Business
Sweden's Eastnine Q1 rental income dips on low occupancy, high energy costs
Sweden's Eastnine Q1 rental income dips on low occupancy, high energy costs
About this update from Eastnine Ab
OverviewSweden real estate firm's Q1 rental income fell 1% yr/yr amid lower occupancy, high energy costsQ1 profit from property management declined 2% yr/yrCompany agreed to sell two Riga properties post-quarter for about EUR 38 mln to boost liquidityOutlookCompany expects liquidity to increase by about EUR 12 mln in Q2 from Riga property saleEastnine continues groundwork for future acquisitions, with focus on WarsawCompany targets net-zero greenhouse gas emissions in property portfolio and value chain by 2040Result DriversLOWER OCCUPANCY AND HIGH ENERGY COSTS - Co said lower average occupancy rate and high energy costs due to a cold winter weighed on Q1 earningsRENT INDEXATION - Rent indexation of about 2% supported rental income, though not fully visible due to prior period reclassificationsPOLAND ORGANIZATION TRANSITION - Transition to in-house operations in Poland temporarily affected earnings as external suppliers are phased outCompany press release:Key DetailsMetricBeat/MissActualConsensus EstimateQ1 Rental IncomeEUR 15.43 mlnQ1 Net IncomeEUR 7.50 mlnQ1 Operating IncomeEUR 14.05 mlnQ1 Profit From Property ManagementEUR 7.67 mlnAnalyst CoverageThe one available analyst rating on the shares is "buy"The average consensus recommendation for the real estate rental, development & operations peer group is "buy"The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 12 three months agoFor questions concerning the data in this report, contact [email protected]. For any other questions or feedback, contact .