Eastnine Ab · OMXSTO:EAST
Eastnine Ab — Q1 2019 Earnings Presentation
20 slides from Eastnine Ab's earnings presentation, May 15, 2019
Slide 1: Eastnine Q1 2019 Report
Eastnine Q1 2019 Report 15 May 2019 Stockholm
Slide 2: Highlights
Highlights (pro-forma) Q1 2019 Q1 2018 change • Rental income increased by 48 percent to EUR 2,947k (1,993) primarily due to acquisitions and the completion of Leasable area, sqm 74,888 49,429 +51.5% the third tower in 3Burės in Vilnius. Rental income, EURk 2,947 1,993 47.9% • Net operating income i
Slide 3: Rental income
Rental income Rental income Q1 2019 Q1 2018 change (EUR K) Comparable properties 1,514 1,701 -11.0% 3Burės and Vertas, increasing vacancy in 3Burės Completed development 554 - Third tower in 3Burės, annual capacity of EUR 2,100k Acquisitions 879 292 Alojas in Riga (Feb 2018) and S7 building I (Feb 2
Slide 4: Real Estate Direct
Real Estate Direct 3Bures 3Bures, third tower Vertas S7 Alojas Biroji Alojas Kvartals 4
Slide 5: Vilnius
Vilnius • Property portfolio consisting of 63,279 sqm as of Q1, estimated 25% share of A-class market • Agreement to acquire S7 office complex in February, to be completed over three steps. Acquisition of building I completed in February, building II and III will be completed during Q2 2019 and Q1 2
Slide 6: Riga
Riga • Property portfolio consisting of 11,608 sqm as of Q1, estimated 15% share of market. Combined property value of EUR 29,656k • Alojas Biroji facing some vacancies during mid-2019 as anchor tenant moves out, although vacancy was discounted in purchase price. Half of vacant space is already re-l
Slide 7: Real Estate Funds
Real Estate Funds East Capital Baltic Property Fund II East Capital Baltic Property Fund III • Fair value increase of 2% • Fair value increase of 1.6% for Q1 2019 • Four commercial properties in Tallinn and one in • The fund has three commercial properties in Riga. Retail property in Riga received r
Slide 8: Melon Fashion Group (Other)
Melon Fashion Group (Other)
Slide 9: Melon Fashion Group
Melon Fashion Group Q1 sales increased by 20% (16% in Key financials comparable terms) • 12.3% y-o-y growth in average selling space RUBm Q1 2019 Q1 2018 FY 2018 • 1.4% growth in comparable sales Sales 3 942 3 284 17 630 • Gross profit increased by 18% on a slightly lower margin Gross profit 1 806 1
Slide 10: Focus going forward
Focus going forward
Slide 11: Continued portfolio transformation and takeover of building II in S7
Continued portfolio transformation and takeover of building II in S7 • Completion of agreed acquisition of Building II in S7 • Evaluation of potential development project in Riga • Leasing of premises in original two towers of 3Burės • Ongoing certification process of Alojas and Vertas • GRESB Repor
Slide 12: Financials
Financials o A= e 2) o 5
Slide 13: Income statement, pro-forma
Income statement, pro-forma EUR thousands Q1 2019 Q4 2018 Q3 2018 Q2 2018 Q1 2018 Q4 2017 Q3 2017 Q2 2017 Q1 2017 Rental income 2,947 2,516 2,339 2,282 1,993 1,634 1,657 1,325 1,088 Property expenses -258 -396 -235 -249 -562 -745 -327 -287 -309 Net operating income 2,689 2,120 2,104 2,034 1,431 888
Slide 14: Balance sheet, pro-forma
Balance sheet, pro-forma 31 Mar 31 Dec 30 Sep 30 Jun 31 Mar 31 Dec 30 Sep 30 Jun 31 Mar EUR thousands 2019 2018 2018 2018 2018 2017 2017 2017 2017 ASSETS Investment properties 195,972 158,862 156,102 122,843 121,995 92,395 89,455 89,385 60,880 Development properties - - - 26,721 19,768 15,110 10,248
Slide 15: Key metrics
Key metrics Rental income and surplus ratio Property value and LTV EURk EURk 3 500 100% 200 000 60% 90% 180 000 3 000 50% 80% 160 000 2 500 70% 140 000 40% 60% 120 000 2 000 50% 100 000 30% 1 500 40% 80 000 20% 1 000 30% 60 000 20% 40 000 10% 500 10% 20 000 0 0% 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2
Slide 16: Financials, pro-forma
Financials, pro-forma Key metrix Q1 2019 Q4 2018 Q3 2018 Q2 2018 Q1 2018 Q4 2017 Q3 2017 Q2 2017 Q1 2017 Floor space occupancy rate, %* 92.0% 88.8% 97.5% 99.6% 99.6% 97.0% 98.1% 97.6% 96.1% Average rent, EUR/sqm/month* 14.8 14.5 14.3 14.5 14.5 13.8 13.8 13.5 12.7 Property yield, investments properti
Slide 17: Financial targets
Financial targets Targets Status 31 March 2019 LTV: <65% 44% Interest coverage ratio: >2.0x 4.1x Portfolio fully transformed to 53% of invested equity real estate direct Profit from property management 8.8m (annualised Q1) Capacity: € 15m Dividend: at least 50% of profit, 2.0% of NAV (proposed) or a
Slide 18: Share buyback program
Share buyback program Shareholder distribution, % of market cap • Q1 2019: 352,041 shares were repurchased at an 14% average price/share of SEK 104 per share. 12% • Eastnine held in treasury 5.5% of total outstanding shares 31 March 2019. 10% • Eastnine’s Board has decided not to renew the 8% curren
Slide 19: eastnine
s eastnine
Slide 20: Eastnine AB
Eastnine AB Nasdaq Stockholm Mid Cap Ticker: EAST Q2 2019 Report published 17 July 2019 www.eastnine.com