Eastnine (EAST) Q4 2024 earnings summary

Executive summary

• Property portfolio value increased by 63% in 2024 to EUR 935m, driven by major acquisitions in Poland, notably Warsaw Unit and Nowy Rynek E, with profits from property management up 25% year-over-year and 37% in Q4.

• Profit per share from property management rose 24% for the year and 32% in Q4, reaching EUR 0.25, reflecting strong operational performance and acquisition impact.

• Net profit for the year was EUR 5.9m, a turnaround from a EUR -72.0m loss in 2023; occupancy reached 96.1% and surplus ratio 92.8%.

• Positive net letting of EUR 581k for the year, with EUR 183k in Q4.

• Board proposes a dividend increase to SEK 1.20 per share, with a new policy to annually increase dividends, amounting to at least one third of profit from property management, less current tax.

Financial highlights

• Rental income and net operating income rose 15% year-over-year in Q4, reaching EUR 41.5m and EUR 38.6m respectively, with property value at EUR 935m.

• Profit from property management for Q4 was EUR 22.2m, up 25% year-over-year.

• Unrealised property value changes were negative at EUR -4.3m for 2024, less than 1% of portfolio value, a significant improvement from EUR -42.5m in 2023.

• Total shareholder return was 11.6%–12% in 2024, outperforming the OMX Stockholm Real Estate index.

• Total comprehensive income for Q4 was EUR 5.9m.

Outlook and guidance

• Full effect of acquisitions expected in 2025, with profit per share from property management projected to increase by 21% to EUR 0.32.

• Board aims for annual dividend increases and sees continued growth in profit per share from property management.

• Rental growth expected in Warsaw and Vilnius due to limited supply and robust demand; more tenants are expanding rather than downsizing.

• Transaction activity in the Baltics and Poland is expected to increase in 2025 as market conditions normalize.

• Market demand for premium office space remains strong, with positive signals for further growth in core markets.