Eastnine (EAST) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered stable profit from property management, with a 2% year-over-year decline to EUR 7.7m, impacted by lower occupancy and a cold winter, while net profit dropped significantly due to negative unrealised property value changes, mainly in Riga.

• Rental income for the quarter was EUR 15.4m, down 1% year-over-year, and the portfolio remains focused on prime office properties in Poland and the Baltics, valued at around EUR 1 billion.

• Cash reserves increased to EUR 63m, supported by new loan disbursements and the pending sale of two Riga properties for EUR 38m, expected to close in Q2 2026 and boost liquidity by EUR 12m.

• The Board proposed a dividend of SEK 1.28 per share, up from SEK 1.20, reflecting strategic progress and improved fund ownership, which rose to 14%.

• SBTi validation of climate targets was achieved, with a net zero emissions target by 2040.

Financial highlights

• Rental income declined 1% year-over-year to EUR 15.4m, with indexation contributing a 2% increase, offset by lower occupancy; net operating income fell 4% to EUR 14.0m.

• Property expenses rose by up to 45% due to a cold winter and increased staffing in Poland, reducing the surplus ratio to 91.0%.

• Profit from property management was EUR 7.7m, down 2% year-over-year.

• NAV per share was EUR 5.16 (SEK 56.47) as of March 31, 2026; total cash rose by EUR 13m to EUR 63m.

• Total Shareholder Return reached 13% over the last 12 months and averaged 12% over five years.

Outlook and guidance

• Liquidity is set to increase by EUR 12m in Q2 2026 after the Riga property sales, and the company continues groundwork for acquisitions, focusing on Warsaw and other high-growth regions in Poland and the Baltics.

• Theoretical earnings capacity for the next 12 months is expected to improve slightly, with rental income projected to rise 2% due to indexation, though partially offset by lower occupancy and higher expenses.

• Board proposed a dividend of SEK 1.28 per share.