Eastnine: Upside potential to estimates remains - ABG

Lower occupancy leads to negative est. revisions
Acquisition potential remains, CEPS upside of ~20%
Trading at 2024e P/CEPS of ~15x (sector average at ~17x)


Non-recurring items, higher DPS and lower occupancy

Eastnine delivered a Q4 report with rental income and NOI slightly below (-1-2%) our estimates. The proposed DPS surprised on the upside (SEK 4.64, +36% y-o-y) while non-recurring items related to the repurchase of outstanding bonds drove net financial items higher. In terms of estimate revisions, we incorporate slightly higher occupancy (Eastnine had one large tenant leaving in Q4'23 in Riga, the slowest rental market out of Eastnine's regions) and somewhat lower indexation assumptions going into 2024e (3%).

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/eastnine/Equity-research/2024/2/eastnine---upside-potential-to-estimates-remains/