Eastnine (EAST) Q2 2026 earnings summary

Executive summary

• Rental income for Q2 2026 was EUR 15.3m, up 1% year-over-year and 3% like-for-like, with high occupancy and resilient rental income despite minor declines in net results due to organizational expansion and divestments.

• Net operating income for Q2 2026 was EUR 14.1m (flat), and EUR 28.2m for Jan-Jun 2026 (down 2%), with profit from property management declining 9% in Q2 to EUR 7.3m and 5% for Jan-Jun to EUR 14.9m.

• Announced acquisition agreement for The Bridge in Warsaw, a prime office asset, expected to significantly boost portfolio value and profit per share, with closing expected in Q4 2026.

• Divested two properties in Riga, reallocating capital to stronger markets and reducing exposure to weaker regions.

• High occupancy rate of 96.5% and surplus ratio of 92.5% maintained across the portfolio.

Financial highlights

• Rental income for H1 2026 was EUR 30.7m, stable year-over-year, with net operating income at EUR 28.2m (down 2%) and profit from property management at EUR 14.9m (down 5%).

• Surplus ratio remained high at 92.5%, with economic occupancy at 96.5%.

• Loan-to-value ratio stood at 45%, with a debt ratio of 8.0x and interest coverage ratio at 2.4x; average interest rate was 4.4%.

• Cash and cash equivalents totaled EUR 71m as of June 30, 2026.

• Net profit for H1 was EUR 12.5m, down from EUR 27.7m in H1 2025, mainly due to lower unrealised and realised property value changes.

Outlook and guidance

• Acquisition of The Bridge in Warsaw is expected to close in Q4 2026, projected to increase profit from property management per share by up to 202% and make Poland the largest market.

• Profit from property management is expected to rise in Q3 as cost efficiencies from Riga office closure and new acquisitions take effect.

• Market outlook indicates expectations of lower yields and higher rents in core markets, with continued focus on acquiring high-quality, large office properties in Poland.

• The company is well positioned for growth with a strong balance sheet, robust cash flows, and high occupancy.