltning AS Norway Oslo 100% 100%Public Property Holding AS Norway Oslo 100% 100%Public Property Sub-Holding 1 AS Norway Oslo 100% 100%Røynebergsletta I Holding AS Norway Oslo 100% 100%Røynebergsletta I AS Norway Oslo 100% 100%Søebergkvartalet Holding AS Norway Oslo 100% 100%Søebergkvartalet AS Norway Oslo 100% 100%Gunnar Nilsens gate 25 AS Norway Oslo 100% 100%Prins Chr. Augusts Pl. AS Norway Oslo 100% 100%Brochs gate 3 AS Norway Oslo 100% 100%Fjørevegen 20 AS Norway Oslo 100% 100%Njøsavegen 2 AS Norway Oslo 100% 100%SBB Kongsvinger AS / Otervegen 23 AS Norway Oslo 100% 100%Statlige Bygg AS Norway Oslo 100% 100%Statlige Bygg II AS Norway Oslo 100% 100%Offentlig Bygg Namsos AS Norway Oslo 100% 100%Sandgata Eiendom Namsos AS Norway Oslo 100% 100%Postgården Eiendom Namsos AS Norway Oslo 100% 100%Public Property Sub-Holding 2 AS Norway Oslo 100% 100%Offentlig Eiendom AS Norway Oslo 100% 100%Arendal Eiendomsinvest AS Norway Oslo 100% 100%Unninvest AS Norway Oslo 100% 100%Unninvest II AS Norway Oslo 100% 100%Unninvest III AS Norway Oslo 100% 100%Stangevegen 109 Eiendom AS Norway Oslo 100% 100%Rosenkrantzgata 17 AS Norway Oslo 100% 100%Grønnegata 122 AS Norway Oslo 100% 100%Kvartal 48 Næring AS Norway Oslo 100% 100%Haakon VIIs gate 98 AS Norway Oslo 100% 100%Kongensgate 14-18 AS Norway Oslo 100% 100%Bernt Ankers gate 17 AS Norway Oslo 100% 100%Lervigsveien 32 og Tinngata 8 AS Norway Oslo 100% 100%Kammerherreløkka Næring B1 AS Norway Oslo 100% 100%Dunderland Eiendom AS Norway Oslo 100% 100%Sliptomta Eiendom AS Norway Oslo 100% 100%Mellomvika 5 AS Norway Oslo 100% 100%Askveien 4 Hønefoss AS Norway Oslo 100% 100%Rambergveien 9 AS Norway Oslo 100% 100%
NOTE 17
ENTITIES AND SUBSIDIARIES
The Group comprises the following legal entities at 31 December 2024.
All entities, besides Bergen Etatbygg AS and Terningen Invest AS, are directly
or indirectly owned 100%.
PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024
110 111
Subsidiaries Country Business office Voting percentage OwnershipKaldnes Park AS Norway Oslo 100% 100%Kunnskapsveien 55 AS Norway Oslo 100% 100%Jærveien 12 AS Norway Oslo 100% 100%Vogts Gate 17 AS Norway Oslo 100% 100%Jul Pettersens gate 2 AS Norway Oslo 100% 100%Public Property Sub-Holding 3 AS Norway Oslo 100% 100%HGF Invest AS Norway Oslo 100% 100%Ski Florø AS Norway Oslo 100% 100%Ski Hønefoss AS Norway Oslo 100% 100%Ski Gjøvik AS Norway Oslo 100% 100%Public Property Sub-Holding 4 AS Norway Oslo 100% 100%Anton Jenssens gate 2 AS Norway Oslo 100% 100%Heian AS Norway Oslo 100% 100%Lillehammer Politibygg AS Norway Oslo 100% 100%Ibsensgate 1 AS Norway Oslo 100% 100%Eiendomsgruppen Fredrikstad AS Norway Oslo 100% 100%Olav V Gt 4 AS Norway Oslo 100% 100%Borgergata 10 AS Norway Oslo 100% 100%Castelar Prosjekt 22 AS Norway Oslo 100% 100%Gyldengården AS Norway Oslo 100% 100%Leikanger Eiendom AS Norway Oslo 100% 100%Farmannsveien 50 AS Norway Oslo 100% 100%Olav Trygvasons Gate 4 AS Norway Oslo 100% 100%Wilbergjordet 1 AS Norway Oslo 100% 100%Jkgt2 AS Norway Oslo 100% 100%Jonas Lies Gate 20 AS Norway Oslo 100% 100%Newco 1 AS Norway Oslo 100% 100%Sandnes Offentlige Helsebygg AS Norway Oslo 100% 100%Rigedalen Invest AS Norway Oslo 100% 100%Newco 2 AS Norway Oslo 100% 100%Bergen Etatbygg AS Norway Oslo 82.6% 82.6%Newco 3 AS Norway Oslo 100% 100%Newco 4 AS Norway Oslo 100% 100%PPI CARE PROPERTIES AS Norway Oslo 100% 100%Newco 6 AS Norway Oslo 100% 100%Newco 7 AS Norway Oslo 100% 100%Newco 8 AS Norway Oslo 100% 100%Newco 9 AS Norway Oslo 100% 100%Newco 10 AS Norway Oslo 100% 100%
NOTE 18
RELATED-PARTY TRANSACTIONS
The Group had related transactions 2024 mentioned below:
INVESTMENT PROPERTIES
In April 2024 the Group completed its purchase of 13 properties,
based on a property value of approximately NOK 1 640 million,
and a net purchase price of shares of NOK 1 191 million,
from SBB Samfunnsbygg AS. The property value of
NOK 1 640 million corresponds to the average gross property
value of SBB Samfunnsbygg AS’ properties (including
development potential) pursuant to external valuations as
of 31 December 2023. The net purchase price was reduced
due to a bank loan of NOK 403 million held in the property
companies acquired by the company, and adjusted for
findings made in the financial, legal and technical due
diligence, and balance sheet adjustments. The consideration
to SBB Samfunnsbygg AS consisted of 29 855 320 shares in
the company.
ADJUSTMENT TO PRIOR PURCHASE PRICE OF INVESTMENT
PROPERTIES
Unrelated to the aforementioned property transaction,
The Group also paid an additional consideration to
SBB Samfunnsbygg AS due to a tenant extension, agreed on
22 March 2024, in Kunnskapsveien 55, a property acquired
from SBB Samfunnsbygg AS on 28 April 2022. The extension
entailed that SBB Samfunnsbygg AS was entitled to an
additional consideration of NOK 72 million pursuant to the
share purchase agreement originally entered into for the
sale and purchase of all the shares in Kunnskapsveien 55 AS.
It was agreed that the additional consideration was to be
settled in the form of 1 804 189 shares.
PROPERTY MANAGEMENT FEE
The company receives property management fees from
management agreements with Samhällsbyggnadsbolaget i
Norden AB, as the company performs property, financial and
other management functions for the Norwegian properties
partly or wholly owned by Samhällsbyggnadsbolaget i
Norden AB.
OWNERSHIP
Samhällsbyggnadsbolaget i Norden AB priorly owned shares
of the company indirectly through SBB Samfunnsbygg AS.
In the third quater of 2024, Samhällsbyggnadsbolaget i
Norden AB purchased the shares from SBB Samfunnsbygg AS
and now owns the shares directly.
The group had no material related parties transactions in
2023.
NOTE 19
EARNINGS PER SHARE
Basic earnings per share is calcuated by dividing the net profit
attributable to shareholders by the weighted average number
of ordinary shares outstanding during the year. Public Property
Invest ASA has not issued options or other financial instruments
which have a dilutive effect on outstanding shares.
Amounts in NOK million except for Net profit (loss) per share 2024 2023Net profit (loss) attributable to ordinary equity holders of parent company (NOK million) 10 (900)Weighted average number of shares in million* 167 72 Earnings per share Net profit (loss) 0.06 (12.51)
*Number of shares per 31 December 2023 have been adjusted due to share split in 2024 of 1/20, to make figures comparable.
PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024
112 113
Number of sharesNumber of shares at 31 December 2022 71 931 660 Number of shares at 31 December 2023 71 931 660 Issue of shares in-kind 12.04.2024 1 804 189 Issue of shares in-kind 12.04.2024 29 855 320 Issue of shares IPO 25.04.2024 105 000 000 Issue of shares in-kind 14.10.2024 1 802 486 Issue of shares in kind 19.12.2024 815 119 Issue of shares in kind 20.12.2024 3 895 051 Number of shares at 31 December 2024 215 103 825
NOTE 20
SUBSEQUENT EVENTS
On 1 January 2025 André Gaden assumed the position as
CEO for Public Property Invest ASA. Ilija Batljan assumed the
position as CIO.
On 2 January 2025 PPI signed an agreement to acquire two
elementary schools in Espoo in Finland for a total property
value of EUR 37.1 million. The properties are approximately
10 000 sqm and are fully let, of which 94 per cent is let to the
Municipality of Espoo. Both properties are newly refurbished
and are certified BREEAM Very Good. The transaction was
closed on 10 January 2025.
On 27 January 2025 PPI signed an agreement to acquire the
property Damsgårdsveien 106 in Bergen for a total property
value of NOK 130.6 million. The property is approximately
4 100 sqm and is fully let to the Municipality of Bergen and the
University of Bergen. The transaction was closed on
14 February 2024.
On 29 January 2025, PPI issued a NOK 300 million and a
SEK 250 million bond, both with 3-year tenors. The senior
unsecured bonds were priced with a floating rate of
NIBOR3M +175 bps and STIBOR3M +174 bps respectively.
On 25 November 2024 the Group signed a share purchase
agreement of a pre-school in Trelleborg for a total property
value of SEK 102 million. Trelleborg is located in Skåne
county in Sweden. The transaction was closed on
28 February 2025.
On 28 Febuary 2025 the Group made a downpayment of
Tranche B of the bank loan of NOK 485.1 million.
On 7 March 2025, the Group acquired a school and a
pre-school in central Helsinki in Finland with a total lettable
area of approximately 5 000 square meters.
On 03 April 2025, PPI tapped a NOK 200 million and a SEK 550
million bond, both with 3-year tenors. The senior unsecured
bonds were priced with a floating rate of NIBOR3M +185 bps
and STIBOR3M +185 bps respectively.
On 03 April 2025 the Group acquired two property companies
with a total lettable area of approximately 7 050 square
meters.
PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024
114
FINANCIAL STATEMENT
- PUBLIC PROPERTY INVEST ASA
All amounts in NOK Note 2024 2023
OPERATING INCOME AND OPERATING EXPENSES
Other income 13 568 481 0
Total income 13 568 481 0
Payroll expenses 1 (33 777 366) (2 911 023)
Other operating expenses 1 (123 172 166) (8 927 920)
Total expenses (156 949 532) (11 838 944)
Operating profit (143 381 051) (11 838 944)
Financial income and expenses
Interest income from Group companies 3 923 508 0
Other interest income 18 120 779 131 034
Other financial income 36 976 590 0
Write-down of long-term investments (16 592 648) (932 319 120)
Other interest expenses (8 524 581) 0
Other financial expenses (44 608 922) 0
Net financial items (10 705 274) (932 188 086)
Profit (loss) before tax (154 086 325) (944 027 030)
Income tax expense 2 30 242 629 2 566 515
Net profit (loss) (123 843 695) (941 460 515)
Net profit (loss) attributable to:
Other equity 3 (123 843 695) (941 460 51)
Total income (loss) (123 843 695) (941 460 515)
REVENUE STATEMENT
PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024
116 117
All amounts in NOK Note 2024 2023
ASSETS
Non-current assets
Intangible assets
Deferred tax assets 2 28 122 366 961 985
Total intangible assets 28 122 366 961 985
Non-current financial assets
Investments in subsidiaries 4 5 166 653 327 2 619 675 280
Loan to Group companies 2 814 900 000 0
Investment in shares 552 085 0
Total non-current financial assets 7 982 105 412 2 619 675 280
Total non-current assets 8 010 227 778 2 620 637 265
Current assets
Trade receivables 15 625 0
Other current assets 12 869 709 170 577
Receivables from Group companies 198 407 363 36 474 480
Cash and cash equivalents 734 659 823 2 346 593
Total current assets 945 952 520 38 991 650
Total assets 8 956 180 298 2 659 628 915
BALANCE SHEET
All amounts in NOK Note 2024 2023
EQUITY AND LIABILITIES
Equity
Share capital 3, 5 10 755 191 3 596 583
Share premium reserve 3 6 418 943 111 3 591 130 552
Other equity 3 (1 093 378 890) (969 535 194)
Total equity 5 336 319 412 2 625 191 940
Liabilities
Non-current liablities
Bonds 6 3 506 910 317 0
Total non-current liabilities 3 506 910 317 0
Current liabilities
Trade payables 8 214 328 2 520 298
Public duties payable 3 021 007 130 415
Liabilities to group companies 84 398 269 29 274 480
Other current liabilities 17 316 964 2 511 781
Total current liabilities 112 950 569 34 436 975
Total liabilities 3 619 860 886 34 436 975
Total equity and liabilities 8 956 180 298 2 659 628 915
BALANCE SHEET
Oslo, Norway, April 22, 2025.
The board of Public Property Invest ASA
This document is signed electronically
Silje Cathrine Hauland
Member of the board
Sven-Olof Johansson
Member of the board
Martin Mæland
Chairman of the board
Siv Jensen
Member of the board
Kenneth Bern
Member of the board
Andre Gaden
CEO
PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024
118 119
All amounts in NOK Note 2024 2023
CASH FLOW FROM OPERATING ACTIVITIES
Profit (loss) before tax (154 086 325) (944 027 030)
Write-down of financial assets 16 592 648 932 319 120
Group interest 3 923 508 0
Change in receivables (15 625) 36 938
Change in current liabilities* 5 694 030 2 447 034
Change in other working capital* 4 088 249 (200 027)
Exchange Rate Effects 7 630 131 0
Net cash flow from operating activities (124 020 400) (9 423 965)
Cash flow from investment activities
Payments on loan receivables group (short / long term) (3 217 999 666) 0
Payments on purchase of shares and capital increases (860 194 201) 0
Net cash flow from investment activities (4 078 193 867) 0
Cash flow from financing activities
Group debt inflows 47 200 000 2 800 000
Group debt outflows (40 000 000) 0
Other debt inflows (Short/Long-term) 3 462 330 317 0
Paid in capital increase* 1 522 500 000 0
Capital reduction (94 452 689) 0
Net cash flow from financing activities 4 897 577 628 2 800 000
Net change in liquidity in the period 695 363 361 (6 623 965)
Net foreign exchange difference 36 949 869 0
Cash and cash equivalents at beginning of period 2 346 593 8 970 558
Cash and cash equivalents at end of period 734 659 823 2 346 593
The cash and cash equivalents relates to:
Cash and bank deposits 734 659 823 7 146 815
Unused operating credit also amounts to 0 0
CASH FLOW STATEMENT NOTES TO THE PARENT FINANCIAL STATEMENTS
ACCOUNTING PRINCIPLES
The financial statements comprise of the income statement,
balance sheet, cash flow and notes and are prepared in
accordance with accounting, company law and generally ac-
cepted accounting principles in Norway. The financial state-
ments are based on the basic principles of historical cost.
Transactions are booked at the value of the consideration on
the transaction date.
GENERAL INFORMATION
Public Property Invest ASA (the "Company") and its subsidiaries'
(together, the "Group") business is related to ownership of
properties in Norway, and rental of office spaces, primarily
to public tenants. The company was incorporated 16 August
2018, and is domiciled in Oslo, Norway. The company has 22
employees. On 22 June 2021, the company acquired all the
shares in Public Property Holding AS. Following the acquisi-
tions, the group was formed.
CLASSIFICATION OF BALANCE SHEET ITEMS
Assets intended for long term ownership or use have been
classified as non current assets. Assets relating to the
trading cycle have been classified as current assets. Other
receivables are classified as current assets if they are to be
repaid within one year after the transaction date. Similar
criteria apply to liabilities. First year's instalments on long
term liabilities and long-term receivables are, however, not
classified as short-term liabilities and current assets.
CURRENT ASSETS & LIABILITIES
Current assets are valued at the lowest of acquisition cost
and fair value. Short term debt is capitalised at the nominal
amount at the time of borrowing. Fixed assets are valued at
acquisition costs. Other fixed assets than operating assets
are written down to fair value in the event of a decrease
in value that is not expected to be temporary. Long- term
debt is capitalised net of establishment cost at the time of
establishment. Establishment cost is amortised over the
commitment period. Receivables from customers and other
receivables are entered at par value after deducting a pro-
vision for expected losses. The provision for losses is made
on the basis of an individual assessment of the respective
receivables.
DERIVATIVES
When hedging future interest costs, where the hedging
instruments are to hedge the group against variations in
future cash flows, the hedging instrument is not booked in
the balance sheet as long as the hedging is considered to
be effective. Gains or losses are recognised as net interest
income or interest expense, in line with the recognition of the
hedged item in the income statement
INVESTMENTS IN OTHER COMPANIES
The cost method is applied to investments in other compa-
nies. Transaction costs are included in the cost price. Com-
panies acquired or sold during the year are included in the
consolidated financial statements from the date that control
is achieved and until control ceases. On consolidation, the
parent company shares in subsidiaries replaced with the
subsidiaries' assets and liabilities and are grouped according
to the same principles as the parent company accounts.
Subsidiaries are all entities over which the group has control.
See note 17 in Group financial statement for a comprehen-
sive list of subsidiaries. Control of an entity occurs 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 day on which control is trans-
ferred to the group. They are deconsolidated from the date
that control ceases.
The cost price is increased when funds are added through
capital increases or when group contributions are made to
subsidiaries. Dividends received are taken directly as
deduction in purchase cost. Dividend/group contribution
from subsidiaries are reflected in the same year as the
subsidiary makes a provision for the amount. Dividend from
other companies is reflected as financial income when it has
been approved.
ASSET IMPAIRMENTS
Impairment tests are carried out if there is indication that the
carrying amount of an asset exceeds the estimated
recoverable amount. The test is performed on the lowest
level of fixed assets at which independent cashflows can be
identified. If the carrying amount is higher than both the fair
value less cost to sell and value in use (net present value of
future use/ownership), the asset is written down to the high-
est of fair value less cost to sell and the value in use.
Previous impairment charges, except write-down of goodwill,
are reversed in later periods if the conditions causing the
write-down are no longer present.
CASH FLOW
The cash flow statement has been prepared according to the
indirect method. Cash and cash equivalents include cash and
bank deposits.
TAXES
The tax charge in the income statement includes both
payable taxes for the period and changes in deferred tax.
The current income tax charge is calculated on the basis of
the tax laws enacted or substantially enacted at the end of
the reporting period. Deferred tax is calculated at relevant
tax rates on the basis of the temporary differences which ex-
ist between accounting and tax values, and any carry-forward
losses for tax purposes at the year-end. Tax enhancing or tax
reducing temporary differences, which are reversed or may
be reversed in the same period, have been eliminated. The
disclosure of deferred tax benefits on net tax reducing dif-
ferences which have not been eliminated, and carry-forward
losses, is based on estimated future earnings. Deferred tax
and tax benefits which may be shown in the balance sheet
are presented net.
* The Group has issued both cash and non-cash distributions throughout the year.
Only the cash issued is counted towards the presented amount.
PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024
120 121
Income tax expense
All amounts in NOK 2024 2023
Payable tax - tax effect of group contribution 0 0
Change in deferred tax (30 242 629) (2 566 515)
Income tax expense (30 242 629) (2 566 515)
NOTE 1
PAYROLL EXPENSES, REMUNERATION AND
OTHER OPERATING EXPENSES
Board of Directors
Amounts in NOK Board Fees Committee fees Social security contributions Total 2024
Martin Mæland 370 685 33 699 57 018 461 402
Kenneth Frode Goovaerst Bern 266 849 47 178 44 278 358 305
Silje Cathrine Hauland 237 753 74 137 43 977 355 867
Siv Jensen 202 192 57 288 36 587 296 067
Sven-Olof Johansson 202 192 0 28 509 230 701
Arnt Rolf Hillestad 35 562 0 5 014 40 576
Gerd Ylva Göransson 35 562 0 5 014 40 576
Henrik Melder 14 164 0 1 997 16 161
Total 1 364 959 212 302 222 394 1 799 655
Overview of total renumeration to senior executives 2024
Amounts in NOK Salary Pension cost
Other compensations
and social costs
Total remuneration
2024
Morten Kjeldby (CEO until 29.04) 1 275 000 26 000 1 786 000 3 087 000
Ilija Batljan (CEO from 29.04) 3 226 667 100 049 56 334 3 383 050
Number of employees 20
No loans have been granted or guarantees given to the board or other related parties. The company has a group pension insurance that covers
all employees.
The scheme is a defined contribution scheme. The company’s pension schemes satisfy the requirements of the OTP - Mandatory Occupational
Pensions Scheme.
Other operating costs
Amounts in NOK 2024 2023
Auditors 7 792 249 3 171 081
Legal, agency and consultancy fees 21 547 105
Accounting 16 271 933 0
Other operating expenses 27 544 279 0
Contract termination fee 50 016 600 0
Total 123 172 166 3 171 081
Remuneration to auditor
Amounts in NOK 2024 2023
Statutory audit 6 936 987 3 171 081
Tax advice 0 0
Other assurance services 855 261 0
Other non-audit services 0 0
Total 7 792 249 3 171 081
Income tax payable is calculates as follows
All amounts in NOK 2024 2023
Profit / loss before tax (154 086 325) (944 027 030)
Permanent differences (77 832 856) 932 361 050
Change in temporary differences (29 668 726) 0
Change in temporary differences (261 587 906) (11 665 980)
Allocation of loss to be carried forward 153 124 997 24 808 501
Group contribution received 108 462 909 36 474 480
The year's tax base
- -
Overview of temporary differences
All amounts in NOK Difference 2024 2023
Accounting accrual (33 869 683) 33 869 683 0
Fixed assets 4 200 957 (4 200 957) 0
Loss carried forward 153 124 997 (157 497 660) (4 372 663)
Sum 123 456 272 (127 828 934) (4 372 663)
Not included in the deferred tax calculation 0 0 0
Total 123 456 272 (127 828 934) (4 372 663)
Deferred tax assets (22%) 27 160 380 (28 122 366) (961 985)
Equity 31.12.2024
All amounts in NOK Share capital Share premium Other equity Total
Total equity at 31 December 2023 3 596 583 3 591 130 552 (969 535 194) 2 625 191 940
Issues of shares in-kind 12.04.2024 1 582 975 1 261 282 957 1 262 865 933
Issue of shares IPO 25.04.2024 5 250 000 1 517 250 000 1 522 500 000
Issue of shares in-kind 21.10.2024 90 124 37 167 261 37 257 386
Issue of shares in-kind 27.12.2024 194 753 67 812 059 68 006 811
Issue of shares in-kind 27.12.2024 40 756 17 973 379 18 014 135
Issue costs net of tax (73 673 097) (73 673 097)
Profit (loss) for the period (123 843 695) (123 843 695)
Total equity at 31 December 2024 10 755 191 6 418 943 111 (1 093 378 890) 5 336 310 412
NOTE 2
TAX
NOTE 3
EQUITY CAPITAL
*Deferred tax asset is recognised as it is probable that future taxable profits will be sufficient to utilise the tax benefit.
PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024
122 123
All amounts in NOK Ownership Net profit of the year Share capital Carrying amount
Public Property Holding AS 100% (727 249 044) 5 144 334 941 5 161 765 778
Public Property Drift AS 100% 208 605 539 236 337 200
PPI Forvaltning AS 100% (923 358) 4 189 411 4 550 349
Loan facility Loan origination date Principal in local currency Carrying value 31.12.2024 Carrying value 31.12.2023
Bond loan 12.12.2024 NOK (3 540 780 000) 0
Accrued financing costs 31.12.2024 NOK 33 869 683 0
Total NOK (3 506 910 317) 0
Shares owned by the Directors of the Board and the CEO
Shares controlled by board members Position Control directly % holding Shares
Martin Mæland
1)
Board Chariman Directly 0.05% 100 000
Kenneth Frode Goovaerts Bern
2)
Board Member Indirectly 1.52% 3 274 320
Sven-Olof Johansson
3)
Board Member Indirectly 0% -
Silje Cathrine Hauland
4)
Board Member Directly 0.02% 40 000
Siv Jensen Board Member Indirectly 0% -
Ilija Batljan Interim CEO Directly 0.1% 125 000
Sum shares controlled by board members and CEO 1.65% 3 539 320
Ownership structure
Shareholder % holding Country Shares
Samhällsbyggnadsbolaget i Norden AB 35.16% Sweden 75 631 366
Skagen Vekst Verdipapirfond 4.18% Norway 8 991 411
Verdipapirfondet DnB Norge 2.99% Norway 6 441 107
Avanza Bank AB 2.18% Sweden 4 684 082
Kverva Finans AS 2.06% Norway 4 427 618
Centra Capital AS 1.76% Norway 3 793 103
First Nordic Real Estate 1.76% Norway 3 777 980
Centra Invest AS 1.74% Norway 3 747 950
Sagacia AS 1.67% Norway 3 598 320
Verdipapirfondet Fondsfinans Norge 1.57% Norway 3 372 931
Total 10 largest shareholders 55.07% 118 465 868
Other shareholders 44.93% 96 637 957
Total 100% 215 103 825
NOTE 4
INVESTMENTS IN SUBSIDIARIES
NOTE 6
INTEREST BEARING LIABILITIES
NOTE 7
SUBSEQUENT EVENTS
NOTE 5
SHARE CAPITAL AND SHAREHOLDER INFORMATION
The company is located in Oslo Municipality.
The consolidated financial statements are prepared by Public Property Invest ASA.
1)
Martin Mæland represents 0.05 percent, directly through Brimar AS.
2)
Kenneth Frode Goovaerts Bern represents 1.52 per cent indirectly through Telecom AS.
3)
Sven-Olof Johansson represents 2.54 per cent indirectly through Samhällsbyggnadsbolaget i Norden AB
4)
Silje Cathrine Hauland represents 0.02 per cent directly through Gatekeeper AS, and 0.32 per cent indirectly as CEO of Chrisanic Eiendom AS.
On 12 December 2024, the company secured a bond loan of EUR 300 million. The euro-bond is issued under the
Groups EMNT-program and is listed on Euronext Dublin. The loan has a term of five years and three months,
with an option for extension. The interest rate is 4.625 percent per annum, fixed rate.
The share capital in Public Property Invest ASA as of 31/12/2024 consists of:
Ordinary shares issued 215 103 825
Nominal amount in NOK 0.05
Share capital in NOK 10 755 191
On 1 January 2025 André Gaden assumed the position as
CEO for Public Property Invest ASA. Ilija Batljan assumed
the position as CIO.
On 29 January 2025, PPI issued a NOK 300 million and a
SEK 250 million bond, both with 3-year tenors. The senior-
unsecured bonds were priced with a floating rate of
NIBOR3M +175 bps and STIBOR3M +174 bps respectively.
On 03 April 2025, PPI tapped a NOK 200 million and a
SEK 550million bond, both with 3-year tenors. The senior-
unsecuredbonds were priced with a floating rate of
NIBOR3M +185 bpsand STIBOR3M +185 bps respectively.
PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024
124 125
PricewaterhouseCoopers AS, Dronning Eufemias gate 71, Postboks 748 Sentrum, NO-0106 Oslo
T: 02316, org. no.: 987 009 713 MVA, www.pwc.no
Statsautoriserte revisorer, medlemmer av Den norske Revisorforening og autorisert regnskapsførerselskap
To the General Meeting of Public Property Invest ASA
Independent Auditor’s Report
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Public Property Invest ASA, which comprise:
● the financial statements of the parent company Public Property Invest ASA (the Company), which
comprise the balance sheet as at 31 December 2024, the revenue statement and cash flow
statement for the year then ended, and notes to the financial statements, including a summary of
significant accounting policies, and
● the consolidated financial statements of Public Property Invest ASA and its subsidiaries (the
Group), which comprise the statement of financial position as at 31 December 2024, the statement
of comprehensive income, the statement of changes in equity and the statement of cash flows for
the year then ended, and notes to the financial statements, including material accounting policy
information.
In our opinion
● the financial statements comply with applicable statutory requirements,
● the financial statements give a true and fair view of the financial position of the Company as at 31
December 2024, and its financial performance and its cash flows for the year then ended in
accordance with the Norwegian Accounting Act and accounting standards and practices generally
accepted in Norway, and
● the consolidated financial statements give a true and fair view of the financial position of the Group
as at 31 December 2024, and its financial performance and its cash flows for the year then ended
in accordance with IFRS Accounting Standards as adopted by the EU.
Our opinion is consistent with our additional report to the Audit Committee.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of the Company and the Group as required by
relevant laws and regulations in Norway and the International Ethics Standards Board for Accountants’
International Code of Ethics for Professional Accountants (including International Independence Standards)
(IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with these
requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
To the best of our knowledge and belief, no prohibited non-audit services referred to in the Audit Regulation
(537/2014) Article 5.1 have been provided.
We have been the auditor of Public Property Invest ASA for 4 years from the election by the general
meeting of the shareholders on 11 August 2021 for the accounting year 2021.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the financial statements of the current period. These matters were addressed in the context of our
audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
2 / 5
Key Audit Matters
How our audit addressed the Key Audit Matter
Valuation of investment properties
The majority of the Group’s assets consist of
investment properties. Primarily these are socially
beneficial properties with public
-sector tenants. As
at
31 December 2024, the book value of the
investment properties
is MNOK 10 880.
Investment properties are measured at fair value.
Fair value adjustments can significantly impact the
Group's results
, and consequently its equity.
F
air value is estimated using assumptions and
property
specific information, such as lease terms,
expected future cash flows, and yield
. Estimating
fair
values and determining the underlying
assumptions require
application of management's
judgment
. Management uses an external valuation
firm
to prepare the estimate.
We consider
ed the valuation of investment
properties
to be a key focus area due to the
substantial amounts involved and the considerable
management judgment required.
For details on the valuation methodology and
further information on investment properties, please
refer to the
Board of Directors' report and note 3
(summary of significant accounting policies), and 9
(critical accounting estimates and judgements
-
investment property)
to the consolidated financial
statements.
We obtained, read, and understood the valuation
reports prepared by the external valuation firm
and
met with them independently of the Group's
management. We assessed whether the reports
were prepared in accordance with the relevant
accounting
framework and were suitable for
determining the fair value of the Group's
investment properties.
We evaluated the qualifications, competence, and
objectivity of the valuation firm. Additionally, we
reviewed their terms of engagement to identify any
unusual terms that might affect their objectivity or
impose scope limitations on their work.
In our meetings with the valuation firm, we
discussed and challenged the
applied assumptions
,
particularly
assumptions relating to cash flows and
yield. We compared the
assumptions to observable
market data and our
industry knowledge. We also
evaluated whether assumptions not readily
observable in the marketplace
were reasonable.
For a sample of investment properties, we
tested
whether
the property specific information provided
by management to the valuation firm, such as lease
terms, duration, and vacant areas, was consistent
with the underlying property information
and
contracts
. Furthermore, we agreed the underlying
information to the received valuation reports.
We
obtained the valuation reports directly from the
valuation firm and compared them to the reports we
received from management
.
We noted no material deviations or inconsistencies
during our audit procedures.
We assessed the disclosures in notes 3 and 9
to
the consolidated financial statements
and found
them to be adequate and appropriate.
PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024
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3 / 5
Other Information
The Board of Directors and the Managing Director (management) are responsible for the information in the
Board of Directors’ report and the other information accompanying the financial statements. The other
information comprises information in the annual report but does not include the financial statements and our
auditor’s report thereon. Our opinion on the financial statements does not cover the information in the Board
of Directors’ report nor the other information accompanying the financial statements.
In connection with our audit of the financial statements, our responsibility is to read the Board of Directors’
report and the other information accompanying the financial statements. The purpose is to consider if there
is material inconsistency between the Board of Directors’ report and the other information accompanying
the financial statements and the financial statements or our knowledge obtained in the audit, or whether the
Board of Directors’ report and the other information accompanying the financial statements otherwise
appears to be materially misstated. We are required to report if there is a material misstatement in the
Board of Directors’ report or the other information accompanying the financial statements. We have nothing
to report in this regard.
Based on our knowledge obtained in the audit, it is our opinion that the Board of Directors’ report
● is consistent with the financial statements and
● contains the information required by applicable statutory requirements.
Our opinion on the Board of Directors' report applies correspondingly to the statement on Corporate
Governance.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation of financial statements of the Company that give a true and
fair view in accordance with the Norwegian Accounting Act and accounting standards and practices
generally accepted in Norway, and for the preparation of the consolidated financial statements of the Group
that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU.
Management is responsible for such internal control as management determines is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s and the
Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern.
The financial statements of the Company use the going concern basis of accounting insofar as it is not likely
that the enterprise will cease operations. The consolidated financial statements of the Group use the going
concern basis of accounting unless management either intends to liquidate the Group or to cease
operations or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit
conducted in accordance with ISAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional
scepticism throughout the audit. We also:
4 / 5
● identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error. We design and perform audit procedures responsive to those risks and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
● obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company's and the Group's internal control.
● evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
● conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Company's and the Group's ability to continue
as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor's report. However, future events or conditions may
cause the Company and the Group to cease to continue as a going concern.
● evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events
in a manner that achieves a true and fair view.
● obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the consolidated financial statements.
We are responsible for the direction, supervision and performance of the group audit. We remain
solely responsible for our audit opinion.
We communicate with the Board of Directors regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide the Audit Committee with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters
that may reasonably be thought to bear on our independence, and where applicable, actions taken to
eliminate threats or safeguards applied.
From the matters communicated with the Board of Directors, we determine those matters that were of most
significance in the audit of the financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should
not be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
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128 129
ALTERNATIVE PERFORMANCE MEASURES
PPI’s financial information is prepared in accordance with
IFRS Acccounting standards as adopted by EU. In addition,
the Group reports Alternative Performance Measures (APMs)
that are regularly reviewed by management to enhance the
understanding of the Group’s performance as a supplement,
but not as a substitute, to the financial statements prepared
in accordance with IFRS.
Net Operating Income (NOI)
Amounts in NOK million 2024 2023
Rental income 662 575
Other income 3 0
Property expenses (67) (75)
NOI 598 501
NOI% 90% 87%
EBITDA
Amounts in NOK million 2024 2023
Net income from property management 270 223
Net realised financials 261 247
EBITDA 532 470
Interest Coverage Ratio (ICR)
Amounts in NOK million 2024 2023
EBITDA 532 470
Net realised financials (261) (247)
ICR 2.0 1.9
Unencumbered Asset Ratio
Amounts in NOK million 31.12.2024
Unencumbered asset 6 278
Financial Assets 1
Accounts Receivable and Other Receivables 28
Derivatives 6
Total Unencumbered Assets 6 312
Unsecured Loans 3 541
Cash and Cash Equivalents (968)
Net Unsecured Senior Debt 2 573
Unencumbered Asset Ratio 2.45
5 / 5
Report on Other Legal and Regulatory Requirements
Report on Compliance with Requirement on European Single Electronic Format (ESEF)
Opinion
As part of the audit of the financial statements of Public Property Invest ASA, we have performed an
assurance engagement to obtain reasonable assurance about whether the financial statements included in
the annual report, with the file name ppiasa-2024-12-31-en.zip, have been prepared, in all material
respects, in compliance with the requirements of the Commission Delegated Regulation (EU) 2019/815 on
the European Single Electronic Format (ESEF Regulation) and regulation pursuant to Section 5-5 of the
Norwegian Securities Trading Act, which includes requirements related to the preparation of the annual
report in XHTML format, and iXBRL tagging of the consolidated financial statements.
In our opinion, the financial statements, included in the annual report, have been prepared, in all material
respects, in compliance with the ESEF regulation.
Management’s Responsibilities
Management is responsible for the preparation of the annual report in compliance with the ESEF regulation.
This responsibility comprises an adequate process and such internal control as management determines is
necessary.
Auditor’s Responsibilities
For a description of the auditor’s responsibilities when performing an assurance engagement of the ESEF
reporting, see: https://revisorforeningen.no/revisjonsberetninger
Oslo, 22 April 2025
PricewaterhouseCoopers AS
Chris H. Jakobsen
State Authorised Public Accountant
(This document is signed electronically)
PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024
130 131
Summary table EPRA performance measures
Unit 2024 2023
A EPRA Earnings per share NOK 0.89 2.03
B EPRA NRV per share NOK 27.18 40.58
C EPRA LTV % 46.7% 65.1%
EPRA REPORTING
The following performance indicators have been prepared in
accordance with best practices as defined by EPRA (Europe-
an Public Real Estate Association) in its latest edition of the
Best Practices Recommendations Guidelines.
The EPRA Best Practices Recommendations Guidelines
focus on making the financial statements of public real estate
companies clearer and more comparable across Europe. For
further information about EPRA, see epra.com
The details for the calculation of the performance measures are shown on the following pages.
A. EPRA EARNINGS
EPRA Earnings is a measure of the operational performance
of the property portfolio. EPRA Earnings is calculated based
on the condensed consolidated statement of comprehen-
sive income and the condensed consolidated statement of
financial position.
EPRA earnings are adjusted for fair value changes on
investment properties, changes in the fair value of interest
derivatives, and non-recurring costs not considered a part of
core business, as well as the associated tax effects.
Amounts in NOK millions 2024 2023
Net profit (loss) 13 (900)
Adjustments to calculate EPRA Earnings:
Changes in fair value of investment properties (34) (1 143)
Changes in fair value of interest rate derivatives 9 (25)
Transaction costs (99) -
Deferred tax investment properties (32) 116
Deferred tax interest rate derivatives (2) 5
Deferred tax transaction costs 22 -
EPRA earnings 149 146
Weighted average number of shares* in millions 167 72
EPRA Earnings per Share (EPRA EPS) (NOK) 0.89 2.03
*Number of shares per 31 December 2023 have been adjusted due to share split in 2024 of 1/20, to make figures comparable.
Amounts in NOK million 31.12.2024 31.12.2023
Bond loans (nominal) 5 376 2 273
Bank loans (nominal) 628 3 256
Capitalised borrowing costs (41) (24)
Net Payables* 84 47
Cash and cash equivalents (968) (123)
Net debt 5 078 5 430
Fair value of investment properties 10 880 8 336
EPRA LTV 46.7% 65.1%
*Net payables is defined as trade payables, other current and non-current liabilities, less trade receivables, and other current assets.
C. EPRA LTV
EPRA LTV is a metric to determine the percentage of net debt compared to the ap-
praised value of the properties.
B. EPRA NET ASSET VALUE (NAV) METRICS
EPRA Net Reinstatement Value (NRV)
The objective of the EPRA NRV measure is to highlight the value of net assets on a
long-term basis and assumes that no sales of assets takes place. Assets and liabilities
that are not expected to be realised as cash in normal circumstances such as the fair
value movements on financial derivatives and deferred taxes on property valuation
surpluses are therefore excluded.
Amounts in NOK millions 31.12.2024 31.12.2023
IFRS Equity attributable to shareholders 5 714 2 850
Net Asset Value (NAV) at fair value 5 714 2 850
Deferred tax investment properties 137 71
Deferred tax interest rate & FX derivatives 1 1
Interest rate & FX derivatives (5) (3)
Net Reinstatement Value (EPRA NRV) 5 846 2 919
Outstanding shares at period end (million) 215.1 71.9
EPRA NRV per share (NOK) 27.18 40.6
PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024
132 133
Name/Adress Segment City
Largest
tenant segment Tenure
Built /
Redeveloped
No of
sqm Occupancy
Carl Gulbransons gate 4 Central Namsos Vacant Freehold 1991 2 804 0%
Sandgata 13 Central Namsos Police Freehold 2018 1 669 100%
Rosenkrantzgata 17 East Drammen Healthcare Freehold 1960, 2000 5 143 100%
Wilbergjordet 1 East Fredrikstad Municipality / County
Municipality
Freehold 2000/2004 6 364 97%
Bryggeriveien East Fredrikstad Municipality / County
Municipality
Freehold 1970 5 592 100%
Gunnar Nilsens 25 East Fredrikstad Police Freehold 1992 4 370 100%
Brochs Gate 3 East Fredrikstad Courts of Norway Freehold 1967 4 134 96%
Olav Vs gate 4 East Halden Police Freehold 1979 3 470 100%
Borgergata 10 East Halden Vacant Freehold 1750 950 0%
Kvartsveien 14 East Halden Education Freehold 2008 687 100%
Norderhovsgate 23 East Hønefoss Courts of Norway Freehold 2000 2 366 100%
Kunnskapsveien 55 East Lillestrøm Education Freehold 1972, 2000 27 135 100%
Jonas Lies Gate 20 East Lillestrøm Police / Courts of
Norway
Freehold 1990/2009 12 660 100%
Vogts gate 17 East Moss Government agency Freehold 1993 10 887 89%
Bernt Ankers gate 17 East Moss Norwegian Tax Admin-
istration
Freehold 2019 9 502 100%
Prins Chr. Augusts
plass
East Moss Police Freehold 2003 5 042 98%
Kammerherreløkka 2 East Porsgrunn Municipality / County
Municipality
Freehold 2000 4 439 95%
Rådhusgata 5 East Porsgrunn Municipality / County
Municipality
Freehold 1984 4 074 80%
Søebergtorget 4 East Sandefjord Police Freehold 1981 16 671 98%
Teksleåsen 3 East Sandefjord Education Freehold 2009 1 014 100%
Sigvat Skalds gt. 5 East Sarpsborg Police / Courts of
Norway
Freehold 1997 6 960 100%
Myren 7 East Skien Police Freehold 1980/1990 8 702 100%
Gjerpensgate 14 East Skien Healthcare Freehold 1970, 1993,
1997
6 909 88%
Gjerpensgate 18 og 16 East Skien Courts of Norway Freehold 1970, 1993,
1997
6 679 100%
Gjerpensgate 10 East Skien Government agency Freehold 1970, 1993,
1997
5 392 100%
Myren 12 East Skien Norwegian Tax Admin-
istration
Freehold 2010 4 233 100%
PROPERTY PORTFOLIO
Name/Adress Segment City
Largest
tenant segment Tenure
Built /
Redeveloped
No of
sqm Occupancy
Gjerpensgate 20 East Skien Government agency
(parking)
Freehold - - 100%
Anton Jenssens gate 2 East Tønsberg Healthcare Freehold 1991, 2017,
2019
15 729 98%
Rambergveien 9 East Tønsberg Government agency Freehold 2005 9 560 100%
Olav Trygvasons gate 4 East Tønsberg Healthcare Freehold 1916/1989 8 381 44%
Anton Jenssens gate 8 East Tønsberg Norwegian Tax Admin-
istration
Freehold 1970/2003 5 487 100%
Anton Jenssens gate 5 East Tønsberg Government agency Freehold 1970/1994 5 251 92%
Anton Jenssens gate 4 East Tønsberg Healthcare Freehold 1975/2007 5 165 100%
Anton Jenssens gate 1 East Tønsberg Municipality / County
Municipality
Freehold 1981/1999 3 570 99%
Anton Jenssens gate 7 East Tønsberg Government agency Freehold 1973/1986 2 701 72%
Anton Jenssens gate 3 East Tønsberg Vacant Freehold 1970/1994 2 499 1%
Anton Jenssens gate 9 East Tønsberg Courts of Norway Freehold N/A 2 190 100%
Rambergveien 5 East Tønsberg Private Freehold 1994 1 065 48%
Anton Jenssens gate 13 East Tønsberg Private Freehold 1927/2019 513 100%
Ibsensgate 1 Inland Gjøvik Police Freehold 2000 4 742 100%
Gjøvik Tingrett Inland Gjøvik Courts of Norway Freehold 2009 2 197 100%
Torggata 44 Inland Hamar Norwegian Tax Admin-
istration
Freehold 1970 6 129 97%
Stangeveien 109 Inland Hamar Government agency Freehold 2009 4 514 100%
Askveien 4 Inland Hønefoss Police Freehold 1986 3 531 100%
Otervegen 23 Inland Kongsvinger Government agency Freehold 1987 12 265 100%
Storgata 129 Inland Lillehammer Police Freehold 1978 4 179 100%
Lillehammer Tinghus Inland Lillehammer Courts of Norway Freehold 2000 2 507 100%
Altaveien 220C North Alta Education Freehold 2003 557 100%
Komsahøyden 5 North Alta Education Freehold 1994 515 100%
Nordstrandveien 41 North Bodø Municipality / County
Municipality
Freehold 1975, 1988 10 190 99%
Haakon VIIs gate 98 North Bodø Norwegian Labour and
Welfare Administration
Freehold 2000 5 898 100%
Johan Knudtzens gate
2B
North Kirkenes Police Freehold 2021 1 643 100%
Mellomvika 5 North Mo i Rana Municipality / County
Municipality
Freehold 1990 4 552 100%
Nytorget 1 North Mo i Rana Courts of Norway Freehold 2000 2 878 75%
Midtre gate 9 North Mo i Rana Police Freehold 2000 2 800 100%
Kongensgate 14-18 North Narvik Police Freehold 1970/1980 7 309 82%
PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024
134 135
Name/Adress Segment City
Largest
tenant segment Tenure
Built /
Redeveloped
No of
sqm Occupancy
Grønnegata 122 North Tromsø Norwegian Labour and
Welfare Administration
Freehold 1961 5 848 99%
Jervvegen 128 North Tromsø Education Freehold 2006 556 100%
Holthes vei 4 South Arendal Norwegian Labour and
Welfare Administration
Freehold 2000 3 548 100%
Holthes vei 1 South Arendal Norwegian Labour and
Welfare Administration
Freehold 2000 3 251 100%
Blødekjær 1 South Arendal Courts of Norway Freehold 2000 2 836 100%
Gyldenløves gate 23 South Kristiansand Municipality / County
Municipality
Freehold 2010 13 185 93%
Rigedalen 5 / Rigetjøn-
nveien 31
South Kristiansand Government agency Freehold 2008 6 421 100%
Josefinestien 16 South Sokndal Education Freehold 1999/2004-
2009/2013
674 100%
Strandgaten 229 West Bergen Government agency Freehold 1989 8 748 100%
Underbakken 27 West Etne Education Freehold 2008 1 480 100%
Strandveien 13 West Florø Police Freehold 2000 4 163 100%
Njøsavegen 2 West Leikanger Government agency Freehold 2000 5 881 100%
Leikanger Eiendom West Leikanger Norwegian Labour and
Welfare Administration
Freehold 1974 4 491 100%
Jærveien 33 West Sandnes Municipality / County
Municipality
Freehold 1961/2024 4 690 100%
Jærveien 12 West Sandnes Government agency Freehold 2010 2 569 80%
Fjørevegen 20 West Sogndal Police Freehold 2000 3 557 100%
Novarmen 10 West Sola Education Freehold 1991 1 231 100%
Chr Thorings veg 12 West Stavanger Government agency Freehold 2000 5 005 100%
Tinngata 8 West Stavanger Norwegian Labour and
Welfare Administration
Freehold 1980/1990 4 491 100%
Lervigsveien 32 West Stavanger Municipality / County
Municipality
Freehold 1980/1990 1 136 71%
Total management
portfolio
390 127
Jonas lies Gate East Lillestrøm Freehold
Farmannsveien East Tønsberg Freehold
Wilbergjordet 1 East Fredrikstad Freehold
Anton Jenssens gate 11 East Tønsberg Freehold 4 438
Total development
portfolio
4 438
Total portfolio 394 565
EPRA LTV Net debt divided by total property value. Property values are included at fair value, net debt at
nominal value.
EPRA NAV Net Asset Value, the total equity that the company manages for its owners. PPI presents NAV
calculations in line with EPRA recommendation, where the difference mainly is explained by the
expected turnover of the property portfolio.
Fair value of portfolio The fair value of all properties owned by the parent company and subsidiaries assessed by an inde-
pendent appraiser.
ICR Interest Cover Ratio, the ratio of EBITDA to Net Interest Cost based on last twelve months.
Independent appraiser Cushman & Wakefield.
LTV Net debt divided by total assets.
Occupancy Annual rental income of the management properties, divided by the annual rental income and
estimated market rent of vacant area.
Property related expenses Property related expenses include administrative costs related to the management of the proper-
ties as well as operating and maintenance costs.
Swap A swap is an agreement between two parties to exchange sequences of cash flows for a set period
of time.
Unencumbered Asset Ratio Unencumbered assets divided by unsecured loans minus, cash and cash equivalents. Used to
assess unencumbered assets in relation to unsecured senior interest-bearing debt.
WAULT Weighted Average Unexpired Lease Term measured as the remaining contractual rent amounts of
the current lease contracts of the investment properties of the Group, including areas that have
been re-let and signed new contracts, adjusted for termination rights and excluding any renewal
options, divided by Contractual rent, including renewed and signed new contracts.
Yield % - normalised Annualised net rent divided by the market value of the management properties of the Group
DEFINITIONS
PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024 PUBLIC PROPERTY INVEST // ANNUAL REPORT 2024
136 137
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