Eastnine adds logistics properties to the investment strategy
Eastnine's Board of Directors has decided to broaden the current strategy from offices to include prime logistics properties in the Baltics. Diversification means continued high returns, but at a lower risk level. A broader investment focus further strengthens the company's growth opportunities.
Eastnine is in a rapid growth phase. Over the past four years, the company has established itself as a leading office owner in the Baltics by building up a portfolio of modern and centrally located office properties to a value of approximately EUR 410 million. At the end of 2020, a new business plan was adopted which, among other things, included the goal that the property portfolio will grow to EUR 700 million by the end of 2023.
“Logistics is a good complement to our office portfolio. The logistics segment has an attractive direct yield and strong cash flows, which can make a positive contribution to both earnings and growth”, says Eastnine's CEO Kestutis Sasnauskas. “We will from now on focus on both the best office and logistics properties. The exact timing of acquisitions in each segment depends on which opportunities arise and which deal is considered to be best at each individual time.”
- New business concept
"Eastnine shall be the leading, long-term provider of modern and sustainable office and logistics premises in prime locations in the Baltics."
- Previous business concept
"Eastnine shall be the leading, long-term provider of modern and sustainable office premises in prime locations in the Baltic capitals."
The broadening of the strategy towards another attractive property type, logistics, means that the risk level decreases through diversification. Acquisition of logistics properties would also mean that the tenant concentration decreases. Demand for office and logistics premises as well as properties in the Baltics follows the same trend as in the Nordic countries, i.e. a gradual increase in demand with subsequent yield compression.
Eastnine AB (publ)
For more information contact:
Kestutis Sasnauskas, CEO, +46 8-505 97 700
Britt-Marie Nyman, CFO and Deputy CEO, +46 70-224 29 35
Visit www.eastnine.com
Eastnine AB is a Swedish real estate company with a property value of EUR 374m and a long-term net asset value of EUR 329m as of 31 March 2021. Eastnine’s vision is to create and provide prime venues where ideas can flow, people can meet, and successful business can be developed. The mission is that Eastnine shall be the leading, long-term provider of modern and sustainable office and logistics premises in prime locations in the Baltics. Eastnine is listed on Nasdaq Stockholm Mid Cap, sector Real Estate.
This information is information that Eastnine AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 7.15 a.m. CET on 16 June 2021.