Eastnine Ab · OMXSTO:EAST

Eastnine Ab — Q3 2024 Earnings Presentation

29 slides from Eastnine Ab's earnings presentation, Oct 24, 2024

  1. Slide 1: Eastnine Interim report January-September 2024

    Eastnine Interim report January-September 2024

  2. Slide 2: Highlights Q3-October

    Highlights Q3-October July-September 2024 • Rental Income +18 % • Profit from property management +21 %. • Net letting EUR +136k. • Occupancy ratio +0.8 %-points in Q3 to 94.4 %. • Surplus ratio unchanged in Q3 at 93 %. October • Five stars in GRESB. • IBM has signed a 5-year lease of 1,500 sq.m. Pl

  3. Slide 3: Highlights for the period

    Highlights for the period January-September 2024 • Rental Income +7% • Profit from property management +21 %. − Total EUR 16.0m (13.2). − Per share (after split) EUR 0.18 (0.15). • Net letting EUR +398k. • Occupancy +1.3 %-points to 94.4 %. • Surplus ratio unchanged at 93 %. • Share split 4:1 in May

  4. Slide 4: Poznan – between Warsaw and Berlin

    Poznan – between Warsaw and Berlin Stockholm Riga Vilnius Poznan Warsaw Berlin 4

  5. Slide 5: Poznan – Poland’s second city by GDP/capita

    Poznan – Poland’s second city by GDP/capita • One of the major economic hubs in Poland and home to some of the country’s largest businesses as well as largest international trade fair. • Population of 540,000 in the city and 1,030,000 in the metropolitan area, center of the greater Poland (Wielkopol

  6. Slide 6: Prime properties in prime locations

    Prime properties in prime locations Nowy Rynek D + E Total sq.m. 68,100 Constructed 2021 & 2023 Acquired 2022 & 2024 Total value EUR 198m LEED Platinum 6 100 % economic occupancy

  7. Slide 7: Venues for creative ideas

    Venues for creative ideas Encouraging activity Meetings & greetings Sustainable surroundings 7

  8. Slide 8: Markets

    Markets eastnine ©

  9. Slide 9: Consistently higher GDP growth than EU peers

    Consistently higher GDP growth than EU peers Poland, the 6th largest and the fastest growing major economy in EU Real GDP growth 5% 4% 3% 2% 1% 0% Czechia Croatia Estonia Italy Malta Spain Romania Iceland Luxembourg Norway Denmark Belgium Finland Poland Latvia Cyprus Slovak Republic Slovenia Hungary

  10. Slide 10: Structural growth in office demand

    Structural growth in office demand Strong demand for high quality, well-located offices in increasingly polarized rental markets Office jobs as % of total employment1 30% Helsinki 30% Stockholm 25% 31% 20% Riga 22% 15% Copenhagen Vilnius 30% 19% 10% Berlin 5% Poznan Warsaw 28% 2000 2002 2004 2006 20

  11. Slide 11: Prime office: Higher yields, lower rents

    Prime office: Higher yields, lower rents Same cost of debt translating into higher cash returns, plus scope for long-term value growth Office rent Prime office rent, prime office yield EUR/sq.m./month Office yield 80 8% Helsinki 70 7% 60 6% Stockholm 50 5% 40 4% Riga 30 3% 20 2% Copenhagen Vilnius 1

  12. Slide 12: Eastnine operations

    Eastnine operations eastnine ©

  13. Slide 13: Property portfolio

    Property portfolio • No. of properties: 15 • Lettable area: 211,600 sq.m. • Lettable area per property: 15,100 sq.m. • Property value: EUR 654m • Property value/sq.m.: EUR 3,100 • Average age: ~10 years 13

  14. Slide 14: Property key figures

    Property key figures 2024-09-30 2024-06-30 2023-12-31 Surplus ratio 93 % 93 % 92 % (quarter) Occupancy rate 94.4 % 93.6 % 93.1 % Weighted yield requirement (valuations) 6.7 % 6.7 % 6.4 % 14

  15. Slide 15: Poznan, Vilnius & Riga

    Poznan, Vilnius & Riga Poznan, Poland Vilnius, Lithuania Riga, Latvia Property value EUR 198m | 30 % Property value EUR 384m | 59 % Property value EUR 72m | 11 % Lettable area 68,100 sq.m. Lettable area 120,900 sq.m. Lettable area 22,600 sq.m. 15 Occupancy rate 100 % Occupancy rate 94.3 % Occupancy

  16. Slide 16: Properties

    Properties Vilnius: 59 % Riga: 11 % Poznan: 30 % Uptown Park 3Bures-1,2 3Bures-3 3Bures-4 Alojas Biroji The Pine Nowy Rynek D 12,700 sq.m. 28,300 sq.m. 13,400 sq.m. Planned project 10,200 sq.m. Planned project 39,300 sq.m. Uniq Vertas-1 Vertas-2 Zala 1 Kimmel Nowy Rynek E 6,900 sq.m. 9,500 sq.m. 7,6

  17. Slide 17: Tenant/lease key figures

    Tenant/lease key figures Net letting EUR +136k EUR +398k Q3 Q1 - Q3 2024-09-30 2024-06-30 2023-12-31 Wault 3.9 yrs 4.2 yrs 3.8 yrs Tenant concentration Largest tenant’s share of 14 % 14 % 16 % annual contracted rent % 17

  18. Slide 18: Tenants – sectors

    Tenants – sectors Annual rent, Share of contracted Tenant EURk annual rent, % Other 32% ICT* 25% Allegro 5,879 14 Danske Bank 5,115 12 Telia 3,132 7 Vinted 1,978 5 McKinsey 1,914 4 Swedbank 1,691 4 Rockwool 1,475 3 Citco 851 2 E-commerce 18% Finance 25% Twoday 732 2 * Information, Communication, Tec

  19. Slide 19: Focused on Sustainability

    Focused on Sustainability Sustainability certified Green financing to Green leases to properties increase increase 100 % (94) 73 % (60) 59 % (68) Ambition Target 2030 Target GRESB Leader in Climate neutral 5 stars = top 20 % sustainability property operations 19

  20. Slide 20: Financial overview

    Financial overview eastnine ©

  21. Slide 21: Income Statement

    Income Statement Large increase in profit from property management. Jan-Sep Jan-Sep Change Jul-Sep Jul-Sep Change Most important factors: EURk 2024 2023 2024 2023 Period: Jan-Sep 2024 vs 2023 Rental income 29,110 27,200 2 +7 % 10,701 9,0564 +18 % Property expenses -2,127 -1,788 2 +19 % -755 -576 4 +

  22. Slide 22: Earning capacity

    Earning capacity 1. Higher occupancy has decreased vacancy EURk 2024-09-30 2024-06-30 Change, % value and increased rental income and NOI. Rental value 45,580 45,275 +1 2. Property expenses are calculated as rolling Less vacancy value -2,557 -2,904 1 -12 12M and thereby increased due to broker fees

  23. Slide 23: Interest key figures

    Interest key figures 2024-09-30 2024-06-30 2023-12-31 Interest rate level 4.6 % 4.7 % 4.0 % Shared of fixed interest 69 % 69 % 72 % Interest maturity 2.1 yrs 2.2 yrs 1.7 yrs 23

  24. Slide 24: Financial stability key figures

    Financial stability key figures 2024-09-30 2024-06-30 2023-12-31 Liquidity, EURm 90 72 129 Interest coverage ratio, times 2.5 2.5 2.2 (quarter) Loan-to-value, % 35 38 27 Loan maturity Loan maturity, yrs 2.7 2.9 2.1 24

  25. Slide 25: Invest in Eastnine

    Invest in Eastnine eastnine ©

  26. Slide 26: High yield office portfolio

    High yield office portfolio Growing unique portfolio Sustainable attractive Stable customer base and and exciting markets total return long-term relationships Office properties in prime locations in the Eastnine’s overarching target is to create Strong, international tenants with long Baltics and Po

  27. Slide 27: Profit from property management

    Profit from property management EURm 6 4x 5 4 3 2 1 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2018 2019 2020 2021 2022 2023 2024 27

  28. Slide 28: Growth potential – focus on Warsaw

    Growth potential – focus on Warsaw EURm 900 800 700 600 500 400 300 200 100 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q3 2024 Properties Potential acquisition 28

  29. Slide 29: Thanks! Please post your questions!

    Thanks! Please post your questions!

Eastnine — Q3 2024 Earnings Presentation on 6ix