Eastnine: Strong op. performance and large value uplifts - ABG

Best net leasing in company history (since 2020) Net operating income (-1%) hurt by energy costs 2.1% property value uplifts and +81% to MFG Income from property management +3% vs. ABGSCe As alluded to in its June 28 press release, Q2 saw strong net leasing (~EUR 1.8m, ~EUR 1.1m TTM), driven mainly by deals in Uniq and much less cancellations (~EUR -0.6m in Q2’21). Rental income amounted to EUR 7.4m (5.4m), compared to our forecast of EUR 7.2m. Net operating income was EUR 6.6m (4.9), -1% relative to our estimate of EUR 6.6m, and the surplus ratio fell to 89% (91% in Q1) due to higher energy costs. Income from property management amounted to EUR 3.1m (2.8 m), 3% above our forecast of EUR 3.0m. CEPS is 13% below ABGSCe due to current tax reported in Q2. Avg. rent/sqm/year amounted to EUR 183 (185 in Q1’22 and 180 in Q2’21). The occupancy rate came in at 91.5% (91.1% in Q1). The average interest rate was 3.0% (2.9% in Q1’22) and the average interest maturity 2.2 y (1.6 y in Q1’22).