Eastnine Ab · OMXSTO:EAST

Eastnine Ab — FY2023 Earnings Presentation

22 slides from Eastnine Ab's earnings presentation, January 2024

  1. Slide 1: Eastnine Year-End Report January-December 2023

    Eastnine Year-End Report January-December 2023

  2. Slide 2: Highlights from the year

    Highlights from the year • Profit from property management: All time high + 32 % o Total EUR 17.7m (13.4) o Per share EUR 0.80 (0.60) • Sale of shares in MFG • Total return on investment +46 % 2

  3. Slide 3: News from Q4 and after

    News from Q4 and after • Early redemption of the bond • New business plan and goals • Positive net letting • (Slightly) positive unrealised value changes properties • Proposed dividend: SEK 4.64 per share (+36 %) − SEK 1.16 each quarter − 53 % of profit from property management after current tax 3

  4. Slide 4: Economic outlook & real estate markets

    Economic outlook & real estate markets

  5. Slide 5: Real GDP growth

    Real GDP growth Higher growth in Eastnine’s markets than in the eurozone. 8% 6% 4% 2% 0% -2% -4% -6% -8% 2015 2016 2017 2018 2019 2020 2021 2022 2023P 2024P Latvia Lithuania Poland Eurozone 5

  6. Slide 6: Rent and vacancy levels

    Rent and vacancy levels Stable to growing rent levels. Vilnius experience higher rent level and lower vacancy rate in 2023. Prime office rent, EUR/sq.m./month Prime office rent Office vacancy Office vacancy rate 25 25% 21.00 20 18.00 18.00 18.00 20% 17.00 16.50 17.00 17.00 17.50 16.00 16.00 16.00 15

  7. Slide 7: Prime office yields

    Prime office yields Yields are increasing. 8% 7% 6% 5% 4% 2019 2020 2021 2022 2023 Riga Vilnius Poznan 7

  8. Slide 8: Properties and tenants

    Properties and tenants eastnine ©

  9. Slide 9: Property portfolio

    Property portfolio Helsinki Stockholm Tallinn POZNAN VILNIUS Riga Property value EUR 117.1m | 20 % Property value EUR 382.6m | 67 % Lettable area 39,300 sq.m. Lettable area 120,900 sq.m. Vilnius • Property value: EUR 574m • No. of properties: 14 Poznan RIGA • Lettable area: 182,800 sq.m. Warsaw Prop

  10. Slide 10: Tenants and rents

    Surplus ratio Tenants and rents 93 percent (91) Rent level Premises, area Tenants, area Lease agreement maturity % 193 Retail and service 40 EUR/sq. m./year (183) 3.4% Other 35 0.4% 30 WAULT Other 3.8 ICT 25 25% 27% 20 years (4.4) 38 15 23 Green lease agreements 10 E-commerce Finance 5 8 7 11 8 5 68

  11. Slide 11: Financial overview

    Financial overview eastnine ©

  12. Slide 12: Income Statement

    Income Statement Q4 2023 Q4 2022 Change, Jan-Dec Jan-Dec Change, Profit from property management EURk % 2023 2022 % increased by 25 % during the quarter Rental income 8,967 8,495 +6 36,166 30,299 +19 and 32 % during the year. Most Property expenses -747 -650 +15 -2,535 -2,812 -10 important events/ch

  13. Slide 13: Unrealised value changes properties

    Unrealised value changes properties Q4 2023 Unrealised value changes, properties EURk Unrealised value 0.0 % -5.7 % 12,000 10,031 changes properties + EUR 21k - EUR 34,685k 8,000 4,000 1,848 0 21 Weighted yield +0.2 %-points +0.8 %-points -4,000 -34 -2,467 requirement, % to 6.4 to 6.4 -8,000 -7,891

  14. Slide 14: Strong financial position

    Strong financial position % Interest rate level EURm Cash times ICR 5 4.2 200 173 3 3.8 4.0 4.0 4 3.4 150 129 2.9 3.0 3.1 2.6 2.6 3 2.5 100 68 2.4 2 2.3 50 21 20 29 2.2 2.2 2.2 1 19 19 0 0 2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2023 2022 2023 2022 2023 % LTV t

  15. Slide 15: Earning capacity

    Earning capacity EURk 2023-12-31 2023-09-30 Change, % • The profit from property management has Rental value 37,832 38,037 -1 increased, mainly after redemption of the -2,592 -1,805 +44 bond. Less vacancy values Rental income 35,240 36,232 -3 • Higher vacancy increased the vacancy value and property

  16. Slide 16: Share and shareholders

    Share and shareholders Eastnine share development +42 % Shareholders December 31, 2023 Shareholding, % Change 2023 p,p, 180 MFG divested SEK 172 Peter Elam Håkansson 26.2% +0.3 Bonnier Fastigheter Invest AB 17.4% +3.7 160 Arbona AB (publ) 10.2% +0.2 140 Kestutis Sasnauskas 4.5% +0.2 120 Patrik Brumm

  17. Slide 17: Our growth journey

    Our growth journey eastnine ©

  18. Slide 18: Investment in Eastnine

    Investment in Eastnine Growing unique portfolio Sustainable attractive total Stable customer base and and market return long-term relationships Modern office properties in prime locations Eastnine’s overarching target is to create Strong, international tenants with long in the Baltics and Poland. Hi

  19. Slide 19: Growth

    Growth Rental income Profit from property Dividend/share EURk EUR management/share SEK +19 % +33 % +36 % 40 5.0 36.2 0.9 4.64 0.80 35 0.8 30.3 0.7 4.0 30 0.60 3.40 25 0.6 3.00 3.00 21.5 0.47 3.0 2.70 19.2 0.5 0.43 20 2.30 0.4 15 13.3 2.0 0.3 0.26 9.1 10 0.2 0.14 1.0 5 0.1 0 0 0.0 2018 2019 2020 2021

  20. Slide 20: Total Return Index 2023

    Total Return Index 2023 60% 46% 47% 40% 40% 35% 34% 33% 32% 27% 26% 26% 25% 24% 20% 19% 19% 18% 17% 20% 6% 2% 2% 0% -1% -2% -4% -6% -10% -12% -20% -20% -26% -40% -39% -46% -60% -69% -80% 20

  21. Slide 21: Total return

    50 100 150 200 250 350 300 May-16 Aug-16 Source: Reuters Nov-16 Eastnine Feb-17 May-17 Aug-17 Nov-17 Feb-18 Total return May-18 Aug-18 Nov-18 NASDAQ Stockholm Real Estate Feb-19 May-19 Aug-19 Nov-19 21 Feb-20 May-20 Aug-20 Nov-20 Feb-21 May-21 FTSE EPRA Nareit Developed Europe Office Aug-21 Nov-21 F

  22. Slide 22: Thank you!

    Thank you! eastnine ©

Eastnine — FY2023 Earnings Presentation on 6ix