Eastnine Ab · OMXSTO:EAST

Eastnine Ab — Q1 2022 Earnings Presentation

22 slides from Eastnine Ab's earnings presentation, March 2022

  1. Slide 1: Interim Report January-March 2022: All-time high rental income

    INTERIM REPORT JANUARY-MARCH 2022 All-time high rental income 1

  2. Slide 2: Positive start for properties, but negative for investment in Russia

    Positive start for properties, but negative for investment in Russia • Higher acquisition capacity after improved cash position: • Dividend from MFG in January • Bank financing related to Uptown Park in February • Repaid investment from EC Baltic Property fund II in March • Higher occupancy compared

  3. Slide 3: Baltics: GDP down and inflation up

    Baltics: GDP down and inflation up GDP-growth Inflation Property yield % % % 10 12 8 8 10 7 6 4 8 6 2 6 0 5 -2 4 -4 4 2 -6 0 3 -8 -10 -2 2 2018 2019 2020 2021 2022P 2023P 2018 2019 2020 2021 2022P 2023P Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q4 2018 Q1 2019 Q1 2020 Q1 2021 Q1 2022 Q1 Office Estonia Office

  4. Slide 4: Acquisitions 2021 – all included in Q1 2022 figures

    Acquisitions 2021 – all included in Q1 2022 figures May June December Uniq in Vilnius, 6,900 sq.m. Zala 1 in Riga, 3,700 sq.m. Uptown Park in Vilnius, 12,700 sq.m. 4

  5. Slide 5: Properties in Vilnius

    Properties in Vilnius • Nine office properties CBD area Parliament district New town and one development S7-1 3Bures-1,2 Vertas-1 Uptown Park project; 3Bures-4. • Fair value of EUR 390m, 83 % of Eastnine’s property portfolio. S7-2 3Bures-3 Vertas-2 • 121,200 sq.m. in existing buildings, on average 1

  6. Slide 6: Properties in Riga

    Properties in Riga • Three office Krisjana Valdemara street/City centre properties and two development Valdemara Centrs Alojas Biroji projects; The Pine and Kimmel. • Fair value of EUR 81m, 17 % of Project The Pine Eastnine’s property portfolio. Zala 1 • Around 22,600 sq.m. in existing buildings, on

  7. Slide 7: Property investment and tenants

    INVL increased their Property investment and tenants premises with a newly constructed floor on Vertas-2 Portfolio of uniquely high-quality office properties in the Baltics Tenant base consisting of recognised international corporates 13 properties Type Country Tenants % of annual contracted rent Di

  8. Slide 8: Russian war affected MFG-valuation

    Russian war affected MFG-valuation Eastnine’s holding in Jan-Mar 2022/ Jan-Mar 2021/ • Eastnine holds 36 per cent of the Russian fashion MFG 2022-03-31 2021-12-31 retailer MFG. Unrealised changes in • According to MFG’s IFRS-figures sales grew 4 % to value, EURm -44.4 1.6 RUB 7,547m (7,271) during Q

  9. Slide 9: ECBPF2 - investment soon fully repaid

    ECBPF2- investment soon fully repaid Eastnine’s holding in 2022 Jan-Mar/ 2021 Jan-Mar/ • Eastnine indirectly holds 24 per cent of East Capital East Capital Baltic 2022-03-31 2021-12-31 Baltic Property Fund II (ECBPF2). Property Fund II • The fund has sold all remaining properties and the Unrealised

  10. Slide 10: Sustainability in focus

    Sustainability in focus GRESB Albright Green financing Certification of properties Share of green Share of certified financing properties 92 points Green list increase by 5 points 34% Eastnine is included on the Green list of Listed European estate companies for companies with a high degree of gende

  11. Slide 11: Poland is larger than the Nordics and Baltics combined

    Poland is larger than the Nordics and Baltics combined (2021) Baltics Poland Nordics Population, million 6.0 37.8 27.1 Number of cities with >500k inhabitants 3 9 7 GDP, EUR billion 119 570 1,527 Real estate transaction volume, EUR billion 1.9 5.8 76.1 -Office 0.5 1.7 17.0 -Logistics 0.3 3.0 13.0 So

  12. Slide 12: Financial overview

    Financial overview eastnine ©

  13. Slide 13: Strong financial highlights

    Strong financial highlights Compared to 2021-12-31/Q4 2021 Annual rent/sq.m. Occupancy rate Surplus ratio EUR 185 (179) 91.1 % (90.0) 88 % (85) Property yield Net LTVP Equity/asset ratio 4.91 % (4.8) 41 % (45) 55 % (58) 1 Earning capacity. Property yield excluding development properties 13

  14. Slide 14: Positive development in the Income Statement

    Positive development in the Income Statement 2022 2021 Change, • Larger property portfolio, Q1 2022 includes EURk Jan-Mar Jan-Mar % three properties acquired from May 2021 and Rental income 6,226 5,099 +22 forward. Property expenses -729 -486 +50 • Inflation indexation from January 1: 2.8 per Net op

  15. Slide 15: Improved Earning capacity

    Improved Earning capacity EURk 2022-03-31 2021-12-31 Change, % Rental value 27,922 27,276 +2 Less vacancy values -2,475 -2,738 -10 Rent indexation, Rental income 25,447 24,538 +4 higher occupancy Higher energy & Property expenses -2,900 -2,700 +7 maintenance costs Net operating income 22,548 21,838

  16. Slide 16: Broadened financing base

    Broadened financing base Interest bearing debt Distribution Interest-bearing liabilities • Total interest-bearing liabilities of EUR 261m (241) • Consisting of bank loans EUR 216m and bond EUR 45m Swedbank 23% • Current banks: SEB, Swedbank, OP Bank and Luminor SEB • Average interest rate of 2.9 % (

  17. Slide 17: Share development and ownership

    Share development and ownership Equity, Long-term NAV and price per share Share discount Largest shareholders SEK Share Data per share 2022-03-31 2021-12-31 Owner Country 200 percentage Equity, EUR 15.4 16.9 1 Peter Elam Håkansson1 26.6% Long-term NAV, EUR 16.1 17.6 167 Share price, EUR 10.3 15.4 16

  18. Slide 18: Why Eastnine?

    Why Eastnine? eastnine ©

  19. Slide 19: Growing business

    Growing business TEUR 30 000 25 447 25 000 21 530 20 000 19 186 15 000 13 348 11 052 10 011 9 527 10 000 9 130 5 489 5 000 3 180 0 2018 2019 2020 2021 2022 Q1* *Earning capacity Rental income Profit from property management 19

  20. Slide 20: Key ratios per share

    Key ratios per share Profit property management/share Long-term equity/share EUR EUR 0,6 20 17,6 0,50 16,1 0,5 0,47 0,43 14,6 15 13,1 0,4 11,4 0,3 0,26 10 0,2 0,14 5 0,1 0 0 2018 2019 2020 2021 2022* 2018 2019 2020 2021 2022 Q1 *Earning capacity SEK Dividend/share % Share price development 3,5 60 3,

  21. Slide 21: Why Eastnine?

    Why 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, international te

  22. Slide 22: Thanks!

    Thanks! eastnine ©

Eastnine — Q1 2022 Earnings Presentation on 6ix