Eastnine Ab · OMXSTO:EAST

Eastnine Ab — Q1 2024 Earnings Presentation

24 slides from Eastnine Ab's earnings presentation, Apr 25, 2024

  1. Slide 1: Eastnine Interim report January-March 2024

    Eastnine Interim report January-March 2024

  2. Slide 2: Highlights of the quarter

    Highlights of the quarter • All time high for profit from property management + 17 % − Total EUR 5.3m (4.5) − Per share EUR 0.24 (0.20) • Unrealised value changes properties +0.3 % • Net letting EUR -263k • 100 % sustainability certified portfolio • Refinancing of bank loans totalling EUR 62m • Prol

  3. Slide 3: Markets

    Markets eastnine ©

  4. Slide 4: Eastnine

    eastnine O

  5. Slide 5: 5

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  6. Slide 6: Consistently higher GDP growth than EU peers

    0% 1% 2% 3% 4% 5% Ireland Malta Poland Lithuania Source: Eurostat, IMF Romania Latvia Slovak Republic Estonia Iceland Luxembourg Cyprus Bulgaria Slovenia Czechia Hungary Sweden Croatia Real GDP growth Spain Belgium Netherlands Norway Denmark Finland 1998-23A Austria France Germany Portugal 2023-28E

  7. Slide 7: Structural growth in office demand

    Office jobs as % of total employment Structural growth in office demand 2018-22 data Source: Eurostat Strong demand for high quality, well-located offices in increasingly polarized rental markets Office jobs, Number of office jobs1 in Vilnius Total thousands employment 100 50% Helsinki 31% Tallinn S

  8. Slide 8: Prime office: Higher yields, lower rents

    Prime office: Higher yields, lower rents Same cost of debt translating into higher cash returns, plus scope for long-term value growth Prime office rent, prime office yield Office rent EUR/sqm/month Office yield Tampere 80 8% Helsinki Turku 70 7% Oslo Tallinn 60 6% Stockholm 50 5% Gothenburg 40 4% R

  9. Slide 9: Eastnine operations

    Eastnine operations eastnine ©

  10. Slide 10: Our markets

    Our markets Helsinki Stockholm Tallinn POZNAN - Poland VILNIUS - Lithuania Riga Property value EUR 119m | 21 % Property value EUR 382m | 66 % Lettable area ~39,300 sq.m. Lettable area ~120,900 sq.m. Occupancy: 100.0 % Occupancy: 93.6 % Vilnius • Property value: EUR 576m • No. of properties: 14 Pozna

  11. Slide 11: Our portfolio

    Our portfolio Vilnius: 66 % Riga: 13 % Poznan: 21 % Uptown Park 3Bures-1,2 3Bures-3 3Bures-4 Alojas Biroji The Pine Nowy Rynek D 12,681 sq.m. 28,265 sq.m. 13,406 sq.m. - 10,193 sq.m. - 39,258 sq.m. Uniq Vertas-1 Vertas-2 Zala 1 Kimmel 6,927 sq.m. 9,472 sq.m. 7,627 sq.m. 3,629 sq.m. - S7-1 S7-2 S7-3

  12. Slide 12: Tenants – key ratios

    Tenants – key ratios EUR/ Yrs sqm/yr 5 210 4.1 200 Rent level Wault 4 200 EUR/sq.m./year 190 4.1 years 3 (193) (3.8) 170 2 Q1- Q1- Q1- Q1- 23 24 23 24 % % 100 100 95 92.7 95 92 Occupancy Surplus ratio 92.7 % (93.1) 90 92 % (93) 90 85 85 Q1- Q1- Q1- Q1- 23 24 23 24 12

  13. Slide 13: Tenants – sectors

    Tenants – sectors Annual rent, Share of contracted ICT Tenant EURk annual rent, % Sq.m. Other 27% 25% Allegro 5,879 16 26,283 Danske Bank 5,116 14 26,588 Telia 3,132 9 15,952 Vinted 1,928 5 9,605 Swedbank 1,677 5 9,030 Rockwool 1,465 4 6,870 E-commerce Finance Citco 851 2 3,378 21% 27% Twoday 751 2

  14. Slide 14: Sustainability

    Sustainability Sustainability certified Green financing Green leases properties 69 % 68 % 100 % Ambition Target 2030 Target GRESB Leader in Climate neutral 5 stars=top 20 % sustainability property operations 14

  15. Slide 15: Financial overview

    Financial overview eastnine ©

  16. Slide 16: Income Statement

    Income Statement Q1 2024 Q1 2023 Change Q4 2023 Change Q1 2024 vs Q1 2023 vs Q1 vs Q4 EURk 2023 2023 • Profit from property management Rental income 9,064 9,051 +/-0 % 8,967 +1 % +17 %, new top level. -One-off items related to personnel costs Property expenses -705 -676 +4 % -747 -6 % in CA of 300 T

  17. Slide 17: Financial position

    Financial position • Pure real estate company, EQUITY AND no Other investments ASSETS, EURk 2024-03-31 2023-12-31 2024-03-31 2023-12-31 LIABILITIES, EURk since Q3 2023. Investment properties 575,963 573,771 Equity 404,840 400,176 • Total assets, investment Right-of-use assets, Interest-bearing prope

  18. Slide 18: Earning capacity

    Earning capacity Last 12M • The rental value increased following EURk 2024-03-31 2023-12-31 Change rolling agreed rental indexation. Rental value 39,342 37,832 +4 % • The vacancy value increased due to a Less vacancy value -2,877 -2,592 +11 % lower occupancy rate. 36,465 35,240 +3 % 36,179 • Central

  19. Slide 19: Unrealised value changes properties

    Unrealised value changes properties • Property values have EURm developed negatively for more % than one year until autumn 20 8.0 2023. But have been stable or 14.0 15.0 slightly positive during the last 10.0 10 5.5 two quarters. 1.8 • Eastnine’s average yield 5.3 0 1.5 1.5 0.0 1.5 3.0 requirement i

  20. Slide 20: Strong financial position

    Strong financial position % Interest rate level EURm Cash times ICR 5 4.7 4.0 200 3 2.7 4 129 128 2.2 150 3 2 100 2 50 1 1 0 0 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2023 2024 2023 2024 2023 2024 % LTV times Net debt/EBITDA Years Maturities 60 20.0 3.0 2.9 45 15.0

  21. Slide 21: Future

    Future eastnine ©

  22. Slide 22: 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

  23. Slide 23: Property portfolio

    Property portfolio EURm 800 • Fast growing property 700 portfolio. • Strong cash position 600 enables further growth whilst 500 maintaining sound financial position. 400 300 200 100 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q1 2024 Properties Potential acquisition 23

  24. Slide 24: Thank you! Please post questions!

    Thank you! Please post questions!

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