Eastnine Stock

Hello, and very warm welcome to Eastnine's Q3 presentation. My name is Kestutis Sasnauskas, I'm CEO of Eastnine; and with me Adela Colakovic, CFO. Today, we will guide you through the presentation. And please do not forget to put questions online whilst we are speaking, and we will respond to them at the end of the presentation.

So of course, acquisition of the Bridge is the main event that took place during the quarter. This is also one of our probably major acquisitions, strategic acquisitions during the year. And an amazing property in the central Warsaw, just a couple of hundred meters from our previous acquisition, Warsaw Unit. You see both of them in the picture. First, the Bridge and then the third building or fourth building in the row at the end of the picture is Warsaw Unit. It's a 40-story high-rise landmark in Warsaw, 55,000 square meters, 98% leased out. It's actually 100% booked. So there is no space available in it anymore. But the building is totally new and only 57% moved in. The remaining tenants will be moving in during the next year.

And this, of course, has some implications on our multiples. So actually, when you read our presentation, when you read our report, please make a bigger note on the notes that we put because we try to explain it in very detail different effects, implications of this acquisition. The property value of the acquisition is -- underlying value is EUR 285 million. We paid EUR 240 million. There is an explanation to that, this compensation for rent freeze for the periods until the rentals are commencing and some fit-out contributions to be made.

However, the total implication of this acquisition is very significant, and it actually will bring our earnings or profit from property management per share up to EUR 0.36 per share, which is a significant increase in our results and profitability. So if we look on the quarter, it's been a fantastic underlying development. We have 3% like-for-like growth in our portfolio and our revenue over the quarter, 1.4% growth like-for-like during the first 9 months of the year. Net operating income, slightly lower compared to the previous period, again, affected by the buildup of the organization that we have and which is related to sort of increased property costs. This will -- some of that -- or biggest part of this effect actually will be reversed once we take over the management as we today run a little bit of double cost for some time.

The -- some of the most important things is that surplus ratio remains very high. Actually, our occupancy in the underlying portfolio or like-for-like portfolio is up to 97.2%, which is a record high. This is unique for office players today in this market. And again, it shows how strong the underlying portfolio is, both the properties, but also the service that we provide. And NAV per share at EUR 59.38. So these are, kind of, main highlights. We will go into more detail during the presentation in various points of these figures.

So just briefly, Eastnine today is 313,000 of prime, prime, prime properties in Vilnius, Warsaw, Poznan and Riga. Property value of 1.2 -- closer to EUR 1.2 billion. Economic occupancy 88%. Again, underlying portfolio of 97% is just because the Bridge has not moved in. It's leased, but it's not moved in. That's why we have economic occupancy of 88.3%. Our annual rental revenue is at EUR 62 million. We expect a yield of 6.2% in our earnings capacity and somewhat higher LTV just because of we financed the acquisition entirely by refinancing our portfolio, and we have paid in a VAT loan, which will be repaid at the end of this quarter, fourth quarter. And that will reduce to 50 below or 55%, 51% approximately, depending on where we are. We will go into that as well during the presentation.

On the bottom, you see some names of our top tenants. If you look at this line, actually, it's important to see our growth story. We have actually grown very rapidly in our portfolio. If you look over the 10- to 12-year period, basically from 2014 when we had the first property, we had EUR 62 million in property value, and now we are EUR 1.2 billion. So it's been a tremendous growth. If you look on our earnings -- profit from property management per share, it also continued growing. We have a slight dip during this quarter, and we'll have it a couple of quarters before the Bridge will start generating revenue. But actually, when the Bridge is fully moved in, we will reach EUR 0.36 per share. And that's contracted rents, very stable rents for the next coming periods.

So if we go a little bit to the market, the market has been growing tremendously. And actually, Poland over the last 10 years has grown 42% in its GDP, followed by Lithuania, 37%; Latvia 19%, whilst EU average is around 17% growth and Sweden is 16% just for comparison. Not only the countries are growing, actually, the cities where we operate are growing very rapidly. And you see that actually Vilnius is one of the -- on top of our list. But if you look on 170 cities almost in the whole Europe, these cities are among the fastest growing. They're in the top 20 list, all of them. So it's, again, amazing, amazing development that is taking place in our region.

If you look even further in the future, there is a big expectation that actually regions like Poznan and Warsaw will continue growing. Vilnius is also continue growing. This is the Oxford Economics prediction, so not our predictions. But we see it and we witness it every day actually that the growth is very, very strong in our region, which also fuels the demand for commercial properties, especially offices in prime locations.

We're also in a different universe when it comes to yields and rent levels. If you look on comparable markets, the -- our markets still enjoy the lowest rental levels. At the same time, where in the markets enjoying highest yields. And of course, this balance will somehow over time, will disappear. Rents probably need to be pushed up and will go up and the prime yields will probably, over time, have to merge towards European levels and or more kind of historic European levels. This is -- both of these moves would imply quite significant value changes in our portfolio.

But as a result of this, it's very important to note that actually the per square meter values of properties are significantly lower in our region. So if you look in Warsaw, it's EUR 5,900 per square meter whilst in Helsinki, it is almost double. And if you go to Hamburg, Dusseldorf or any other German cities, it's actually more than double the price.

And historically -- and if you look in the Baltics, actually, the values are even lower. So Baltic values, our total portfolio is 3 point -- I don't remember exactly, but we will see that figure later on. So this is a huge discrepancy, this huge opportunity for value growth. What has been keeping this and the rental levels, it's actually a very big supply of office historic in Warsaw. As demand was growing, there was huge take-up, but there was also a lot of new construction taking place. Since COVID and since the increase of interest rates, this construction has subsided significantly. So there is very little construction coming out. The demand remains very strong, and this, of course, drives square meter prices and rents upwards and that we experienced in this market. And you can also see it very clearly on our very high occupancy levels.

In Poland, we have basically 0 vacancy today. Here, you can see some of the pictures of our portfolio in the Vilnius, we're in the very central part of Vilnius CBD, very close to the old town, bordering in some places, the parliament, et cetera. We also have one location where all the tech companies are. This is Uptown Park property. It's a headquarters of Lithuanian start-up called Vinted, and they extended with us last year and actually take possession of the full building now, continuously growing.

In Poznan, we have 2 very central amazing properties in the intersection -- main intersection between the 2 main communication roads in the city next to the railway station, next to the old town, et cetera. This is the most attractive location in Poznan today, and we have almost fully let. We have 1,000 square meters in vacant, which is -- was a result of some moves that we need to accommodate for one of our tenants.

And in Warsaw, we have 2 amazing properties in the very heart of Rondo Daszynskiego area, intersection of Prosta and Towarowa and Prosta and Daszynskiego. So it's 2 amazing properties comprising now 115,000 square meters of prime office, which again creates a very strong market position in this area. It's actually 9% market share in this Wola district of top, top quality properties, but also it brings our market position in Warsaw around 2%, making us one of the larger players in this market as well.

And I didn't mention it, but actually in Vilnius, we have 10% market share. And in Poznan, we have approximately 10% market share. So very strong positions in each city.

If we look on the value, we have rental value of around EUR 81 million and projected revenue for the next coming 12 months of EUR 62 million. Average price is EUR 3,700 per square meter. This is for the average portfolio, of course, the Polish Warsaw properties are valued higher and the Baltic properties are valued lower. Yield requirements in valuations, 6.7%, somewhat up compared to previous periods. Average property age of 7.5 years. So it's again a very, very modern portfolio that requires very little investment, and we see that actually the cash flow is strong. Occupancy, again, 88.3%, but this is mainly due to -- the premises that are not taken in possession by the tenants yet in the Bridge. Otherwise, 97.2%, which is in like-for-like portfolio. Again, extremely strong performance. Average rent of EUR 240 per square meter and year.

Average WALT is 4.1 years and share of top 10 tenants is approximately 55%. You see below some of the names of top tenants that we have in our portfolio, and you will probably be able to recognize all of them.

Again, looking -- it's not only that we have this accidentally. You can see actually backwards. And if you look back to 2020s, our occupancy levels have stayed very high, 94% on average. And you see this red little dot on your left-hand side, it's actual vacancy if you look in like-for-like portfolio and 88% is after implications of the Bridge. So again, very, very strong underlying performance and the surplus ratio is at 91% right now. Again, somewhat affected by the higher costs of personnel recruited to take over the property over time.

And if we look back to sustainability, we have 100% of the portfolio sustainability certified. All of our properties are either BREEAM Outstanding or LEED Platinum. There is no lower level than that. 97% of our portfolio is a Taxonomy-aligned or our revenue. We received a 5-star rating again this year in GRESB evaluation, annual evaluation and green financing stands for 92% of our portfolio. So over to financials and to you, Adela.

Thank you, Kestutis. So looking at the Q3 results, overall, the results are stable and comparable to last year. But if we start at the top from rental income, the underlying changes relate to the divestment of the Riga properties in Q2, which has led to an income loss of EUR 1 million for the period compared to the same period last year. But the effect has been somewhat mitigated by higher rent and record high occupancy levels in the comparable portfolio, which is the explanation for the like-for-like rental increase of over 3% in the quarter and 1.4% for the period.

Moving along to net operating income. It is a bit lower than last year, mainly due to the effects from higher energy costs in the beginning of the year for the period. And for the third quarter, it relates mainly to the valuable buildup of our own organization in Poland. As mentioned before, when everything is handed over from external management, these costs will decrease. Net financials have decreased quite a lot, but the main reason is positive currency effects in Poland related to a volatile zloty-euro development, but also many transactions related to the acquisition of the Bridge. And excluding that effect, the expenses are in line with last year.

Looking at the profit from property management, the quarter increase of 4% is mainly related to the mentioned currency effect. And for the period, the profit is slightly decreased. The acquisition of the Bridge has only had a small impact on the results this quarter since it's only been in the portfolio for 6 days in Q3. And during the quarter, we've had some positive effects from property revaluations, but I will get into those a little bit further along in the presentation.

So looking at our earnings capacity, there is quite a lot to talk about this time. You can see that we have added a column adjusted for the full effect of the signed rental agreements in the Bridge. It is the first column to the left. But I will start off with the Q3 and Q2 reported figures. So rental income has increased by 16% due to the new property, but also the increased occupancy rate in the comparable portfolio, which was 97.2%, as we mentioned before. The current occupancy rate in the Bridge is 57%.

Moving on to property expenses. We can see that they have increased. One of the reasons is the already mentioned buildup of our own organization and the lower occupancy rate, which was 88% in total this quarter. And since we have almost 100% triple net tenant agreements, which means that we can recharge most of our property-related expenses to the tenant. But given that the occupancy rate is quite low right now, it means that a higher portion of those costs stay with us. But it also means that as the vacancy shrinks, the property costs will follow. Central admin increased slightly due to higher personnel costs. Interest income is higher as a result of increased cash, which is also a temporary effect since we have some outstanding payments related to the acquisition. Interest expenses are higher due to increase of debt as a result of financing of the Bridge, but also refinancings that we have done during the quarter in the comparable portfolio. We have excluded the temporary VAT loan here.

Overall, compared to Q2, it is a decrease in profit from property management by 13%. And the reason is the mentioned occupancy rate in the Bridge, which is low right now, but we know that it's only for a short term since we have signed 10-year leases for 98% of the lettable area. The building is expected to be fully occupied by Q4 next year, and this is visible in the column to the left, where we have added those contracts and decreased the property cost in relation to what will be recharged to those tenants. Everything else is unchanged from the Q3 column since this is not a forecast. It's just a snapshot of how it looked per the end of September.

But with these contracts in the portfolio, the profit from property management is expected to reach EUR 0.36 per share, an increase of almost 17% compared to Q2, a clear illustration of the value add from the investment. And speaking of values, we'll look closer at the property value development. During the period, we have invested almost EUR 8 million in tenant improvements in several buildings. One of the biggest ones is for the health ministry in Vilnius, but also to our tenant, Vinted, which has a whole premise for themselves in Vilnius, where they have their headquarters. There has also been a positive effect of the unrealized changes in value due to increased market rents in Warsaw, but it was slightly mitigated by a yield increase mainly in Vilnius.

In Q2, we divested 2 Riga properties, which brought down the value by EUR 39 million. And the most significant effect and value add this year has been the acquisition of the Bridge, which has increased the portfolio by 22% since last year. And the average yield in the valuations is 6.7% at the same level as in Q2 and the average growth over the past 5 years is 25%.

So let's look a little bit more into the East 9 financing situation, starting with the development of loan-to-value, average interest rate and interest coverage ratio in the top left corner. The loan-to-value increased this quarter to 58%, mainly due to the new acquisition, which we had to take a VAT loan because that will be repaid during this quarter when we get reimbursed from the tax authorities. But even though we get those money back, the LTV would drop theoretically to 53%. But simultaneously, our cash will decrease by approximately EUR 50 million during the next 1.5 years, which means that the LTV will go down and then up a little bit, but we're comfortable that it won't go over 60% and maybe stay between 55% and 57% in the foreseeable future.

The average interest rate has increased slightly this quarter because of the swaps rate taking the wrong turn. And -- but on a more positive note, we have refinanced EUR 46 million of our comparable portfolio. And in that portfolio, we were able to reduce the credit margin by 34 basis points compared to Q2. And we increased our debt duration, which is a sign of continued favorable financing conditions for us and a strong relationship with our banks. And after the refinancings, our debt duration increased to 3.5 from 2.9 years, and the fixed interest period went up to 2.6 from 2 years. The interest coverage ratio is remaining at 2.4 and has been at a stable and good level for a while.

And looking at the debt maturity, the next refinancings of a total of EUR 177 million are spread out during next year and are already being discussed with our banks. The interest maturity is visible in the same chart and 79% is fixed with interest rate swaps.

Looking at our cash position, it has actually increased since last quarter despite the acquisition, and that is explained partly by the refinancings that we did, which released EUR 46 additional million. And the other part is related to tenant fit-out contributions and deferred payments for the Bridge acquisition of approximately EUR 50 million that will be released in different stages over the coming 1.5 years, but EUR 20 million of those are actually an investment that will increase the value of the Bridge. But overall, the financing is stable and solid, and we're comfortable with the situation.

So looking at the Eastnine share, we can see that in the long term, it has had a positive development. And the annual average return is at almost 7%, which outperforms the real estate index, which is minus 8%.

Thank you. Now we can go on to questions.

Okay. So we'll start off. Will there be any move-ins in the Bridge in Q4 2026? Or are they all occurring in 2027?

Most of it is actually Visa, and it will take place in 2027. And I think the remaining smaller tenants will also be moving in, in the beginning of 2027. So there will be no more moves in during 2026.

Okay. What's your view on divesting assets in Vilnius to finance acquisitions in Warsaw? Any ongoing discussions?

We are looking at divesting some assets. Of course, you probably know that we have decreased our presence in Riga. We have sold 2 assets. We have 1 remaining asset, and that is also a candidate for sale. When it comes to Vilnius, we're also looking into some opportunities, and we have some ongoing discussions as well. And again, it will come to some favor to acquisitions in Poland, but we also see some acquisition opportunities in Vilnius as well. So moving a little bit of our portfolio, again, with very high focus on improving the quality of the offering that we have and basically strengthening our positions in every single market that we have entered.

Central admin costs were quite low during the quarter. Are we starting to see effects of the in-sourcing in Poland?

And I can answer to that one. Central admin, there's no -- it's only related to like staff overall. Direct property costs are visible in the property cost row. The lower central admin costs are related to vacation effects.

So vacation fund basically has been reduced. So all of our personnel that is related to property is taken on the property costs, and this will be seen in the lower property costs basically and higher surplus ratio, et cetera.

Starting from next year, basically?

Yes. So the main effect will come from Q2 next year. But it will gradually happen already this year.

You report other current assets of around EUR 63 million. Can you give some details on what it is? That is the VAT receivable from the Polish tax authorities.

In Poland, we do transactions, you have to pay in VAT on the full amount. So we paid in VAT on EUR 240 million, and this is expected to be returned end of the quarter next year.

Your restricted cash position is increasing to around EUR 15 million. Why is it increasing? And will that amount be restricted going forward as well? Is that cash position generating any financial income?

Yes. The restricted cash, approximately EUR 10 million of it is related to the acquisition of the Bridge and will be paid out during this quarter, probably. And yes, we have some interest on the bank accounts, which also explains why our interest income is increasing in the actual -- in the current earnings capacity.

Congratulations on the recent acquisition. Poland is now clearly your largest market. Are you looking into new markets on the agenda?

No. And I'm very clear about this. We still have a lot to do in Warsaw. So even within Poland, we will grow within those cities that we are in Warsaw and in Poznan, and we will continue growing in Vilnius as well. So these are the key 3 cities where we will continue strengthening our position. These are the fastest-growing, strongest markets today, I think, in the whole Europe, and this is where we want to be. But over time, we do not exclude other markets. But for the time being, basically for the next coming 3 to 5 years, our main focus will be on strengthening our position in Warsaw and Poznan and Vilnius.

Do you consider the acquisition of the Bridge resulting in a too high portfolio concentration risk around Warsaw, Rondo Daszynskiego? Please elaborate.

Yes. There is also concentration versus diversification. It's -- properties are always about locations and having a strong view on the locations. It took us a long time to analyze the market. We very, very strongly believe in this area because it's not only a pure office area, it will be a residential area as well. There's a huge development next door to us that's actually taking place, and we see a number of other projects coming up into resi area as well. So it will be a very lively nice part of Warsaw containing resi, hotels, restaurants and full of life. And that's why we are very, very strong believers and want to continue being strong in Wola.

But there are other places in Central Warsaw that we also will be looking at. So in properties, locations is more important and having very strong position in these markets is even more important. So we can actually offer our tenants to relocate, to move but keep being in our system. And we have seen that very much in Vilnius. We've seen that in every single market where we are only having these bigger properties, we can actually accommodate those needs. And we see that already some companies that are recently moved in or about to move in, sometimes need more space than they originally anticipated, et cetera. So there's a very strong demand, and we want to do that. So yes, there is concentration, but that concentration we are not really afraid of.

Can you say anything about running 2027, Visa will move in?

So the first move-in is expected at the end of -- somewhere intersection Q1, Q2, half of the premises and the second half is expected in November.

Given LTV at 58% and focus on the Bridge lease-up, should we assume the acquisition agenda is effectively paused until full occupancy is reached? Or are you actively evaluating opportunities in parallel?

We're looking at new opportunities. All the transactions, they're taking very long time. The acquisition of Bridge took us 2 years, not the Bridge, the Warsaw unit. Bridge took a shorter time. So it doesn't happen overnight. So we're working on our pipeline and working on our target list very clearly. And if we will see the opportunity to acquire them, we will do that. So this is irrespective of the moves in tenancy into the properties. Of course, we have stretched ourselves financially a little bit. So we need to accumulate cash flows, et cetera, and then see how this could be financed. And of course, current conditions on the stock market are probably not the most favorable to raise capital. So this is -- this will always be kind of a balancing act.

What is important that every acquisition we do is value accretive for the shareholders. That means that we want to see a significant increase -- a positive increase in profit from property management per share. And this is the most important criteria that we want to follow, and we will follow. And you can see historically, actually in our buildup in the beginning of the presentation, now we have a slight dip because we take on some costs and because of the empty building basically or half empty building, but this -- once the tenants move in, we will see a fantastic increase in cash flow. And again, this acquisition -- the stage of this acquisition helps us to come in into a relatively sort of lower pricing and has a value potential for the shareholders as well.

As you mentioned in the report, net lettings for the quarter amounted to minus EUR 154,000, which is natural given the elevated occupancy rate. Could you anyway, please give some further comments on the current tenant market sentiment in Poland and Lithuania?

Market sentiment is very strong. But it's again, the market is very divided. We see that the prime locations, prime premises are in very high demand. If you look on Wola region per se, on all the high rises that you see, basically, there is no vacancy. So even today, at maximum, you can find smaller premises, maybe sometimes a bit spread out, uneven, et cetera. So there's very, very little vacancy. We have 0 vacancy. I would say, even in the Bridge, it's 98% leased. Actually, these 2% are already reserved for the existing tenants and the contracts will be signed shortly. So it's no longer in the market and Warsaw Unit is 100% leased, even ourselves actually struggle to get -- to find an office for ourselves in those premises.

So the market is very strong. But if you move away and you find buildings that are not on the same quality or a bit worse location, you can easily find quite significant vacancy. So this flight to quality is very, very strong. And the rents in prime locations are actually going up. And even though we see quite significantly lower rents in the worst premises, they're not really competing because somehow the demand for -- people demand much more modern premises.

For us, again, we focus very much on highest quality. It's also very important for us going forward in thinking about potential implications of AI and usage -- office usage on them. And we believe that actually only the most -- the best product in the market will be able to compete. And that's why we are extremely selective, extremely disciplined, I would say, in the type of properties we choose. And if you look on our portfolio, it's very, very difficult to match today.

And we're very lucky enough to actually have this opportunity to build portfolio the way we are building gradually with some care and growing. But still we've delivered 25% portfolio growth over the last 5 years. So it's -- we are very proud of it.

Given the fact that you are establishing a new Polish organization, how much do you see the company to further grow in Warsaw and Poland as a whole?

We haven't set very clear figures. Of course, there are some positive implications of growing further in Poland because today, our Polish market stands for approximately 64% of our portfolio. It stands for slightly higher portion of our EBITDA. And it's very important to get included into EPRA index, for instance, is to have 75% of EBITDA generated from developed markets. And Poland is considered to be developed according to LSA index makers whilst Lithuania is considered being frontier, and it doesn't match in any of the other categories where you can be included into index.

So for us, it's very important to reach the 75%. We're actually on the way to do it. So that's one aspect. So probably the priority will lie first into building more portfolio in Poland before we continue growing in Vilnius again.

But it depends again on the situation. The properties that we want to buy, they are relatively few. So we cannot really choose the time line for each of them that we want to acquire. It depends a little bit on the opportunity, the timing, the possibilities, et cetera, et cetera. So this is where we -- that will have some implications for us how we can continue growing.

That was the last question.

Okay. So with this, we thank you very much for you listening to us and see you during next quarter presentation.

Thank you.

Hello, and a very warm welcome to Eastnine's Second Quarter Results Presentation. My name is Kestutis Sasnauskas. And with me Adela Colakovic; and our new CFO, we will together to guide you through this quarterly result and the latest news in the company.

Before I start, I kind of ask you to post questions during our presentation and when the presentation is over, we will respond to your questions.

So if we move to the first -- our second quarter, we delivered stable results. Our rental income is up slightly. We are coming from very high occupancy levels. So it's very difficult to increase our earnings significantly from 96.5% occupancy, which also increased during the quarter. Our net operating income, again, stable, somewhat lower over the first half year. But it's also the same for the profit and property management -- it's a result of us actually building up organization to take our next step. And this is probably the main explanatory reason why the net results are somewhat lower. Otherwise, the business is doing extremely well.

Our surplus ratio back again at 92.5%. We have achieved now 8x debt-to-EBITDA ratio and 45% loan-to-value, which actually enables us to do the acquisitions that we just announced this morning. And of course, during the quarter, we divested 2 properties in Latvia. And today, we announced the acquisition of the bridge. And I will go into that acquisition in more detail further on in our presentation.

So just briefly, we have approximately 25,000 square meters of leasable area around EUR 1 billion in total assets. The new transaction will add additional EUR 300 million approximately in asset value and another 55,000 square meters. So we will be around 300,000 square meters of prime, prime office in our markets.

You can see the gradual buildup of our portfolio. We actually went through first acquisition back in 2014. And now in this quarter, we have of course, first effect of first divestment that we had in Riga. But actually, if you look on the profit from property management per share it actually continues performing very strongly. Of course, there's a slight dip during this quarter, again, buildup of the organization, sale of Riga assets. But when we look into the new acquisition, you will see the enormous positive effect coming from it in the future.

So what are the long-term trends -- and it's all about the very strong economic development in our markets. Baltic states, Lithuania, and of course, Poland, we're the leaders in economic growth over the last 25 years, 10 years, 5 years and continue actually performing.

When you put the graph like this, it doesn't look that actually there is some very big difference between the growth. But if you look on the accumulated basis, this additional 1% to 2% of extra growth gives an enormous actually scale buildup. And if you look on the index, actually, you can compare over the last 10 years, you see how much faster and how much more wealth is being created in that region. And that's what we believe is extremely compelling when you look into the future and when you invest in real estate.

We also see that the regions where we are, are among the fastest-growing regions and expect it to be the fastest-growing region. So even the submarkets where we are in, in Warsaw and Poznan in Poland, in Vilnius and in Riga. Those are actually developing quite nicely and expected to develop quite nicely.

Even if you measure on the top 20 European cities over the last 10 years, 15 years or even 5 years. Actually, the among the top 20 European cities, 10 of them, half of them are Polish, and we are very happy that all of the cities where we are in, they are among those top growing cities. So again, the very strong underlying macro picture in our universe.

And this is, of course, our favorite graph. It's the average rent in each market and average yield that you get when you buy properties. And this enormous divergence of being in the market with lower rents and higher yields in our view, is somewhat mispriced. And of course, over time, this gap should close. We don't know when -- how long it will pay, but it actually -- this movement should definitely be there, looking at the economic development, again, GDP per capita, et cetera, et cetera, et cetera, how fast this region is actually catching up.

And what does it mean? If you look on practical terms, you can see that this very low yielding combined with very high rent results in a very high capital values of properties. So Stockholm peaks at EUR 22 approximately, whilst Warsaw is at 5.9%. Our latest acquisition announced today came at 5.4%, so slightly below the top level, even though this is a top, top prime asset and brand new one.

What is also important to note that in our now main market, which Warsaw actually just will become after the completion of this transaction, we see a record low offering of new supply of office. This decreased post pandemic. There's been a lot of concerns about the offices. We see actually the opposite. We see that the prime office demand is very, very strong, whilst secondary locations are struggling. And this is a global trend where we see basically everywhere. It doesn't need to be entirely our markets.

But what is actually a result of this concern and also very, very high competition from demand from residential pricing or residential properties is that land prices went up, developers see much bigger opportunity to develop resi, and we see the drop in supply for office. And this is a very important factor, actually driving the rental growth in Warsaw. We are seeing record low vacancies, especially in the region where we are. and we see very strong demand for premises.

So if you look on our very fast, but I would like you to show where we are in each of the city, but also the quality of the buildings that we own. This is top prime, very modern offices with very modern technology in them, all of them highly environmentally certified. Here, we see headquarters of Vinted Lithuanian start-up for secondary cloth -- is a platform for trading secondary clothes in Europe and globally.

Here, we see our properties in Poznan, top properties in the very heart of Poznan actually located in the best place with amazing tenants like Allegro, McKinsey, ROCKWOOL, et cetera, et cetera. So we have topped up locations even in Poznan.

And of course, our Warsaw unit, which is the largest property, single property in our portfolio, it's our jewel. And it's also still 100% occupied in very high demand. We see actually a lot of people willing to come to our office, even though we -- today, we don't have anything to offer.

[indiscernible] As a contracted rent looking forward is around EUR 63 million. The average value of the portfolio is EUR 36,000 per square meter. Current yield requirements around 6.7% and average property age of 8.5%, which is actually 1 of the youngest portfolios I would say, if you look in general. Warsaw and stands for 33%, Poland today at 51% in total now 55% in total billions at 42%. And we actually post sell in Riga, we only have 1 property, 1 smaller property in the heart of Riga and on development land plot. So it stands only for 3% of our portfolio.

What is also very important to look back is actually how consistent and strong the underlying businesses. This is our occupancy on the -- now I would say, I see it on my left-hand side, it's probably on your right-hand side. is the occupancy rate, which is at 94% on average. And today, we have 96.5% as of the last quarter. And you see that it's always moving like a little bit like a wave, and it will be moving like a wave because at this kind of lease-out ratio, it's almost impossible to offer anything else.

Today, we have vacancy in Riga in 1 property, which is now being totally refurbished. And we now -- we start offering parts of it to the market. At the same time, in Vilnius, we only have around 2,500 square meters of free office in the portfolio of 100 -- close to 130,000 square meters. So it's basically almost nothing to offer. And of course, occupancy remains very high and demand is very strong.

On the other hand, if you look on the surplus ratio, we are higher than our average over the last, again, now almost 6 years. at over 92%. It's 92.5% at this quarter. And of course, we see quite strong -- again, strong development and after -- some other movements will come during -- expected to come during Q3, we will even expect somewhat higher occupancy in our portfolio.

If we look on the environmental part, -- we have 100% sustainable and certified portfolio. We only own bream outstanding and lead platinum buildings. So even while the Maratha was gold is now actually recertified to platinum. 97% of our turnover is considered to be a taxonomy aligned. We have 5 stars in res and green financing stands for 88% of our total financing.

And of course, this figure will grow as we refinance our debt. We also aim for a net 0 target by 2040, which is now SBT aligned, and we follow this science-based target initiative.

So over to you Adela.

Thank you. So let's go over the first half year financials. And as Kestutis mentioned earlier, the results are stable and rental income are in line with the period both for the quarter and first half year.

But there are some underlying changes and those relate to a couple of things. One is the divestment of the 2 properties in Riga, which led to an income loss in Q2 of approximately EUR 300,000. Lower average occupancy rate in the beginning of the period had a negative effect on the year-to-date income, but both of these effects were mitigated by rent indexations both in the beginning of the year and some in Q2.

Looking at net operating income, it's basically flat in Q2. Compared to last year and for the period, it's a small negative effect, mainly related to the cold weather in the beginning of the year. Overall, there are small movements in the operating income. But as we mentioned before, and as Kestutis highlighted before, we're growing our company and especially the team in Poland, which above cost during a limited period of time, building our own organization and moving from external administration to internal, which we do believe will be both more cost efficient and also add more value to our tenants in the future.

And also the organization that we have built and are still building in Poland will also be able to take on the new property, The Bridge.

Net financials have decreased by 2.2% and both for quarter and the period. And it's related to lower average interest rate. The average interest rate is, however, the same as a year ago, approximately 4.4%. But last year, we came from a higher interest rate level in the beginning of the year, which we don't have this year.

Profit from property management decreased by 9% and 5%, respectively, for the quarter end period. The main reason for that is higher cost due to additional employees.

And let's go ahead and look a bit at our earnings capacity, where we can see that rental income has decreased due to the earlier mentioned divestments in Riga while lower occupancy ratio and indexation had an opposite effect.

Property expenses have decreased due to the divestment; however, the unusual cold winter in the beginning of the year and higher personnel costs related to new employees in Poland has offset that effect. However, the property cost will be lower going forward since we have closed our office in Riga and will replace the internal management there with external, which will be a bit more cost efficient since we don't have the same property stock in Riga.

Central administration increases due to higher personnel costs, interest income has increased as a result of increased cash. Interest expenses have decreased due to the divestment of the properties in Riga. So overall, the profit from property management is a bit lower now in Q2 compared to Q1 based on the explanations that were given. But going forward from -- expected from Q3, we see it will be a bit higher again.

Looking at the property value development. From beginning of the year, it has changed minus 4%. During the period, we have invested EUR 4.3 million in tenant improvements in several buildings. There has also been a small positive effect in the unrealized changes in the value due to increased market rent, but that was mitigated by a slight yield decrease during the period.

The biggest change in the portfolio is, of course, the 2 divestments that decreased the value by EUR 39 million, leading us to a property value of EUR 926 million by the end of Q2. And like-for-like, the development is flat. The yield in the valuations is 6.7%, up from 6.6% in Q1 and the average growth for the past years in the property portfolio has been 19%, and the bridge will grow the portfolio by approximately 30%.

Let's look a bit closer at the East financing situation, and we can start at the top left corner that shows loan-to-value, average interest rate and interest coverage ratio. The loan-to-value decreased this quarter to EUR 45 million due to the divestments in Riga, which both increased the liquidity and decreased the debt since we amortized the debt related to those properties, leading us to the average interest rate, which has this quarter because we realized some interest rate swaps that were connected to those loaned to the divestment -- divested properties and we're at some good levels. We do, however, see potential for the interest rate going down since we do have a few refinancings to do, and we can see that they're coming in at a competitive level.

Looking at the debt maturity, the next refinancings of approximately EUR 80 million is due in February and May next year, and we have already began the discussions with our banks. -- the interest maturity is visible in the same chart and 80% of the interest is fixed with interest rate swaps. Overall, the financing is very stable and solid. LTV and average interest has been trending down over the past 4 years. And as I said, overall, all prepared for future growth.

Eastnine has a long-term investment, looking at the Eastnine stock. The total return in the Eastnine share for the past 12 months was a bit negative, 7%. But during the same period, the Omex Stockholm Real Estate Index declined by minus 16%. And over the past recent 5-year period, Eastnine's total return averaged 11% per year compared with a decline of 7% for the real estate index.

And let's go over to the acquisition of the day.

Wonderful. Thank you. I hope this is more sharing to discuss then the stock prices over the last half year on the market. So The Bridge. We actually -- we're working on this transaction for quite a while. It's an amazing asset. It adds to our portfolio in Warsaw, both in terms of market share, but also in volume and in quality. This is a top asset with all the certifications you can mention, very high tech, again, as all of our properties in Poland. The property was completed 2025. It's a 40-story building with a lettable area of 55,300 square meters let to 92%, but we expect that occupancy level to actually increase before we complete the transaction.

Today, the building, which used to be Santander Polska and they acquired the Santander Bank, which was Polish largest private bank. And Visa, which is a Visa Technology Center, the Visa Card Technology Center. Rental value is expected to be at around EUR 18.2 million, an average lease term in excess of 10 years. We acquired this property for EUR 300 million valuation. Preliminary purchase prices like that. The reason for that is actually that the building is not fully moved in and commenced, but it's -- the leases are signed, and we have a price reduction related to certain periods of vacancy during the time as well as some rent frees and some fit-out contributions that will be necessary to complete the building.

But when it's completed, and it's fully operational. We expect the profit from property management to reach EUR 0.37, which is 20% up from today's level. and this buildup will happen gradually, depending on the schedules for tenants moving in and of course, starting occupying the building and starting paying the rent. So as of -- and this 20% increase is related to the last quarter reported for this quarter report.

And now I just want to share with you some nice pictures just to get you a little bit of a feeling of the high quality of this building. You can see there some elements from the lobby, which is truly amazing and very inspiring. It's a true wow feeling when you enter the building and also architecturally, it's a very, very attractive building. Again, something that we always work with that we want to create feelings when people look at our buildings. And this acquisition fits our values very, very well.

And last but not the least, I would like to show you where it's situated on the map. And actually in the background with the top with a light of text on the top, you see Warta. It's actually Worth unit. -- and this building is just around approximately 500 meters from our current building. And in between, we have also Spire, which is 1 of the landmarks of Warsaw and headquarters of PCU. So -- we are extremely well located, extremely high quality, and it will be another jewel in our portfolio.

So with this, I open up for questions. Thank you.

Yes. And we have received a couple of those. What market position will Eastnine have in Warsaw's office market following the acquisition of the bridge with the AAA class office segment?

So if we look in the total market position once we acquired Warsaw Unit was about 1%. And with addition of The Bridge, we would be around 2% in the total Warsaw market. But if we look in the prime segment, we would be at around 5% in this very central in Warsaw CBD.

So in Vilnius, we have approximately 10% market share of the whole market. In Boston, we have 10% market share. And we also would like to continue building, of course, strong position in the CBD area going forward as well.

We have a couple of more. Even though the market sentiment for offices has been weaker in recent years, Eastnine's portfolio has consistently performed strongly. What is the secret? And what is the feedback you received from your top tenants?

We have -- you saw on the figures that actually our occupancy is consistently very high. It is tough, to be honest, to keep tenants because of a different reason than -- and the reason is that most of those companies are actually growing. So we have managed to do some expansions for Rockwell, for instance, in 100% leased out building, but that implies that we need to create some vacancy to be able to play the chest game of moving around.

And we see remaining very strong demand. So in general, what we see is that century located, high-quality buildings are in very high demand. We see that rents are actually growing in this and companies are paying maybe for less square meters, but they are paying for much higher quality of square meters. And we truly believe that this trend will continue, which will continue even with the EI expansion, because the most profitable companies, the winners of the ARAs will want to have the best product. That's why we also continue moving up the quality latter when we buy new properties. So actually, everything that we buy has to be of absolutely top quality.

Let's mix it up with the Riga question. Congratulations on the deal in Warsaw. My question concerns the sale of Riga asset and the decision to close the rig office. What was the decision -- decisive factor behind that decision, market fundamentals, asset-specific limitations under performance of local management or better expected risk adjustment returns in Warsaw?

It's a combination of us willing to relocate capital towards Warsaw, but we also cannot hide and say that actually, the Riga market was weaker over the years. We have been talking about it. It's actually the biggest vacancy we had in our portfolio has always been in Riga. And -- it's very difficult to say because vacancy overall in Riga was quite high and the market was relatively weak. So by making a decision not to develop because we didn't feel very confident about the market fundamentals, we also came to a conclusion that it's probably better to allocate the capital towards Warsaw, where we see higher rental potential simply -- and we see that this is a much more dynamic market, much more liquid market. And -- so this is -- and closing of the Riga office is purely related that we have actually too little volume of the business. It is cheaper to run it externally today. It's only 1 building. It's not -- we cannot have a full team working only on 1 building.

Are you surprised that not more Swedish companies invest in the Polish office market?

Well, I guess, real estate industry is very conservative, so probably not so surprised, but there are some other Swedish companies like [Stena], which announced their acquisition actually very close to us. You can actually see the building just behind if you move the camera a little bit, I can show you. You see this lower part, and this is the -- our building. So transactions are happening, suites are there. And yes.

Let's take a final one. Speaking of Stena [indiscernible]. What makes office properties so attractive in this particular micro locations since Stena also Investor Day?

Now it's -- again, it's a very central location. What we have to remember as well that Warsaw has a completely different history than most of European cities. It has been totally destroyed. So there is no old buildings. There is no historical center, the historical center was rebuilt entirely in almost its entirety. So we are in a different universe, and the offices are very modern.

Of course, it's a huge demand for office space. And we can just compare to Swedish measures just to make a very kind of easy parallel. We have as many square meters of office space, total office space in the whole Poland, with its 40 million people, it's approximately 13 million square meters of office space. This is the amount of office space in Stockholm alone. So EUR 40 million and 2 million share the same office space.

The economy is actually a modern economy. The service economy, if you look on the GDP structure, so there is an underlying very strong office demand. Warsaw alone has 6,500 million square meters of office which is half of Stockholm and Warsaw alone is twice the size of Stockholm in number of inhabitants. So an economy of Poland is actually I don't remember, it's 50% or 75% now larger than the Swedish total economy. So once again, there is a mismatch and there is a pending office demand.

Then, of course, -- we can debate whether it's too many square meters in Stockholm is too few square meters in Warsaw. And I think I don't know -- I don't have a clear answer to it, but we feel much more confident investing in prime offices. -- in Warsaw rather than doing it somewhere else. And the yields are much higher. We actually gain -- we get up to 6.5 million yield on those acquisitions.

The last acquisition is around 6 -- around 6% in yield. So you get an amazing product at a relatively low per square meter price. -- because of a local combination of low rents and high yields. So we have a huge value potential going forward. And Warsaw being the cheapest Eastern European market or the cheapest European market, it's a European Union. With its strongest economy, I think it's -- it will change over time. It might take some time, but it will change over time.

We just had some more questions [indiscernible] happy to answer. After the acquisition of The Bridge, could you elaborate on the long-term plans for Eastnine? Are we seeing smaller market to grow in Poland, for example, Warsaw and/or other Polish cities like Rockla?

We probably continue digging where we stand. We will expand our position in Warsaw. There is still a number of very, very high quality, very nice properties to buy. And we would like to do further acquisitions. Of course, we have to digest our acquisitions are quite big. But again, we prefer to buy super high-quality to move the tenants to have to work with the tenants within this space because there's always somebody decreasing a little bit and somebody growing a little bit.

But when you have space enough to move you can actually offer always solutions for both. So from that perspective, we will continue looking for bigger properties. I think all of our properties now in worse if you look at them, could be transformed into residential should the office market is appear, which I don't believe it will, but as an alternative because residential prices are today, 2 to 2.5x higher per square meter than the office that you can buy in the same area. So to me, math, is pretty simple.

Yes. Can you comment on any potential future new issue? I guess it's a share issue.

Okay. You all know how the shares are traded in real estate. And of course, with these kind of discounts, I think we do not want to even consider that. And we can see that actually, even without necessity to issue new shares, we can do a very initiation was which is very, very value accretive. It's 20% increase in profit from property management per share. And we use a very strong cash flow base in our existing portfolio. to actually refinance because we amortize still on some of the debt.

And we believe that even with increased LTVs, we will actually be able to come down to very reasonable levels within a reasonable time frame. -- and continue actually doing our acquisitions. As you see, they are a bit chunky when they come, but again, quality goes before quantity for us, and we will want to stay this way.

Okay. Thank you for your questions, but I think we'll stop there for this time.

So by this, I wish you a very nice summer. Hopefully, it will not be too hot or not too cold, not too rainy. Just a perfect one and see you in October, I think, or September, yes. So in the next quarter results. Thank you very much.

Thank you.

Hello, and a very warm welcome to Eastnine's first quarter results. My name is Kestutis Sasnauskas, I'm CEO of Eastnine; and with me I have Britt-Marie Nyman. We will together present -- guide you through the quarterly results. Today, we are standing from a live studio with some live attendance, which we are very happy for. So very welcome to you as well. And please post your questions during the presentation. We will respond to them at the end of our presentation.

So let's go into the results for the quarter. We see it as a very stable quarter. We're coming from a very high level of occupancy, very high level of revenues in our portfolio. So of course, this growth has flattened out, which is purely a natural thing as we didn't do any acquisitions. Our rental income down approximately 1%. So it's again flat. Profit from property management, minus 2%. This is also reflecting a little bit the buildup of the portfolio of -- not portfolio, but the buildup of our internal resources. We are hiring more people in Poland. But also we had a very cold winter, which actually with slightly higher vacancy affects the profit from property management for this quarter.

Unrealized value changed minor, slightly negative. Net lettings positive, but again, coming from a very high level. Occupancy rate down 0.2%. Again, we are at 95.6% being an office company, it's very high today. Out of this current vacancy, we also have only 2% that we actually marketing in the market. The rest is purely turnover vacancy where we free up some space for already signed leases or maybe very, very close to signing some of them. So generally, we are working on a very high level, and it's going to be kind of difficult to surprise you significantly on one or other site.

We're also preparing for next acquisition, so accumulating more cash. We are refinancing our portfolio. This will continue over next quarters as well. We also have our climate targets being validated now by SBT. So we follow the Science-Based Targets initiative and the path actually for climate neutrality by 2040.

The Board has also proposed a dividend of SEK 1.28 per share.

If we look on the events -- more significant events, we are actually selling 2 properties in Riga. We are reallocating capital to, again, our future acquisitions, focusing on Warsaw. So this is very briefly on what we're doing.

Going back to the basics. Eastnine is a purely office play in the fastest-growing part of Europe, in Poland and the Baltic states. We're actually a company of around 272,000 square meters of office, which prime locations and prime quality, around EUR 1 billion in assets, high occupancy with 96%, rental income of EUR 62 million. The properties are yielding 6.1% loan-to-value of 47%, and average interest of 4.3%.

If we go to longer-term trends, Poland is the fastest-growing economy over the last 25 years. It's continue -- expected to continue to grow. Baltics follow the same path. So we are very excited about this region. If we look -- have a closer look on actually how Poland is developing, this is an Oxford Economics prediction of '26 to '30. And you can see that actually within Poland, the 2 hottest areas are Warsaw and Poznan where we are. There are some other regional cities as well evolving very nicely. But these are the 2 places where we are and we are focusing and those are the places that are expected to continue growing fastest.

What is also nice is that this combination comes with relatively low rental levels. You see it on the staples and relatively high yields. So this actually has potential to comprise and we think that this yield gap should narrow. But actually, when we talk about this yield gap, what does it actually imply?

And if we look on the implications, I took some figures from recent JLL report. You can see the square meter prices. So actually, this combination makes Warsaw come very, very cheap per square meter if you look at the office values. If you look for the Baltics, I think this figure is half of almost half of what we see in Warsaw. So the capital values are relatively low. And of course, given the inflation, given the very fast economic development, there is a huge potential for growth. And of course, this is why we believe this is a very compelling story because we are basically very -- the yields are similar to logistics and the capital value potential is really huge.

If we look on our portfolio, you see that occupancy has been stably high over the -- since 2020. We are taking small waves, but there's no dramatic changes. And of course, this is a very high stability of the underlying business. You can also see on the graph next to it is that rents are actually picking up. And these are the rents that we receive in our properties, our 3 largest properties in 3 main locations: it's in Warsaw, in Vilnius, and in Poznan.

If we look at our portfolio, there's no significant change. I mean we are very office focused entirely on basically only office, 4% is retail and other, which is basically mainly ancillary services through our office offering. We are in 4 markets in 4 cities: Warsaw, Vilnius, Poznan and Riga. Vilnius remains our biggest market.

If you look on Warsaw, you see a picture of Warsaw unit. So this is our jewel and landmark building. It's actually a landmark building even in Warsaw. If we look on Poznan properties, these are, again, 2 amazing properties with significant market share in Poznan. Actually, with these 2 properties, we hold approximately 10% office market in Poznan. And this campus will grow over time. In Vilnius, which is 41% of our market -- of our portfolio, Vilnius remains our main city. We actually have 4 main clusters in the city, which we plan to keep and expand over time.

And if we look in Riga. Riga stands for 7%, of course, now with the divestment of Alojas and Zala 1, the share of Riga will diminish to 3%. But we have quite exciting development project there as well in the future if we decide to go for it. For now, it's on hold. Again, if we look on the tenant list, this is a really impressive multinational tenant list, which is -- has been stable now over a couple of quarters. We are in a very exciting universe with ICT, finance, e-com, medical health exposure, underlying exposure. So this is really the most dynamic companies. And most of the dialogues we have are actually about expansion or making sure that our tenants can continue growing and most of the companies actually continuously hiring in our universe.

If we look on sustainability, which we're working quite a lot. Actually, we are -- we had a very cold winter. So we have a significant increase in energy consumption in heating, you can see up almost 20% during January, February. Of course, this will stabilize over time, but it's been an extraordinary cold winter and long winter in our region, much colder than actually here in Stockholm. Our portfolio is 100% sustainability certified, 97% of the revenues are EU taxonomy aligned, 88% of financing is green, and we earned 5 stars in GRESB with 91 points in total.

So on this, I leave over to you, Britt-Marie.

Thank you, Kestutis. And before I start with some figures, please continue posting questions so we can answer them after the presentation.

Eastnine delivers a stable report for the first quarter, even though we can see some minor changes on the occupancy and also the surplus ratio, they are still on very high level. It looks like the rental income for the first quarter this year is 1% lower than first quarter last year, but this isn't actually true because during the first quarter last year, we had some currency effect of close to EUR 200,000 affecting the rental income. And during the second quarter, it was reclassified to other financial income. So the rental income for the first quarter this year is actually on the same level as last year. The rental income was also affected positively by the indexation of around 2%, but negatively by a lower occupancy.

Property expenses, on the other hand, increased quite a lot. And as Kestutis said and as we hear from many other real estate companies, it was partly because of the cold winter, but also due to the fact, we are recruiting people in Poland, we are replacing external suppliers continuously during the rest of the year. And also the lower occupancy during the first quarter compared to last year affects property expenses since our triple net leases allows us to transfer property expenses to the tenants as long as the premises are let. But if the occupancy increases, so does the property expenses in our income statement.

Central administration costs increased due to new employees at the head office mainly. The interest income increased as a result of new financing, increased financing, and we have placed the money in bank accounts. Other financial income was positive during the first quarter this year, but negative last year, and this is an effect of currency. Profit from property management decreased by 2% mainly as a result of the cold winter and the lower occupancy, and we saw some negative unrealized value changes for the properties, mainly related to the development project, The Pine in Riga.

We saw a slight improvement in the earnings capacity during the quarter. And as you know, this is a theoretical assessment. It's not a prognosis. And for many of the figures, we use current agreements by the quarterly end in this case, for rental income, we use the lease agreements, of course, and the loan agreements, what's stated in them. But in some cases, we also use 12-month rolling figures for property expenses, for example. So we can see that rental income increases by 2%, and this is mainly due to the indexation during the first quarter, while a lower occupancy rate had a somewhat opposite effect. Property expenses increased by 11% during the quarter, and this is related to the same items as in the income statement, the colder winter, a lower occupancy and also new employees in Poland.

Interest income has increased as a result of increased cash and interest expenses increased as a result of new debt. Profit from property management on the bottom line increased by 2%, and this was mainly due to the indexation. We have financing, which is very stable, and we have increased the liquidity continuously, both during the autumn and now during the first quarter.

Key figures, LTV is on the same level as it was by year-end. Total cash increased by EUR 13 million up to EUR 63 million, and it will increase with another EUR 12 million when we are divesting 2 properties in Riga during the second quarter. Interest rate level is on the same level as it was by year-end. Interest coverage ratio and debt ratio somewhat higher, slightly higher and the share of fixed interest almost on the same level. Capital tie-up period and the fixed interest period slightly shorter.

If you look at the debt and interest maturities, you can see that we have hardly anything to refinance in 2026. And in fact, we don't even have this EUR 12 million, as you can see in the green bar now because we have already -- this is related to one of the sold properties in Riga. So we have already paid this loan back to the bank during April.

The debt sources, they were the same by the end of the quarter. But since we repaid the loan for one of the properties in Riga, OP Bank is no longer one of our banks. If we look at ownership and the share, we can see that shares owned by funds. Funds have increased during the quarter, up to 14% now from 8% by year-end. The numbers of shareholders continue to increase, now 7,300. NAV up 2% in SEK and 1% in euro. And the final figure is total shareholder return, which we actually are very proud of because it's on a very competitive level. We have had 13% during the last 12 months and 12% in average during the last 5 years compared to 4% for real estate index.

So this was actually all.

And now we open for questions.

And we have already received some questions. The first one, do you -- 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?

We haven't communicated that. But of course, I think it's a valid question, of course. But we will review -- we are reviewing it for now.

No decisions taken so far.

Yes.

Another question. What will you do with all the extra liquidity should an acquisition be postponed indefinitely?

We have a lot of prospects.

Well, we don't believe that acquisitions will be postponed indefinitely. We are working on acquisitions as we have indicated before. And of course, that would be a completely different decision and that we would look into.

Yes. And we have always, of course, not only one property that we are interested in. We have a pipeline, and we're working in parallel with different options and phases.

Please, Emil.

Emil from Pareto Securities. Margin-wise, how much impact did the cold winter have from sort of a normalized margin?

That was a tricky question. I don't really know. I can't answer that question directly. I have to look into that.

How much -- sorry.

The cold winter.

Sorry. Margin-wise?

Yes. Margin-wise, how much was the impact from the cold winter from sort of a normalized run rate margin?

What we can see is that our energy, you can see that on the figure.

Yes. We see that the energy cost is around 20% increase. So if we calculate it back, the only part that affects us is actually the vacancy. So the vacancy is around 5% today. So that portion of the vacancy that we couldn't actually offset to the tenants that affected. I don't know exactly, but it's like maybe 1% or maybe something. It's not very big.

Okay. Makes sense. And it looks like the higher vacancy comes from around 1,900 square meters in Poznan, if I'm correct.

Yes.

Is that related to one or more tenants? And what's your prospects on filling up those spaces?

Yes. So the vacancy in Poznan, it's actually 1,900 square meters is related to relocation of one tenant to accommodate for the growth of ROCKWOOL. We have also freed up another 1,000 square meters, which was needed for solving the puzzle of moving a couple of tenants around, to again accommodate bigger space for ROCKWOOL's expansion. And out of this 1,000, actually, 500 is already committed to one tenant. It's not signed yet, but it's committed and 500 is in the market right now. And we will believe that it will probably be taken by one of our existing tenants as well.

And when will ROCKWOOL enter those premises?

I think it's 1st of June or 1st of July, so it's either.

I think it's the second quarter.

Yes.

Okay. And you spoke about it a little bit, but you have been preparing for acquisition now for some time. What's the sort of main reason why you haven't closed anything? Is it agreeing on price or finding the correct funding or...

No. I think for us, we are very selective on what we buy, and we will continue being very selective on what we buy. We've been working on the acquisition for a while now, and there are certain matters that actually caused some delay, but these are outside of our control for the time being. But it doesn't mean that there is any change in our strategy.

Okay. Kestutis, I think that we actually don't have any more questions now.

Okay.

So thank you very much for listening, and thank you very much for coming.

Yes. Thank you for this time, and see you -- at least me during the next quarter.

Yes, because this is my last presentation. I'm retiring within a month.

Thank you very much, Britt-Marie.

Thank you.

Hello, and a very warm welcome to Eastnine's year-end report for 2025. My name is Kestutis Sasnauskas, I'm CEO of Eastnine. And with me is Britt-Marie Nyman, Deputy CEO and CFO. Together, we will guide you through the report today. And do not forget, please post your questions during our presentation, and we will take them once we finished with the formal presentation.

So looking at the last quarter, we continue on a strong growth path, delivering 24% growth in the rental income in comparable portfolio, up 2%. Profit from property management, up 15% and per share is up 8%. This is for the quarter. We have minor negative unrealized value changes. Net letting positive for the quarter. However, occupancy ratio somewhat down. But we are coming from very high level of over 96%. So this fluctuation quarter-to-quarter is very natural.

Surplus ratio somewhat down as well, but remains on a very high level, close to 93%. During the quarter, we recruited Adela Colakovic as new CFO starting from June. And we also extended and prolonged one of our key leases with one of our key tenants, Vinted in Vilnius. If we look over the year, growth has been even more impressive, up 49% in the rental revenue. Comparable portfolio also very strong, up 4%. Profit from property management up 40% and per share was up 28%. Unrealized value changes, EUR 21 million plus. So over the year, this is a significant increase. Net letting slightly negative, but again, coming from very high levels of lease-out ratios.

If we look on the surplus ratio, it was 93.4% over the period. We also refinanced a number of loans preparing for accumulating cash for further acquisitions, and we established our Polish organization during the year. So if you look at Eastnine at a glance, we have 272,000 square meters of leasable area, closer to EUR 1 billion in assets, 96% occupancy. We are purely office company. So this is a very, very high level today.

Rental income of EUR 62 million, yielding -- portfolio yielding approximately 6%, a loan-to-value of 47% and average interest of 4.3%. If you look over the share performance over the last 10 years, we have outperformed basically all indexes, including Warsaw index over the same period of time. So if you look on our targets, we always strive to create sustainable, attractive return. And if you look over the year period, the total share return was around 10%. If you look over a 5-year period, that is 16% annually.

Growth in property portfolio, approximately 3% over the year. We didn't acquire anything during this year, but we're actually preparing for large acquisition to come. Growth in property portfolio overall over a 5-year period is 23% per year. So it's been an enormous fast buildup over the years. Return on equity at 9% over the year, 8% over the longer period of time. And if you look on the dividend proposal, dividend is up 7%. That will come during -- later during the presentation.

Loan-to-value, again, 47% and interest coverage of 2.4. So looking back a little bit, over the last 5 years, we more than doubled our portfolio, but our profit from property management per share actually almost tripled, so closer to tripling. So this is an amazing result over the year. And why is it so? And why we believe into this so much is actually the long-term trends.

Poland is one of the fastest-growing economies in Europe and even globally, but also followed by the 2 small economies, Lithuania and Latvia, where we are existent today with our portfolios. And this region continues to actually evolve. And if you look -- it's not only if we talk about country development and country growth, but actually, if we look over the last 5 years to the large -- to the fastest-growing cities in Europe, actually, among 20 fastest-growing cities in Europe, 10 of them are Polish, and we're present in all of them.

And actually, both Vilnius and Riga are among these cities as well. So -- and they grow twice the pace, at least twice or 3x the pace of 170 city average in Europe. So we are in a very vibrant, very fast-growing, very fast evolving part of the European economy. We also are in the markets yielding the highest yields combined with lowest rents.

And this gap over time should somehow shrink or merge. And in any case, whether the yields go down or rents go up, it will have a positive impact on the property value. So this is why we believe it's a very, very exciting opportunity. If we look on the prime -- development of the prime office rents, actually, we have seen a relatively flat development from '17 to '20. But actually, after COVID, we see still a very positive development with strongest growth in Vilnius, followed by Warsaw, Riga and Poznan. And this is actually what we see in our portfolio as well. If we look on the yields, yields have stabilized, but they are up 150 to 100 bps from the bottom levels. Of course, the biggest correction happened in Warsaw, but it's coming from absolutely lowest yields in the market prior to increase in interest rates. Vacancies are stabilizing.

We see actually relatively strong dynamics in Prime segment. This is the total market statistics. But if you look even for Warsaw, actually total market vacancy is going down. There was a lower supply coming into the market in general. And despite quite significant supply in Vilnius, vacancies are at reasonable levels.

If you look for the Prime segment, those are actually even lower in certain cases. If you look on our portfolio, our actually occupancy has remained very stable. Of course, when we hit the highs of 97%, 96%, it's very natural that we step down a little bit to 95%, but even today, if we look on our portfolio, we don't have -- even have some vacancy in Poznan now.

If we have some vacancy in Vilnius, there's basically very, very little that is marketed externally because all of those vacancies are almost signed up and -- or very close to being signed. So this graph will gradually sort of fluctuate upwards again once tenants start to move in. We also saw positive dynamics in terms of rental revenues. We see a nice increase in Vilnius. We see a nice increase in Poznan based on the main contracts that have been renegotiated.

We didn't have anything to renegotiate in Warsaw. So our Warsaw contracts, that's why the curve actually stayed without any values over 2025. If we look on our portfolio, it remains with Vilnius being our largest market followed by Warsaw and Poznan. 96% of all floor space is office. So goes for our rental revenues as well. So very, very focused operation primarily on prime office. If you look on our tenants, actually, we are exposed to a very exciting part of the economy that is growing. And I think here, I would like to comment a little bit on our 2 biggest extensions over the year.

We -- in the beginning of the year, we extended -- or midyear, we actually extended with Rockwool. The -- both, we extended the contract, the size of the contract and the length of the contract. And we see very clearly that actually the biggest tenants are still in active mode phase. And just before year-end, we extended with Vinted. Again, we extended the size of the contract by approximately 30% space growth and the length of the contract. So the key tenants are actually the normal tendencies they continue actually growing and continue growing in a relatively fast pace. You can see our property portfolio still remaining -- retaining the modern portfolio. We didn't add any properties during the year.

And still -- so there's no change on this slide basically. And if you look on sustainability, today, we have 100% of our portfolio sustainability certified. We have 97% of our revenue taxonomy aligned over 2025 and 88% of green financing. We received 5 stars in GRESB with 91 points, and we are among top 20% of the participants in terms of ranking.

Total energy use is down 0.9%, somewhat slower compared to previous years, but we're actually seeing a very positive trend of people returning to the office. And of course, when there's more people, there is more energy used in the building. So in a way, we're very happy for the statistics. And energy use excluding tenant electricity is down almost 4%. So over to Britt-Marie into more into financial figures.

Thank you. And please remember to post questions during my presentation. If we look at the income statement, we can see a substantial increase in both rental income and net operating income, and this is related to the 2 acquisitions in Poland in 2024. We can see a slightly less increase in percentage when it comes to the quarter, and this is because we took possession of one property in June '24 and the other one in the end of November.

In a comparable portfolio, we saw an increase of 2% during the quarter and 4% during the full year. And this was partly due to indexation and the other part was due to a higher occupancy in average during the period and the year. The acquisitions also increased the interest expenses, of course, since it was -- they were partly financed by new loans, but we also saw a decrease in the interest income since we used cash in the acquisitions.

And the increase in interest expenses was partly offset by a lower interest rate level, both during the quarter and year actually. And other financial income and expenses, this is not a big part of the income statement, but still the change in percentage was high during the quarter, and this is mainly related to negative currency effect as part of Eastnine's operations in other currencies than euro.

Finally, profit from property management increased quite a lot, 15% during the quarter and 40% during the year. We saw only small changes in the earnings capacity during the quarter, and they were mainly related to changes in the occupancy rate during the quarter, which affected both rental income and property expenses and thereby also the net operating income.

The interest income increased due to a higher interest rate on bank accounts and the interest expenses decreased somewhat due to amortizations, but also due to the lower average interest rate level. And we saw an increase in other financial income and expenses related to the new head office in Stockholm, which is bigger than the previous one, and this is budget figures. So that's why.

On the bottom line, profit from property management, slightly lower than previous quarter in the earnings capacity. We have a very, very stable financing with a lot of banks on the other side, financing us. We have refinanced early during 2025 due to good market conditions, and we have barely anything to refinance in 2026.

The LTV by the end of December is on the same level as by the end of September. Liquidity in total, EUR 51 million, almost unchanged. The interest rate level down from 4.4% by the end of September. ICR slightly lower. Debt ratio also lower, which is good. due to full 12 months NOI included. Share of fixed interest, same level as by the end of September, 83%, quite high figure.

Capital tie-up period increased after refinancing and new financing -- sorry, only both refinancing and new financing during the quarter and fixed interest period, more or less the same. If you look at maturities, I said we had barely anything to refinance. You can see in 2026, it says EUR 13 million. That includes amortizations. We have EUR 7 million to refinance. A little bit more in 2027 includes the property Nowy Rynek D in Poznan, almost nothing '28 and a lot in '29 and '30.

When we look at the fixed interest period, it's more or less the same amount. And still the same banks and debt sources as before, 5 of them around 20% each. The property value increased by 3% during the year, up to EUR 960 million, and this was more or less an effect from unrealized value changes. We had a little bit of investments also EUR 6 million, but we saw mainly unrealized changes in value during the first quarter.

And the yield requirements were unchanged in the fourth quarter. It's good to see that we have had a very positive share development during the year. We saw an increase in the share turnover of 19% when we include all markets. Number of shareholders increased by 21%, now above 7,000. NAV increased both in SEK and euro, a little bit more in euro and total shareholder return up 10% during the 12-month period and 16% in average during 5 years.

And this is a very high number compared to other real estate companies in average on the Nasdaq Stockholm, it was 2%. And the Board of Directors proposed an increased dividend to SEK 1.28 per share, split over 4 payments during the coming 12 months. That is an increase of 7%, and it's 41% of profit from property management after current tax. So thank you. We continue with questions.

Any seasonal varieties affecting the NOI margin during the quarter? Or is the slightly lower NOI compared to Q4 '24 only an effect of the lower occupancy rate.

Of course, we are affected by seasonal effects as well as other real estate companies, but we are not -- we don't talk so much about that. So we have a combination.

It's a combination of both, I think.

The higher central admin cost during the quarter, is there any one-off costs included in that? Or should it be viewed as a new run rate given new recruitments?

Not particularly one-off costs. But of course, since we are a growing company from time to time, quarters can be affected by recruitment costs and probably not affecting all of them. So it could be -- part of it could be one-off costs, but nothing particularly.

Did I understand correctly that you are currently in negotiations for a new property acquisition? Size-wise, should we expect EUR 100 million to EUR 150 million acquisition?

I would not like to comment exactly the sizes of the acquisitions. So normally, I mean, if you look historically, we have acquired bigger properties. If you look on the -- the way we are thinking actually is we want to grow much more in Warsaw, where we did our last acquisition. The properties, of course, are bigger in general as the contracts normally that are signed in this market are bigger. And we are very picky in terms of choosing high-quality properties. So for us, of course, it will be -- it's natural that we can do bigger acquisitions probably going forward.

[Foreign Language]

I will answer that question in English. The question was how the competition is evolving in Poland. And any comments on the time frame. Again, very difficult to give any comments on the time frame. Yes, we are working on acquisitions. We have been very clear about it.

We're also accumulating higher cash levels in the company, refinancing our portfolio. And so I wouldn't exclude that something will come within a certain time frame. I again, do not want to give exact time frames. But I can confirm, yes, we are working on further acquisitions. In terms of competition, we see that the number of transactions done on a sort of smaller scale, transactions done up to EUR 50 million is growing. We see that a number of players also looking into the market probably increased somewhat. However, relatively few transactions still taking place. So competition is somewhat maybe growing, but it's not at the levels or nowhere near to the levels that we've seen prior to interest rate increases.

Can you please comment on any material lease expiries in the next 12 months, if any? Of course, we have some...

We have some expiries, but we also have very clear plans for those. And some of them we are happy about because it actually enables us some other -- to mitigate some other growth. But in the coming years, during 2026, at least we see that even though maybe kind of economic occupancy might increase somewhat during Q1, still in paper, it's actually something that is done over the -- to manage the growth of our tenants.

So it's basically the movement of some tenants that we need to do in order to facilitate growth for our growing tenants. So nothing -- on the contrary, I would say that today, we lack space, both in Poland and in Lithuania.

And perhaps it's also good to mention that when it comes to the biggest lease agreements, we have a dialogue long before they mature. So...

Yes, so just as a comment on the leases in general, I think it's important to note that approximately 16% of our stock of leases was renegotiated during this year. Out of it, 76% actually was prolongations. so we have a very tight and positive dialogue with our tenants. It's actually much more -- it's very important for us that it's a very good kind of check of basically how we are performing as a landlord.

And we are very happy that they choose to extend, prolong and extend in many cases. So this has been a very positive and in general, have a very positive feedback from our tenants. So what will happen now is that, of course, we are gradually taking over operations in Poland as we have recruited the team. And we still believe that it will bring a much more significant positive benefit for us going forward actually in those relationships.

I actually think that was all.

Very good. Thank you for your questions, and thank you for listening to us and see you at the next quarterly report.

Thank you.

Thank you for today.

Hello, and very warm welcome to Eastnine's Third Quarter Presentation. My name is Kestutis Sasnauskas; and with me, Britt-Marie Nyman, Deputy CEO and CFO. And today, we will guide you through our third quarter results of 2025.

Before I start, I urge you to post your questions during our presentation, and we will answer them right after the presentation is done.

So let's move into the third quarter. We continue experiencing tailwinds in our operations. Our rental revenue is growing 45% in comparable portfolio at 3.1%. Profit from property management up 48% and per share is 35%. All of these figures depend very much on our last acquisition in Poland, and this growth is mainly attributed to that. But we're also very, very happy to see strong performance in comparable portfolio as well.

We also have positive value changes in our portfolio, though slight, there's no dramatic change, mainly driven by growing market rental levels in the market, which result into positive revaluation of our portfolio. We also refinanced some of our debt and increased our leverage a little bit. This is all in preparation for further -- future acquisitions.

During the quarter, we concluded an extended a lease contract with ROCKWOOL, one of our key tenants in Poznan. The contract grew from almost 7,000 square meters to over 9,000 square meters and extend for another 7 years. We're also working on establishing operations in Poland. We have country manager in place since August already and 4 employees starting in December and February. So all in all, business is as planned.

If we look over period, continued growth figures are more impressive. Again, rental revenue growing 59% and comparable portfolio at strong 4.4%. Profit from property management, up 49% and per share 36%. So again, very strong performance. Unrealized value changes at EUR 24 million over the period. Net letting slightly negative, but we are coming from very high level of occupancy with closer to 97%, slight drop from last quarter, but still significantly above the start of the year. Surplus ratio at almost 94%. Again, very strong operational metrics continue.

So if we look at Eastnine at a glance, we are a property company in the fastest-growing part of Europe with core markets today being Poland, followed by Lithuania and Latvia. And if you look on overall size, I mean, we have 272,000 square meters, almost EUR 1 billion in property assets, 97% occupancy rate. We expect our annual revenue to reach EUR 62 million, properties yield 6.1% with 47% leverage and average interest of 4.4%. And you can see some of the names of our key tenants. I will go into that a little bit later in the presentation.

If you look at Eastnine as a long-term investment over the last 10 years, the share outperformed most of our benchmarks, both EPRA index and -- this is EPRA Developed Market Index and Real Estate Index in Stockholm, so both in euro and SEK. And if we look on the targets that we -- of course, our overreaching target is to deliver attractive return -- total return to shareholders, but also growth with high profitability as we have continued doing it right now. So over the year, we return our investment through Eastnine, returned around 8%, over the 5-year period, around 18%.

Our property portfolio is growing 47% over 1 year and an average of 24%. And this is the ambition that we intend to continue on this growth. If you look historically on our asset base, assets more than doubled over the 5 years, and profit from property management close to 3x. So if we look a little bit on the sort of the market and the long-term trends -- and I continue talking about it, it's just very, very important to understand where we are.

We are actually in the fastest part of Europe -- fastest-growing part of Europe, with Poland topping the growth over the last 25 years. But even for the next coming 5 years, the growth in Poland is expected to be among the highest in Europe. So are the other 2 Baltic markets, which are considerably smaller, but at the same time, developing and evolving extremely nicely.

Again, if you look at the growth parameter, is very important, but it comes as well with very nice investment metrics. We are in the market with the lowest rental levels and in combination with the highest yields. The capital values are significantly below of the surrounding markets, which is a kind of wrong assumption in the longer term. I think that this gap will sometime close. We don't know when it -- of course, there's certain factors affecting it. But I think it is very, very important to remember that this combination, again, in combination with the same financing opportunities as we have in the other European markets is very, very compelling.

If we look at the market per se, I think we are in a bit of a different universe compared to our Nordic peers. We are in a market where rental levels are growing in general and especially in the sort of prime segment. And if we look over the last 5 years, the rental levels in markets like Vilnius increased by 41%; Riga, 19%; Warsaw, 18%; and Poznan, 16%. So positive dynamics, and this dynamic started to accelerate even more over the last 2, 3 years, mainly driven by increased construction costs and inflation. So it's not a kind of market sentiment-driven. It's more driven by the underlying cost, et cetera. So still a very, very positive environment.

The demand also remains very strong in our segment. If we look on the yields, we, again, in the market were -- probably the shift in yields have happened pretty quickly. If you look on Warsaw, we are up 150 basis points compared to the lowest levels back in '21, 125 bps in the Baltics and Poznan around 100 bps. Of course, Poznan comes from a significantly higher level already. So that change of 100 bps is pretty motivated. But the positive thing is over the last 2 years, these yields are now stabilizing, and we see that probably with dropping financing costs, those yields are probably peaking in general. And if you look on maybe separate transactions, this kind of gap from the top to the -- from the bottom to the top, is closer to 200 bps if we look in places like Warsaw.

The other important aspect of the vacancies in the market. In general, we see that vacancies have increased over the years in all markets. It's probably following the sort of normal global trends. Warsaw is the only market that actually is more or less flat since the level of 2017. And it is -- these are statistics for the total market. If we look for prime segment, these statistics differ quite a lot. But if you look on our portfolio, our occupancy was very stable over the years at a very high level, above 90% all the time. And today, we are still at 96.7%. And we also are in the market of increasing rents. And if you look on sort of the graph on the right, you see the latest trends in our core buildings and the rents are upwards -- ticking upwards.

And this is, again, a little bit different sentiment from most what we see in other markets. But the prime segment, prime properties in best locations, they continue to deliver very stable returns, and they are in a very high demand as most of the tenants are actually looking for higher quality products. So this flight-to-quality trend continues and is very, very strong in our region.

If we look on our portfolio overall, 31% of the value is in Warsaw, 22% in Poznan and Vilnius with 40% remains our biggest market. We are very focused on offices. We basically do only office, so 96% of our portfolio is only entire dedicated to offices. And those offices are very modern. So despite these very high yields, this is a very, very modern and young portfolio.

If we look on our tenant base, we are exposed to the most exciting part of the economy. It's IT, it's finance, it's e-com, it's medical health and medical segment. And in general, if you look on our tenant list, these are very strong, either very strong local regional players or multinationals. And of course, the best properties attract the strongest tenants. WAULT is at 3.6 years. Average rent still very low, which is at almost SEK 2,500 per square meter. And this is in the prime segment again. So it's -- we should not forget that.

There is just a slide to show you our portfolio. I mean, it's the same as it was in the previous quarters. We haven't done any acquisitions yet. And if we look on sustainability part, 100% of our portfolio is sustainability certified. We certify under LEED and BREEAM standards. And in BREEAM, we only have Outstanding, and in LEED, we have -- most of our properties are -- or almost all of our properties are in Platinum and only one in Gold, which is again the highest standards of environmental certification. 82% of our revenue is EU taxonomy aligned. Green financing stands for 88% of our total financing.

We received 5 stars in GRESB 91 points, and we are among top 20 in our -- in the -- all universe of real estate companies, we are #2 in our segment of listed peers in Europe, I think. And if you look on our energy performance, we continue working very hard on reducing our energy intensity in the buildings. This year, so far, we reduced our energy intensity by 4.5%. And if we look on -- this is in total portfolio. And if we look on our buildings per se, without tenant electricity, it's down 7.2%. So on this, I will leave over to you, Britt-Marie, to discuss more the quarterly figures.

Thank you very much, Kestutis. Once again, new record results from Eastnine, both during the quarter and the period. This is mainly due to the acquisitions in Poland last year, of course. You can see that both rental income and net operating income increased substantially. But it's also good to see that income in a comparable portfolio increases by 3% in the quarter and 4% in the period, and this is related to indexation and the higher occupancy in average.

The acquisitions, of course, also increased the interest expenses and decreased the interest income since we used partly cash in the acquisitions, while the increase in expenses was partly offset by decreased interest rate level. We saw profit from property management increasing by nearly 50%, both during the quarter and the period, and we saw positive unrealized value changes for properties during the quarter -- third quarter and the first quarter, meaning that the period was also positive. This was related to changes in Poland.

History is, of course, important, but future potential is even more important. And in the earnings capacity, we compare the situation by the end of previous quarter and also 1 year back. It's a theoretical assessment. It's not a prognosis. And as you can see, the profit from property management compared to 1 quarter back decreased by 3%, and this is because we had slightly lower occupancy by the end of September this year compared to the end of June. And we also saw an increase in interest expenses in the earning capacity due to the additional loans that we decided upon in the end of September.

If you compare 1 year back in the earning capacity, we had -- we can see a huge increase during this 12 months, 33% on the bottom line profit from property management, and this is, of course, related to the acquisition of Warsaw units in November last year.

A little bit about financing and some key figures. The LTV decreased somewhat during the last quarter, down from 48% to 47% after amortizations and increased property values. The liquidity is slightly higher after additional financing. The interest rate level and the ICR on the same level. The debt ratio continues to decrease and capital tie-up period increased after additional and new financing -- additional and refinancing, sorry, and the fixed interest period slightly lower, but we have some new swaps starting during the fourth quarter, which will have an effect on both fixed interest period and the share of fixed interest.

And as you can see, we don't have any maturities left in 2025. These EUR 2 million, as you can see, they are only amortizations. And we also said in the report that related to the very good market conditions on the credit market, we might even refinance something more early before maturity. So we are looking into that, and not really much maturing in '26, '27 and '28, a little bit more in '29, of course.

The debt sources are the same as in the end of previous quarter, except for a change. SEB is nowadays our largest bank after the additional financing during the third quarter, followed by Berlin Hyp, Erste and Helaba. The property value has increased by 47% during the last year. And the main reason is the acquisition in Poland in November. But if we look at the unrealized value changes for properties, they were EUR 5 million during the third quarter versus -- which is up 0.5% versus second quarter. And the yield requirements, they were unchanged during the quarter, 6.6%.

If you look into the share, you can see that the liquidity and the trading in the share has increased substantially during this year 216% for the first 9 months up compared to the same period last year. The number of shareholders has also increased, up 8%, 6,400. NAV increased by 4% during the first 9 months in SEK and 7% in euro. And total return for the shareholders during the last year is 8% 12 months and in average during the last 5 years, 18%. So that was all.

So before we conclude, of course, we are in the active phase of preparation for new acquisitions. We're accumulating bigger cash positions. And of course, we work continuously on looking into opportunities to grow our portfolio primarily in Warsaw.

So please continue posting questions. We will start by answering those we already received. The first one. Hi, and once again, congrats to yet another strong report. Could you, if possible, elaborate a bit more around size in [ million euro ] overcoming acquisition? And is it currently only Warsaw that's in focus for Eastnine?

Of course, we are focusing primarily on Warsaw because Warsaw is where we see the biggest opportunities to build our position. We could do something in the markets we are already existent as well. We don't exclude that, but Warsaw is our key priority today.

In terms of size, I think it would be inappropriate to comment. But we believe that we have a really very strong balance sheet today with 9x debt-to-EBITDA ratio. And if we look on forward-looking figures, it's going down to 8.4%. So of course, we have a possibility to increase a little bit our leverage and, of course, do quite significant acquisitions. We normally do relatively sizable transactions.

[ In your ] markets, do you expect highest upside from rental growth or yield compression?

It's very difficult to speculate about the yield compression. But of course, implications of yield compressions are huge. Should the yields start going down, we would see very, very significant uplift in values. At the same time, cash flow is something that we work very hard to make sure that it continues growing and our earnings per share continue growing at a very strong pace. So focus is very much on that.

Of course, the rental levels and the rental contracts normally are longer. They are fixed for a longer period of time. So we have a kind of inflationary adjustments. And you can see actually in our like-for-like growth over the 9 months, we are growing a bit faster than the average inflation, we are doing 4.4% like-for-like growth versus inflation of just below 2 -- around 2 or something, if I recall correctly. So -- but since we have contracted rents, maybe the yield could happen -- moves can happen faster.

Given how supportive banks are right now, how much higher leverage are you comfortable with in terms of LTV or net debt related to EBITDA?

Perhaps, we shouldn't give an exact figure, but somewhat higher at least. As Kestutis said, the net debt in relation to EBITDA is only 9 today, and it's decreasing further if you look at the earnings capacity. So I would say it's a [ bit higher ] at least then and no problem.

I think in general, I mean, we would try to keep it over time just below 10, definitely just to be on a prudent side. At the same time, it could initially go over 10x when we do acquisitions with the potential of reducing it over next coming 12 months as it happened when we did acquisition of Warsaw units. So in general, you should look on the long-term or maybe earnings capacity figure for what we target, and we probably target somewhere to be around 10 or in a comfortable zone, just below 10.

Are you considering taking up bond financing? And if so, what terms, interest rate and amount issued could we expect from a bond issue?

I would say some time, yes, I guess, but it's not right now, perhaps because the interest from banks are -- it's very, very good in the market with very low margins, meaning that with our fairly low LTV, we can still borrow some more money in the banks. It's not a problem. So as long as that possibility is cheaper than bond financing. I guess, it will be the best for us, but sometime in the future, yes.

Yes. I guess, it's very much driven by transaction to transaction. So should there be a very attractive transaction that we can actually use part of the financing with bonds, we will do it as well.

And all these questions will be related to what kind of acquisitions we actually do.

Exactly. So everything is very much related for the further acquisitions. But today, we are accumulating cash for further acquisitions by refinancing by debt mainly.

Update on dividend policy, 30% of EPS. What is long-term goal for increase in EPS per year or next 5 years, dividend per share should increase in line with EPS growth?

I don't think that we actually can say anything more about that. That will be a decision for the Board to give a proposition for the AGM. In the end, we have our dividend policy to follow.

But the dividend policy that is communicated is 30% of the profit from property management after tax. And of course, we also said that we expect the dividends to grow as our profit from property management is growing very rapidly. So in general, I think this is -- there's nothing new to communicate, yes.

I guess, that was it. Any more questions? So please post them.

Okay. It seems that no more questions are coming in. So thank you very much for listening to us today, and we look forward to present to you another exciting Q4. Thank you.

Hopefully. In February. Thank you.