Eastnine: Strong operational metrics - ABG

Q4 NOI +69% y-o-y, +4% vs ABGSCe
Net LTV at 50.7% (<19% if MFG divestment is completed)
Strong occupancy, confident management, solid outlook


First take on Q4 report

Eastnine delivered a Q4 report with rental income of EUR 8.5m (+2% vs ABGSCe) and NOI of EUR 7.8m (+4% vs AGBSCe). The NOI margin increased by 7 pp y-o-y to 91.6% (ABGSCe at +4.9 pp y-o-y to 89.5%), partly thanks to strong operating leverage and significantly higher occupancy with triple-net lease argreements. Net financial items amounted to EUR -3.1m (ABGSCe at -2.7), bringing the IFPM to EUR 3.5m (ABGSCe at EUR 3.8m). Occupancy continued to be strong, up 2 pp q-o-q and 6.3 pp y-o-y to 96.3%. Net letting in the quarter amounted to EUR -0.3m, which brings the 2022 full-year figure to EUR 2.0m, one should obviously keep in mind that net letting will slow when occupancy reaches levels >95% (Eastnine currently at 96.3%). The like-for-like rental income growth amounted to 4% in 2022 (1.2% for Jan-Sep). Management notes that market rents in Vilnius, Riga and Poznan have increased by ~5% y-o-y. All in all, strong operational performance with higher occupancy and NOI margin, the outlook is positive and the property value revisions are limited (and positive).

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/eastnine/Equity-research/2023/2/eastnine---strong-operational-metrics/