Eastnine Q November

Transcription

1 Eastnine Q November

2 Agenda Our portfolio and quarterly performance Update on our holdings Focus going forward Key financials and NAV development Welcome to today s presentation Today s presenters Kestutis Sasnauskas CEO, Eastnine Lena Krauss CFO, Eastnine 2

3 New financial targets and dividend policy New dividend policy Dividend shall correspond to at least 50% of profit from property management. During the build-up phase until 2020, the annual dividend shall be at least 2.0% of the net asset value at the preceding year-end. New financial targets 13-15% return on equity, over 5-year period <65% loan-to-value ratio >2.0x interest service coverage ratio 3

4 Eastnine vs. MSCI Emerging Markets Europe January - September indexed, SEK 4

5 Portfolio development Q3 2017

6 NAV per share increased by 2.2% Portfolio 30 September 2017, value change July September, % Cash and cash equivalents Vertas 1.5% Komercijalna Banka Skopje 7.9% East Capital Global Frontier Markets Fund 2.4% East Capital Deep Value Fund 2.5% EUR 232.3m NAV/Share EUR Burės 2.2% 3 Burės development -1.0% East Capial Baltic Propery Fund II 7.1% Melon Fashion Group -0.6% East Capial Baltic Propery Fund III 1.2% 6

7 Real Estate Direct

8 Real Estate Direct EURM Q Q Q1-Q Q1-Q FY 2016 Value change, % NAV % of Eastnine s NAV Investments Divestments Vertas 3 Burės 3 Burės development Fair value increased by 1.4% July September, and 4.1% year-to-date Combined average annual return is 10.9% Fair value increase mainly due to positive cash flows in 3 Burės, while 3 Burės development had a marginal value decrease Average rent increased to 13.8 EUR/ sqm/ m from 13.5 in Q2, an increase of approximately 2% Combined vacancy remains low at 1.9% from 2.4% in Q2 8

9 Key performance data EURm Q Q Q Net operating income Surplus ratio, % Leasable floor space, k sq.m Income-producing properties Development properties Floor space vacancy level, % Rental value, offices Property value Income-producing properties Development properties Yield requirement, % Interest coverage ratio, multiple Loan-to-value ratio, % Long-term equity (EPRA)

10 Key performance data Property value Largest tenants Lease term structure SQM Telia 9,100 Rental value, EURm 2,5 Citco 3,000 Visma 2,400 2,0 European Social Fund 2,100 1,5 Swedbank 1,400 Cobalt 1,400 1,0 Under development 0,5 3 Bures Vertas 3 Bures development Swedbank 8,900 Visma 3,600 0, Developments Income-producing properties 10

11 Our Properties 3 Burės Vacancy decreased to 1.7% from 3.3% Average rent increased by 2.7% 3 Burės development Construction continued as scheduled for the third tower Slight fair value decrease mainly due to a negative swap revaluation Vertas Vacancy of 2.7% Short-term fully equity financed 11

12 Real Estate Funds

13 Real Estate Funds EURM Q Q Q1-Q Q1-Q FY 2016 Value change, % NAV % of Eastnine s NAV Investments Divestments East Capital Baltic Propery Fund II East Capital Baltic Propery Fund III The segment s fair value increased by 5.0% July September, and 9.0% ytd Combined average annual return is 10.2% BPF II sold its holding in GO9 at an average IRR in excess of 15% since Eastnine will receive its share of profits, in excess EUR 9m, in Q4. BPF III closed the transaction of VGP Nehatu in September and operational takeover of the property is ongoing. 13

14 Other

15 Other EURM Q Q Q1-Q Q1-Q FY 2016 Value change, % NAV % of Eastnine s NAV Investments Divestments Komercijalna Banka Skopje East Capital Global Frontier Markets Fund East Capital Deep Value Fund Melon Fashion Group Total segment fair value increased by 1.5% July September, and decreased by 2.8% year-to-date Combined average annual return is 0.6% Public equity holdings gained value while Melon Fashion Group decreased marginally due to currency translation East Capital Deep Value fund will change its name to East Capital Eastern Europe Small Cap due to new strategy effective 1 December

16 Melon Fashion Group Fair value decrease by 0.6% during the quarter Translation effect of the weaker rouble against the euro Underlying rouble base valuation was kept unchanged Total sales increased by 14.3% Lifted by high like-for-like and pick-up in franchise and online sales Operating profitability continues to improve Q3 EBITDA of RUB 505m, compared to RUB 148m in Q EBITDA margin at 13.2% up from 4.4% previous year Key financials RUBm Q Q FY 2016 Sales 3,842 3,362 12,474 Gross profit 2,007 1,531 5,932 EBITDA Net profit Sales growth, % Gross margin, % EBITDA margin, % Number of stores, end-quarter Like-for-like sales growth, %

17 Other portfolio holdings East Capital Deep Value Fund Q3 Performance +2.5% Several countries showing strong GDP growth Political uncertainties are decreasing Liquidity is increasing New strategy effective 1 December 2017 East Capital Global Frontier Markets Fund Q3 Performance +2.4% Markets of interest: Argentina had a strong quarter, where Grupo Supervielle gained 29.5% Nigeria showed a positive GDP growth for the third quarter, for the first time in over a year Pakistan market lost 14%, Prime minister disqualified by Supreme Court and increased fear of Rupee depreciation Komercijalna Banka Skopje Q3 Performance +7.9% Macedonia continues to show strong recovery, GDP 3% in 2017E Net profit MKD 106m, mainly due to an increase of the provisioning of the corporate loans, which was above expectations 17

18 Focus going forward

19 The transformation is in full speed An active pipeline A-class office properties in all three Baltic capitals Participation in selective development projects Exploring exit options for non-core holdings 19

20 Key financials and NAV development

21 Share buyback program Buybacks up to NAV/share. Previous limit of 20% discount to NAV removed Q3 2017: 577,013 shares repurchased for a total of EUR 4.1m 1 Oct 7 Nov: 343,214 shares for total of EUR 2.8m Year-to-date (until 7 Nov): 2.2m shares for total of EUR 16.6m Holding of own shares now 5.8% Share buybacks continue, current mandate until 31 December 2017 Accumulated buybacks since program launched in May 2016: 4.8m shares at EUR 33.6m Shareholder distribution, % of market cap 12% 10% 8% 6% 4% 2% 0% ytd Buybacks Dividends Redemptions 21

22 Key figures Q SEP JUN DEC SEP 2016 NAV per share EUR NAV per share SEK Closing price per share SEK Total NAV EURm Market cap EURm Q Q M M 2016 FY 2016 Net result EURm Earnings per share, EUR EUR NAV per share development, % % Investments EURm Divestments EURm

23 Change in NAV per share Q3 2017, EUR 9,59 0,09 0,06 0,04 0,04 0,01 0,04 9,79 Dividends received (MFG): EUR 1.0m Total group operating expenses in Q3 2017: EUR 0.97m 23

24 Eastnine AB Nasdaq Stockholm Mid Cap Ticker: EAST Q4 Report published 16 February