Slide 1: Year-end report 2019
Year-end report 2019 February 21, 2020
Slide 2: Agenda
Agenda I. Company presentation II. Year-end report 2019 III. Future 2
Slide 3: Part I Company presentation
Part I Company presentation Investor presentation 3
Slide 4: Vision and mission
Vision and mission Vision “Eastnine shall create and provide prime venues where ideas can flow, people can meet and successful business can be developed” Mission “Eastnine shall be the leading long-term provider of modern and sustainable office premises in prime locations in the Baltic capitals” 4
Slide 5: Eastnine in brief
Eastnine in brief • Swedish real estate company Listed at Nasdaq Stockholm, Mid Cap and headquartered in Stockholm. • Nordic tenants Mainly large Nordic companies with international operations. • Baltic premium properties Investing in sustainable prime real estate in the office segment in the Baltic
Slide 6: Sustainability focus
Sustainability focus • Eastnine's overall sustainability objective is to conduct climate-neutral operations. • 100 per cent of real estate investments should be environmental certified, excluding properties set for major redevelopment. • 72 per cent of GFA is certified according to either LEED Plati
Slide 7: Portfolio December 2019
Portfolio 31 December 2019 Total assets: EUR 420m Properties : EUR 290m MFG Other items Riga EUR 67m EUR 4m, 1% EUR 64m 16% Fund Properties 22% EUR 22m EUR 290m 5% 69% Cash EUR 37m 9% Vilnius EUR 226m 78% Vilnius Riga 5 properties 4 properties 79,514 sq.m. 19,970 sq.m. Investor presentation 7
Slide 8: Why Baltic capitals?
Why Baltic capitals? • Solid GDP growth of ca 3 per cent in 2020- Prime office rents and yields in the 23E, with continuous EU convergence. Nordics and Baltics • Members of the EU, Eurozone and NATO. 70 7,00% • Lithuania ranked 11th, Estonia 18th and 60 6,00% Latvia 19th globally in Ease of doing bu
Slide 9: Investment properties in Vilnius
Investment properties in Vilnius Page 1/2 3Bures-1,2, Vilnius 1 3Bures-3, Vilnius 2 Vertas, Vilnius 3 Completion 2008 Completion 2018 Completion 2007 GLA 28,499 sq.m. GLA 13,406 sq.m. GLA 9,604 sq.m. Certification LEED Platinum Certification LEED Platinum Certification In process Key tenants Key ten
Slide 10: Investment properties in Vilnius
Investment properties in Vilnius Page 2/2 S7-1, Vilnius 4 S7-2, Vilnius 5 S7-3, Vilnius 6 Completion 2017 Completion 2019 Completion 2019 GLA 12,053 sq.m. GLA 15,952 sq.m. GLA 14,500 sq.m. Certification BREEAM Excellent Certification BREEAM Excellent Certification BREEAM Excellent Key tenant Key ten
Slide 11: Vilnius
Vilnius • Eastnine has 80,000 sq.m. of A- class office space in CBD and city centre in Vilnius, which will increase to 94,000 sq.m. when S7-3 is included. • A-class office markets totals 4,5,6 approximately 320,000 sq.m. • Eastnine is the largest office 3 1,2 landlord in Vilnius CBD. • Intention to
Slide 12: Investment properties in Riga
Investment properties in Riga Valdemara Centrs, Riga 7 Alojas Biroji, Riga 8 Alojas Kvartals, Riga 9 Completion 1999 Completion 2009 Completion 2004/13 GLA 8,621 sq.m. GLA 9,515 sq.m. GLA 1,756 sq.m. Certification - Certification In process Certification Future project Key tenants Key tenants Key te
Slide 13: Future projects in Riga
Future projects in Riga The Pine, Riga (development in planning process)1 9 Kimmel, Riga (development in planning process) 10 The Pine • New development of a 15,800 sq.m office building made of wood on the existing land plot Alojas Kvartals in Riga. • In the planning process, construction expected t
Slide 14: Riga
Riga • Eastnine has 20,000 sq.m. of premium office space in, or close to, the city center in 8 Riga. 9 10 • Premium office markets 7 totals approximately 100,000 sq.m. • No clear CBD area in Riga. • Eastnine has the intention to reach a critical scale of the property portfolio through developments a
Slide 15: Real Estate Funds
Real Estate Funds 2019 East Capital Baltic Property Fund II East Capital Baltic Property Fund III • Total return of 4.7 per cent, including • Eastnine’s entire holding i Baltic Property changes in value and dividends. Fund III was divested at net asset value, corresponding to EUR 25.1 million, durin
Slide 16: Melon Fashion Group
Melon Fashion Group 2019 • Total return of 42.6 per cent including • MFG’s aggregate sales rose by 30 per cent dividends and unrealised changes in in ruble to RUB 22,990m. E-commerce value. was 21 per cent (12) of MFG’s total sales. • Eastnine has received a dividend • Increase in sales mainly due t
Slide 17: Part II Year-end report
Part II Year-end report Investor presentation 17
Slide 18: Key figures in brief
Key figures in brief 2019-12-31/2019 Property yield Surplus ratio ROE Efficiency 5.3% 89% 13.9% Average rent Wault Occupancy rate Rental leases 14.7 EUR/sqm/month 5.0 years 92.7% LTV Equity / asset ratio Average interest level Financials 47% 64% 2.3% Earnings per share NAV/EPRA NAV per share Share p
Slide 19: Highlights during Q4
Highlights during Q4 • Positive net leasing of EUR 99k annually. • Average rent on new letting was 15.2 EUR/sq.m./month compared to the average rent of 14.7 per the end of 2019. • Took possession of Valdemara Centrs in Riga and S7-2 in Vilnius. • Acquired Kimmel in Riga. • Sale of East Capital Balti
Slide 20: Income statement, pro-forma
Income statement, pro-forma EUR thousands 2019 Q4 2019 Q3 2019 Q2 2019 Q1 2019 Q4 2018 Q3 2018 Q2 2018 Q1 2018 Rental income 13,348 4,161 3,142 3,099 2,947 2,516 2,339 2,282 1,993 Property expenses -1,402 -410 -347 -387 -258 -396 -235 -249 -562 Net operating income 11,946 3,751 2,795 2,712 2,689 2,1
Slide 21: Balance sheet, pro-forma
Balance sheet, pro-forma EUR thousands 31 Dec 2019 30 Sep 2019 30 Jun 2019 31 Mar 2019 31 Dec 2018 30 Sep 2018 30 Jun 2018 31 Mar 2018 ASSETS Investment properties 290,256 203,276 199,882 195,972 158,862 156,102 122,843 121,995 Development properties - - - - - - 26,721 19,768 Right-of-use assets, le
Slide 22: Earnings capacity
Earnings capacity • Earning capacity describes theoretically the Current earnings capacity, EUR k 31 Dec 2019 company’s current earnings as of 31 December 2019. Rental income 17,143 • Not a prognosis and no assessment of the Property expenses -1,456 development of rent levels, vacancy, Net operating
Slide 23: The share and dividend
The share and dividend 2019-12-31/2019 • Listed at Stockholm Nasdaq, Mid Cap. 180 • Total no. of shares amounts to 22,370,261, of 160 which 5.5 per cent in treasury. 140 • The board proposes a dividend of SEK 2.70, split on two occasions in May and November 120 2020. 100 • Share price increased by 4
Slide 24: Shareholders
Shareholders 2019-12-31/2019 Change • No. of shareholders increased by 11 per Shareholders No. of shares % during last quarter cent to 5,634. Peter Elam Håkansson1 6,048,551 27.0 = • Two major shareholders: Keel Capital 2,268,884 10.1 + Peter Elam Håkansson and Keel Capital. Mertiva AB 1,515,205 6.8
Slide 25: Part III Future
Part III Future Investor presentation 25
Slide 26: Future focus
Future focus • Complete agreed acquisition of S7-3 in Vilnius during Q1 2020. • Acquire more cash-flow generating properties and selective future development projects. • Divest remaining non-core holdings. • Proceed with the planning of The Pine and Kimmel quarter in Riga. 26
Slide 27: www.eastnine.com
www.eastnine.com