Eastnine (EAST) Q3 2024 earnings summary

Executive summary

• Rental income increased by 7% year-over-year for January–September 2024, with an 18% rise in Q3, and profit from property management rose 21% to a record EUR 16 million, reflecting strong operational performance and the Nowy Rynek E acquisition.

• Occupancy improved by 1.3 percentage points to 94.4%, with potential to reach nearly 96% with new leases, and major new leases were signed with IBM and Vilnius Municipality for 2025.

• Surplus ratio remained high at 93%, significantly above sector averages.

• Net profit for the period was EUR 6,148k, a turnaround from a EUR -72,220k loss in the prior year, despite unrealised value changes.

• Achieved a five-star GRESB sustainability rating with 92 points, ranking among the top 20% globally for ESG performance.

Financial highlights

• Net letting was positive, totaling EUR 750,000 annually, and net operating income rose 6% year-over-year to EUR 26,983k.

• Total profit from property management reached EUR 16 million, and earnings per share before and after dilution were EUR 0.07, up from EUR -0.81.

• Property value at the end of September was EUR 654 million, with a lettable area of over 210,000 sqm.

• Loan-to-value ratio stood at 35%, and interest coverage ratio improved to 2.6x.

• Cash and cash equivalents at period end were EUR 90.5 million, down from EUR 128.6 million at year-end.

Outlook and guidance

• Strong leasing activity in October is expected to positively impact Q4 results, with new tenants entering in March and April next year.

• Focus remains on profitable acquisitions in Warsaw and further growth in high-growth European markets.

• Ambition to be a sustainability leader, targeting climate-neutral property operations by 2030.