Eastnine Ab · OMXSTO:EAST

Eastnine Ab — Q4 2024 Earnings Presentation

26 slides from Eastnine Ab's earnings presentation, Feb 5, 2025

  1. Slide 1: Eastnine Year-end report presentation 2024

    5 February 2025 Eastnine Year-end report presentation 2024

  2. Slide 2: Highlights

    Highlights • Property portfolio +63 % • Profit from property management → Full year: +25 % Q4: +37 % • Profit per share from property management → Full year:+24 % Q4: +32 % • Positive net letting → Full year: EUR 581k Q4: EUR 183k • Occupancy ratio increased to 96.1 % • Surplus ratio was 92.8 % • Ac

  3. Slide 3: Warsaw Unit in brief

    Warsaw Unit in brief Asset • Located in central Warsaw. • 202 meters high, 46 floors above and 3 under. • ~60,000 sq.m. • 400 parking spaces. Tenants • Fully leased (100 % economic occupancy). • Key tenants including Warta, Amazon, Moderna, Stryker, CBRE, and Panattoni. • Rent level ~EUR 24/sqm/mont

  4. Slide 4: Markets

    Markets eastnine ©

  5. Slide 5: Increased focus on Poland

    Increased focus on Poland Dagensindustri 9 susr sors mamcuanswvrr sevacumaan epare tT GE iat testa iy rte nate Eastnine: Satter Rysslandspengarna i arhete Polen ar snart nasta europeiska stormakt Polen ar just nu landet som gor allting ratt. Nar landets premiarminister Donald Tusk gastar Sérmland oc

  6. Slide 6: Consistently high GDP growth

    0% 2% 3% 4% 5% 1% Ireland Malta Poland Lithuania Source: Eurostat, IMF Romania Latvia Slovak Republic Estonia Iceland Luxembourg Cyprus Bulgaria Slovenia Czechia Hungary Sweden Croatia Spain Real GDP growth (EU27) Belgium Netherlands Norway Denmark Finland 1998-23A Austria France Germany Portugal 20

  7. Slide 7: Low debt to GDP

    Low debt to GDP Further economic potential from higher private and public debt Private and public sector debt, % of GDP (EU27) 350% 300% 250% 200% 150% 100% 50% 0% Netherlands Portugal Italy Denmark Cyprus France Malta Belgium Ireland Austra Spain Greece Hungary Estonia Poland Latvia Germany Slovaki

  8. Slide 8: Growing office employment

    Growing office employment Expanding service sectors, fueled by high number of tech graduates Office employment, % of total employment 40% Helsinki 35% Nordic and German cities average 2022 30% Stockholm Warsaw 25% Riga Gothenburg Riga 20% Vilnius 15% Poznan Copenhagen Vilnius 10% 5% Poznan Warsaw 0%

  9. Slide 9: Higher yields, lower rents

    Higher yields, lower rents Same cost of debt translating into higher cash returns, plus scope for long-term value growth EUR/sq.m./month Prime office rent, prime office yield 2024 90 9% 80 8% Helsinki 70 7% Oslo 60 6% Stockholm 50 5% Gothenburg 40 4% Riga 30 3% 20 2% Copenhagen Malmo Vilnius 10 1% 0

  10. Slide 10: Operations

    Operations eastnine ©

  11. Slide 11: Property portfolio

    Property portfolio • No. of properties: 16 • Lettable area: 271,600 sq.m. • Lettable area per property: 17,000 sq.m. • Property value: EUR 935m • Property value/sq.m.: EUR 3,400 • Average age (sq.m): ~7 years 11

  12. Slide 12: Property key figures

    Property key figures Q4 Q3 Q4 2023 Surplus ratio 93.2 % 92.9 % 91.7 % (quarter) 2024-12-31 2024-09-30 2023-12-31 Occupancy ratio Occupancy rate 96.1 % 94.4 % 93.1 % (financial) Weighted yield requirement (valuations) 6.6 % 6.7 % 6.4 % 12

  13. Slide 13: Poland, Lithuania, Latvia portfolio

    No. of properties 3 Property value EUR 480m POLAND 51 % Rental value EUR 33m Lettable area 128,200 sq.m. Occupancy rate 100.0 % No. of properties 9 Property value EUR 387m LITHUANIA 41 % Rental value EUR 26m Lettable area 120,900 sq.m. Occupancy rate 94.5 % No. of properties 4 Property value EUR 69m

  14. Slide 14: Tenant/lease key figures

    Tenant/lease key figures Q4 2024 Net letting EUR +183k EUR +581k 2024-12-31 2024-09-30 2023-12-31 Wault 4.1 yrs 3.9 yrs 3.8 yrs Tenant concentration Largest tenant’s share of 11 % 14 % 16 % contractual annual rent % 14

  15. Slide 15: Tenants – sectors

    Tenants – sectors Share of contractual Tenant annual rent, % Other ICT* Warta 11 37% 21% Allegro 10 Danske Bank 8 Telia 5 Vinted 3 McKinsey 3 Swedbank 3 CBRE 2 E-commerce Finance Rockwool 2 14% 28% Moderna 2 * Information, Communication, Technology Total 50 15

  16. Slide 16: Sustainability – ambition to be a leader

    Sustainability – ambition to be a leader Sustainability certification GRESB, 92 points Total energy use per sq.m. kWh/sq.m. 100 % (94) -10 % 145 131 Green financing Green leases 76 % (60) 45 % (68) 2023 2024 16

  17. Slide 17: Financial overview

    Financial overview eastnine ©

  18. Slide 18: Income Statement

    Income Statement 2024 2023 Change Oct-Dec Oct-Dec Change Large increase in profit from property EURk 2024 2023 management both during the year and the quarter. Most important factors: Rental income 41,523 36,166 2 +15 % 12,412 8,967 2 +38 % Property expenses -2,970 -2,535 +17 % -842 -747 +13 % 1. Ac

  19. Slide 19: Earning capacity

    Earning capacity 1. The acquisition of Warsaw Unit has EURk 2024-12-31 2024-09-30 Change, % substantially increased rental income, NOI Rental income 61,061 43,023 1 +42 and profit from property management. Property expenses -2,970 -2,874 +3 2. Central administration, based on outcome for Net operati

  20. Slide 20: Earning capacity - key ratios

    Earning capacity - key ratios Change, Key ratios 2024-12-31 2024-09-30 unit 1. Profit per share from property +0.05 management increased by 21 %. Profit from property management/share, EUR 0.32 0.27 1 +21 % 2. Surplus ratio increased mainly due Surplus ratio, % 95.1 1 93.3 2 +1.8 to acquisition of W

  21. Slide 21: Debt financing

    Debt financing OP Luminor 1% 4% Berlin Hyp 22% Swedbank LHV 17% 2% Helaba 17% SEB 20% Erste 17% 21

  22. Slide 22: Interest key figures

    Interest key figures 2024-12-31 2024-09-30 2023-12-31 Interest rate level, % 4.5 4.6 4.0 Share of fixed interest, % 84 69 72 Fixed interest period, year 3.1 2.1 1.7 22

  23. Slide 23: Financial stability key figures

    Financial stability key figures Q4 2024 Q3 Q4 2023 Interest coverage ratio, times 2.4 2.5 2.2 2024-12-31 2024-09-30 2023-12-31 Liquidity, EURm 31 90 129 Loan-to-value, % 50 35 27 Loan maturity Capital tie-up period, yrs 3.4 2.7 2.1 23

  24. Slide 24: Properties – value and valuations

    Properties – value and valuations 2020-2024, quarterly figures Property value Unrealised changes in value % Yield requirement valuations TEUR TEUR 7,0 1 000 20 900 15 800 6,5 10 700 5 600 6,0 500 0 400 -5 300 -10 5,5 200 -15 100 0 -20 5,0 2024: EUR 935m, +63 % 2024: EUR -4.3m, < 1 % Q4 2024: 6.6 %,

  25. Slide 25: For the shareholders

    For the shareholders Profit per share from Total shareholder return, % Dividend Proposal 2024 Increase to SEK 1.20 per share (1.16), with property management Eastnine OMX Sthlm quarterly instalments of SEK 0.30 per share, EUR 0,35 +21 % Real Estate GI corresponding to 50 % of profit from property ma

  26. Slide 26: Thanks! Please post your questions!

    Thanks! Please post your questions!

Eastnine — Q4 2024 Earnings Presentation on 6ix