Overview

  • Sweden real estate firm's H1 rental income was stable yr/yr, with 3% growth in comparable portfolio

  • Net income and profit from property management declined due to higher vacancy and operational changes

  • Company agreed to acquire The Bridge office property in Warsaw for EUR 300 mln after period end

Outlook

  • Eastnine expects The Bridge acquisition to close in Q4 2026, subject to financing

  • Company says The Bridge will increase profit per share from property management by about 20%

  • Eastnine expects Warsaw to become its largest market, with Poland accounting for 64% of rental income

Result Drivers

  • PROPERTY EXPENSES - Co said surplus ratio improved as property expenses declined compared to Q1

  • VACANCY RATES - Co said profit from property management declined partly due to higher vacancy rates in the beginning of the year

  • PROPERTY DIVESTMENT - Sale of two properties in Riga strengthened cash reserves and reduced loan-to-value ratio

Company press release:

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

H1 Rental Income

EUR 30.70 mln

H1 Net Income

EUR 12.46 mln

H1 Operating Income

EUR 28.17 mln

H1 Profit From Property Management

EUR 14.92 mln

Analyst Coverage

  • The one available analyst rating on the shares is "buy"

  • The average consensus recommendation for the real estate rental, development & operations peer group is "buy"

  • The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

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