Eastnine Ab · OMXSTO:EAST

Eastnine Ab — H1 2022 Earnings Presentation

23 slides from Eastnine Ab's earnings presentation, June 2022

  1. Slide 1: Interim Report January-June 2022

    INTERIM REPORT JANUARY-JUNE 2022 Positive net letting and record high profit from property management 1

  2. Slide 2: Key highlights during the period

    KEY HIGHLIGHTS DURING THE PERIOD New acquisition, positive net letting and record high profit from property management • Acquisition of the newly built office property Nowy Rynek D in Poznan, Poland. • Positive net letting amounting to 10,590 sq.m., corresponding to annual rents of EUR 2,121k. • Ren

  3. Slide 3: Macroeconomic outlook and Eastnine's markets

    Macroeconomic outlook and Eastnine’s markets

  4. Slide 4: Large fluctuations in the macroeconomic outlook

    Large fluctuations in the macroeconomic outlook % % % Real GDP growth Inflation Unemployment 8.0 18.0 12.0 6.0 16.0 10.0 14.0 4.0 12.0 8.0 2.0 10.0 0.0 6.0 8.0 ( 2.0) 6.0 4.0 ( 4.0) 4.0 2.0 ( 6.0) 2.0 ( 8.0) 0.0 0.0 2018 2019 2020 2021 2022F 2023F 2018 2019 2020 2021 2022F 2023F 2018 2019 2020 2021

  5. Slide 5: Higher rents, lower vacancies and stable yield level

    Higher rents, lower vacancies and stable yield level Rent level: Vacancy: % % EUR/sq.m./month Prime office rent and vacancy rate (lines) Prime office yield (columns) 60 20 8 7 48 16 6 36 12 5 4 24 8 3 2 12 4 1 0 0 0 2015 2016 2017 2018 2019 2020 2021 Q2 2022 2015 2016 2017 2018 2019 2020 2021 Q2 202

  6. Slide 6: Property portfolio and tenants

    Property portfolio and tenants

  7. Slide 7: New city in a new country – Poznan in Poland

    New city in a new country – Poznan in Poland • Acquired Nowy Rynek D in Poznan at the beginning of May. Significant effect on Valdemara Centrs Eastnine’s profit from property management. • Purchase price of EUR 121m, GLA of 39,000 sq.m. which means EUR 3,100 per sq.m. • Total annual income of EUR 7.

  8. Slide 8: Eastnine's growing property portfolio

    Eastnine’s growing property portfolio 14 properties 183,000 sq.m. EUR 605m 3 cities Total lettable area, Value of property 67 % sustainability portfolio certified (July 2022) Riga EUR 81m ~13 % 22,600 sq.m. Vilnius EUR 403m ~67 % Property portfolio, MEUR 121,200 sq.m. Target Q4 2023: EUR 700m 605 Po

  9. Slide 9: Properties in Vilnius, Lithuania

    Properties in Vilnius, Lithuania CBD area Parliament district New town • Nine office properties and one development S7-1 3Bures-1,2 Vertas-1 Uptown Park project; 3Bures-4. • 121,200 sq.m. in existing buildings, on average 13,500 sq.m. per property. S7-2 3Bures-3 Vertas-2 • Around 13,200 GLA sq.m. to

  10. Slide 10: Properties in Riga, Latvia

    Properties in Riga, Latvia • Three office properties and two City Centre development projects; The Pine and Kimmel. Valdemara Centrs Project The Pine • Around 22,600 sq.m. in existing buildings, on average 7,500 sq.m. per property. • Alojas Biroji Around 50,000 sq.m. to be constructed. Zala 1 Projec

  11. Slide 11: Strong international tenants

    Strong international tenants ~150 tenants 4.7 years + EUR 2.1m ~220 leases, WAULT Net letting 62 % green Jan-Jun 2022 Tenant base consisting of recognised international corporations Tenants % of annual contracted rent Type Country (Industry) (HQ) 1 Allegro 17% E-commerce Rental income & rent level R

  12. Slide 12: Financial overview

    Financial overview eastnine ©

  13. Slide 13: Strong financial highlights

    Strong financial highlights June 30, 2022 vs December 31, 2021 January-June 2022 vs January-June 2021 Average annual Cash flow/share Occupancy rate Surplus ratio rent/sq.m. from operations 91.5 % (90.0) 89 % (91) EUR 183 (178) EUR 0.52 (0.39) Profit from property Property yield Net LTVP Earnings per

  14. Slide 14: Positive development in the Income Statement

    Positive development in the Income Statement General comments: 2022 2021 Change, 2022 2021 Change, EURk Jan-Jun Jan-Jun % Apr-Jun Apr-Jun % • Larger property portfolio. Rental income 13,576 10,522 +29 7,350 5,423 +36 • Lower occupancy rate in H1 2022 vs H1 2022. Property expenses -1,527 -984 +55 -79

  15. Slide 15: MFG valuation affected by volatile ruble

    MFG valuation affected by volatile ruble Eastnine’s holding in Jan-Jun 2022/ Jan-Mar 2021/ • Investment in the Russian fashion retailer MFG. MFG 2022-06-30 2021-12-31 • Eastnine’s intention is to divest the investment. The process of potentially listing the company is postponed. Alternative Unrealis

  16. Slide 16: Strong improvement in the Earning capacity

    Strong improvement in the Earning capacity EURk 2022-06-30 2022-03-31 Change, % Nowy Rynek increased the rental value/ Rental value 35,734 27,922 +28 rental income. Increased vacancy in other properties Less vacancy values -3,038 -2,475 +23 increased the vacancy value. Rental income 32,696 25,447 +2

  17. Slide 17: Stable financing structure

    Stable financing structure Interest-bearing liabilities Split among Banks & Bond • Total interest-bearing liabilities of EUR 331m (241). BerlinHyp • Bank loans EUR 286m and bond EUR 45m. Swedbank 22% • Current banks: SEB, BerlinHyp, Swedbank, OP Bank and Luminor. 18% • 48 % (26) green financing. SEB

  18. Slide 18: Increased NAV and share discount

    Increased NAV and share discount Equity, Long-term NAV and price per share Share discount Shareholders SEK Share Data per share 2022-06-30 2021-12-31 Owner percentage 206 Equity, EUR 18.6 16.9 200 Peter Elam Håkansson1 26.7% Long-term NAV, EUR 19.2 17.6 Bonnier Fastigheter Invest 13.7% Share price,

  19. Slide 19: Why invest in Eastnine?

    Why invest in Eastnine? eastnine ©

  20. Slide 20: Growing income and profit

    Growing income and profit TEUR 35,000 32,696 30,000 Rental income +52 % 25,000 Profit from property 21,530 management +64 % 20,000 19,186 15,600 15,000 13,348 10,011 9,527 10,000 9,130 5,489 5,000 3,180 0 2018 2019 2020 2021 2022 Q2* *Earning capacity Rental income Profit from property management 20

  21. Slide 21: Improved key figures per share

    Improved key figures per share Profit property management/share Long-term equity/share EUR EUR 0.8 25 0.70 0.7 19.2 0.6 20 17.6 0.47 14.6 0.5 0.43 13.1 15 0.4 11.4 0.3 0.26 10 0.2 0.14 0.1 5 0 0 2018 2019 2020 2021 2022* 2018 2019 2020 2021 2022 Q2 *Earning capacity SEK Dividend/share % Share price

  22. Slide 22: Why invest in Eastnine?

    Why invest in Eastnine? 1.Unique portfolio • High-quality office property portfolio in prime locations. • Intention to acquire the best logistics properties. 2. Strong cash generation • Higher property yields than for comparable properties in the Nordics. • Portfolio with predominantly strong, inter

  23. Slide 23: Have a nice summer!

    Have a nice summer! eastnine ©

Eastnine — H1 2022 Earnings Presentation on 6ix