Q3 2024 Eastnine AB (publ) Earnings Call Transcript
Key Points
- Eastnine AB (LTS:0HEZ) reported an 18% increase in rental revenues and a 21% rise in profit from property management, indicating strong financial performance.
- The company achieved a high occupancy rate of 94.4%, with expectations to reach 96% due to new leases.
- Eastnine AB (LTS:0HEZ) received a five-star rating in the GRESB assessment, scoring 92 points, highlighting its commitment to sustainability.
- The company successfully signed two significant leases in October, generating an annual revenue of approximately EUR 750,000.
- Eastnine AB (LTS:0HEZ) operates in the fastest-growing regions of Europe, including Poland and the Baltic States, offering significant growth potential.
- The vacancy rate in Riga remains high at 22%, indicating challenges in fully leasing properties in that market.
- Despite strong performance, the company faces increased property expenses and interest expenses due to recent acquisitions.
- Eastnine AB (LTS:0HEZ) experienced slightly negative value changes during the period, which could impact overall asset valuation.
- The company reported increased legal costs and costs for sustainability consultants, which may affect profitability.
- Tenant concentration remains a concern, with the largest tenant accounting for 14% of annual contracted rent, although this has improved from previous years.
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Hello and very warm welcome to our nine month presentation. My name is Kestutis Sauca and I'm CEO of East Nine with me. I have Marie Nan Deputy CEO and co of the company.
I'm very happy to present this quarter which is exceptionally strong for us. We continue growing. Our rental revenues are up 18%. Our profit from property management are up is up 21%. So very very strong quarter including net letting which is up with a positive figure, occupancy ratio increases by 0.8 points and surplus ratio is unchanged which means that our operations are continuously running in a very efficient manner.
October was also a very positive month for us. We received five stars in grasp rating with 92 points.
We also signed two big leases which have an annual revenue of around EUR750,000 so this is actually even higher than twice the size that we reached so far during the first nine months of the year. If we go to the nine month results, rental income is up 7% of course, mainly driven by the last
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