Eastnine: MFG still in play, slightly lower value - ABG

NOI +31% y-o-y, +3% vs ABGSCe
MFG discussions ongoing, write-down of ~EUR 31m
Getting used to NOI beats and solid operations


First quick take on Q2 PnL and operations

Eastnine delivered a Q2 report with rental income of EUR 9.1m (+0% vs ABGSCe at EUR 9.1m). The NOI margin expanded by 4.9 pp y-o-y to 94.1% (+3.1 pp vs ABGSCe at 91%), which brings the NOI to EUR 8.6m (+3% vs ABGSCe at EUR 8.3m). Operational metrics continue to be strong. Net financial expenses were slightly higher than we expected, which brings the IFPM / Rec PTP to EUR 4.1m (ABGSCe at EUR 3.9m), up 31% y-o-y. As expected, Eastnine operations continue to perform very well, while the short-term share price reaction and acquisition scenario lies in a successful MFG divestment (more on that below). Management notes that the general demand for lettable space has decreased somewhat, while the demand for high-end offices (high quality modern space in good locations) remains strong.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/eastnine/Equity-research/2023/7/eastnine---mfg-still-in-play-slightly-lower-value/