Sweden's Eastnine H1 profit falls, partly hurt by higher vacancy
Sweden's Eastnine H1 profit falls, partly hurt by higher vacancy
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: ID:nWkrbhPZTT
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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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)