Eastnine Ab · OMXSTO:EAST
Eastnine Ab — H1 2021 Earnings Presentation
24 slides from Eastnine Ab's earnings presentation, June 2021
Slide 1: New acquisitions & new property segment
INTERIM REPORT JANUARY-JUNE 2021 New acquisitions & new property segment 1
Slide 2: Agenda
Agenda • Eastnine in brief Presenters • Highlights H1 • Broadened business concept • Property portfolio & Other investments • Occupancy & Tenants • Sustainability • Financial reports & financing Kestutis Sasnauskas CEO Britt-Marie Nyman CFO & deputy CEO • Why Eastnine? 2
Slide 3: Eastnine in brief
Eastnine in brief Eastnine in 3 bullets Figures in brief • Swedish real estate company The share is listed on Nasdaq Stockholm, Mid Cap, and the head office is located in Stockholm. EUR 543m EUR 415m Total assets Property value • Nordic tenants Tenants are primarily large Nordic companies with inter
Slide 4: Positive H1
Positive H1 • Rental income up +18 % vs H1 last year, reaching 10.5 MEUR. • Profit from property management +19 %, despite of higher vacancy in Riga. • Vilnius market remains stable, with strong take up in H1. Activity in Riga starts picking up. • Two acquisitions, that very well complement our exis
Slide 5: Business concept
Business concept Eastnine’s business concept is to be the leading long-term provider of modern and sustainable office and logistics premises in prime locations in the Baltics. 5
Slide 6: Property portfolio & Other investments
Property portfolio & Other investments
Slide 7: 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 339 EURm 82 % 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
Slide 8: 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 76 EURm Key tenants Microsoft, CBRE 18 % Key tenants Ellex Klavins, Acquisition 2021 Rimi, Sennder Completion 2009 Acquisition 2018 Certification LEED Platinum Completion 2009 3 Certification LEE
Slide 9: MFG Property fund
MFG Property fund • Eastnine holds 36 per cent of the Russian fashion retailer MFG. • Eastnine indirectly holds 43 per cent of East Capital Baltic Property Fund II (ECBPF2). • MFGs total sales (prel figures Jan-May) increased by 103 per cent to RUB • The fund owns four properties in Tallinn, Estonia
Slide 10: Occupancy, Tenants & Sustainability
Occupancy, Tenants & Sustainability
Slide 11: Occupancy & Tenants
Occupancy & Tenants • Occupancy increased during the second quarter, 92.6 compared to Annual Share of annual Lease term, 90.7 per cent, but was at the same level as in the end of 2020. rent, rent under No. of years to Tenant EURk contract, % Sq.m. agreements expiry • Increased surplus ratio during t
Slide 12: Sustainability
Sustainability Eastnine has an overarching target to achieve climate neutrality by 2030 and works continually to improve the efficiency of, and the emissions from, the properties. • 88 per cent of the property portfolio was environmentally certified with LEED Platinum or BREEAM Excellent. • In conne
Slide 13: Financial reports & financing
Financial reports & financing
Slide 14: Income Statement
Income Statement 2021 2020 Change, 2021 2020 Change, • Two new properties were taken over late in EURk Jan-Jun Jan-Jun % Apr-Jun Apr-Jun % the second quarter. Rental income 10,522 8,942 +18 5,423 4,467 +21 • The increase in central administration fell Property expenses -984 -911 +8 -497 -480 +4 back
Slide 15: Statement of financial position
Statement of financial position • The value of investment properties increased EURk 2021-06-30 2020-12-31 Change, % as a result of acquisitions and minor Investment properties 414,986 372,400 +11 unrealised changes in value and investments. Long-term securities holdings 103,100 102,152 0 • Long-term
Slide 16: Key figures
Key figures Balance sheet items 2021-06-30 2021-03-31 2020-12-31 Balance sheet items • The occupancy rate increased during the quarter, due to Occupancy rate, % 92.6 90.7 92.6 fully let acquisitions and a higher occupancy rate in comparable holdings, but is unchanged compared with the Average rent l
Slide 17: Current Earning capacity
Current Earning capacity • The rental value and occupancy rate, in the earning capacity, EURk 2021-06-30 2021-03-31 Change,% increased during the quarter as a result of the acquisition of two Rental value 24,999 22,776 +10 fully let properties. Less vacancy value -1,913 -2,177 -12 • A higher occupan
Slide 18: The share
The share Shareholder Shares, no. % • Market cap SEK 3.0 billion (2.8). Peter Elam Håkansson1 6,074,754 27.2 • Shareholders: 5,118 (4,990). Arbona AB (publ) 2,240,328 10.0 • Dividend: 3.00 SEK/share (2.70), split on four occasions, quarterly. Next in August. Keel Capital 1,829,731 8.2 • Long term NA
Slide 19: Debt
Debt • Interest-bearing liabilities increased after new acquisitions and new net financing on existing properties. • Loan maturity: 3.0 years (3.0), Interest maturity: 2.1 years (2.3). • Average interest rate: 2.3 per cent (2.3). • July: First green bond totaling EUR 45 million. Banks LTV & Equity/a
Slide 20: Why Eastnine?
Why Eastnine? eastnine ©
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 per share EUR per share EUR 0,6 0,6 16 14 0,5 0,5 12 0,4 0,4 10 0,3 0,3 8 6 0,2 0,2 4 0,1 0,1 2 0 0 0 2018 2019 2020 LTM 2018 2019 2020 2018 2019 2020 Q2 2021 21
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
Slide 23: Long term growth…
Long term growth… EURk Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Rental income 1,088 1,325 1,657 1,634 1,993 2,282 2,339 2,516 2,947 3,099 3,142 4,161 4,475 4,467 4,993 5,251 5,099 5,423 Property ex
Slide 24: Baltics the new Nordics, journey has just begun
Baltics the new Nordics, journey has just begun