Eastnine Ab · OMXSTO:EAST
Eastnine Ab — Q1 2020 Earnings Presentation
28 slides from Eastnine Ab's earnings presentation, May 12, 2020
Slide 1: Interim report January-March 2020
Interim report January-March 2020 May 12, 2020
Slide 2: Agenda
Agenda I. Effects from Covid-19 II. Company presentation III. Interim report January-March 2020 IV. Future 2
Slide 3: Part I Effects from Covid-19
Part I Effects from Covid-19 Investor presentation 3
Slide 4: Effects from Covid-19
Effects from Covid-19 Rental income Transaction and property valuations • Eastnine has a robust tenant structure. Mainly large Nordic • Before the corona pandemic, property yields were heading companies with international operations. to record-low levels in our markets. • The average remaining lease
Slide 5: Part II Company presentation
Part II Company presentation Investor presentation 5
Slide 6: 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 7: Assets and property portfolio March 2020
Assets and property portfolio 31 March 2020 Total assets: EUR 403m Properties : EUR 288m MFG Other items EUR 45m, 11% EUR 4m, 1% Riga EUR 62m Fund 21% EUR 22m 5% Cash EUR 44m 11% Properties EUR 288m Vilnius 72% EUR 226m 79% Vilnius Riga 5 properties 4 properties 79,514 sq.m. 19,970 sq.m. Investor pr
Slide 8: Why Baltic capitals?
Why Baltic capitals? • Solid GDP growth driven by continuous convergence to the EU, averaging 3.2 per Prime office rents and yields in the cent over the past 10 years compared to 1.5 Nordics and Baltics per cent in the EU. 70 7,00% • Members of the EU, Eurozone and NATO. 60 6,00% • Lithuania ranked
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 28,463 sq.m. GLA 13,406 sq.m. GLA 9,609 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. • A-class office markets totals approximately 320,000 sq.m. 4,5,6 • Eastnine is the largest office landlord in Vilnius CBD. 3 1,2 • Intention to strengthen market position further. Office property Eastnine
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 8,622 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: Tenants
Tenants • Nearly 160 rental agreements and 120 Lease term, Annual Lease years to tenants. rent, EUR Share of term, years break- Tenant k total, % Sq.m. to expiry option • Annual rent for ten largest tenants total Danske 64 per cent of contracted rent. Bank 2,923 17 16,400 2.3 2.3 Telia 2,856 17 15,9
Slide 16: Real Estate Fund
Real Estate Fund East Capital Baltic Property Fund II • Total return of 1.6 per cent during the quarter, derives from net operating surplus. • The fund comprises five properties in office, logistics and retail, of which four are in Tallinn and one in Riga. • Eastnine aims to release invested fund ca
Slide 17: Melon Fashion Group
Melon Fashion Group Jan-Mar 2020 • Total return of -32.3 per cent, including • MFG’s sales rose by 37 per cent in rouble unrealised changes in value. to RUB 5,382m. E-commerce was 29 per cent (12) of MFG’s total sales. • Fair value decreased as an effect of the corona pandemic. MFGs stores were • In
Slide 18: Part III Interim report January – March 2020
Part III Interim report January – March 2020 Investor presentation 18
Slide 19: Key figures in brief
Key figures in brief 2020-03-31/Jan-Mar 2020 ROE (total)/ Yield requirement Surplus ratio Efficiency ROE Real Estate Direct 6.1 % 90 % -34.6 % / -0.4 % Average rent Wault Occupancy rate Rental leases 15.0 EUR/sq.m./month 4.9 years 95.7% LTV Equity / asset ratio Average interest level Financials 50 %
Slide 20: Highlights during Q1
Highlights during Q1 • The average rent level of net letting increased to EUR 16.3 per sq.m. and month, compared to an average of EUR 14.7 at the end of 2019. • Net letting in the quarter amounted to EUR -85k, which is to be viewed in the context of the high occupancy rate. • Occupancy increased by
Slide 21: Consolidated Statement of Comprehensive Income
Consolidated Statement of Comprehensive Income Apr 2019- EUR thousands Jan-Mar 2020 Jan-Mar 2019 Jan-Dec 2019 Mar 2020 Rental income 4,475 2,947 13,348 14,876 Property expenses -431 -258 -1,402 -1,575 Net operating income 4,044 2,689 11,946 13,301 Central administration expenses -824 -927 -3,873 -3,
Slide 22: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position EUR thousands 31 March 2020 31 March 2019 31 Dec 2019 ASSETS Investment properties 288,020 195,972 290,256 Long-term securities holdings 67,426 101,881 88,709 Other assets 3,832 1,547 3,952 Cash and cash equivalents 43,883 40,596 37,406 TOTAL ASSETS 403,1
Slide 23: Earnings capacity
Earnings capacity Current earning 2020 2019 Change, %- Comment to earning capacity capacity, EUR k 31 Mar 31 Dec age Rental income 18,085 17,143 +5 • Rental income from the portfolio is 5 per cent Property expenses -1,418 -1,456 -3 higher than year-end 2019. Stems from a rise Net operating income 16
Slide 24: The share and dividend
The share and dividend 2020-03-31/Q1 2020 200 • Total no. of shares amounted to 180 22,370,261, of which 5.5 per cent in 160 treasury. 140 • The board has proposed a dividend 120 of SEK 2.70, split on two occasions 100 in May and November 2020. 80 • Share price was SEK 109 by the end of the quarter
Slide 25: Shareholders
Shareholders 2020-03-31 • No. of shareholders: ~5,400. Shareholders No. of shares % • Two major shareholders: Peter Elam Håkansson1 6,067,090 27.0 Peter Elam Håkansson and Keel Capital. Keel Capital 2,268,884 10.1 Mertiva AB 1,799,303 8.0 Lazard Asset Management 1,491,577 6.7 Nordnet Pensionsförsäkr
Slide 26: Part IV Future
Part IV Future Investor presentation 26
Slide 27: Future focus
Future focus • Complete agreed acquisition of S7-3 in Vilnius during Q2, 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. • Handle effects from the
Slide 28: www.eastnine.com
www.eastnine.com