This article first appeared on GuruFocus .
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Rental Income:Down approximately 1% compared to the previous year, affected by currency effects and lower occupancy.
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Profit from Property Management:Decreased by 2%, influenced by a cold winter and lower occupancy.
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Occupancy Rate:Slight decrease of 0.2%, currently at 95.6%.
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Unrealized Value Change:Slightly negative, mainly related to the development project in Riga.
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Property Expenses:Increased by 11%, due to a cold winter and new hires in Poland.
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Loan-to-Value (LTV):Remained stable at 47%.
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Total Cash:Increased by EUR 13 million to EUR 63 million.
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Dividend Proposal:SEK 1.28 per share.
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Total Shareholder Return:13% over the last 12 months.
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Release Date: April 28, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Eastnine AB ( LTS:0HEZ ) maintained a high occupancy rate of 95.6%, which is considered very high for an office company.
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The company is preparing for future acquisitions and is accumulating more cash, indicating potential growth opportunities.
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Eastnine AB ( LTS:0HEZ ) has a strong focus on sustainability, with 100% of its portfolio being sustainability certified and 88% of its financing being green.
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The company has a diversified and stable multinational tenant list, which includes dynamic sectors such as ICT, finance, e-commerce, and medical health.
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Eastnine AB ( LTS:0HEZ ) reported a total shareholder return of 13% over the last 12 months, outperforming the real estate index.
Negative Points
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Rental income decreased by approximately 1% compared to the previous year, partly due to currency effects and lower occupancy.
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Profit from property management decreased by 2%, affected by a cold winter and increased property expenses.
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The company experienced a slight decrease in occupancy rate by 0.2%, which impacted profits.
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Property expenses increased significantly due to a cold winter and the hiring of new employees in Poland.
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There were negative unrealized value changes for properties, particularly related to the development project in Riga.
Q & A Highlights
Q: Does your sale of office buildings in Riga indicate a broader intention to exit the Latvian market? Are you also considering selling the remaining property in Riga? A: We haven't communicated that, but it's a valid question. We are reviewing our options, but no decisions have been made so far.
Q: What will you do with all the extra liquidity should an acquisition be postponed indefinitely? A: We don't believe acquisitions will be postponed indefinitely. We are actively working on acquisitions and have a pipeline of prospects.
Q: Margin wise, how much impact did the cold winter have from a normalized margin? A: The energy cost increased by around 20% due to the cold winter. The vacancy rate, which is around 5%, affected us slightly, but the impact on margins is not very significant, possibly around 1%.
Q: The higher vacancy seems to come from around 1900 square meters in Poznan. Is that related to one or more tenants, and what are your prospects for filling those spaces? A: The vacancy in Poznan is due to the relocation of one tenant to accommodate the growth of Rockwool. We have freed up 1,000 square meters, with 500 already committed to a tenant and 500 currently on the market.
Q: You have been preparing for acquisitions for some time. What is the main reason for not closing any deals yet? Is it agreeing on price or finding the correct funding? A: We are very selective about what we buy. Delays are due to factors outside our control, but there is no change in our strategy.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
