Eastnine — Interim / Quarterly Report 2020

Nov 5, 2020

Interim report January−September 2020

The real estate business continues to develop positively. Profit from property management increased by 83 per cent as a result of a larger property portfolio and higher occupancy rate. In the third quarter, unrealised value changes to the holding in Melon Fashion Group (MFG) amounted to EUR 8.7m.

The period January–September 2020

• Rental income increased by 52 per cent to EUR 13,936k (9,187). The increase is primarily attributable to a larger property portfolio, but also due to a higher rent level and higher occupancy rate. Rental income in a comparable portfolio increased by 6 per cent.
• Net operating income increased by 53 per cent to EUR 12,514k (8,196).
• Profit from property management increased by 83 per cent to EUR 6,951k (3,790).
• Unrealised value changes amounted to EUR -6,826k (11,587). Of the change, EUR 2,386k (6,294) is attributable to real estate, EUR -8,539k (7,000) to investments and EUR -673k (-1,707) to derivatives.
• Profit/loss for the period amounted to EUR -1,349k (15,691), corresponding to EUR -0.06 per share (0.74).
• The average rent level amounted to EUR 14.8 per sq.m. per month (14.7) and the occupancy rate to 94.2 per cent (92.7). Net letting amounted to EUR -898k. The average rent level on newly signed agreements amounted to EUR 15.9 per sq.m. per month, and renegotiated agreements to EUR 15.3.

Comparative figures in the Interim Report refer to the period January - September 2019 in income statement items and as per 31 December 2019 in balance sheet items. "The Company" refers to the Eastnine Group

Key events during the quarter

• Unrealised value changes amounted to EUR 8,929k (4,281) in the third quarter, of which EUR -198k (2,810) is attributable to real estate, EUR 9,139k (1,782) to investments and EUR -12k (-311) to derivatives.
• The property Vertas-2 in Vilnius was acquired and taken into possession at the end of September. The purchase price was EUR 20.0m.
• Eastnine has established a green financing framework which obtained the Dark Green/Excellent classification from CICERO.
• Eastnine made third place in the Allbright Foundation's ranking of gender equality among Swedish listed companies.

Events after the end of the period

• Eastnine has established a new business plan. One of the new targets is to double the size of the property portfolio, to reach EUR 700m, by the end of 2023. More details on the new targets can be found on page 2.
• The Board has set the targets for the requirements in the incentive program, LTIP 2020.
• Vertas-1 in Vilnius has obtained LEED Platinum certification.

SELECTED KEY FIGURES

	2020	2019	2020	2019
	Jan-Sep	Jan-Sep	Jul-Sep	Jul-Sep
Rental income, EURk	13,936	9,187	4,993	3,142
Profit from property management, EURk	6,951	3,790	2,519	1,370
Net profit/loss for the period, EURk	-1,349	15,691	11,163	5,069
Average yield requirement, %	6.1	-	6.1	-
Return on equity, %	-0.7	8.5	17.5	8.2

	2020 30 Sep	2019 30 Sep	2019 31 Dec
Investment properties, EURk	356,940	203,276	290,256
Occupancy rate, %	94.2	90.2	92.7
Equity / asset ratio, %	57	71	64
Loan-to-value, %	49	42	47
Environmentally certified properties1 , % of sq.m.	79	75	72
Long-term NAV per share, EUR	12.9	12.1	13.1
Long-term NAV per share, SEK 2	135	130	137
1

Area with environmental certification in proportion to total area (excl. area expected to undergo significant redevelopment). ² EUR = 10.50 SEK as of 30 Sep 2020 (source: Reuters).

This is Eastnine

Eastnine shall be the leading long-term provider of modern and sustainable office premises in prime locations in the Baltic capitals.

Swedish real estate company

Listed on Nasdaq Stockholm Mid Cap and headquartered in Stockholm.

Nordic tenants

Primarily large Nordic companies with international operations.

Baltic prime office properties

Invests in modern and sustainable office properties in firstclass locations in the Baltic capitals.

TARGETS IN BUSINESS PLAN 2023

Property portfolio of at least EUR 700m by the end of 2023.	357
Profit from property management for Q4 2023 (recalculated as an annual figure) to amount to EUR 25m.	EUR 10.1m (annualised Q3 2020)
Financial	Status 30 September 2020
Dividend are to correspond in the long term to at least 50 % of profit from property management after deduction for	To be decided by the 2021 AGM
currenttax. 1
Return on equity should be at least 10 % over time.	7.1 % (12 months)
The loan-to-value ratio should be at most 60 %.	49 %
The equity/asset ratio should be at least 35 %.	57 %
The interest coverage ratio shall be at least 2.0x.	3.6x (period)

Sustainability Status 30 September 2020

The entire property portfolio should have obtained sustainability certificates on the level of at least LEED Gold or BREEAM Excellent ²

¹As of and including the 2020 financial year. ² Refers to area of all properties that are not expected to undergo significant redevelopment.

79 %

Q3

Strong third quarter for Eastnine

Eastnine delivers a strong third quarter, in the property management business as well as in other investments. A larger property portfolio has a clear impact on profitability, and the company's continued growth is a key goal. According to the new business plan, the property portfolio is to double and amount to EUR 700m by the end of 2023.

Strong results development

Eastnine delivers a strong operating profit for the third quarter and the nine-month period. Revenues rose by 59 per cent during the third quarter compared to the same period last year. At the same time, profit from property management increased by as much as 84 per cent. The first nine months of the year showed the same tendency. The fact that we have been able to grow our property portfolio by 76 per cent in one year evidently has a positive impact on profitability in the real estate operations.

The coronavirus pandemic has, thus far at least, had a very limited impact on our earnings. Our focus on modern and sustainable offices, as well as on Nordic tenants with international operations, confers stability. During the first quarter of 2020, Eastnine revalued the holdings in MFG as a result of the coronavirus pandemic, which, together with a weakened ruble, resulted in a negative unrealised value change. In the third quarter, the holdings have been revalued upwards.

Lithuania best in EU at weathering the crisis

The Baltics overall have weathered the effects of the coronavirus pandemic considerably better than most EU countries. Case rates have been lower, and the economies have fared better. There are, however, differences between the countries in which Eastnine operates too. The Lithuanian economy displayed notable strength, with a GDP decline of only 3.8 per cent, compared to the same period 2019. This is less than half the size of the GDP decline in Sweden. Latvia's decline is more on par with Sweden, but still clearly smaller than most European countries. We also see that the demand for premises continues to be healthy in Vilnius and rent levels are stable, while demand in Riga is generally weaker.

New business plan

The Board of Eastnine has decided on a new business plan which extends to the end of 2023. The target is that the property portfolio shall double during that period, reaching EUR 700m by the end of 2023. This growth shall be conducted in an orderly fashion and serve the purpose of giving shareholders a sustainable, attractive total return. The dividend shall, over time, amount to at least 50 per cent of the profit from property management, and the return on equity shall be at least 10 per cent in the long term.

The establishment of the new targets, which begins with and builds on the real estate business, is possible thanks to the considerable progress Eastnine has made in the process of focusing the company purely on the real estate business. The real estate assets amount at the end of the period to 78 per cent of all assets in the company. At the same time, risk mitigation targets such as the loan-to-value ratio and equity/asset ratio have been tightened. The loan-to-value ratio may maximally amount to 60 per cent and the equity/asset ratio shall amount

to at least 35 per cent. The loan-to-value ratio is presently 49 per cent and equity/asset ratio 57 per cent. Other investments are unleveraged, meaning that the net lending is considerably lower.

Advantages of growth

Acquiring a larger property portfolio is not an end goal in itself. It's the advantages that a larger property portfolio confers that are desirable. A larger company garners greater attention from tenants and gives us the ability to satisfy their needs in a better way. Growth also results in economies of scale, something that we have already noticed in 2020. Fixed costs are distributed on a larger property volume, meaning that the efficiency increases and profitable improves. As a larger company, we will also be able to improve the terms of our financing through e.g. better access to capital markets.

Sustainable Eastnine

Lastly, but not least, I want to draw your attention to our sustainability efforts, which constitute a central part of our business. We are happy to see that these ambitious and goaloriented efforts are paying off. We are ranked in the top third in the Allbright Foundation's comparison of gender equality in Swedish listed companies. During the third quarter, we launched a green financing framework which obtained the highest grade, Dark Green and Excellent, from CICERO. This is an assessment which only a handful, very large real estate companies in Sweden, have achieved. A full 87 per cent of the portfolio has, at the beginning of October, obtained sustainability certificates on the level of BREEAM Excellent or LEED Platinum. We are determined to make our property management fully climate-neutral by 2030 and are working systematically to drive green initiatives in the Baltics. In this area, particularly, we see that there is still much left to do in our business area, and our efforts are making a noticeable difference already.

Kestutis Sasnauskas CEO

Our property portfolio is to grow to EUR 700m by the end of 2023

Effects of the coronavirus pandemic

The coronavirus pandemic has had a limited impact on Eastnine's property operations. Granted rent reductions are small, the loss of rent payments minor and the property value has, after an initial decline, recovered. The same is true for Eastnine's holding in MFG which, after a decline in value during the first quarter, is back at the same level in ruble at the end of the third quarter as at the end of 2019, although at a lower level in euro due to currency effects.

Rental income

Q3

Eastnine has a robust tenant structure. The majority of Eastnine's tenants are large Nordic companies with international operations. The average remaining lease term of the ten largest tenants is 4.4 years, corresponding to 4.6 years across the entire portfolio. 95 per cent of the premises are offices.

Eastnine's lease rents are chiefly due on a monthly basis, meaning that any issues that tenants may have in paying rent are quickly identified. Eastnine has granted reductions totalling around EUR 152k, corresponding to 0.8 per cent of total annual rent for premises (excluding Vertas-2 which was taken into possession at the end of September).

Financing

Eastnine has good liquidity and a high equity/asset ratio. Cash and cash equivalents amounted to EUR 14m, unutilised credit facilities to EUR 3m and the equity/asset ratio to 57 per cent at the end of the period.

The loan-to-value ratio amounted to 49 per cent, capital tie-up period to 3.2 years, and the fixed interest term to 2.5 years. No loans are maturing in 2020. The first loan maturation, comprising EUR 14.6m, occurs in September 2021. Financing is distributed between three of the larger banks in the Baltics. The company has no capital market financing.

Transaction and property valuation

A general market anxiety has meant reduced transaction volumes, although there has been somewhat more activity during the third quarter. Up until February, property yields on offices were heading to record-low levels on our markets. At the end of June, a larger office transaction took place in Tallinn, and in the third quarter, a larger office transaction in Riga as well as Eastnine's acquisition of an office property in Vilnius. All these transactions indicate continued stability in the market.

100 per cent of Eastnine's property portfolio has been externally valued as of 31 March 2020 and internally valued as of 30 June. In the third quarter, four properties were externally valued and the remaining internally valued.

During the period January–September, the unrealised value changes amounted to 0.8 per cent. The first quarter resulted in negative unrealised value changes relating to the coronavirus pandemic, the second quarter positive value changes due to e.g. rising rent levels. In the third quarter, the unrealised value changes in properties was close to zero.

Melon Fashion Group

Eastnine's associated company MFG has performed very well after the initial negative effect of the coronavirus pandemic during the spring, when all stores were closed. The stores started to open back up in June and at present all stores are open. Turnover in e-commerce has more than doubled and the total sales exceed that of the previous year, despite the closure during the spring. The closures also affected the valuation of Eastnine's holdings negatively. But the strong sales development that followed has contributed to a positive unrealised value change during the third quarter of EUR 8.7m. During the whole period January– September, the unrealised value changes amount to EUR -9.7m, due to a weakening of the ruble toward the euro.

Staff

The health and safety of our staff is a priority. Eastnine follows the official guidelines concerning the work and the employees in the countries in which we operate. The Company has recommended all employees, using public transport to and from work, to work from home as much as possible given their duties. In the Baltics as well as in Sweden, the majority of employees worked in the offices at the end of September. Physical meetings and business travel are avoided if possible.

Community initiatives

Eastnine ordered 230 meals per day through the month of April and the first half of May to be delivered to staff caring for Covid-19 patients at Vilnius university hospital. The meals have been delivered by three restaurants that are Eastnine tenants.

Market

Q3

The Baltic countries have largely lifted the restrictions previously imposed, and the Baltic economies have thus far coped with the coronavirus pandemic better than most other countries in Europe. The rental market for offices has been stable and the office transactions that have taken place since the onset of the pandemic indicate that the transaction markets continues to be strong.

Market development

The Baltics have shown resilience since the onset of the coronavirus pandemic. GDP declines have been smaller and the recovery faster than in the rest of Europe. While the economy in the Euro area as a whole shrank by 13.7 per cent during the second quarter, compared to the previous year, GDP sank by 6.9 per cent in Estonia, 9.8 per cent in Latvia and only 3.8 per cent in Lithuania. Tourism is relatively speaking a smaller sector in the Baltics, but the spread of infection was also limited at an early stage, and consumers therefore returned quickly. In Lithuania, a more advantageous export structure and broad stimulus packages contributed to the recession's mildness and to a fast recovery.

The economic uncertainty has decreased, but is still considerable. In particular as the spread of the coronavirus, just as in the rest of Europe, has increased in the Baltics during the autumn.

Rental market

The office market has fared well during the pandemic. Offices have generally been kept open, even if many companies have opted to allow staff to work from home at times. Owners of hotel and retail properties as well as property developers have, however, been negatively impacted due to the lockdowns and general market anxiety. Vacancy rates for offices were at the end of the period, according to Colliers, at 5.5 per cent in Vilnius, 20.8 per cent in Riga and 8.1 per cent in Tallinn. Vilnius and Tallinn enjoy a good balance between supply and demand. Riga, on the other hand, currently has an oversupply of premises as a

Source: Countryeconomics, Swedbank Economic Outlook Source: IMF, Worldeconomics, Swedbank Economic Outlook

result of the completion of several projects, e.g. Z-Towers, BusinessGarden,HenrihsJaunā Teika andOrigoOne.

Rent levels in Lithuania and Tallinn have been unchanged during the year, while Latvia exhibits a weak development. The office market in Vilnius has a particular dynamic, where considerable demand is generated from international tenants taking note of the advantages of lower costs. There is nothing at present that indicates that the situation will change during 2020.

Transaction market

After two record-breaking years with property transactions amounting to around a billion EUR per year in the Baltics, the total transaction volume is expected to sink in 2020, largely due to uncertainty and travel restrictions. The activity and price-setting in the office segment has however remained stable. Since the outbreak of the pandemic, three larger office transactions have been announced in the Baltics: SEB's head office in Tallinn, Citadele banka's head office in Riga and Eastnine's acquisition of Vilniaus Vartai (Vertas-2) in Vilnius. During the period, two acquisitions that were previously announced in Vilnius were completed, one of which was Eastnine's acquisition of S7-3.

A functioning credit market is key to ensuring the functioning of the transaction market. In direct conjunction with the outbreak of the virus in the spring, parts of the banking sector focused more on handling existing credits rather than granting new ones. After the summer, the situation has normalised somewhat for lenders with low risk profiles.

GDP, ANNUAL PERCENTUAL CHANGE INFLATION, ANNUAL PERCENTUAL CHANGE

The period January–September 2020

Rental income increased during the period due to a larger property portfolio, higher occupancy rates and higher rent levels. The property value increased mainly through acquisitions of new properties. After the considerable negative impact of the coronavirus pandemic on Eastnine's associated company, MFG, during the spring, the fashion chain now exhibits a very positive development. The value of the MFG holding has decreased during the period as measured in euro, but increased in ruble.

Rental income

Q3

The income, which is entirely composed of rental income, increased by 52 per cent during the period to EUR 13,936k (9,187), primarily due to a larger property portfolio, but also due to a higher occupancy rate and higher rent levels. The properties S7-3 and Vertas-2, which were acquired during the period, are taken up in the figures from the end of June and the end of September, respectively. Rental income in a comparable portfolio increased, due to a higher average occupancy rate and higher rent level, by 6 per cent compared to the same period in 2019. In the third quarter, the increase amounted to 5 per cent. Average rent level in the property portfolio increased to EUR 14.8 per sq.m. per month at the end of the period, compared to EUR 14.7 at the end of 2019. New lease agreements have been signed at an average level of EUR 15.9 per sq.m. per month, and renegotiations at EUR 15.3 per sq.m. Net letting during the period amounted to EUR -898k and during the third quarter to EUR 1k.

Property expenses

Property expenses rose by 43 per cent to EUR -1,422k (-991) due to a larger real estate portfolio.

Earnings

Net operating income was EUR 12,514k (8,196), and the surplus ratio amounted to 90 per cent (89). The high surplus ratio is attributable to the fact that a majority of the tenants, in addition to rent, also pay for e.g. electricity, heating, cooling, water and wastewater, as well as repairs, maintenance and property management. The increase in net operating income of 53 per cent is chiefly related to

RENTAL INCOME AND PROFIT FROM PROPERTY MANAGEMENT, EURK

acquisitions. Central administration expenses amounted to EUR -2,681k (-2,689) and profit from property management increased by 83 per cent to EUR 6,951k (3,790). Unrealised value changes in properties amounted to EUR 2,386k (6,294). Unrealised value changes in investments amounted to EUR -8,539k (7,000), of which EUR -9,716k (5,160) is attributable to MFG and EUR 1,177k (1,840) to fund investments. Unrealised value changes in derivatives amounted to EUR -673k (-1,707). No realised value changes or dividends have been received during the period (EUR 1,638k). Profit before tax amounted to EUR 125k (17,015) and the net profit-loss for the period to EUR -1,349k (15,691).

Segment Reporting

The Real Estate Direct segment, comprising the directly owned property subsidiaries, generated a profit before tax of EUR 9,902k (9,763) during the period. The Real Estate Funds segment, comprising the East Capital Baltic Property Fund II, generated a profit before tax of EUR 1,177k (2,545). The Other segment, comprising the holding in MFG, generated a profit before tax of EUR -9,716k (6,094). The MFG business has, after an initial negative effect from the coronavirus pandemic, developed well. The unrealised value change in MFG during the first nine months of the year are entirely a consequence of the weaker ruble against the euro. The underlying value in ruble has increased during the period.

Unallocated central administration expenses and other operating expenses amounted to EUR -2,712k (-2,711). Profit before tax amounted to EUR 125k (17,015) and the net profitloss for the period to EUR -1,349k (15,691).

UNREALISED CHANGES IN VALUE PROPERTIES, EURK

Reports in summary

Q3

In the table below, the summarised income statement, balance sheet and segment reporting are shown for the period January-September 2020 compared to the same period 2019.

EARNINGS AND FINANCIAL POSITION

	2020	2019
Summary, EURk	Jan-Sep	Jan-Sep
Rental income	13,936	9,187
Property expenses	-1,422	-991
Net operating income	12,514	8,196
Central administration	-2,681	-2,689
Financial income/expenses	-2,882	-1,717
Profit from property management	6,951	3,790
Unrealised value changes	-6,826	11,587
Realised value changes	-	1,638
Tax	-1,474	-1,324
Net profit /loss for the period	-1,349	15,691

	2020	2019
Summary, EURk	30 Sep	31 Dec
ASSETS
Investment property	356,940	290,256
Long-term securities holdings	80,170	88,709
Cash and cash equivalents	13,804	37,406
Other assets	8,542	3,951
TOTAL ASSETS	459,456	420,322
EQUITY AND LIABILITIES
Equity	261,502	268,192
Interest-bearing liabilities to credit institutions	174,679	137,771
Derivatives	2,636	1,963
Deferred tax liabilities	7,789	6,315
Other liabilities	12,850	6,081
TOTAL EQUITY AND LIABILITIES	459,456	420,322

EARNINGS BY SEGMENT

	2020	2019
EURk	Jan-Sep	Jan-Sep
Profit from property management	9,663	6,051
Unrealised changes in value of properties	2,386	6,294
Unrealised changes in value of derivatives	-673	-1,707
ContributionReal Estate Direct	11,376	11,087
Unrealised value changes	1,177	1,840
Realised value changes and dividends	-	705
ContributionReal Estate Funds	1,177	2,545
Unrealised value changes	-9,716	5,160
Dividends	-	933
ContributionOthers	-9,716	6,094
Central administration expenses and other operating expenses	-2,681	-2,869
Unallocated net financial income/expenses	-31	-22
Profit before tax	125	17,015
Tax	-1,474	-1,324
Net profit /loss for the period	-1,349	15,691

Financing

Q3

Liabilities to credit institutions amounted to EUR 174,679k (137,771) at the end of the period, corresponding to a loan-tovalue ratio of 49 per cent (47). Unutilised credit facilities amounted to EUR 3,000k (23,700), and referred entirely to an unutilised overdraft facility. The average interest rate at the end of the period amounted to 2.3 per cent (2.3) and the share of liabilities to credit institutions with fixed interest was 75 per cent (79), of which 100 per cent (100) was fixed using swaps.

At the end of the period, the average capital tie-up period on liabilities to credit institutions was 3.2 years (3.5). Average fixed interest term was 2.5 years (3.1). The derivatives are measured at fair value and the change in value is recognised through profit or loss, with no effect on cash flow. At the end of the period, the fair value of derivatives was EUR -2,636k (-1,963). At the end of the term, the value is always zero.

Tax

The tax expenses for the period amounted to EUR -1,474k (-1,324), all of which relates to deferred tax in Lithuania where a corporate income tax of 15 per cent is applied. The stated deferred tax liability is primarily attributable to the difference between the stated value of properties and their tax value, as well as tax losses carried forward. No corporate income tax is paid in Estonia or Latvia, where a 20 per cent corporate income tax is levied only on distributed profits.

Financial position and net asset value

Equity amounted to EUR 261,502k (268,192) and the equity/asset ratio to 57 per cent (64). Long-term net asset value per share was EUR 12.9 (13.1) corresponding to 135 SEK per share (137). Equity per share was EUR 12.4 (12.7) corresponding to 130 SEK per share (133).

Cash flow

Cash flow from operating activities before changes in working capital amounted to EUR 7,147k (5,584) for the period. Change in working capital was EUR -560k (-1,795). Investment activities had an impact of EUR -64,309k (-40,149). Financing activities had an impact of EUR 34,133k (11,853). Total cash flow amounted to EUR -23,588k (-24,507). Cash and cash equivalents amounted to EUR 13,804k (40,596) at the end of the period.

MATURITY STRUCTURE DEBT FINANCING

Debt maturity Interest maturity Year of maturity Credit agreements EURm Utilised EURm Unutilised, EURm Of which, available, EURm EURm Variable - - - - 44.2 2020 3.0 - 3.0 3.0 - 2021 14.6 14.6 - - - 2022 12.1 12.1 - - - 2023 53.1 53.1 - - 60.7 2024 68.0 68.0 - - 58.8 2025 26.8 26.8 - - 11.0 Total 177.7 174.7 3.0 3.0 174.7

FIXED INTEREST TERM AND CAPITAL TIE-UP PERIOD, YEAR AVERAGE INTEREST RATE, %

Property portfolio

The property portfolio consisted of around 121,000 sq.m. lettable area in Vilnius and Riga after Vertas-2 in Vilnius, comprising around 7,200 sq.m., was taken into possession during the third quarter. Property value increased by around EUR 67m during the period, primarily due to acquisitions. The occupancy rate was 94.2 per cent.

Property portfolio

Q3

Eastnine's property portfolio consists of modern office properties in two of the three Baltic capitals. At the end of the period, the portfolio consisted of eleven investment properties. Total lettable area amounted to around 121,000 sq.m. and the market value to EUR 357,000k.

At the end of the period, the occupancy rate was 94.2 per cent (92.7). Compared with the end of the previous year, the occupancy rate has risen by 1.5 percentage points. During the third quarter, however, the occupancy rate declined somewhat.

There are currently no ongoing development projects in Eastnine's portfolio. Two projects, The Pine and Kimmel, both in Riga, are currently in the planning stages. The Pine obtained the first of two building permits during the third quarter. The final building permit is expected around the turn of the year 2020/2021.

Vilnius

Eastnine's property portfolio in central Vilnius consisted on 30 September of seven properties with a total lettable area of 101,137 sq.m., which is estimated to correspond to a market share of 12 per cent of the office market in the city. The combined property value in Vilnius on 30 September 2020 was EUR 293,740k.

The S7-3 property, of around 14,500 sq.m., was taken into possession at the end of June and Vertas-2, of around 7,200 sq.m., at the end of September.

Riga

Eastnine's property portfolio in central Riga consists of four properties with a total lettable area of 19,970 sq.m., corresponding to 3 per cent of the market share of the estimated office market. The properties Kimmel and Alojas Kvartals are expected to undergo significant development in the future. The combined property value in Latvia was EUR 63,200k on 30 September 2020.

PROPERTY PORTFOLIO

	Area, sq.m.	Proportion, %	Vacancy, sq.m.	Proportion, %	Value, EURk	Proportion, %
Vilnius	101,137	84	3,136	45	293,740	82
Riga	19,970	16	3,836	55	63,200	18
Total	121,107	100	6,972	100	356,940	100

Riga

Vilnius Riga

PROPERTY PORTFOLIO BY REGION, VALUE PROPERTY PORTFOLIO BY CATEGORY, VALUE

Tenants

Q3

Eastnine has around 170 lease agreements with around 120 tenants. The majority of Eastnine's rents are due monthly. Danske Bank is the largest tenant with 27 per cent of total annual rent. The ten largest tenants lease around 78,700 sq.m. at a total annual rent of EUR 13,792k. The average remaining lease term for the ten largest tenants amounted to 4.4 years, and for all tenants to 4.6 years.

Investments

Eastnine completed the acquisition of S7-3 at the end of June and of Vertas-2 at the end of September. S7-3 comprises around 14,500 sq.m. and the purchase price amounted to around EUR 42.4m. Vertas-2 comprises around 7,200 sq.m. and the purchase price amounted to EUR 20.0m.

Value changes in properties

The fair value of the properties increased during the period, chiefly due to acquisitions. The value at the end of the period was EUR 356,940k (290,256). Unrealised value changes

LARGEST TENANTS

amounted to EUR 2,386k (6,294), corresponding to 0.8 per cent (4.0) of opening property values. The unrealised value change has, during the period, been affected positively as a result of the purchase consideration for S7-3 being reduced as compensation for lost profits due to a delay in possession being taken and a somewhat lower yield requirement. At the same time, lower inflation forecasts and market rents as well as expected minor rent losses, as a consequence of the coronavirus pandemic, has had a negative impact on the value change.

CHANGE IN PROPERTY VALUES, EURK

	2020	2019
	Jan-Sep	Jan-Sep
Property values at the beginning of the period	290,256	158,862
Property acquisitions	62,461	36,822
Investments in existing properties	1,837	1,298
Unrealised value changes	2,386	6,294
Property values at the end of the period	356,940	203,276

						Break option in
		Share of annual			Lease	lease
	Annual rent,	rent under		Number	agreement	agreements2 ,
Tenant	EURk	contract, %	Sq.m.	of agreements	term 1, years	years
Danske Bank	5,434	27	30,935	3	2.9	2.9
Telia	2,856	14	15,960	1	8.5	8.5
Swedbank	1,821	9	11,266	4	11.0	5.0
Visma	959	5	5,605	3	3.3	3.3
Citco	647	3	3,009	7	6.8	1.8
Webhelp	538	3	2,726	5	1.9	1.9
LIDL	470	2	2,755	5	0.2	0.2
INVL Technology	459	2	2,860	6	2.5	2.5
Cobalt	323	2	1,816	5	4.3	4.3
Europos Socialinio fondo agentura	286	1	1,769	3	2.6	1.0
Total	13,792	68	78,701	42	4.4	3.1

¹Weighted average of remaining lease term.

²Weighted average remaining lease term calculated up to "break option" date.

Valuation model

Q3

Eastnine has changed its valuation model as of the first quarter of 2020. The new valuation model is based on the present values of future cash flows (net operating income less remaining investments) calculated for a five to ten-year calculation period. The cash-flow determinations with a longer calculation period than five years is normally applied to properties with only one or a handful of tenants with long lease terms, where the cash flow is more predictable. In conjunction with the change of valuation model, all properties were externally valued as of 31 March 2020. In the second quarter all properties were internally valued, and in the third quarter four out of eleven properties have been externally valued while the remaining were internally valued. All external valuations were carried out by Colliers, except the property Vertas-2, which was acquired at the end of the period and was valued by Newsec. Internal valuations are carried out using the same valuation method as Colliers uses in its valuations.

Eastnine normally orders an external valuation of its properties at least once over a rolling 12-month period. In between external valuations, the properties are internally valued at the turn of each quarter.

Inflation, discount rate, yield requirements and longterm vacancy are significant parameters in the valuation model. Inflation is based on the market forecast both in the short and long term, where a long-term inflation normally corresponds to a country's inflation target. The discount rate and yield requirement is based on estimations of the market return requirement for similar investment objects, with the addition of risks related to real estate, such as geographical location, the condition of the property, and future vacancy risk. Long-term vacancies are affected by the expected market development, geographical location and condition, and relates to an estimation of a normalised vacancy rate.

Valuation of properties

Property valuations are based on assessments and assumptions at the time of the valuation of both observable and non-observable input data. Observable data which has a considerable impact on the value are current rent levels, property expenses, determined and known future investments and actual inflation. Non-observable data are yield requirements as well as expected future rent levels and vacancies.

Cash-flow from rent payments are estimated based on current lease agreements and known and agreed-upon future changes. The rent development is expected to follow inflation, taking into consideration active indexing clauses in existing agreements. At the end of lease terms, the currently applicable market rent is estimated. Vacancies are assessed based on both the current vacancy rate on the market and the property, but also based on the property's location and condition. Operating and maintenance costs are based on historical outcomes and budgeted costs. Reservations for maintenance costs and property investments are normally calculated as a percentage of the estimated rent income or as a cost per square meter.

Valuation assumptions

Eastnine's property portfolio primarily comprises centrally located office properties in Vilnius and Riga. As of 30 September, the average rent amounted to EUR 14.8 per sq.m. The estimated market rent in these valuations amounted to an average of EUR 15.1 per sq.m., which is 0.2 EUR lower than at the end of the second quarter. The majority of the lease agreements are so-called triple-net leases, which is why property costs chiefly have an effect during vacancies.

Tenant-specific investments are calculated at the time of new lettings at 180 EUR/sq.m. Other property investments have been calculated in the interval from 1.5 to 3.0 per cent of rental income, and averaged 2.5 per cent. The long-term vacancy rate amount to 4.5 per cent on average, in the valuations.

Initial inflation has been estimated, as on 30 September, to be very low, and then to rise in following periods. The long-term inflation is estimated to be 1.5 per cent. The average yield requirement in the valuation model amounted to 6.1 per cent and the average discount rate to 7.5 per cent.

VALUATION MODEL

	2020
Valuation assumptions	30 Sep
Average yield requirement, %	6.1
Average property investments, %	2.5
Average rent, EUR/sq.m./month	15.1
Average discount rate, %	7.5
Investment for new letting, EUR/sq.m.	180
Long-term inflation, %	1.5
Long-term vacancy rate, %	4.5

Q3

Current earning capacity

In order to facilitate the assessment of the company's current position, Eastnine reports on current earning capacity. Earning capacity is a theoretical assessment to describe the company's current earnings on 30 September 2020.

Earning capacity provides a snapshot

Earning capacity is not to be regarded as a forecast for the coming twelve months, but as a snapshot of the potential earnings the company can generate under given circumstances. It is based on the property portfolio held on the reporting day.

Earning capacity does not take into account an assessment of the development of rent levels, vacancy, property expenses, interest rates, value changes or other factors that may affect earnings.

Eastnine's calculated earning capacity is based on the following assumptions about income and costs:

• Rental income comprises contracted income including rent supplements, with deductions for any rental discounts, on the reporting day.
• Property costs are based on an assessment of a normal year's operating expenses, maintenance costs, property taxes and site leasehold feeds. Property expenses includes property administration expenses.

• Financial income and expenses has been calculated based on the Company's debt liability and average interest level on the reporting day. Central administration expenses have been calculated based on the existing organisation and the current property portfolio on the reporting day.

Comment to earning capacity

Rent income from the portfolio, according to earning capacity, is on 30 September 3.0 per cent higher than at the end of June. This is chiefly due to Eastnine's acquisition of Vertas-2 in Vilnius. The property is essentially fully let with annual rent income of around EUR 1.2m and a surplus ratio of 94 per cent. Lower occupancy rates in the rest of the portfolio has the opposite effect.

The percentual increase in rental income is lower than the increase in property expenses due to a lower occupancy rate. The same effect impacts the profit from property management.

	2020	2020
Current earning capacity, EUR Thousands	30 Sep	30 Jun	Change, %
Rental income	21,359	20,728	+3
Property expenses	-2,150	-1,960	+10
Net operating income	19,209	18,768	+2
Central administration expenses	-3,600	-3,500	+3
Interest expenses	-4,044	-3,763	+7
Profit from property management	11,565	11,505	+1
	2020	2020	Change,
Key figures, current earning capacity	30 Sep	30 Jun	unit
Surplus ratio, %	90	91	-1
Interest coverage ratio, x	3.9	4.1	-0.2
Average interest rate, %	2.3	2.3	0.0
Investment properties, EURk	356,940	336,200	+20,740

Property fund

The value of Eastnine's holding in East Capital Baltic Property Fund II increased by EUR 1,177k during the period, corresponding to a total return of 5.4 per cent. The dividend amounted to zero EURk during the first nine months, but Eastnine has received a dividend of EUR 640k in October 2020.

East Capital Baltic Property Fund II

Operations

Q3

East Capital Baltic Property Fund II has a total of four properties in logistics, retail and offices. All properties are located in Tallinn. The fund, which was extended at yearend 2019 until May 2020, was extended again in the first half of 2020 until May 2021.

Value of and dividends from Eastnine's holding

Eastnine does not carry out its own valuation of the fund holding. Instead, Eastnine's reported value consists of a share of the fund's total value. The value of Eastnine's holding in the fund amounted to EUR 22,989k (21,812) at the end of the period. The unrealised value change of EUR 1,177k, corresponding to 5.4 per cent, is entirely a result of net operating income during the period. The dividend from the fund in the period has amounted to EUR 0k (640). Eastnine has, however, received a dividend of EUR 640k in October 2020.

Key figures, EC Baltic Property Fund II 2020 Jan-Sep 2019 Jan-Sep¹ Unrealised value change, EURk 1,177 663 Realised value changes and dividends, EURk - 640 Total return, % 5.4 5.9 Key figures, EC Baltic Property Fund II 2020 30 Sep 2019 31 Dec

Eastnine's share of fund returns, % 44 45 Fair value of Eastnine's holding, EURm 22,989 21,812 Proportion of Eastnine assets, % 5.0 5.2

¹By the end of September 2019, Eastnine also held shares in East Capital Baltic Property Fund III, which is excluded in the summary above.

Other

Q3

The value of Eastnine's holding in MFG in euro has sunk during the period, as a result of a weakening of the ruble against the euro. The value in ruble, on the other hand, has risen after a clear recovery in MFG's sales from the summer onwards and generally lower risk. Sales in January-September 2020 is greater than at the corresponding period in 2019.

Melon Fashion Group

Operations

Melon Fashion Group had a good start to 2020 with increased sales during the first two months of the year. The coronavirus pandemic meant that all stores were closed in April and the beginning of May, and were then gradually reopened. At the end of the period, 100 per cent of stores were open. E-commerce has worked very well throughout the period.

According to preliminary numbers from MFG, the total sales for the first nine months of 2019 amounted to RUB 17,022m (15,574), after an increase of 8 per cent compared to the same period in the previous year. MFG's aggregate online sales increased by 120 per cent up until the end of September and made up 35 per cent (17) of MFG's total sales. MFG's EBITDA for the first nine months of 2020, excluding

effects of IFRS 16, amounted to RUB 1,665m (1,845) and the EBITDA margin to 9.8 per cent (11.7). The number of stores amounted to 783, of which 238 were operated by franchisees. Retail area amounted to around 197,000 sq.m., of which 38,000 sq.m. were franchised.

Value of and dividends from Eastnine's holding

The fair value of Eastnine's holding in MFG decreased, as a result of a weakened ruble, by EUR -9,716k during the period to EUR 57,181k (66,897) at the end of the period. The value change is unrealised. In the third quarter, the unrealised value change was positive, at EUR 8,690k, and was made up of a positive impact from increased sales together with lower risk (WACC, see page 23) and a negative impact from the weakened ruble. Eastnine has not received any dividend for the period January–September 2020 (933).

Key figures	2020 Jan-Sep	2019 Jan-Sep
Unrealised value change, EURk	-9,716	5,160
Realised value changes and dividends, EURk	-	933
Total return, %	-14.5	12.5

Key figures	2020 30 Sep	2019 31 Dec
Eastnine's shareholding in the company, %	36	36
Fair value of Eastnine's holding, EURm	57,181	66,897
Proportion of Eastnine assets, %	12.4	15.9

OTHER, % OF ASSETS

Accounting principles and other information

General information

Q3

Eastnine AB (publ), corporate ID no. 556693-7404, is a Swedish limited company, listed on Nasdaq Stockholm, with its registered office in Stockholm. The Group's real estate operations are managed through the Estonian subsidiary Eastnine Baltics OÜ, with subsidiaries in Latvia and Lithuania, which together comprise the Eastnine Group. At the end of the period, the Eastnine Group employed 21 fulltime employees, of which nine were employed at the head office in Stockholm, eight in Vilnius and four in Riga.

The Company and the Group's interim report concerns the period January - September 2020. All figures are presented in EUR thousands unless otherwise stated. Rounding differences may occur.

Risks and uncertainties

The dominant risks in Eastnine's operations is commercial risks in the form of changes in rent levels, vacancies and interest rates, as well as changes in the economic or business climate, and exchange rates in the markets where Eastnine is present. A more detailed description of Eastnine's material risks and uncertainties is provided in the Company's Annual Report 2019 on pages 28– 29. Risks associated with the coronavirus pandemic are presented on page 4 in this interim report and a market analysis for the coming months is provided in the Market section on page 5.

Parent Company

Net profit/loss for the period amounted to EUR -9,725k (4,862). The result is primarily attributable to an unrealised value change in Melon Fashion Group of EUR -9,716k (5,160), and operating expenses and financial income. See page 24 for the Parent Company's income statement and balance sheet.

Dividend

The Annual General Meeting has decided on a dividend of SEK 2.70 per share (2.30). In May, SEK 1.35 per share was paid out, and the same amount per share will be paid out in November.

Sustainability

Eastnine undertakes active sustainability efforts. At the end of the period, 79 per cent of the property area (excluding properties expected to undergo significant redevelopment) was certified for sustainability, attaining either LEED Platinum or BREEAM Excellent. During the second quarter, the property Alojas Biroji attained a LEED Platinum certification, and in June, Eastnine took possession of the S7-3 property in Vilnius which has attained BREEAM Excellent. Vertas-1 in Vilnius obtained a LEED Platinum certification at the beginning of October, meaning that the proportion of sustainability-certified area increased to 87 per cent. Eastnine is planning a new development of a wooden office building inRiga−The Pine. This building is

planned to receive double sustainability certificates: LEED Platinum and WELL.

Eastnine plans to implement green lease agreements in Lithuania during the last quarter of 2020. In the third quarter, Eastnine launched a green financing framework which obtained the Dark Green and Excellent grade by CICERO. The work to implement a web-based system for supplier review is ongoing.

Eastnine's sustainability report, which was produced according to the Global Reporting Initiatives guidelines and published as part of the 2019 annual report, contains information about the company's primary concerns, sustainability goals and indicators. Eastnine AB is a member of GRESB.

Summary of material accounting principles

Eastnine AB (publ) prepares its consolidated accounts according to the International Financial Reporting Standards (IFRS), approved by the European Union as well as interpretations of these (IFRIC). The interim report has been prepared in accordance with the International Accounting Standards (IAS) 34 Interim Financial Reporting and the Swedish Annual Accounts Act (Årsredovisningslagen).

The Group applies the same accounting principles and valuation methods as in the latest annual report, with the exception mentioned below regarding IFRS 3. Other new or revised IFRS standards or other IFRIC interpretations applying from 1 January 2020 have not had a material effect on the Group's financial statements.

The Parent Company prepares its accounts in accordance with RFR 2, Reporting of a legal entity, as well as the Swedish Annual Accounts Act (Årsredovisningslagen) and apply the same accounting principles and valuation methods as at the last annual report.

Changes in accounting principles

IFRS 3 Business Combination has entered into force as of 1 January 2020. The changed definition results in a simplified assessment of whether an acquisition is to be considered as an asset acquisition or not. If the fair value in all material respects is concentrated to an identifiable asset or group of assets, the acquisition can be regarded as an asset acquisition. If not, the acquisition is to be tested against the criteria for business combinations. All of the Group's property acquisitions have been classified as asset acquisitions, and the Company regards the change of standard as a simplification and reinforcement of future assessments.

The change in accounting principles has not had any impact on the profit-and-loss statements, balance sheets or key figures.

Estimates and assumptions in the financial statements In preparing these financial statements according to the IFRS, the executive management makes judgements,

estimates and assumptions that affect the application of the Company's accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may deviate from these estimates and assessments. Estimates and underlying assumptions are regularly reviewed. Revisions to estimates are reported in the period that the change takes place and in the future periods that are affected.

Key sources of uncertainty

Q3

The sources of uncertainty in the estimates below refer to such sources that result in a significant risk that the value of assets and liabilities may have to be substantially adjusted during the financial year. For valuation of investment properties, assessments and assumptions can have a significant effect on the Group's income and financial position. These valuations require estimates and assumptions of future cash flows as well as determination of the discounting factor (required yield). To reflect the uncertainty inherent in the assumptions and assessments made, a sensitivity analysis is provided for material property parameters.

In regards to other investments that are not traded on an active market and where fair value is determined not by actual bid quotes but by means of valuation models, there is a risk that the estimated fair value of holdings will be different in future periods. The Company applies its models consistently from period to period, but the determination of fair value is inherently uncertain. Given the control procedures applied, the group considers the fair values reported in the balance sheet to have been carefully calculated and considered in order to reflect the underlying financial values.

Important considerations in the application of the Group's accounting policies

The holdings in JSC Melon Fashion Group, one of the holdings in which Eastnine invested during its period as an investment entity, constitutes an associated company as Eastnine has considerable influence over MFG. This holding is recognised at fair value through profit/loss, using the exemption from the equity method in IAS 28. Eastnine has made the assessment that this exemption is applicable to the Company. The assessment is the same as that made in the Annual Accounts for 2019.

Eastnine has ownership shares in East Capital (Lux) SCA, SICAV-SIF (umbrella fund), amounting to around 12 per cent. For Eastnine, this holding results in a 44 per cent share of the returns from the sub-fund East Capital Baltic Property Fund II. This share have been assessed not to constitute an associated company, as Eastnine can not and has not been able to exert significant influence over the fund. Considering that the Company is not able to exert any influence over the fund, the holding is reported in accordance with IFRS 9 Financial Instruments.

Segment Reporting

Business segments are reported in the way which corresponds to the internal classification which is submitted to the Company's senior management and Board of Directors. Eastnine classifies and evaluates its various segments based on the nature of the investments. The following segments are used in the internal reporting: Real Estate Direct, Real Estate Funds and Other.

Related parties

Eastnine AB has a related party relationship with its subsidiaries, see Note 28 in the 2019 Annual Report, as well as with Board members and employees.

Eastnine AB's management, Board members and their close relatives and related companies control 29 per cent (30) of voting rights in the Company.

Events after the end of the period

• Eastnine has established a new business plan. Among others, a new target has been set for the property portfolio to double to EUR 700m by the end of 2023. More detail about the new targets may be found on page 2.
• The Board has set the targets for the requirements in the incentive program, LTIP 2020. Condition 1 concerns return on equity, condition 2 profit from property management and condition 3 total return.
• The property Vertas-1 in Vilnius obtained LEED Platinum certification at the beginning of October 2020. After certification, 87 per cent of the entire property portfolio is certified either LEED Platinum or BREEAM Excellent.

Assurance from the CEO

The CEO certifies that the interim report provides a true and fair overview of the activities, position and earnings of the Parent Company and the Group and describes the significant risks and uncertainties confronting the Parent Company and the Group.

_______________________________________________________________________________________________________________________________

Stockholm, 5 November 2020

Kestutis Sasnauskas CEO

Q3

Review Report

To the Board of Eastnine AB (publ)

Corporate ID no. 556693-7404

Introduction

We have reviewed the condensed interim financial information (interim report) of Eastnine AB (publ) as of 30 September 2020 and the nine-month period then ended. The Board of Directors and the Managing Director are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of the Review

We conducted our review in accordance with International Standard on Review Engagements ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matter, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing practices. The procedures performed in a review do not enable us to obtain a level of assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. The conclusion based on a review does not therefore have the level of assurance of an explicit opinion based on an audit.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is no prepared, in all material respects, for the Group in accordance with IAS 34 and the Annual Accounts Act, and for the Parent Company in accordance with the Annual Accounts Act.

Stockholm, 5 November 2020

KPMG AB

Peter Dahllöf Authorised public accountant

This review report is a translation of the original review report in Swedish

Share

Q3

Eastnine's share price has fallen by 19 per cent during the year and amounted at the end of the period to SEK 111.80. The market capitalisation amounted to SEK 2.4bn. The long-term net asset value amounted to SEK 135 per share (137), after a 5 per cent increase in the third quarter.

Number of shares

Eastnine's share is listed on Nasdaq Stockholm Mid Cap, Real Estate. The total number of shares in Eastnine AB amounted to 22,370,261 on 30 September 2020. Adjusted for repurchased shares held in treasury, the number of listed shares amounted to 21,149,061. The proportion of shares held by Swedes amounted to 72.9 per cent.

The number of shareholders amounted to around 5,145 (5,634) and the free float to 62.8 per cent (62.9). At the end of the period, the share price was SEK 111.8 (137.4) and the market capitalisation to SEK 2.4 billion (2.9).

Dividend

The Annual General Meeting has decided on a dividend of SEK 2.70 per share (2.30) for the 2019 financial year, paid semi-annually in SEK 1.35 payments each. The first payment took place in May 2020 and the second is planned for the latter half of November 2020.

LARGEST SHAREHOLDERS AS AT 30 SEPTEMBER 2020

The dividend corresponds to a dividend growth of 17 per cent, compared to the previous year. A dividend of SEK 2.70 per share amounts to 2.0 per cent of equity, which is in accordance with the dividend policy at the time of the 2020 Annual General Meeting.

Buy-back

On 30 September 2020, the Company held 1,221,200 own shares in treasury, corresponding to around 5.5 per cent of all shares. No shares have been repurchased since the first quarter of 2019.

At the AGM 2020, the Board received a new mandate to decide on share buy-back, providing that the company's holding of treasury shares not exceed at any time 10 per cent of all shares in the company.

Shareholders	Number of shares	%
Peter Elam Håkansson1	6,067,090	27.1
Keel Capital	2,268,884	10.1
Mertiva AB	1,799,303	8.0
Lazard Asset Management	1,491,577	6.7
Nordnet Pensionsförsäkring	1,137,200	5.1
Norges Bank	767,071	3.4
Kestutis Sasnauskas	453,018	2.0
Dimensional Fund Advisors	342,623	1.5
Prioritet Finans	300,000	1.3
ICA-handlarnas Förbund	270,000	1.2
Karine Hirn	253,917	1.1
Jacob Grapengiesser	167,861	0.8
12 largest	15,318,534	68.3
Eastnine AB (repurchased shares)	1,221,200	5.5
Others	5,830,527	26.2
Total	22,370,261	100.0
1 Private and via companies (East Capital Holding AB and Rytu Invest AB). Source: Monitor

KEY FIGURES

	2020	2019
Data per share	30 Sep	31 Dec
Equity, EUR	12.4	12.7
Long-term net asset value, EUR	12.9	13.1
Share price, EUR	10.7	13.1
Equity, SEK	130	133
Long-term net asset value, SEK	135	137
Share price, SEK	111.8	137.4

SHARE PRICE DEVELOPMENT, SEK

Eastnine (adjusted for dividend) Stockholm Real Estate GI

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	2020	2019	2020	2019	2019	2019/2020
EUR thousands	Jan-Sep	Jan-Sep	Jul-Sep	Jul-Sep	Jan-Dec	Oct-Sep
Rental income	13,936	9,187	4,993	3,142	13,348	18,096
Property expenses	-1,422	-991	-510	-347	-1,402	-1,832
Net operating income	12,514	8,196	4,483	2,795	11,946	16,264
Central administration expenses	-2,681	-2,689	-992	-826	-3,873	-3,865
Interest expenses	-2,674	-1,435	-959	-498	-2,225	-3,464
Other financial income and expenses	-208	-282	-14	-101	-359	-286
Profit from property management	6,951	3,790	2,519	1,370	5,489	8,649
Unrealised changes in value of properties	2,386	6,294	-198	2,810	10,208	6,301
Unrealised changes in value of derivatives	-673	-1,707	-12	-311	-1,006	28
Unrealised changes in value of investments	-8,539	7,000	9,139	1,782	17,742	2,203
Realised value changes and dividends from investments	-	1,638	-	22	5,403	3,765
Profit/loss before tax	125	17,015	11,448	5,673	37,836	20,946
Current tax	-	-	-	-	-	-
Deferred tax	-1,474	-1,324	-285	-604	-2,570	-2,720
Net profit/loss for the year/period1	-1,349	15,691	11,163	5,069	35,266	18,226
Number of shares issued, adjusted for repurchased shares, thousand	21,149	21,149	21,149	21,149	21,149	21,149
Weighted average number of shares before dilution, thousand	21,149	21,200	21,149	21,149	21,187	21,149
Weighted average number of shares after dilution, thousand	21,196	21,240	21,195	21,189	21,231	21,196
Earnings per share before dilution, EUR	-0.06	0.74	0.53	0.24	1.66	0.86
Earnings per share after dilution, EUR	-0.06	0.74	0.53	0.24	1.66	0.86

1 Total comprehensive income for the period/year corresponds to net profit/loss for the period/year.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

EUR thousands	2020 30 Sep	2019 30 Sep	2019 31 Dec
ASSETS
Non-current assets
Intangible assets	2	3	2
Investment properties	356,940	203,276	290,256
Right-of-use assets, leaseholds	1,225	1,086	1,204
Equipment	183	120	216
Long-term securities holdings	80,170	101,881	88,709
Other non-current receivables	175	175	175
Total non-current assets	438,695	306,541	380,562
Current assets
Other current assets	6,956	1,211	2,355
Cash and cash equivalents	13,804	40,596	37,406
Total current assets	20,761	41,807	39,761
TOTAL ASSETS	459,456	348,348	420,322
EQUITY AND LIABILITIES
Equity
Share capital	3,660	3,660	3,660
Other contributed capital	246,914	252,218	252,252
Retained earnings including net profit/loss for the period	10,928	-7,295	12,280
Total equity	261,502	248,583	268,192
Non-current liabilities
Liabilities to credit institutions	168,568	81,628	132,571
Derivatives	2,636	2,665	1,963
Deferred tax liabilities	7,789	5,069	6,315
Lease liability	1,201	1,085	1,175
Other non-current liabilites	1,772	1,470	1,745
Total non-current liabilities	181,966	91,916	143,769
Current liabilities
Liabilities to credit institutions	6,111	3,560	5,200
Other liabilities	8,835	3,679	2,211
Accrued expenses and deferred income	1,042	610	951
Total current liabilities	15,988	7,849	8,361
TOTAL EQUITY AND LIABILITIES	459,456	348,348	420,322

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

		Other
EUR thousands	Share capital	contributed capital	Retained earnings	Total equity
Opening equity 1 January 2019	3,660	260,145	-22,985	240,819
Net profit/loss for 1 January-30 September	-	-	15,691	15,691
Dividend to shareholders	-	-4,519	-	-4,519
Share buy-back	-	-3,525	-	-3,525
Long-term incentive program (LTIP 2018)	-	117	-	117
Closing equity 30 September 2019	3,660	252,218	-7,295	248,583
Net profit /loss for 1 October-31 December	-	-	19,575	19,575
Long-term incentive program (LTIP 2018)	-	34	-	34
Closing equity 31 December 2019	3,660	252,252	12,280	268,192
Net profit/loss for 1 January-30 September	-	-	-1,349	-1,349
Dividend to shareholders	-	-5,403	-	-5,403
Long-term incentive program (LTIP 2018)	-	62	-	62
Closing equity 30 September 2020	3,660	246,910	10,931	261,502

CONSOLIDATED STATEMENT OF CASH FLOW

	2020	2019	2020	2019	2019
EUR thousands	Jan-Sep	Jan-Sep	Jul-Sep	Jul-Sep	Jan-Dec
Operating activities
Profit/loss before tax	125	17,015	11,448	5,673	37,836
Adjustments not included in cash flow from operating activities	7,022	-11,430	-8,716	-4,243	-27,868
Income tax paid	-	-	-	-	-
Cash flow from operating activities before changes in working capital	7,147	5,584	2,732	1,429	9,968
Cash flow from changes in working capital
Increase (-)/decrease(+) in other current receivables	-4,602	-599	4,495	-314	-1,742
Increase (+)/decrease(-) in other current payables	4,042	-1,196	-3,694	201	210
Cash flow from operating activities	6,587	3,789	3,533	1,316	8,436
Investing activities
Investments in existing properties	-1,837	-1,298	-865	-583	-1,965
Acquisition of properties	-62,461	-36,822	-20,072	-	-119,221
Purchase of equipment	-11	-47	-8	-40	-152
Investments in other financial assets	-	-1,982	-	-1,982	-1,982
Divestment of other financial assets	-	-	-	-	25,090
Cash flow from investing activities	-64,309	-40,149	-20,946	-2,605	-98,230
Financing activities
New loans	40,950	20,200	11,000	-	74,029
Repayment of loans	-4,042	-2,563	-1,442	-890	-3,808
Payment of lease liabilities	-73	-	-25	-	-55
Dividend to shareholders	-2,702	-2,259	-	-	-4,519
Own share buy-back	-	-3,525	-	-	-3,525
Cash flow from financing activities	34,133	11,853	9,533	-890	62,122
Cash flow for the period	-23,588	-24,507	-7,880	-2,179	-27,672
Cash and cash equivalent at the beginning of the period	37,406	65,119	21,688	42,772	65,119
Exchange rate differences in cash and cash equivalents	-13	-17	-4	3	-41
Cash and cash equivalent at the end of the period	13,804	40,596	13,804	40,596	37,406

KEY FIGURES

	2020	2019	2020	2019	2019
EUR thousands	Jan-Sep	Jan-Sep	Jul-Sep	Jul-Sep	Jan-Dec
Surplus ratio, %	90	89	90	89	89
Loan-to-value ratio (LTV), %	49	42	49	42	47
Debt ratio, multiple	14.1	13.0	14.1	13.0	17.1
Interest coverage ratio, multiple	3.6	3.6	3.6	3.8	3.5
Return on equity Real Estate Direct, %	8.5	13.8	7.5	15.7	14.3
Return on equity, %	-0.7	8.5	17.5	8.2	13.9
Cashflow per share, EUR	-1.12	-1.16	-0.37	-0.10	-1.31
Earnings per share before dilution, EUR	-0.06	0.74	0.53	0.24	1.66
Profit from property management per share, EUR	0.33	0.18	0.12	0.06	0.26

SEGMENT REPORTING

Eastnine classifies and evaluates the various segments based on the nature of the investments. Segments are presented from the point of view of management and are divided into the following segments: Real Estate Direct, Real Estate Fund and Other.

EUR thousands	Real Estate	Real Estate
1 Jan-30 Sep 2020	Direct	Fund	Other	Unallocated	Total
Rental income	13,936	-	-	-	13,936
Property expenses	-1,422	-	-	-	-1,422
Net operating income	12,514	-	-	-	12,514
Central administration expenses	-	-	-	-2,681	-2,681
Interest expenses	-2,674	-	-	-	-2,674
Other financial income and expenses	-177	-	-	-31	-208
Profit from property management	9,663	-	-	-2,712	6,951
Unrealised changes in value of properties	2,386	-	-	-	2,386
Unrealised changes in value of derivatives	-673	-	-	-	-673
Unrealised changes in value of investments	-	1,177	-9,716	-	-8,539
Profit/loss before tax	11,376	1,177	-9,716	-2,712	125
Deferred tax	-1,474	-	-	-	-1,474
Net profit/loss for the period	9,902	1,177	-9,716	-2,712	-1,349
Investment properties	356,940	-	-	-	356,940
Long-term securities holdings	-	22,989	57,181	-	80,170
Liabilities to credit institutions	174,679	-	-	-	174,679

EUR thousands	Real Estate	Real Estate
1 Jan-30 Sep 2019	Direct	Fund	Other	Unallocated	Total
Rental income	9,187	-	-	-	9,187
Property expenses	-991	-	-	-	-991
Net operating income	8,196	-	-	-	8,196
Central administration expenses	-	-	-	-2,689	-2,689
Interest expenses	-1,435	-	-	-	-1,435
Other financial income and expenses	-259	-	-	-22	-282
Profit from property management	6,501	-	-	-2,711	3,790
Unrealised changes in value of properties	6,294		-	-	6,294
Unrealised changes in value of derivatives	-1,707		-	-	-1,707
Unrealised changes in value of investments	-	1,840	5,160	-	7,000
Realised values and dividends from investments	-	705	933	-	1,638
Profit/loss before tax	11,087	2,545	6,094	-2,711	17,015
Deferred tax	-1,324	-	-	-	-1,324
Net profit/loss for the period	9,763	2,545	6,094	-2,711	15,691
Investment properties	203,276	-	-	-	203,276
Long-term securities holdings	-	47,809	54,072	-	101,881
Liabilities to credit institutions	85,187	-	-	-	85,187

LONG-TERM SECURITIES HOLDINGS

Tables below reflect the long-term securities holdings measured at fair value in level 3. Segment "Real Estate Fund" consist the holdings in East Capital Property Fund II (end of year 2019 and during year 2020) and segment "Other" consist the holdings in JSC Melon Fashion Group. The asset of properties in the fund are normally valued internally by fund manager at quarterly basis and externally at year end. JSC Melon Fashion Group is valued internally by Eastnine. Derivatives are measured continuously at fair value according to level 2.

	Real Estate
Changes in long-term securities holdings measured at fair value in level 3, EUR thousands	Fund	Other	Total
Opening balance 1 January 2019	43,986	48,912	92,898
Purchases/additions	1,982	-	1,982
Divestments/Reductions	-25,090	-	-25,090
Unrealised changes in values recognised net in profit/loss	-243	17,985	17,742
Realised changes in values recognised net in profit/loss	1,177	-	1,177
Closing balance 31 December 2019	21,812	66,897	88,709
Unrealised changes in values recognised net in profit/loss	1,177	-9,716	-8,539
Closing balance 30 September 2020	22,989	57,181	80,170

VALUATION ASSUMPTIONS

	2020
Investment properties	30 Sep
Long-term inflation, %	1.5
Average discount rate, %	7.5
Weighted yield requirement, %	6.1
Long-term vacancy rate, %	4.5

Long-term securities holdings	Segment	Valuation method1	Valuation assumptions1
East Capital Baltic Property Fund II	Real Estate Fund	DCF	WACC 8-9%, yield requirement 6-8%.
			Long-term growth 3.5%, long-term operating margin 9.6%, WACC 15.2%, minority and liquidity discount of 25% is
JSC Melon Fashion Group	Other	DCF	applied.

¹Discounted cash flow model (DCF), weighted average cost of capital (WACC).

SENSITIVITY ANALYSIS

30 September 2020

Investment properties, EUR thousands	Assumptions		Real Estate Direct
Market rental level, %	+/- 5.0	11,495	-11,374
Long-term floor space occupancy rate, percentage points	+/- 1.0	4,073	-4,189
Yield requirement, percentage points	+/- 0.25	-11,697	12,703

30 September 2020

Long-term securities holdings, EUR thousands	Assumptions	Real Estate Fund		Other
Yield requirement, percentage points	+/- 0.5	-1,031	1,183	-	-
Weighted average cost of capital, percentage points	+/- 0.5 Real Estate Fund +/- 1.0 Other	-204	211	-5,096	6,080
Long-term growth, percentage points	+/- 0.4	-	-	1,456	-1,359
Long-term operating margin, percentage points	+/- 0.5	-	-	2,087	-2,085

Market risks, EUR thousands

Effect on profit/loss		2020	2019		2020	2019
and equity	Change, %	30 Sep	31 Dec	Cash flow and current earning	30 Sep	31 Dec
Currency rate, EUR/RUB	+/- 10	5,718	6,690	Market interest rate, +/- 50 bps	+72 / -87	+33 / -88
Value of Real Estate Fund and Other	+/- 10	8,017	8,871	Market interest rate, +/- 100 bps	-152 / -174	-115 / -176

Assets and debts of foreign currency, EUR thousands

Cash and liabilities	2020 30 Sep	2019 31 Dec	Long-term securities holdings1	2020 30 Sep	2019 31 Dec
Currency in SEK	145	82	Currency in ruble (RUB)	57,181	66,897
Lease liabilities in SEK	494	567

2019	Long-term securities holdings1	2020	2019

¹Holdings in JSC Melon Fashion Group.

INCOME STATEMENT - PARENT COMPANY

	2020	2019	2020	2019	2019
EUR thousands	Jan-Sep	Jan-Sep	Jul-Sep	Jul-Sep	Jan-Dec
Other income	1,304	66	435	22	74
Central administration expenses	-2,316	-2,294	-866	-677	-3,210
Operating profit/loss	-1,012	-2,228	-431	-655	-3,136
Profit/loss from shares in group companies	-	-15	-	-15	-16
Unrealised changes in value of investments	-9,716	5,160	8,690	822	17,985
Dividend received from investments	-	933	-	-	2,873
Financial income	1,034	1,035	347	348	1,383
Financial expenses	-31	-23	-9	-3	-52
Profit/loss before tax	-9,725	4,862	8,597	497	19,037
Tax	-	-	-	-	-
Net profit/loss for the period	-9,725	4,862	8,597	497	19,037

BALANCE SHEET - PARENT COMPANY

EUR thousands 30 Sep 30 Sep 31 Dec ASSETS Fixed assets Right-of-use asset, leaseholds 518 622 596 Equipment 74 34 88 Shares in group companies 142,430 143,421 143,433 Long-term securities holdings 57,181 54,072 66,897 Loans to group companies 27,527 27,527 27,527 Total non-current assets 227,732 225,676 238,541 Current assets Other current assets 2,427 2,526 2,818 Cash and cash equivalents 1,842 4,088 3,038 Total current assets 4,269 6,613 5,856 TOTAL ASSETS 232,001 232,290 244,396 EQUITY AND LIABILITIES Equity Restricted capital Share capital 3,660 3,660 3,660 Unrestricted capital Share premium reserve 246,911 252,218 252,252 Retained earnings including net profit/loss for the year -22,571 -27,020 -12,845 Total equity 228,000 228,858 243,066 Non-current liabilities Lease liability 494 620 567 Other non-current liabilites 77 43 63 Total non-current liabilities 572 663 631 Current liabilities Other liabilities 2,888 2,407 242 Accrued expenses and deferred income 541 362 457 Total current liabilities 3,429 2,769 699 TOTAL EQUITY AND LIABILITIES 232,001 232,290 244,396	2020	2019	2019

QUARTERLY OVERVIEW

INCOME STATEMENT

EUR thousands	Q3 2020	Q2 2020	Q1 2020	Q4 2019	Q3 2019	Q2 2019	Q1 2019	Q4 2018
Rental income	4,993	4,467	4,475	4,161	3,142	3,099	2,947	2,516
Property expenses	-510	-480	-431	-410	-347	-387	-258	-396
Net operating income	4,483	3,987	4,044	3,751	2,795	2,712	2,689	2,120
Central administration expenses	-992	-865	-824	-1,184	-826	-936	-927	-1,055
Interest expenses	-959	-852	-863	-790	-498	-526	-411	-350
Other financial income and expenses	-14	-100	-95	-78	-101	-109	-72	369
Profit from property management	2,519	2,170	2,262	1,699	1,370	1,141	1,279	1,085
Unrealised changes in values:
Properties	-198	5,322	-2,738	3,914	2,810	3,483	-	863
Derivatives	-12	-426	-235	702	-311	-740	-656	-618
Investments	9,139	3,605	-21,283	10,741	1,782	760	4,459	6,941
Realised values and dividends from investments	-	-	-	3,765	22	1,595	22	2,928
Profit before tax	11,448	10,671	-21,994	20,821	5,673	6,239	5,103	11,199
Deferred tax	-285	-931	-259	-1,246	-604	-575	-146	-273
Net profit/loss for the period	11,163	9,740	-22,253	19,575	5,069	5,664	4,957	10,925

BALANCE SHEET - CONDENSED

	2020	2020	2020	2019	2019	2019	2019	2018
EUR thousands	30 Sep	30 Jun	31 Mar	31 Dec	30 Sep	30 Jun	31 Mar	31 Dec
Investment properties	356,940	336,200	288,020	290,256	203,276	199,882	195,972	158,862
Long-term securities holdings	80,170	71,031	67,426	88,709	101,881	98,117	97,357	92,898
Other assets	8,541	13,077	3,831	3,951	2,595	1,628	1,548	887
Cash and cash equivalents	13,804	21,688	43,883	37,406	40,596	42,772	43,794	65,119
TOTAL ASSETS	459,456	441,996	403,160	420,322	348,348	342,399	338,670	317,767
Shareholders' equity	261,502	250,253	245,917	268,192	248,583	243,480	242,300	240,819
Long-term liabilities to credit institutions	168,568	159,338	137,907	132,571	81,628	84,297	84,297	64,474
Current liabilities to credit institutions	6,111	5,783	5,200	5,200	3,560	1,780	2,670	3,076
Other liabilities	23,275	26,622	14,136	14,359	14,577	12,842	9,402	9,398
TOTAL EQUITY AND LIABILITIES	459,456	441,996	403,160	420,322	348,348	342,399	338,670	317,767

KEY FIGURES

PROPERTY-RELATED	Q3 2020	Q2 2020	Q1 2020	Q4 2019	Q3 2019	Q2 2019	Q1 2019	Q4 2018
Leasable area, sq.m. thousand	121.1	113.9	99.5	99.5	74.5	74.5	74.9	62.8
Number of properties	11	10	9	9	6	6	6	5
Investment propterties, EURk	356,940	336,200	288,020	290,256	203,276	199,882	195,972	158,862
Surplus ratio, %	90	89	90	90	89	88	91	84
Floor space occupancy rate, %	94.2	96.1	95.7	92.7	90.2	87.7	92.0	88.8
Average rent, EUR/sq.m./month	14.8	14.9	15.0	14.7	14.7	14.7	14.8	14.5
WAULT, years	4.6	4.7	4.9	5.0	3.0	3.3	2.8	2.8
Average yield requirement, %	6.1	6.1	6.1	-	-	-	-	-
Environmentally certified properties, % of sq.m.	79	84	72	72	75	75	75	56

KEY FIGURES CONT.

FINANCIAL	Q3 2020	Q2 2020	Q1 2020	Q4 2019	Q3 2019	Q2 2019	Q1 2019	Q4 2018
Rental income, EURk	4,993	4,467	4,475	4,161	3,142	3,099	2,947	2,516
Net operating income, EURk	4,483	3,987	4,044	3,751	2,795	2,712	2,689	2,120
Profit from property management, EURk	2,519	2,170	2,262	1,699	1,370	1,141	1,279	1,085
Loan-to-value ratio (LTV), %	49	49	50	47	42	43	44	43
Capital tie-up period on Liabilities to credit institutions, year	3.2	3.1	3.3	3.5	4.0	4.2	4.5	4.6
Interest tie-up period on Liabilities to credit institutions, year	2.5	2.5	2.8	3.1	3.9	4.2	4.5	4.6
Debt ratio, multiple	14.1	15.2	15.0	17.1	13.0	14.1	16.3	15.7
Equity/asset ratio, %	57	57	61	64	71	71	72	76
Interest coverage ratio, multiple	3.6	3.5	3.6	3.2	3.8	3.2	4.1	4.1
Average interest rate, %	2.3	2.3	2.3	2.3	2.3	2.3	2.4	2.5
Return on equity Real Estate Direct, %	7.5	19.2	-0.4	20.3	15.7	16.7	6.2	9.8
Return on equity, %	17.5	15.7	-34.6	30.3	8.2	9.3	8.2	18.5
Cashflow per shares from operating activities, EUR	0.13	0.06	0.08	0.22	0.06	0.12	-0.01	0.19
Cashflow per shares, EUR	-0.37	-1.05	0.31	-0.15	-0.10	-0.05	-1.00	0.30
SHARE-RELATED	Q3 2020	Q2 2020	Q1 2020	Q4 2019	Q3 2019	Q2 2019	Q1 2019	Q4 2018
Equity, EURk	261,502	250,253	245,917	268,192	248,583	243,480	242,300	240,819
Long-term net asset value (LT-NAV), EURk	271,927	260,381	254,689	276,470	256,316	250,298	247,804	245,521
Market capitalisation, EURk	225,289	236,472	212,439	276,546	225,322	213,772	229,466	197,085
Market capitalisation, SEK thousand	2,364,465	2,474,440	2,309,477	2,905,881	2,415,223	2,258,720	2,389,844	1,997,452
Number of shares issued at period end, thousand	22,370	22,370	22,370	22,370	22,370	22,370	22,370	22,370
Number of shares issued at period end, adjusted for repurchased shares, thousand	21,149	21,149	21,149	21,149	21,149	21,149	21,149	21,501
Weighted average number of shares, adjusted for repurchased shares, thousand	21,149	21,149	21,149	21,187	21,200	21,227	21,305	22,128
Earnings per share, EUR	0.53	0.46	-1.05	0.93	0.24	0.27	0.23	0.50
Profit from property management per share, EUR	0.12	0.10	0.11	0.08	0.06	0.05	0.06	0.05
Equity per share, EUR	12.4	11.8	11.6	12.7	11.8	11.5	11.5	11.2
Equity per share, SEK	130	124	126	133	126	122	119	114
Long-term net asset value per share, EUR Long-term net asset value per share, SEK	12.9 135	12.3 129	12.0 131	13.1 137	12.1 130	11.8 125	11.7 122	11.4 116
Share price, EUR	10.7	11.2	10.0	13.1	10.7	10.1	10.8	9.2
Share price, SEK	111.80	117.00	109.20	137.40	114.20	106.80	113.00	92.90
OTHER	Q3 2020	Q2 2020	Q1 2020	Q4 2019	Q3 2019	Q2 2019	Q1 2019	Q4 2018
EUR/SEK	10.50	10.46	10.87	10.51	10.72	10.57	10.41	10.14
EUR/RUB	91.00	80.03	85.73	69.72	70.73	71.83	73.77	79.30
INTERPRETATION FOR KEY FIGURES	Q3 2020	Q2 2020	Q1 2020	Q4 2019	Q3 2019	Q2 2019	Q1 2019	Q4 2018
Rental income	4,993	4,467	4,475	4,161	3,142	3,099	2,947	2,516
Net operating income	4,483	3,987	4,044	3,751	2,795	2,712	2,689	2,120
Surplus ratio, %	90	89	90	90	89	88	91	84
Investment properties	356,940	336,200	288,020	290,256	203,276	199,882	195,972	158,862
Liabilities to credit institutions	174,679	165,121	143,107	137,771	85,187	86,077	86,967	67,550
Loan-to-value ratio, %	49	49	50	47	42	43	44	43
Equity	261,502	250,253	245,917	268,192	248,583	243,480	242,300	240,819
Add back derivatives	2,636	2,624	2,198	1,963	2,665	2,353	1,614	957
Add back deferred tax	7,789	7,504	6,574	6,315	5,069	4,465	3,891	3,745
Long-term net asset value, EURk	271,927	260,381	254,689	276,470	256,316	250,298	247,804	245,521
Profit from property management	2,519	2,170	2,262	1,699	1,370	1,141	1,279	1,085
Interest expenses	959	852	863	790	498	526	411	350
Profit before interest expenses	3,478	3,022	3,125	2,489	1,868	1,667	1,690	1,434
Interest coverage ratio, multiple	3.6	3.5	3.6	3.2	3.8	3.2	4.1	4.1
Net profit Real Estate Direct, annualised	12,190	28,004	-586	25,129	16,376	17,003	5,673	8,341
Weighted equity Real Estate Direct	162,530	146,071	138,342	124,092	104,349	101,870	91,975	85,372
Return on equity Real Estate Direct, %	7.5	19.2	-0.4	20.3	15.7	16.7	6.2	9.8

Definitions and glossary

Eastnine applies European Securities and Markets Authority (ESMA) guidelines on alternative performance measures. According to these guidelines, an alternative performance measure is a financial metric of historical or future earnings performance, financial position, financial results or cash flows, which is not defined or stated in applicable rules for financial reporting (IFRS and the Swedish Annual Accounts Act).

PROPERTY RELATED KEY FIGURES

Average rental income Average rent at the end of the period.

Lettable area

Q3

Total area available for letting.

Net letting

Annual rent income from contracts signed, less that of contracts terminated, during the period.

Net operating income

Rental income less property expenses.

Occupancy rate, by area

Occupied area in relation to lettable area.

Occupancy rate, financial

Contracted annual rent at the end of the period in relation to the rent value. This indicator is used to facilitate the estimation of rental income for vacant premises and other financial vacancies.

Profit from property management

Earnings before value changes, dividends received and taxes.

Rental income

Debited rents, rental accruals, and rental guarantees less rental discounts.

Rent value

Contracted annual rents which are current at the end of the period with supplements for discounts and estimated market rent for vacant premises.

Surplus ratio

Net operating income in relation to rental income.

Triple-net lease

Lease agreements where the tenant, in addition to the base rent, also pays costs related to the leased area. These costs include operational and maintenance costs, property taxes, site leasehold fees, insurance and property caretaking.

Yield requirement, investment properties

The yield requirement is used in valuations and are based on yield rate at end of the period. The yield requirement are estimations of the market return requirement for similar investment objects, with the addition of risks related to real estate, such as geographical location, the condition of the property, and future vacancy risk.

Vacancy rate, by area

Vacant area in relation to lettable area.

Vacancy rate, financial

Annual rent for vacant premises at the end of the period in relation to the rent value at the end of the period.

WAULT

Average remaining lease term of lease agreements weighted according to contracted rental income (Weighted Average Unexpired Lease Term).

The indicator shows the risk of future vacancies.

FINANCIAL KEY FIGURES

Average capital tie-up period Remaining average capital tie-up term for liabilities to credit institutions by the end of the period.

Average fixed interest period

Remaining average fixed interest term for liabilities to credit institutions by the end of the period.

Average interest rate

Average interest rate on the Group's liabilities to credit institutions at the end of the period.

Cash flow per share

Cash flow for the period in relation to weighted average number of issued shares for the period.

Cash flow from operation activities per share

Cash flow from operation activities in relation to weighted average number of issued shares for the period.

Debt coverage ratio

Liabilities to credit institutions at the end of the period in relation to net operating income on a 12-month basis after deduction of central administration expenses on a 12-month basis.

EBITDA

Profit before depreciation, amortisation and impairment (Earnings Before Interest, Tax, Depreciation and Amortisation).

Equity/asset ratio

Equity in relation to total assets.

Interest coverage ratio

Profit from property management, with reversal of interest expenses, in relation to interest expenses.

Loan-to-value ratio, (LTV)

Liabilities to credit institutions in relation to property value.

Return on equity

Net profit/loss for the quarter, recalculated on a 12-month basis, in relation to average equity.

Return on equity, Real Estate Direct

Net profit/loss for the quarter, recalculated on a 12-month basis, in the Real Estate Direct segment in relation to average equity attributable to the segment.

SHARE-RELATED KEY FIGURES

Earnings per share

Period earnings attributable to equity holders

of the Parent Company in relation to the average number of issued shares (excluding shares held in treasury).

Equity

Total equity.

Equity per share

Equity in relation to the total number of issued shares (excluding shares held in treasury).

Long-term net asset value (LT-NAV)

Total equity with reversal of derivatives and deferred tax liabilities according to the balance sheet.

Long-term net asset value per share

LT-NAV in relation to the number of outstanding shares (excluding shares in treasury).

Profit from property management per share

Profit from property management divided by the average number of shares during the period.

GLOSSARY

Break option

Unilateral option allowing the tenant to terminate the lease agreement prematurely. The clause usually refers to a right on the part of the tenant to terminate a lease without additional rent payments.

Fair value

Fair value is the price at which a property transfer may take place between independent and informed parties which have an interest in the transaction taking place. Fair value is considered to be equal to the acquisition value at the acquisition date, after which the fair value may change over time.

Gross area

Gross area is the sum of the area of all the floors up to the exterior of the surrounding building sections. The term is used e.g. with regards to property valuations.

Interest derivatives

Agreements for the purchase and sale of interest, the price and conditions of which depend on factors such as time, inflation rates, and market. Derivative agreements are usually entered into in order to ensure predictable interest rate levels for some part or the entirety of the interest-bearing loans. Interest rate swaps are a type of derivative where the value on balance day is zero and which expires without further payment flows.

Property

Relates to real estate in possession through ownership or site leaseholds.

Share buy-back

Purchasing of own shares on the stock market. Swedish companies have the option to own up to 10 per cent of their own outstanding shares, given approval from the AGM.

Financial calendar

Year-end report 2020: 17 February 2021 Annual General Meeting 2021: 5 May 2021 Interim report January-March 2021: 5 May 2021 Interim report January-June 2021: 14 July 2021 Interim report January-September 2021: 10 November 2021 Year-end report 2021: 11 February 2022

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The information in this interim report is the information which Eastnine AB is required to disclose under the EU Market Abuse Regulation. The report was released for publication at 07.00 a.m. on 5 November 2020.

This is a translation of the original Swedish language interim report. In the event of discrepancies, the original Swedish wording shall prevail.

Contact information

Kestutis Sasnauskas, CEO, +46 8 505 977 00 Britt-Marie Nyman, CFO and deputy CEO, +46 70 224 29 35

EASTNINE AB

Kungsgatan 30, Box 7214 SE-103 88 Stockholm, Sweden Tel: +46 8 505 977 00 www.eastnine.com Registration no. 556693-7404