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
Overview Sweden real estate firm's Q1 rental income fell 1% yr/yr amid lower occupancy, high energy costs Q1 profit from property management declined 2% yr/yr Company agreed to sell two Riga properties post-quarter for about EUR 38 mln to boost liquidity Outlook Company expects liquidity to increase by about EUR 12 mln in Q2 from Riga property sale Eastnine continues groundwork for future acquisitions, with focus on Warsaw Company targets net-zero greenhouse gas emissions in property portfolio and value chain by 2040 Result Drivers LOWER OCCUPANCY AND HIGH ENERGY COSTS - Co said lower average occupancy rate and high energy costs due to a cold winter weighed on Q1 earnings RENT INDEXATION - Rent indexation of about 2% supported rental income, though not fully visible due to prior period reclassifications POLAND ORGANIZATION TRANSITION - Transition to in-house operations in Poland temporarily affected earnings as external suppliers are phased out Company press release: Key Details Metric Beat/Miss Actual Consensus Estimate Q1 Rental Income EUR 15.43 mln Q1 Net Income EUR 7.50 mln Q1 Operating Income EUR 14.05 mln Q1 Profit From Property Management EUR 7.67 mln Analyst Coverage The 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 ago For questions concerning the data in this report, contact [email protected]. For any other questions or feedback, contact .