Eastnine: Focus on the earnings capacity - ABG

NOI +0% and rec PTP +3% vs ABGSCe
EC IFPM +33% q-o-q and +2% vs ABGSC 2024e
Net LTV down to 27.6%, hints for acquisitions


Q3 NOI +12% y-o-y, EC IFPM +2% vs ABGSC 2024e

Eastnine delivered a Q3 report with rental income of EUR 9.1m (-1% vs ABGSCe) with an NOI margin of 93.7% (+1.4 pp y-o-y, +0.7 pp vs ABGSCe), which drove NOI to EUR 8.5m (+0% vs ABGSCe). Rec PTP / IFPM came in 3% above our estimate, but is heavily dependent on when during the third quarter that the MFG cash consideration started to generate interest income, which is why we believe one should focus on the earnings capacity compared to the 2024 estimates, rather than the Q3 outcome. The earnings capacity IFPM figure now amounts to EUR 21.6m, which is +33% q-o-q and +2% vs ABGSC 2024e. From an operational point of view, Eastnine continues to deliver solid performance.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/eastnine/Equity-research/2023/10/eastnine---focus-on-the-earnings-capacity/