Eastnine Ab · OMXSTO:EAST

Eastnine Ab — Q3 2021 Earnings Presentation

23 slides from Eastnine Ab's earnings presentation, October 2021

  1. Slide 1: Interim Report January-September 2021: Acquisitions in focus

    INTERIM REPORT JANUARY-SEPTEMBER 2021 Acquisitions in focus 1

  2. Slide 2: Eastnine company highlights

    Eastnine company highlights Solid market fundamentals underpin I Baltic yields at Nordic risk levels II growth prospects GDP per capita (2015 = 100) • Portfolio of prime office 140 • Superior growth prospects properties in Vilnius and compared to the Nordics Riga with a yield of 5.0%1, 130 Nordics •

  3. Slide 3: Strong Baltic economies

    Strong Baltic economies GDP1 Inflation1 % Prime yield % % 9 8 4 8,5 6 8 3 7,5 4 2 7 2 6,5 0 1 6 5,5 -2 0 5 -4 4,5 -1 -6 4 Q4 Q2 Q3 Q2 Q3 Q4 Q2 Q3 Q4 Q2 2018 Q1 2019 Q1 2020 Q1 2021 Q1 -8 -2 2018 2019 2020 2021F 2022F 2023F 2018 2019 2020 2021F 2022F 2023F Office Estonia Office Latvia Lithuania Latvi

  4. Slide 4: Highlights January-October

    Highlights January-October • Rental income +15 % to EUR 16.1m and profit from property management +12 % to EUR 7.8m during the reporting period due to larger property portfolio. • Increase in interest rate cost due to bond issue, will affect profit in a positive direction when invested. • Positive v

  5. Slide 5: Property investment and tenants

    Property investment and tenants Portfolio of uniquely high-quality office properties in the Baltics Tenant base consisting of recognised international corporates 12 properties Tenants % of annual contracted rent Type Country Directly owned (Industry) (HQ) 1 28% Finance 130,500 2 14% ICT Total lettab

  6. Slide 6: Properties in Vilnius

    Properties in Vilnius 3Bures-1,2 3Bures-1,2 & 3 2 S7-1 GLA, sq.m. 42,000 Key tenants Swedbank, Visma Vilnius Acquisition 2014 337 EURm 81 % 3Bures-3 Completion 2008/2018 S7-2 Certification LEED Platinum S7-1 & 2 & 3 1 GLA total, sq.m. 42,000 1 Key tenants Danske Bank, Telia Acquisition 2019/2020 3 2

  7. Slide 7: Properties in Riga

    Properties in Riga Zala 1 4 Zala 1 Alojas Biroji 3 Riga GLA, sq.m. 3,600 Alojas Biroji GLA, sq.m. 10,400 79 EURm Key tenants Microsoft, CBRE 19 % Key tenants Ellex Klavins, Acquisition 2021 Rimi, Sennder Completion 2009 Acquisition 2018 Certification LEED Platinum Completion 2009 3 Certification LEE

  8. Slide 8: Other Investment I - Melon Fashion Group

    Other Investment I - Melon Fashion Group Eastnine’s holding in 2021 Jan-Sep 2020 Jan-Sep/ • Eastnine holds 36 per cent of the Russian fashion MFG 2021-09-30 2020-12-31 retailer MFG. • MFGs total sales: +66 % to RUB 28,267m (17,026). Unrealised changes in value, EURm 10.4 -9.7 • Online sales: +46 % a

  9. Slide 9: Other investment II – EC Baltic Property fund II

    Other investment II – EC Baltic Property fund II Eastnine’s holding in 2021 Jan-Sep/ 2020 Jan-Sep/ • Eastnine indirectly holds 42 per cent of East Capital East Capital Baltic 2021-09-30 2020-12-31 Baltic Property Fund II (ECBPF2). Property Fund II • The fund owns four properties in Tallinn, Estonia:

  10. Slide 10: Best-in-class ESG credentials

    Best-in-class ESG credentials Alignment with selected UN sustainability goals Dark green Finance Framework Green financing Use of proceeds Evaluation Management Share of green • Best possible indoor financing to increase climate and air quality at Health and all properties achieved Proceeds to be us

  11. Slide 11: Demonstrated by external awards

    Demonstrated by external awards GRESB Albright Sustainalytics USGBC Leadership Award 92 points increase by 5 points Green list 14.2 Low Risk ESG Leadership Award Eastnine is included on the Green list of Listed European estate companies for companies with a high degree of gender sustainability effor

  12. Slide 12: Financial overview

    Financial overview eastnine ©

  13. Slide 13: Financial highlights

    Financial highlights Annual rent Rental income Net operating income Property value (per sqm) ~ EUR 22m1 ~ EUR 20m1 ~ EUR 416m ~ EUR 180 Equity/asset ratio Net LTVP Property yield Occupancy rate ~ 55% ~ 43% ~ 5%1 ~ 90% 1 Earning capacity. Property yield excluding development properties 13

  14. Slide 14: Income Statement

    Income Statement 2021 2020 Change, 2021 2020 Change, • Larger property portfolio affects the income EURk Jan-Sep Jan-Sep % Jul-Sep Jul-Sep % statement. Rental income 16,079 13,936 +15 5,588 4,993 +12 • Bond issue increases interest expenses in Q3. Property expenses -1,454 -1,422 +2 -471 -510 -8 • Pr

  15. Slide 15: Statement of financial position

    Statement of financial position • The value of investment properties increased EURk 2021-09-30 2020-12-31 Change, % as a result of acquisitions, minor unrealised Investment properties 415,531 372,400 +12 changes in value and investments. Long-term securities holdings 114,150 102,152 +12 • Revaluatio

  16. Slide 16: Current Earning capacity

    Current Earning capacity • The rental value has decreased as a result of adjustment of EURk 2021-09-30 2021-06-30 Change,% lettable space. Rental value 24,966 24,999 0 • Lower economic occupancy rate has increased the vacancy Less vacancy value -2,604 -1,913 +36 value. Rental income 22,362 23,086 -3

  17. Slide 17: Balanced maturity profile & capital structure

    Balanced maturity profile & capital structure Maturity structure Interest duration EURm Loan maturity 3% 150 10% Floating rate 100 2023 2024 42% 2025 24% 50 2026 25% 0 2021 2022 2023 2024 2025 2026 Gross LTVP & Equity ratio Capital structure • Total interest-bearing 100% liabilities of EUR 243m Equi

  18. Slide 18: Share development and ownership

    Share development and ownership Share price and turnover Jan-Sep 2021 Largest shareholders 31 October 2021 Share # Owner Country SEK Number Turnover (SEK ‘000) percentage 180 400 000 1 Peter Elam Håkansson1 25.9% 350 000 675,454 160 300 000 2 Bonnier Fastigheter Invest 13.7% 140 250 000 3 10.0% 200

  19. Slide 19: Board of Directors

    Board of Directors Liselotte Hjorth Christian Hermelin Ylva Sarby Westman Peter Elam Håkansson Peter Wågström Chairwoman Board member Board member Board member Board member • Chairman of the Board since • Board member since 2020 • Board member since 2020 • Board member since 2014 • Board member sinc

  20. Slide 20: Why Eastnine?

    Why Eastnine? eastnine ©

  21. Slide 21: Profit and value increase per share

    Profit and value increase per share Profit from property Dividend Long term equity EUR management per share EUR per share EUR per share 0,6 0,6 18 16 0,5 0,5 14 0,4 0,4 12 10 0,3 0,3 8 0,2 0,2 6 4 0,1 0,1 2 0 0 0 2018 2019 2020 LTM 2018 2019 2020 2018 2019 2020 Q3 2021 21

  22. Slide 22: Why Eastnine?

    Why Eastnine? 1 Unique portfolio • Collection of some of the best office properties in the Baltics. • Intention to acquire the best logistics properties in the Baltics. • Modern class-A properties with the highest environmental standards. 2 Strong cash generation • Higher property yields than for co

  23. Slide 23: Baltics the new Nordics, journey has just begun

    Baltics the new Nordics, journey has just begun

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