Profit from property management increased by 32 per cent in 2023, reaching a record high. This positive development is chiefly the result of a larger property portfolio and an improved net interest income following the sale of
January-December 2023
** Rental income increased by 19 per cent to
** Net operating income increased by 22 per cent to
** The profit from property management increased by 32 per cent to
** Unrealised value changes amounted to
** Realised value changes and dividends amounted to
** Profit/loss for the year amounted to
** Net letting amounted to
** The property value was
Key events during the fourth quarter
** Unrealised value changes properties and net letting were both positive in the fourth quarter and amounted to
** In October, Eastnine's only bond was redeemed early. The amount redeemed corresponded to around
** In December, the Board adopted a new business plan.
Key events after the end of the year
** The Board proposes a dividend of
CEO comment
Record profit after an historic year
Eastnine concludes 2023 by delivering the highest profit from property management of any single calendar year ever. After successfully completing the sale of the MFG holding, our single most important goal during the year, we were able to redeem Eastnine's only bond early and invest the remaining cash with good return. Now we are focusing on the next step: acquiring further modern and sustainable office properties that contribute to improved profitability. All in line with the new business plan that was adopted in December.
Profit from property management at record level
The 2023 profit from property management is at a record high, in spite of higher financing expenses. Excluding one-off expenses connected with the redemption of Eastnine's bond, the profit/loss for the fourth quarter is also at the highest level ever. There are two deals in particular that contributed to the increased profits this year: the acquisition of the Nowy Rynek D property in
Stable financing
Eastnine enjoys a low loan-to-value ratio and large cash balances. The capital tie-up period will increase during the first quarter as we will refinance the brunt of the loans maturing in 2024, with slightly longer terms.
Value changes in properties
Following three quarters of relatively large, negative unrealised value changes in properties, property values remained essentially unchanged throughout the fourth quarter. The weighted yield requirement as used in the valuations continued to grow, rising by 0.2 percentage points to 6.4 per cent. At the same time, however, market rent levels also rose. There are good reasons to believe that the trend of rising yield requirements on properties, and falling property values, may be coming to an end as a result of lower inflation rates and falling long-term interest rates. Negative unrealised value changes during the full year 2023 amounted to 5.7 per cent.
New business plan and high total return
In
I would like to conclude my statement by thanking all of my colleagues for their excellent contributions over the past year. We have a small, effective organisation, meaning that every person and every contribution is important.
Report presentation
The Year-end report is presented on Wednesday
An investor presentation will be available at www.eastnine.com 15 minutes before the start of the webcast. A recording of the webcast will also be available afterwards on the company's website.
For more information contact:
Visit www.eastnine.com
This information is information that
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