Eastnine Ab · OMXSTO:EAST
Eastnine Ab — Q2 2019 Earnings Presentation
22 slides from Eastnine Ab's earnings presentation, Jul 17, 2019
Slide 1: Eastnine Interim report January-June 2019
Eastnine Interim report January-June 2019 17 July 2019 Stockholm
Slide 2: 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 c
Slide 3: Highlights Jan - Jun 2019
Highlights Jan ‒ Jun 2019 • Rental income +41% 6.1 EURm • Rental income identical portfolio -15% 2.9 EURm • NOI +56% 5.4 EURm • Profit from property mgmt +175% 2.4 EURm • Unrealised changes in value: 7.3 EURm • Realised changes in value/dividends: 1.6 EURm • LTV: 43% (43) • Equity ratio: 71% (76) •
Slide 4: Highlights Q2 2019
Highlights Q2 2019 • Positive net letting Rental income (annually), EURm +1.4 • Higher rental level on new letting Rent new letting Q2 2019: 15.1 EUR/sq.m./month Average rent portfolio Q1 2019: 14.8 EUR/sq.m./month Average rent large vacated areas: 13.6 EUR/sq.m./month • Value change Real Estate Dir
Slide 5: Investments
Investments • Total investments: EUR 342m Real Estate Funds Prioritised • Real Estate Direct + Cash: EUR 243m Other Non-prioritised Directly owned • Real Estate Funds: EUR 45m real estate • Other (MFG): EUR 53m Cash 5
Slide 6: Directly owned Real Estate
Directly owned Real Estate
Slide 7: Real Estate Direct – Baltic capitals
Real Estate Direct – Baltic capitals 3Bures-3, Vilnius Vertas, Vilnius 17% 15% S7-1, Vilnius 18% Alojas Kvartals, Riga 2% 3Bures-1,2, Vilnius Alojas Biroji, Riga 35% 13% 7
Slide 8: Assembling a portfolio of prime offices
Assembling a portfolio of prime offices • Today: 74,500 sq.m • After closing of S7-2 & 3: 105,000 sq.m. • After potential development project – The Pine: 120,000 sq.m. Eastnine real estate portfolio valued at EUR 200m Income-producing Forward purchase Development project Alojas Biroji, Riga S7-2, Vi
Slide 9: Vilnius
Vilnius • Property portfolio: • 4 properties • 63,279 sq.m. • Fair value EUR 170m • 25% share of A-class market • S7-1 was acquired in February. Acqusition of S7-2 and 3 will be completed in Q3 2019 and Q1 2020 • Vacancy rate increased during first half of 2019 due to relocation of tenants within Ea
Slide 10: Riga
Riga • Property portfolio: • 2 properties • 11,192 sq.m. • Fair value EUR 30m • 15% share of prime market • As expected anchor tenant Luminor left Alojas Biroji as per June 30. Meant increased vacancy, but several new leases has been signed at market level • Planned new development of a five floor o
Slide 11: Other investments
Other investments
Slide 12: Real Estate Funds
Real Estate Funds East Capital Baltic Property Fund II East Capital Baltic Property Fund III • Total return of 3.8 per cent including changes in • Total return of 3.1 per cent including changes in value and dividends value • The fund has a total of five properties in office, • The fund has a total o
Slide 13: Melon Fashion Group
Melon Fashion Group MFG • Total return of 10.8 per cent including changes in value and dividends • MFG publishes its earnings according to IFRS at the end of July, after Eastnines interim report has been published. MFGs earnings is therefore preliminary. Total sales increased by 22 per cent to RUB 8
Slide 14: Financials
Financials o A= e 2) o 5
Slide 15: Income statement, pro-forma
Income statement, pro-forma EUR thousands Q2 2019 Q1 2019 Q4 2018 Q3 2018 Q2 2018 Q1 2018 Q4 2017 Q3 2017 Q2 2017 Rental income 3,099 2,947 2,516 2,339 2,282 1,993 1,634 1,657 1,325 Property expenses -387 -258 -396 -235 -249 -562 -745 -327 -287 Net operating income 2,712 2,689 2,120 2,104 2,034 1,43
Slide 16: Balance sheet, pro-forma
Balance sheet, pro-forma EUR thousands 30 Jun 2019 31 Mar 2019 31 Dec 2018 30 Sep 2018 30 Jun 2018 31 Mar 2018 31 Dec 2017 30 Sep 2017 30 Jun 2017 ASSETS Investment properties 199,882 195,972 158,862 156,102 122,843 121,995 92,395 89,455 89,385 Development properties - - - - 26,721 19,768 15,110 10,
Slide 17: Financials, pro-forma
Financials, pro-forma Key metrix Q2 2019 Q1 2019 Q4 2018 Q3 2018 Q2 2018 Q1 2018 Q4 2017 Q3 2017 Q2 2017 Occupancy rate area, %* 87.7% 92.0% 88.8% 97.5% 99.6% 99.6% 97.0% 98.1% 97.6% Average rent, EUR/sqm/month* 14.7 14.8 14.5 14.3 14.5 14.5 13.8 13.8 13.5 Property yield, investments properties, %*
Slide 18: Key figures
Key figures Property value and LTV Rental income and surplus ratio EURk EURk 200 000 50% 3 500 100% 160 000 40% 2 800 80% 120 000 30% 2 100 60% 80 000 20% 1 400 40% 40 000 10% 700 20% 0 0% 0 0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2017 2018 2019 2017 2018 2019 Value, investment prop
Slide 19: Shareholders
Shareholders • More than 5,000 shareholders Shareholders No. of shares Capital, % • Total no. of outstanding shares amounts to Peter Elam Håkansson1 6,048,551 27.0 22,370,261 of which 1,221,200 (5,5 per cent) Keel Capital 1,980,135 8.9 in treasury Lazard Asset Management 1,489,951 6.7 Mertiva AB 1,3
Slide 20: Focus going forward
Focus going forward
Slide 21: Future focus
Future focus • Complete agreed acquisition of S7-2 & 3 in Vilnius during Q3 2019 and Q1 2020 • Sign tenants and arrange financing of new development project in Riga ‒ The Pine • Increase the occupancy ratio in 3Bures-1,2 in Vilnius and Alojas Biroji in Riga • Continue to increase rental levels on ne
Slide 22: Eastnine AB Ticker: EAST
Eastnine AB Nasdaq Stockholm Mid Cap Ticker: EAST Interim report January-September 2019: Published 8 November 2019 www.eastnine.com