Eastnine Ab · OMXSTO:EAST
Eastnine Ab — Q2 2024 Earnings Presentation
24 slides from Eastnine Ab's earnings presentation, Jul 5, 2024
Slide 1: Eastnine Interim report January-June 2024
Eastnine Interim report January-June 2024
Slide 2: Highlights for the period
Highlights for the period • Profit from property management +21 % − Total EUR 10.5m (8.7) − Per share (after split) EUR 0.12 (0.10) • Net letting EUR +263k • Occupancy +0.5 %-points to 93.6 % • Surplus ratio +1 %-points to 93 % • Share split 4:1 • Acquisition of a second property in Poland. 2
Slide 3: Nowy Rynek E, Poznan
Nowy Rynek E, Poznan • 28,800 sq.m. • Purchase price EUR 79.3m • Built 2023 by Skanska • LEED Platinum • 3 largest tenants − McKinsey EMEA Shared Services − Wunderman Thomson Technology − Bank Pekao • Economic occupancy 100 % 3
Slide 4: Markets
Markets eastnine ©
Slide 5: Consistently higher GDP growth than EU peers
0% 2% 3% 4% 5% 1% Ireland Malta Poland Lithuania Source: Eurostat, IMF Romania Latvia Slovak Republic Estonia Iceland Luxembourg Cyprus Bulgaria Slovenia Czechia Hungary Sweden Croatia Real GDP growth Spain Belgium Netherlands Norway Denmark Finland 1998-23A Austria France Germany Portugal 2023-28E
Slide 6: Structural growth in office demand
Office jobs as % of total employment Structural growth in office demand 2018-22 data Source: Eurostat Strong demand for high quality, well-located offices in increasingly polarized rental markets Office jobs, Number of office jobs1 in Vilnius Total thousands employment 100 50% Helsinki 31% Tallinn S
Slide 7: 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 Prime office rent, prime office yield Office rent EUR/sq.m./month Office yield Tampere 80 8% Helsinki Turku 70 7% Oslo Tallinn 60 6% Stockholm 50 5% Gothenburg 40 4%
Slide 8: Eastnine operations
Eastnine operations eastnine ©
Slide 9: Property portfolio
Property portfolio • Property value: EUR 652m ~ EUR 3k per sq.m. • No of properties: 15 • Lettable area: ~212,600 sq.m. • Occupancy rate: 93.6 % • Average age: 9.6 years 9
Slide 10: Poznan, Vilnius, Riga
Poznan, Vilnius, Riga Helsinki Stockholm Tallinn Riga Vilnius Poznan Berlin Poznan, Poland Vilnius, Lithuania Riga, Latvia Warsaw Property value EUR 197m | 30 % Property value EUR 381m | 59 % Property value EUR 74m | 11 % Lettable area 68,100 sq.m. Lettable area 120,900 sq.m. Lettable area 22,600 sq
Slide 11: 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
Slide 12: Rental key ratios Q2
Rental key ratios Q2 EURk Yrs 1 000 5 525 4.2 500 Quarterly net 4 0 Wault letting, annual rent 4.2 years 3 +EUR 525k -500 -1 000 2 Q4- Q2- Q4- Q2- Q4- Q2- Q4- Q2- 22 23 23 24 22 23 23 24 % EUR/ 100 sqm/yr 210 93.6 199 95 Rent level Occupancy 199 EUR/sq.m./year 190 93.6 % 90 85 170 Q4- Q2- Q4- Q2- Q4
Slide 13: Tenants – sectors
Tenants – sectors Annual rent, Share of contracted ICT Tenant EURk annual rent, % Sq.m. 25% Other Allegro 5,879 14 26,283 31% Danske Bank 5,116 12 26,588 Telia 3,132 7 15,952 Vinted 1,928 5 9,605 McKinsey 1,914 5 9,745 Swedbank 1,691 4 9,030 E-commerce Finance 18% 25% Rockwool 1,465 3 6,870 Citco 85
Slide 14: Sustainability
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 14
Slide 15: Financial overview
Financial overview eastnine ©
Slide 16: Income Statement
Income Statement Jan-Jun Jan-Jun Change Apr-Jun Apr-Jun Change Profit from property management EURk 2024 2023 2024 2023 increased mainly due to interest Rental income 18,409 18,143 +1 % 9,345 9,092 +3 % income as a result of the sale of MFG Property expenses -1,372 -1,213 +13 % -667 -537 +24 % in Au
Slide 17: Earning capacity
Earning capacity • New acquisition means higher rental EURk 2024-06-30 2024-03-31 Change income, property expenses and higher Rental value 45,275 39,342 +15 % NOI. Less vacancy value -2,904 -2,877 +1 % • Interest income has decreased after the property acquisition (including short term Rental income
Slide 18: Financial position
Financial position • Pure real estate company EQUITY AND since Q3 2023. ASSETS, EURk 2024-06-30 2023-12-31 2024-06-30 2023-12-31 LIABILITIES, EURk • Total assets, investment Investment properties 651,628 573,771 Equity 396,444 400,176 properties, interest- Right-of-use assets, Interest-bearing beari
Slide 19: Financial key ratios
Financial key ratios EURm Cash times ICR % LTV 200 3 2.7 60 2.5 150 128 45 38 2 100 27 72 30 50 1 15 0 0 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2023 2024 2023 2024 2023 2024 times Net debt/EBITDA Years Maturities % Interest rate level 5 4.7 4.7 20 3,0 2.9 2.9 15 4
Slide 20: Invest in Eastnine
Invest in Eastnine eastnine ©
Slide 21: 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
Slide 22: Growth potential
Growth potential EURm 800 700 600 500 400 300 200 100 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q2 2024 Properties Potential acquisition 22
Slide 23: Profit from property management
Profit from property management EURk 6000 5000 4000 3000 2000 1000 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 2018 2019 2020 2021 2022 2023 2024 23
Slide 24: Thanks! Please post your questions!
Thanks! Please post your questions!