Eastnine Ab · OMXSTO:EAST
Eastnine Ab — Q3 2019 Earnings Presentation
28 slides from Eastnine Ab's earnings presentation, November 2019
Slide 1: Eastnine Interim Report January – September 2019
Eastnine Interim Report January – September 2019 Investor presentation 1
Slide 2: Eastnine in brief
Eastnine in brief • Swedish real estate company Listed at Nasdaq Stockholm, Mid Cap and headquartered in Stockholm • Nordic tenants Mainly large Nordic companies with international operations • Baltic premium properties Investing in sustainable prime real estate in the office segment in the Baltic c
Slide 3: Vision and mission
Vision and mission Vision “Eastnine shall create and provide prime venues where ideas can flow, people can meet and successful business can be developed” Mission “Eastnine shall be the leading long-term provider of sustainable prime office space in the Baltic capitals” 3
Slide 4: Highlights during Q3 and October
Highlights during Q3 and October • Positive net letting during third quarter of EUR 853k • Positive trend in rental level. Average rent on new letting during third quarter was 15.3 EUR/sq.m./month compared to the average rent of 14.7 per the end of September and EUR 14.5 per the end of 2018 • Acquis
Slide 5: Investments
Investments Total value of investments (Sep 30, 2019): EUR 346m • Real Estate Direct + Cash: EUR 244m • Real Estate Funds: EUR 48m Real Estate Funds • Other (MFG): EUR 54m 14% Other 16% Directly owned real estate 58% Cash 12% Investor presentation 5
Slide 6: Directly-owned Real Estate
Directly-owned Real Estate
Slide 7: Real Estate Direct
Real Estate Direct Property portfolio Sep 30, 2019 3Bures-3, Vilnius 17% • Six properties (eight in October) Vertas, Vilnius 15% • 74,550 sq.m. (~100,000 sq.m.) • Value EUR 203m (~EUR 275m) S7-1, Vilnius 18% 3Bures-1,2, Vilnius Alojas 35% Biroji, Riga Alojas Kvartals, Riga 13% 2% Investor presentati
Slide 8: Vilnius
Vilnius • Property portfolio September 30: − Four properties − 63,279 sq.m. − Value EUR 174m • S7-1 was acquired in February • Occupancy rate increased during third quarter due to new leases in 3Bures-1,2 and increased income from parking • Signed contracts, where tenants not yet moved in, will incr
Slide 9: Our properties in Vilnius (1/3)
Our properties in Vilnius (1/3) 3Bures-1,2, Vilnius 1 3Bures-3, Vilnius 2 Vertas, Vilnius 3 Completion 2008 Completion 2018 Completion 2007 Property value EUR 69m Property value EUR 35m Property value EUR 30m GLA 28,415 sqm GLA, sqm 13,406 sqm GLA, sqm 9,405 sqm Certification LEED Platinum Certifica
Slide 10: Our properties in Vilnius (2/3)
Our properties in Vilnius (2/3) Page 2/3 S7-1, Vilnius 4 S7-2, Vilnius 5 S7-3, Vilnius 6 Completion 2017 Completion 2019 Completion 2019 Property value EUR 37m Property value EUR 48m Property value EUR 43m GLA 12,053 sqm GLA, sqm 15,952 sqm GLA, sqm 14,500 sqm Certification BREEAM Excellent Certific
Slide 11: Vilnius
Vilnius • 95,000 sq.m. of class-A office space in the CBD and city centre • Largest office landlord in Vilnius CBD • Intention to strengthen market position Office property Eastnine 11
Slide 12: Our properties in Vilnius (3/3)
Our properties in Vilnius (3/3) 6 5 4 3 2 1 Investor presentation 12
Slide 13: Riga
Riga • Property portfolio September 30: − Two properties − 11,271 sq.m. − Value EUR 30m • Occupancy rate increased during the third quarter due to new leases in Alojas Biroji • Took possession of the newly acquired property Valdemara Centrs in October • Per the end of October E9’s Riga property port
Slide 14: Our properties in Riga
Our properties in Riga Alojas Biroji, Riga 7 The Pine, Riga (development in planning process) 8 Valdemara Centrs, Riga 9 Completion 2009 Completion 2022E Completion 1999 Property value EUR 26m Property value EUR 4m* Property value EUR 25m GLA 9,437 sqm GLA, sqm 15,800 sqm GLA, sqm 8,600 sqm Certific
Slide 15: Riga
Riga • Ca 20,000 sq.m. of class-A office space in and close to the city center • Intention to reach critical scale of property portfolio through developments and acquisitions Office property Eastnine 15
Slide 16: Other investments
Other investments
Slide 17: Real Estate Funds
Real Estate Funds East Capital Baltic Property Fund II East Capital Baltic Property Fund III • Total return of 5.9 per cent January- • Total return of 4.9 per cent including September including changes in value changes in value and dividends • The fund has a total of five properties • The fund has a
Slide 18: Melon Fashion Group
Melon Fashion Group MFG • Total return of 12.5 per cent including changes in value due to strengthening of the ruble and dividends • MFG’s aggregate sale rose by 28 per cent in ruble to 15,755 during the period • Increase in sales mainly due to strong growth in e-commerce (+105 %) and increased reta
Slide 19: Financials
Financials
Slide 20: Key figures in brief
Key figures in brief No.of properties Area Fair value Properties 6 74,500 sq.m. 203 EURm (9, Jan 2020) (~114,000 sq.m., Jan 2020 (~320 EURm, Jan 2020) Property yield Surplus ratio ROE Real Estate Direct Efficiency 5.5% 89.0% 15.7% Average rent Wault Occupancy rate Rental leases 14.7 EUR/sq.m./month
Slide 21: Income statement, pro-forma
Income statement, pro-forma EUR thousands Q3 2019 Q2 2019 Q1 2019 Q4 2018 Q3 2018 Q2 2018 Q1 2018 Q4 2017 Q3 2017 Rental income 3,142 3,099 2,947 2,516 2,339 2,282 1,993 1,634 1,657 Property expenses -347 -387 -258 -396 -235 -249 -562 -745 -327 Net operating income 2,795 2,712 2,689 2,120 2,104 2,03
Slide 22: Balance sheet, pro-forma
Balance sheet, pro-forma EUR thousands 30 Sep 2019 30 Jun 2019 31 Mar 2019 31 Dec 2018 30 Sep 2018 30 Jun 2018 31 Mar 2018 31 Dec 2017 30 Sep 2017 ASSETS Investment properties 203,276 199,882 195,972 158,862 156,102 122,843 121,995 92,395 89,455 Development properties - - - - - 26,721 19,768 15,110
Slide 23: Important trends
Important trends EURm Portfolio growth & higher occupancy % EURk Increased earnings & surplus ratio % 250 100 3500 100 3000 200 80 2500 80 150 60 2000 60 1500 100 40 1000 40 50 20 500 0 0 0 20 -500 -1000 0 Property value, EURm Occupancy ratio, % LTV, % Quarterly rental income, EURm Quarterly profit
Slide 24: Shareholders
Shareholders • Total of nearly 5,300 shareholders Change Shareholders No. of shares % during last • Two major shareholders: quarter Peter Elam Håkansson and Keel Capital Peter Elam Håkansson1 6,048,551 27.0 = Keel Capital 2,240, 117 10.0 + Mertiva AB 1,515,205 6.8 + Lazard Asset Management 1,489,951
Slide 25: The share
The share Share price development 130 • Listed at Stockholm Nasdaq, Mid Cap 120 • Total no. of shares amounts to 110 22,370,261 of which 5,5 per cent in treasury 100 • Dividend of SEK 2.30 paid semiannually 90 2019, SEK 1.15 will be paid in November 80 • Daily turnover 17,572 shares, equals to SEK 1
Slide 26: Focus going forward
Focus going forward
Slide 27: Future focus
Future focus • Complete agreed acquisition of S7 - 3 in Vilnius during Q1 2020 • Divest remaining non core holdings • Acquire more cash-flow generating properties and future development projects • Proceed with the plan to develop The Pine in Riga 27
Slide 28: www.eastnine.com
www.eastnine.com Investor presentation 28