Eastnine: Guiding for more MA - ABG

* NOI -1% and rec PTP +2% vs ABGSCe* EC IFPM -3.4% q-o-q, partly due to cash position, ready for M&A* Occupancy at 97%, cons estimates largely unchangedRecurring PTP +2% vs ABGSCeEastnine delivered a Q3 report with rental income of EUR 15.5m (-1% vs ABGSCe) and NOI of EUR 14.5m (-1% vs ABGSCe). Central admin costs and net interest expenses were both better (below) our expectations, leading to recurring PTP of EUR 8.2m being +2% vs ABGSCe. Occupancy came down by 0.4pp sequentially to 96.7% and net letting amounted to -EUR 0.54m. The earnings capacity IFPM decreased by 3.4% sequentially on slightly lower rent, higher property costs and higher net financials. The average interest rate decreased q-o-q, so higher interest expenses in the earnings capacity is due to more gross debt (large cash position) on the back of being ready to do more M&A.Property values +0.5%, net LTV down 0.7pp q-o-q to 47%Property value changes in the quarter amounted to EUR 5m (+0.5% of property value), where we had anticipated +0.4%. The valuation yield was flat q-o-q. The net LTV (ABGSC definition) decreased by 0.7pp q-o-q to 47% and the average interest rate was down slightly q-o-q but still rounds to 4.4%. EPRA NRV per share came in at EUR 5.1 (0% vs ABGSCe).ConclusionQ3 recurring PTP was +2% vs ABGSCe, driven by better central administration and net financial expenses. Solid operational figures such as high occupancy (96.7%, -0.4pp q-o-q) strong NOI margin (93.2%). The earnings capacity IFPM per share decreased by 3.4% sequentially, but part of this is driven by Eastnine having a larger cash position, as it guides for more M&A in the near future. All in all, we expect consensus estimates to remain largely unchanged on the back of the report and do not expect any material share price reaction today, although the very clear guidance on more M&A could be viewed as a positive. CC at CET 15.00 Q3 Report 2025.