Public Property Invest Q2 2025 slides: Rental income surges 42%, major Aker acquisition completed

Public Property Invest ASA (PUBLI) reported substantial growth in its Q2 2025 results presentation on July 11, showcasing significant rental income increases and strategic portfolio expansion. The Norwegian property company, which specializes in social infrastructure, has continued its strong performance following its Q1 results, with the stock closing at 24.95 on July 10, near its 52-week high.

Quarterly Performance Highlights

Public Property Invest delivered impressive financial results for the second quarter of 2025, with rental income increasing by 42% year-over-year to NOK 233 million. For the first half of 2025, rental income grew by 39% to NOK 438 million compared to the same period last year. Net income from property management showed even stronger growth, rising by 51% to NOK 116 million in Q2 and by 61% to NOK 208 million in the first half of 2025.

The company also reported positive portfolio value changes of NOK 203 million in the quarter, contributing to the overall strong performance.

As shown in the following financial performance charts, the company has demonstrated consistent growth in key metrics over the past several quarters:

The profit and loss statement further details the company’s financial performance, showing the substantial year-over-year improvements across key metrics:

Strategic Acquisitions and Portfolio Growth

The second quarter was marked by high transaction activity, with Public Property Invest acquiring 19 properties totaling approximately 197,000 square meters. The most significant acquisition was a portfolio from Aker, consisting of eight mission-critical infrastructure assets strategically located in Norwegian energy and maritime clusters.

The Aker transaction, which closed on May 20, 2025, had a total equity value of NOK 2.325 billion and was settled through the issuance of approximately 124.4 million new shares in PPI. This made Aker Property Group a new strategic investor holding approximately 24.6% of PPI’s outstanding shares. The acquired properties are 100% let to solid tenants on triple-net lease contracts with a weighted average unexpired lease term (WAULT) of 15 years and total rental income of NOK 106.5 million.

The following image details the Aker portfolio acquisition, which represents a significant strategic expansion for the company:

Additional transactions in Q2 included healthcare properties, assisted living facilities, and other social infrastructure assets, further diversifying the company’s portfolio:

The company also completed transactions in late Q2 and early Q3, including two adjacent healthcare/community service properties in Helsinki, Finland, and seven nursing homes for elderly care in central Oslo and the greater Oslo region.

Portfolio Overview and Operational Performance

As of June 30, 2025, Public Property Invest’s portfolio consisted of 96 properties with a total area of 613,000 square meters and a development potential of 270,000 square meters. The portfolio value reached NOK 14.9 billion, with 80% of tenants being government entities. The company maintained a high occupancy rate of 98% and a WAULT of 6.8 years, indicating stable and secure future cash flows.

The following portfolio highlights provide a comprehensive overview of the company’s property assets:

The company reported high letting activity during the quarter, signing new and renewed leases with an annual rent of NOK 39.8 million covering 22,990 square meters. Net letting was positive at NOK 1.7 million for the quarter and NOK 15.3 million for the last twelve months.

Financial Position and Outlook

Public Property Invest maintained a strong balance sheet with cash and cash equivalents of NOK 4.795 billion as of June 30, 2025, a substantial increase from NOK 1.108 billion a year earlier. Total (EPA:TTEF) assets grew to NOK 19.922 billion, up from NOK 11.029 billion as of June 30, 2024.

The company’s balance sheet shows significant growth in both assets and equity:

The company’s financing position improved during the quarter, with debt maturity extending to 5.0 years from 4.0 years in the previous quarter. The average interest rate decreased slightly to 4.97% from 5.05%, while the loan-to-value ratio improved to 44.1% from 46.6%. The interest coverage ratio increased to 2.2 from 2.1, and the Net Debt/EBITDA ratio improved to 7.8 from 8.6.

The debt maturity structure and key financing metrics are illustrated below:

Looking ahead, Public Property Invest provided a normalized annual run rate as of June 30, 2025, projecting rental income of NOK 1.033 billion and net income from property management of NOK 565 million, or NOK 1.64 per share:

The company has demonstrated strong growth in run rate rental income and EBITDA over the past year, as shown in the following chart:

Forward-Looking Statements

Public Property Invest celebrated its first year as a listed company, highlighting its successful execution of its strategy to own, manage, and develop high-quality properties while being a leading consolidator in the market. The company emphasized its strong rental income and margin development, high letting activity, and solid operations with stable underlying cash flows.

In its concluding remarks, the company summarized its key achievements and strategic focus:

With a substantial cash position and a clear growth strategy, Public Property Invest appears well-positioned to continue its expansion in the Nordic property market, particularly in the social infrastructure and critical infrastructure segments. The company’s focus on government tenants and long-term leases provides a stable foundation for future growth, while its development pipeline offers additional potential for value creation.

Full presentation:

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