Eastnine — Interim / Quarterly Report 2021

May 5, 2021

EASTNINE INTERIM REPORT JANUARY – MARCH 2020

Interim report January – March 2021

Eastnine's rental income and profit from property management increased during the period due to a larger property portfolio. Conditions are stable, although the market is hesitant, resulting in transactions and new letting take longer than normal. After the end of the period, Eastnine has entered into an agreement for acquisition of two properties totalling EUR 35.5m.

The period January-March 2021

• Rental income increased by 14 per cent to EUR 5,099k (4,475). The increase is due to a larger property portfolio. In a comparable portfolio, rental income decreased by 7 per cent due to higher vacancies in Riga.
• Net operating income increased by 14 per cent to EUR 4,613k (4,044).
• Profit from property management increased by 8 per cent to EUR 2,454k (2,262).
• Unrealised value changes amounted to EUR 3,747k (-24,256). Of this change, EUR 1,466k (-2,738) is attributable to real estate, EUR 1,942k (-21,283) to investments and EUR 339k (-235) to derivatives.
• Profit/loss for the period amounted to EUR 5,649k (-22,253), corresponding to EUR 0.26 per share (-1.05).
• The average rent level amounted to EUR 15.0 per sq.m. per month (14.9) and the occupancy rate to 90.7 per cent (92.6). Net letting amounted to EUR -138k.

Key events during the first quarter

• The Board of Directors proposes a dividend of 3.00 SEK per share (2.70), with payments distributed evenly on four occasions in May, August and November 2021, and February 2022.

Significant events after end of the period

• Eastnine has acquired two properties, one in Riga and one in Vilnius. The total purchase consideration amounts to EUR 35.5m. Both properties are certified with LEED Platinum. The properties are expected to be taken into possession before the end of second quarter 2021.

	2021	2020	2020
SELECTED KEY FIGURES	Jan-Mar	Jan-Mar	Jan-Dec
Rental income, EURk	5,099	4,475	19,186
Profit from property management, EURk	2,454	2,262	10,011
Profit from property management per share, EUR	0.11	0.11	0.47
Net profit/loss for the period, EURk	5,649	-22,253	36,155
Earnings per share, EUR	0.26	-1.05	1.70
Return on equity, %	7.2	-34.6	12.5
	2021	2020	2020
SELECTED KEY FIGURES	31 Mar	31 Mar	31 Dec
Loan-to-value, %	36	40	36
Loan-to-value, properties, %	46	50	46
Sustainability-certified properties1 , % of sq.m.	87	72	87
Equity per share, EUR	14.3	11.6	14.0
Equity per share, SEK2	146	126	141
Long-term NAV per share, EUR	14.9	12.0	14.6

Comparative figures in the Interim Report refer to the period January - March 2020 in income statement items and as per 31 December 2020 in balance sheet items. "The Company" refers to the Eastnine Group.

1 Sustainability-certified area in proportion to total area (excluding area expected to undergo significant redevelopment). ² EUR = 10.24 SEK as of 31 March 2021 (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

The Company is listed on Nasdaq Stockholm Mid Cap and headquartered in Stockholm.

Nordic tenants

Tenants are primarily large and stable Nordic companies with international operations.

High-yielding, prime office properties in the Baltics

Invests in modern, sustainable and high-yielding office properties in first-class locations in the Baltic capitals.

TARGETS IN BUSINESS PLAN 2023

Operational	Status 31March 2021
Property portfolio of at least EUR 700m by the end of 2023.	374 EURm
Profit from property management for Q4 2023 (recalculated as annual figure) to amount to EUR 25m.	EUR 9.8m (annualised Q1 2021)
Financial
Dividends are to correspond in the long term to at least 50 % of profit from property management less currenttax.	66 %1
Return on equity should be at least 10 % over time.	22.8 % (twelve months rolling)
The loan-to-value ratio on properties should be at most 60 %.	46 %
Equity/asset ratio should be at least 35 %.	62 %
Sustainability
The entire property portfolio should have obtained sustainability certificates on the level of at least LEED Gold or	87 %

BREEAM Excellent ²

1 Calculated on the basis of the Board's proposed dividend of SEK 3.00 per share. ² Refers to area of all properties that are not expected to undergo significant redevelopment.

New acquisitions in Riga and Vilnius

The situation in the Baltic market is stable despite the coronavirus pandemic, although somewhat hesitant. General uncertainty about the future makes it take longer to let vacant premises. After the end of the period, Eastnine has continued its expansion by acquiring two centrally located, fully let office properties, one in Riga and one in Vilnius.

Hesitant but stable

Business was stable during the first quarter. But even though the Baltic economies have coped better than their European neighbours, there is still uncertainty about the future. The high level of Covid-19 infection, which has also reached our markets, has led to widespread caution and many tenants have put on hold plans to move or expand. The tough restrictions in our markets have also made it difficult to show premises, which has particularly affected Riga.

The number of vacations and newly signed leases have both been low during the quarter and net letting was weakly negative. However, the volumes are so small that it is difficult to draw any strong conclusions from the figures.

Discounts due to the pandemic have remained at a low level. During the quarter, we have resumed support to our restaurants and to the community by purchasing over 9,000 meals which were then delivered to hospitals in Vilnius.

Other investments are developing well

Melon Fashion Group (MFG) has developed very strongly during the first quarter of 2021. According to preliminary figures from the company, sales have increased by 35 per cent during the quarter. The proportion of e-commerce sales reached 36 per cent and grew by over 46 per cent through distributors and 102 per cent in the company's own online stores. The EBITDA margin, which is usually weakly negative during the first quarter, amounted to a positive 3.6 per cent. MFG's board has proposed to the annual general meeting that a dividend be paid, which if adopted would mean around EUR 3.2 million to Eastnine in June 2021. As MFG has developed according to plan, no revaluation of the holding in RUB has been made during the quarter. However, the value of Eastnine's holding rose due to the appreciation of the rouble in relation to the euro.

The value of the holding in East Capital Baltic Property Fund II has also developed positively during the quarter, with an increase of 1.7 per cent.

Architectural competition for future project

Eastnine has initiated an international architect competition for the Kimmel project in Riga, which has taken place during the spring. Twelve contributions from architects have been received and the winning concept is expected to be announced in May. The project will comprise a total of around 38,000 sq.m. and it is intended to include offices, restaurants, recreation and cultural facilities.

In the end of April we also announced an open international architectural tender for 3Bures-4, in direct connection to our 3Bures-properties in Vilnius. The tender will be ongoing during second quarter.

New property acquisitions

Despite the limitations on travel due to the pandemic, we have continued to work on new opportunities for acquisitions. In early May, we communicated a transaction including two fully let office properties for a total of EUR 35.5m. One property, Zala 1, is centrally located in Riga's Art Noveau district, only a block from Eastnine's property Valdemara Centrs. The other property Uniq is located adjacent to Vilnius' parliament buildings and next door to Eastnine's properties Vertas-1 and 2. The properties are expected to be taken into possession in the second quarter of 2021. These properties complement our existing portfolio in a good way, making possible efficient administration. After this acquisition our property portfolio will increase to approximately EUR 410m. Eastnine's acquisition is the largest office transaction in the Baltics during 2021.

However, we are not contenting ourselves with this but are continuing to evaluate various business opportunities. According to the business plan, the portfolio is to increase to EUR 700m by the end of 2023.

Eastnine's acquisition of two properties in Riga and Vilnius is the largest office transaction in the Baltics in 2021

Effects of the coronavirus pandemic

Eastnine has weathered the coronavirus pandemic well, thanks to first-class properties with stable tenants and finances. Granted rent reductions have remained low and asset values have developed in a positive direction. However, new letting of vacant premises is slow, affecting earnings.

Rental income

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 4.3 years, and across the portfolio the corresponding number is 4.2. 95 per cent of the premises are offices.

Rent payments on Eastnine's leases are chiefly due on a monthly basis, meaning that any difficulties tenants may face in paying rent can be quickly identified. In the first quarter of 2021, as a consequence of the pandemic, Eastnine has granted rent reductions totalling around EUR 51k, corresponding to 0.3 per cent of total annual rent income. The majority of tenants that have received discounts are restaurants and smaller tenants.

Various restrictions in place that have made it harder to show vacant premises, in conjunction with a general market hesitancy as a result of the coronavirus pandemic, has meant that new letting of vacant premises is slower than usual.

Financing

Eastnine enjoys good liquidity and a high equity/asset ratio. Cash and cash equivalents amounted to EUR 24.2m, unutilised credit facilities to EUR 3m and the equity/asset ratio to 62 per cent at the end of the period.

The loan-to-value ratio on properties amounted to 46 per cent and the total loan-to-value ratio to 36 per cent. The average capital tie-up period was 2.7 years and the fixed interest term 2.1 years. Financing is distributed between three of the larger banks in the Baltics, and does not include capital market financing.

Transaction and property valuations

Travel restrictions, in combination with an at times high level of market anxiety, have meant that transactions have taken longer than usual to complete. Yield requirements for high-quality office properties in Vilnius and Riga sank in 2020, but were unchanged during the first quarter of 2021.

All ten properties in Eastnine's portfolio was valued as of 31 March 2021, two of which externally. During the period, unrealised value changes on properties amounted to EUR 1,466k, corresponding to 0.4 per cent of opening property value. The value at the end of the period was EUR 374,200k.

Melon Fashion Group

Eastnine's associated company, MFG, has developed very well in the first quarter of 2021. Preliminary sales figures show a sales increase of 35 per cent during the quarter. The EBITDA margin was 3.6 per cent.

The value of Eastnine's holdings have increased by EUR 1,558k during the period, entirely attributable to a strengthening of the rubel toward the euro.

Staff

The health and safety of our staff is a priority. Eastnine follows the official guidelines relating to work and staffing in the countries in which we operate. Eastnine recommended all employees to work from home during the first quarter to the extent possible given their duties. In-person meetings and business travel are avoided, unless they are critical to fulfil the needs of the business.

Community initiatives

In the first quarter of 2021, the Company ordered over 9,000 meals from three restaurants, which are Eastnine tenants, to be delivered to staff caring for Covid-19 patients at one of Vilnius' hospitals.

Market

In the Baltics as well as the rest of the eurozone, GDP growth is expected to turn upwards in 2021. The housing and logistics segments have dominated the transaction market in the Baltics during the first quarter and rent levels on the office rental market are considered to be stable.

Market development

After an exceptional 2020 due to the coronavirus pandemic, where the Baltics still coped better than the rest of the eurozone, growth is expected to increase in 2021. According to the IMF, GDP growth in Estonia, Latvia and Lithuania may increase by 3.4 per cent, 3.9 per cent and 3.2 per cent during the year. GDP growth for the whole eurozone is estimated at 4.4 per cent. Inflation for the eurozone as a whole is expected to rise to 1.4 per cent, and to 1.8 per cent in Estonia, 2.1 per cent in Latvia and 1.5 per cent in Lithuania.

New mutations of the coronavirus have, however, led to further uncertainty about development, although a favourable export structure and a small tourism sector are expected to make a positive contribution to development in the Baltics in 2021.

Rental market

The utilization rate of offices in the Baltics has been restrained during the first quarter of the year, due, among other things, to lock-downs leading to a continued high level of distance work. Rents for office premises have to a considerable extent been paid according to contract, while discounts have been granted to some tenants in the retail trade and restaurant industry.

In Riga, uncertainty among tenants has a dampening effect on demand for office premises, while there, in Vilnius, is a high level of demand. In Vilnius, there has also been an interest in new establishment from Belarus after political protests accelerated in the country in the autumn of 2020. A number of companies have moved their business as well as staff and their families from Minsk to Vilnius.

During the quarter, several development projects have been completed in Vilnius, including the fourth stage of S7, the Lvovo 37 project and parts of Technopolis Nova and Business Garden. A large part of the additional space has already been let to Danske Bank and Telia Global Services, among others. At the end of the quarter, the vacancy rate in Vilnius was 7.7 per cent, in Riga 18.2 per cent and in Tallinn 8.4 per cent, compared with 5.4 per cent, 19.2 per cent and 8.2 per cent at the beginning of the year.

Rent levels in the three capital cities are stable, but are not expected to rise in the near future due to existing vacancies in Riga and a continued high rate of development in Vilnius and Tallinn.

Transaction market

No transactions with office properties have taken place in the Baltic capitals during the quarter. Instead, the transaction market has been dominated by the housing and logistics segments. Kapitel, SG Capital and Eften Capital acquired logistics and industrial properties in Tallinn, Riga and Vilnius, while East Capital acquired logistics land in Tallinn. In Latvia, a large residential portfolio has changed hands and a number of Baltic hotel properties have new owners in the wake of the pandemic. In Latvia, new legislation for housing rents has been introduced, which is expected to make housing properties more attractive for letting.

The yield requirement for central office properties is considered to be unchanged since the turn of the year, at 5.5 per cent in Vilnius, 6.0 per cent in Riga and 6.1 per cent in Tallinn.

GDP, ANNUAL CHANGE INFLATION, ANNUAL CHANGE

The period January - March 2021

Rental income and profit from property management increased during the period due to an expanded property portfolio. Property value has increased, primarily as a result of unrealised value changes. Other investments have also continued to develop strongly and exhibit increases in value.

Rental income

The income, which is entirely composed of rental income, increased by 14 per cent during the period to EUR 5,099k (4,475), primarily due to a larger property portfolio compared to the same period last year. Rental income in a comparable portfolio decreased by 7 per cent during the quarter, chiefly due to a higher vacancy rate in Riga.

The average rent level amounted at the end of the period to EUR 15.0 per sq.m. per month (14.9). During the period, new lease agreements have been signed at an average level of EUR 14.6 per sq.m. per month. The average rent level on renegotiated leases was unchanged, amounting to EUR 12.3 per sq.m. Net leasing was negative and amounted to EUR -138k during the period.

Property costs

Eastnine only recognises the part of property expenses which are not directly debited on to our tenants. The majority of Eastnine's lease agreements are triple-net, meaning that the recognised expenses are affected by changes in the vacancy rate. Property expenses increased to EUR -486k (-431), chiefly resulting from a larger property portfolio but also as a result of a higher vacancy rate.

Earnings

Net operating income was EUR 4,613k (4,044), and the surplus ratio amounted to 90 per cent (90). 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 14 per cent is chiefly related to acquisitions. Central administration expenses increased to

RENTAL INCOME & PROFIT FROM PROPERTY MGMT UNREALISED CHANGES IN VALUE OF PROPERTIES

EUR -1,123k (-824), mainly due to non-recurring costs. Profit from property management increased by 8 per cent to EUR 2,454k (2,262).

Unrealised value changes in properties amounted to EUR 1,466k (-2,738). Unrealised value changes in other investments amounted to EUR 1,942k (-21,283), of which EUR 1,558k (-21,631) is attributable to MFG and EUR 384k (348) to the fund investment. Unrealised value changes in derivatives amounted to EUR 339k (-235). No dividends have been received during the period (-) and no realised value changes have taken place. Profit before tax amounted to EUR 6,201k (-21,994) and the net profit/loss for the period to EUR 5,649k (-22,253).

Segment Reporting

As of 1 January, the segment reporting has changed and now comprise the following segments: Properties in Lithuania, Properties in Latvia, and Other investments. The period for comparative figures has been recalculated.

The Properties in Lithuania segment generated a profit from property management of EUR 3,370k (2,482) and a profit after tax of EUR 4,318k (1,873). The Properties in Latvia segment generated a profit from property management of EUR 223k (604) and a profit after tax of EUR 530k (-2,020). Earnings in Latvia are affected by an increase in vacancies.

The Other investments segment, comprising the East Capital Baltic Property Fund II and MFG, generated a profit before tax of EUR 1,942k (-21,283), entirely comprising unrealised value changes.

Unallocated central administration expenses and other financial income and expenses amounted to EUR -1,140k (-824).

Reports in summary

The tables below provide a summary of the income statement and the balance sheet for January-March 2021 and 2020, respectively.

EARNINGS AND FINANCIAL POSITION

	2021	2020
Summary, EURk	Jan-Mar	Jan-Mar
Rental income	5,099	4,475
Property costs	-486	-431
Net operating income	4,613	4,044
Central administration	-1,123	-824
Financial income/expenses	-1,036	-958
Profit from property management	2,454	2,262
Unrealised value changes	3,747	-24,256
Tax	-551	-259
Net profit /loss for the period	5,649	-22,253
	2021	2020
Summary, EURk	31 Mar	31 Mar
ASSETS
Investment properties	374,200	288,020
Long-term securities holdings	104,093	67,426
Cash and cash equivalents	24,232	43,883
Other assets	4,151	3,831
TOTAL ASSETS	506,677	403,160
EQUITY AND LIABILITIES
Equity	315,666	245,917
Interest-bearing liabilities to credit institutions	171,623	143,107
Derivatives	2,405	2,198
Deferred tax liabilities	11,406	6,574
Other liabilities	5,576	5,364
TOTAL EQUITY AND LIABILITIES	506,677	403,160

Summary segment reporting

Below is a summary of segment reporting for January-March 2021 and 2020, respectively.

EARNINGS BY SEGMENT

	2021	2020
EURk	Jan-Mar	Jan-Mar
Properties in Lithuania
Profit from property management	3,370	2,482
Unrealised value changes, properties	1,160	-114
Unrealised value changes, derivatives	339	-235
Deferred tax	-551	-259
Earnings Properties in Lithuania	4,318	1,873
Properties in Latvia
Profit from property management	223	604
Unrealised value changes, properties	306	-2,624
Earnings Properties in Latvia	530	-2,020
Other investments
Unrealised value changes	1,942	-21,283
Earnings Other investments	1,942	-21,283
Unallocated
Central administration expenses and other operating expenses	-1,123	-824
Unallocated net financial income/expense	-17	-
Profit Unallocated	-1,140	-824
Net profit /loss for the period	5,649	-22,253

Financing

Eastnine's activities are primarily financed with equity and liabilities to credit institutions. According to the financing policy, the equity/asset ratio should be at least 35 per cent, while the loan-to-value ratio on properties should not exceed 60 per cent.

Equity amounted to EUR 315,666k (309,942) at the end of the period and the equity/asset ratio to 62 per cent (62). Interest-bearing liabilities to credit institutions amounted to EUR 171,623k (173,151), corresponding to a loan-to-value ratio on properties of 46 per cent (46) and a loan-to-value ratio on all assets of 36 per cent (36). Unutilised overdraft credit facilities amounted to EUR 3,000k (3,000).

The average interest rate was 2.3 per cent (2.3) at the end of the period. The average fixed interest term was 2.1 years (2.3)and the average capital tie-up period was 2.7 years (3.0). All liabilities to credit institutions, except the unutilised overdraft facility, applies variable interest tied to Euribor 3M, but 75 per cent (75) have the interest fixed using interest rate swaps.

During the period, liabilities have been amortised by EUR 1,528k. The contracted annual amortisation rate amounted to EUR 6,111k, corresponding to 3.6 per cent of the liabilities to credit institutions at the end of the period.

Derivatives

Eastnine's derivatives portfolio comprised at the end of the period of EUR 128,229k (129,375) in interest rate swaps, of which 46 per cent is due to mature in 2023, 45 per cent in 2024 and the remaining in 2025.

LOAN-TO-VALUE AND EQUITY/ASSET RATIOS DISTRIBUTION OF BANK LOANS

The derivatives are measured at fair value and the change in value is recognised through profit or loss, with no effect on cash flow. The fair value of the derivatives amounted to EUR -2,405k (-2,745). At the end of the term, the value of derivatives is always zero.

Tax

The tax expenses for the period amounted to EUR -551k (-259), 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.

Net asset value and equity per share

Long-term net asset value per share was EUR 14.9 (14.6) corresponding to 152 SEK per share (147). Equity per share was EUR 14.3 (14.0) corresponding to 146 SEK per share (141).

Cash flow

Cash flow from operating activities before changes in working capital amounted to EUR 2,582k (2,336) for the period. Change in working capital was EUR -728k (-684). Cash flow from investing activities amounted to EUR -335k (-543) and from financing activities to EUR -1,554k (5,368). Total cash flow amounted to EUR -35k (6,477) and cash and cash equivalents to EUR 24,232k (43,883) at the end of the period.

SEB Swedbank OP Bank

CREDIT MATURITY AND TERM OF LEASE AGREEMENTS

Property portfolio

Eastnine's property portfolio consists of ten modern office buildings in Riga and Vilnius. Work continues on the Alojas Biroji property in Riga to develop the Pine. As one step in the property development, a smaller building has been vacated during the quarter, reducing lettable area. Property values increased by EUR 1.8m due to investments and unrealised value changes.

Property portfolio

Eastnine's property portfolio consists of ten modern office buildings in Riga and Vilnius. No new acquisitions have taken place during the first quarter. The average age of the properties, excluding the Kimmel development property, was at the end of the period eight years. Total lettable area amounted at the end of the period to around 120,200 sq.m. The value was nearly unchanged and amounted to EUR 374.2m. The rental value amounted to EUR 22.8m (22.8) and the occupancy rate to 90.7 per cent (92.6) by the end of the period.

Vilnius

Eastnine's property portfolio in Vilnius can be grouped into three clusters. Two of the clusters are concentrated in the business district, along the street Konstitucijos prospektas, north of the river Neris. Nearly all of the class A office properties in Vilnius are located in this central business district. The third cluster is adjacent to the parliament buildings and includes Eastnine's properties Vertas-1 and Vertas-2.

Total lettable area amounts to around 101,000 sq.m., corresponding to a market share for offices of around 11 per cent in the city.

The property portfolio in Vilnius includes site leaseholds as well as property rights. Vertas-1 and Vertas-2 are held with property rights and the remaining as site leaseholds. The remaining lease term for the site leaseholds vary between 21 and 79 years. The combined property value in Vilnius amounted to EUR 312.9m (311.7) at the end of the period.

Riga

Riga does not as yet have a clearly delineated business district, and modern office buildings are being developed in a number of smaller micro-areas. All of Eastnine's office properties in Riga are located in the centre of the city, along Krisjana Valdemara iela, one of the city's most prominent streets. The property portfolio, comprising around 19,000 sq.m. lettable area, are estimated to correspond to an office market share of around three per cent. The properties Kimmel and Alojas Biroji are expected to undergo significant development. In Riga, all properties are held with ownership rights. The combined property value in Riga amounted to EUR 61.3m (60.7) at the end of the period.

PROPERTY PORTFOLIO

	Lettable area, sq.m.
		Retail and			Vacant area,	Occupancy	Property	Share of
City	Offices	service	Other	Total area	sq.m.	rate, %	value, EURm	value, %
Vilnius	97,631	3,240	267	101,138	3,175	96.9	312.9	84
Riga	16,123	2,471	435	19,029	8,000	58.0	61.3	16
Total	113,754	5,711	702	120,167	11,175	90.7	374.2	100

Property development

At the end of the period, Eastnine had two development projects, The Pine and Kimmel, both of which are located in Riga. The projects are currently in the planning stages.

With the development project the Pine, on the Krisjana Valdemara iela high street, Eastnine aims to build the first wooden office building in the Baltics. The building will be constructed directly adjacent to an existing building on the Alojas Biroji property. The new building will have an estimated 18,000 sq.m. of lettable area. The Pine is planned to be one of the finest office properties in the Baltics, both in terms of sustainability as well as tenant experience, and the building is expected to achieve a climate-neutral operation once it is complete. The Pine is the first office property in the Baltics to have the aim of obtaining double sustainability certificates: LEED Platinum for the building itself and WELL concerning the well-being of the people spending time in it. The final building permit is expected in 2021.

The Kimmel property, comprising a development site in central Riga was historically the site of the eponymous brewery. The site comprises nearly an entire city block along the Krisjana Valdemara iela main street. At present, the site is occupied by around 4,000 sq.m. of buildings which are grade listed; these must be conserved, but may be developed. In addition, the site offers an opportunity to develop a further 34,000 sq.m. A permit for the demolition of the other buildings on site has been received, and demolition began in January 2021.

The vision for Kimmel is to create a vibrant, green, urban block with plenty of space for life and movement, improving life in the area. The property will chiefly be occupied by offices, but there will also be retail space, restaurants, and cultural spaces. Eastnine's international architect competition for the Kimmel project in Riga has been ongoing during the spring. Twelve proposals have been received from architects and the winning concept is expected to be announced in May. In the end of April Eastnine announced

an open international architectural tender for the project 3Bures-4, in direct connection to our 3Bures-properties in Vilnius. The tender will be ongoing during second quarter.

Value changes in properties

Eastnine has invested EUR 334k in existing properties during the period, of which EUR 261k relates to properties expected to undergo significant redevelopment. The value of the properties increased during the period as a result of these investments, as well as unrealised value changes, and amounted at the end of the period to EUR 374,200k (372,400). The unrealised value changes, of EUR 1,466k, correspond to 0.4 per cent of opening property values. The unrealised positive value change during the period is chiefly due to increased future cash flows, attributable to higher rents because of higher inflation index for 2021 than previously estimated. At the same time, future cash flows attributable to rent loss contingencies, as a response to the coronavirus pandemic, have been negatively affected.

Investments and divestments

No acquisitions or divestments have taken place during the first quarter of 2021.

CHANGE IN PROPERTY VALUES, EURK

	2021	2020
	Jan-Mar	Jan-Dec
Property values at the beginning of the year	372,400	290,256
Property acquisitions	-	62,461
Investments in existing properties	334	2,300
Unrealised value changes	1,466	17,383
Property values at the end of the period	374,200	372,400

PROPERTY PORTFOLIO BY CITY, VALUE PROPERTY PORTFOLIO BY CATEGORY, VALUE

Tenants

Eastnine offers flexible and high-quality office premises in central business locations to tenants, with a considerable focus on matching the location and sustainability of the premises with the Company's own high standards. Several properties have Business Centres, hosting services like a reception during business hours and around-the-clock security guards. The majority of the properties also host restaurants, dry-cleaning and tailoring services, and parking.

Eastnine's tenants are primarily large and stable Nordic companies with international operations. Out of all tenants, 71 per cent operate in finance and ICT. Eastnine as a landlord as well as our tenants have strict expectations for sustainable and first-rate offices. In order to meet the demand for modern and efficient office solutions, Eastnine works actively to e.g. obtain environmental certifications for its office properties.

Danske Bank is the largest tenant with around 28 per cent of total annual rent. The ten largest tenants lease around 75,900 sq.m. at a total annual rent of EUR 13,531k. At the end of the period, the average remaining lease term for all tenants was 4.2 years (5.0), and for the ten largest tenants 4.3 years (5.7).

Lease agreements

The rental market in the Baltics is different from Sweden in terms of the way lease agreements are formulated. The majority of leases have fixed terms and expire at the end of the term. Leases may however include clauses meaning that the tenant has the first right to renegotiate leased premises, and also has a right to expand the premises under contract in conjunction with lease expiration. An extension, therefore, requires the active renegotiation with both parties.

Eastnine applies monthly rent to all of its office premises. The average rent level amounted to EUR 15.0 per sq.m. per month at the end of the period (14.9). Total rent under contract, combining all tenants and their entire lease terms, amounted to EUR 89.3m, of which 33 per cent expire in 2025 or later.

Letting

During the period, 760 sq.m. corresponding to an annual rent of EUR 112k have been renegotiated. Meanwhile, net letting, i.e. new leases less terminated leases, has been negative at -579 sq.m., corresponding to EUR -138k. The average rent level on renegotiated leases was unchanged, amounting to EUR 12.3 per sq.m. For new leases, the average rent level was EUR 14.6 per sq.m.

LARGEST TENANTS

		Share of annual			Lease	Break option in
	Annual rent,	rent under		Number	agreement	lease agree
Tenant	EURk	contract, %	Sq.m.	of agreements	term1 , years	ments2 , years
Danske Bank	5,476	28	30,935	3	2.4	2.4
Telia	2,876	15	15,952	1	8.0	8.0
Swedbank	1,843	9	11,266	4	10.5	4.5
Visma	970	5	5,571	3	2.8	2.8
Citco	660	3	3,009	7	6.3	1.3
Webhelp	538	3	2,726	5	1.4	1.4
Cobalt	330	2	1,816	4	3.8	3.8
Europos Socialinio fondo agentura	287	2	1,769	3	2.1	1.0
Invalda INVL	281	1	1,532	3	4.5	4.5
Aviva	270	1	1,306	2	1.1	1.1
Total	13,531	69	75,881	35	4.3	3.1

¹Weighted average of remaining lease term.

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

OCCUPANCY RATE AND SURPLUS RATIO PROPERTY VALUE AND LOAN-TO-VALUE RATIO

Market value, property portfolio

The market value amounted to EUR 374.2m (372.4) at the end of the period. Unrealised value changes on properties amounted to EUR 1,466k, corresponding to 0.4 per cent of opening property values.

Eastnine values its properties every quarter, with an external valuation taking place at least once over a rolling 12 month period. External and internal valuations are carried out using the same valuation methodology and software, so that the same observable and non-observable input data can be included each quarter. For more details on the valuation models, the assumptions made and the property values, refer to the Annual Accounts 2020, note 10 (Investment properties). Similarly to last year, external valuations have been carried out by Colliers International Advisors in Latvia and Lithuania.

Valuation model and process

The valuation model is based on present value cash flows for a five or ten-year calculation period, with supplements for the present value of residuals at the end of the 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. The external valuations are carried out in accordance with international valuation standards (IVS 2020). When external valuations are carried out, the properties are inspected on site.

Future cash flows from the property during the calculation period are calculated according to the following model:

+ Rental income, including rent supplements
- Operating costs
- Maintenance costs

Total net operating income

• Less investments

Total cash flow

Valuation assumptions

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

The estimated market rent in the valuations amounted on average to EUR 15.0 per sq.m. 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 customisations and investments made for new letting is calculated as EUR 180 per sq.m. in Latvia and EUR 190 per sq.m. in Lithuania. Other property investments have been calculated in the interval from 2.0 to 3.0 per cent of rental income, and averaged 2.4 per cent.

The long-term vacancy rate is generally set at 4.5 per cent in the valuation models. Inflation has been estimated to be zero for the nearest year, and then to increase to 0.5 per cent in the following year. The long-term inflation is estimated to 1.5 per cent. The weighted average cost of capital in the model is unchanged since the turn of the year, amounting to 5.8 per cent, and the average discount rate is 7.1 per cent.

VALUATION MODEL ²⁰²¹

		2020
	31 Mar	31 Dec
Weighted average cost of capital, %	5.8	5.8
Average property investments, %	2.4	2.2
Average rent, EUR/sq.m./month	15.0	15.0
Average discount rate, %	7.1	7.2
Investment for new letting, EUR/sq.m.	180/ 190	180/ 190
Long-term inflation, %	1.5	1.5
Long-term vacancy rate, %	4.5	4.5

RENTAL VALUE AND OCCUPANCY RATE PER TYPE OF PREMISE

			Rental value,
Type of premise	Sq.m.	Rental value, EURm	EUR/sq.m.	Occupancy rate, %
Offices	113,754	20.6	15.1	91.0
Retail and service	5,711	1.0	13.9	90.5
Parking	-	1.0	-	-
Other1	702	0.2	7.3	41.6
Total	120,167	22.8	15.0	90.7

1 Includes rental value for other premises and e.g. advertising boards and aerials. Rental value EUR/sq.m. is calculated solely using rental value attributable to other premises.

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 31 March 2021.

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 Eastnine 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, vacancies, 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, site leasehold feeds as well as property management expenses.
• Central administration expenses have been calculated based on the existing organisation and the current property portfolio on the reporting day.
• Financial income and expenses have been calculated based on the Company's debt liability and average interest level on the reporting day.

Comment to earning capacity

Despite the rental value of leased properties increasing through inflation indices from January 2021, the rental value in the portfolio has decreased since 31 December. The decrease is due to the vacating of a building in conjunction with planned construction.

Rental income in earning capacity is 2 per cent lower compared to 31 December. The reduction is due to increased vacancies, which have also resulted in lower net operating income and profit from property management. Interest expenses have decreased due to a smaller debt as a result of amortisations made during the quarter.

The percentual decrease in the prospective yield is chiefly an effect of lower net operating income due to increased vacancies and in relation to a higher market value of investment properties.

	2021	2020
Current earning capacity, EUR thousands	31 Mar	31 Dec	Change, %
Rental value	22,776	22,791	0
Less vacancy values	-2,177	-1,799	+21
Sum rental income	20,599	20,992	-2
Property costs	-2,100	-2,200	-5
Net operating income	18,499	18,792	-2
Central administration expenses	-3,600	-3,600	0
Interest expenses	-3,988	-4,018	-1
Other financial income and expenses	-52	-	-
Profit from property management	10,859	11,174	-3

	2021	2020	Change,
Key figures, current earning capacity	31 Mar	31 Dec	unit
Surplus ratio, %	90	90	0
Interest coverage ratio, x	3.7	3.8	-0.1
Average interest rate, %	2.3	2.3	0.0
Prospective yield excl. development properties, %	5.1	5.2	-0.1
Prospective yield, %	4.9	5.0	-0.1
Investment properties, EURk	374,200	372,400	+1,800

Other investments

Other investments comprise Eastnine's holdings in Melon Fashion Group and East Capital Baltic Property Fund II, respectively. The value of these holdings increased by EUR 1,942k during the period. No dividend has been received during the quarter.

Melon Fashion Group

Melon Fashion Group (MFG) is one of the leading actors in the Russian fashion industry with a business model based on in-house design with production in Asia. Products are sold in a large number of stores and through online sales, using resellers as well as a platform of their own. MFG had, at the end of the period, a retail network comprising a total of 803 outlets (809), of which 241 (240) were operated by franchisees. The total store area amounted to 206,000 sq.m., of which 39,000 sq.m. in franchise stores.

MFG markets the brands Sela, Befree, Zarina and Love Republic. Each brand targets a specific target audience with its own, unique design language. Sela is targeted toward children and women. Befree targets younger generations and offers youthful fashion at a high value for money. Zarina is oriented toward women, providing fashion for a classy wardrobe. Love Republic focuses on clothes for special occasions with a focus on femininity and sensuality.

The period January - March 2021

Melon Fashion Group reported continued strong sales development during the first quarter of 2021. Based on preliminary quarterly reports, total sales increased during the period to RUB 7,271m (5,382), corresponding to 35 per

Key figures, MFG holding	2021 Jan-Mar	2020 Jan-Mar
Unrealised value change, EURk	1,558	-21,631
Received dividends, EURk	-	-
Total return, %	2.0	-32.3
	2021	2020
Key figures, MFG holding	31 Mar	31 Dec
Eastnine's share, %	36	36
Fair value of Eastnine's holding, EURk	80,878	79,320
Proportion of Eastnine assets, %	16.0	15.8

cent. EBITDA, excluding effects of IFRS 16, amounted to RUB 261m (-258) and the EBITDA margin to 3.6 per cent (-4.8). MFG's net earnings amounted to RUB 277m (-746). Online sales contributed 32 per cent (28) of total sales. MFG has very good liquidity.

Eastnine's share in MFG

Eastnine owns 36 per cent of MFG. The holding is unburdened. The holding is internally valued by Eastnine according to a cash-flow model. The value of Eastnine's holding in MFG increased by EUR 1,558k (-21,631) during the period and amounted at the end of the period to EUR 80,878k (79,320). The unrealised value change is in its entirety an effect of an increase in the value of the rouble compared to the euro during the period.

Eastnine has not received any dividends from MFG during the quarter. Neither were any dividends received in 2020, as a consequence of the coronavirus pandemic. In previous years, Eastnine has received dividends in the second and fourth quarters. The total return on the holding was 2.0 per cent (-32.3) during the period.

PROPORTION OF EASTNINE ASSETS

East Capital Baltic Property Fund II

East Capital Baltic Property Fund II (EC BPF II) was started in 2012, primarily specialising in properties with wellestablished tenants in and around the Baltic capitals. The fund, a so-called "closed end fund", is fully invested with an initial term of seven years (2019) along with the option of up to three extension periods of one year each. EC BPF II has, at the beginning of 2021, exercised the option for a final extension period up until May 2022.

At the end of the period, the fund holds a total of four properties in logistics, retail and offices. All properties are located in Tallinn. At the end of the period, the fund's properties were valued at EUR 97,100k.

Eastnine holds a 12 per cent stake, including corresponding voting rights, in East Capital (Lux) SCA, SICAV-SIF (an umbrella fund). This holding means that

	2021	2020
Key figures, EC BPF II holding	Jan-Mar	Jan-Mar
Unrealised value change, EURk	384	348
Received dividends, EURk	-	-
Total return, %	1.7	1.6
	2021	2020
Key figures, EC BPF II holding	31 Mar	31 Dec
Eastnine's share of fund returns, %	43	43
Fair value of Eastnine's holding, EURk	23,215	22,831

Proportion of Eastnine assets, % 4.6 4.5

Eastnine receives a 43 per cent share of the returns from the sub-fund East Capital Baltic Property Fund II.

Eastnine's share of the fund

Eastnine does not carry out its own valuation of the fund holding. Instead, the Company's reported value consists of Eastnine's share of the fund's total value. The value of Eastnine's share of the fund amounted to EUR 23,215k (22,160) at the end of the period. Eastnine's holding is unburdened.

The fund typically pays dividends during the second and fourth quarter, which is why no dividends have been received during the period. The unrealised value change amounted to EUR 384k (348) during the period, and total yield to 1.7 per cent (1.6).

PROPORTION OF EASTNINE ASSETS

Other information and accounting principles

General information

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, nine in Vilnius and three in Riga.

The Company and the Group's interim report concern the period January - March 2021. All figures are presented in EUR thousands unless otherwise stated. Rounding differences may occur.

Risks and uncertainties

The dominant risks in Eastnine's operations are 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 operates. A more detailed description of Eastnine's material risks is provided in the Company's Annual Report 2020 on pages 49-54. Risks associated with the coronavirus pandemic are presented on p. 4 in this interim report and a market analysis for the coming months is provided in the Market section on p. 5.

Parent Company

Net profit/loss for the period amounted to EUR 1,296k (-21,354). The result is primarily attributable to an unrealised value change in Melon Fashion Group of EUR 1,558k (-21,631). For the Parent Company's income statement and balance sheet, see p. 26.

Dividend

The Board has proposed to the Annual General Meeting a dividend of SEK 3.00 per share (2.70) for the 2020 financial year, paid on four occasions. Refer to the calendar for precise dates.

Sustainability

Eastnine undertakes active sustainability efforts. At the end of the period, 87 per cent of the property area (excluding properties expected to undergo significant redevelopment) was certified for sustainability, attaining either LEED Platinum or BREEAM Excellent. Eastnine's target is for 100 per cent of the certifiable area to be obtain certifications corresponding to at least LEED Platinum or BREEAM Gold.

For Eastnine's planned construction of the first wooden office building in the Baltics, the Pine in Riga, the ambition is that the building will obtain double sustainability certificates: LEED Platinum and WELL. During the spring, an architectural competition was also held for proposals for the Kimmel project in Riga. The ambition is that Kimmel will obtain LEED Platinum.

Selection of other sustainability issues:

• All leases in six, out of a total of ten properties, are green leases.
• Eastnine has initiated its supplier review process. At the end of the period, 23 out of 30 select strategic suppliers had been audited.
• The Company tied third place in the Allbright Foundation's 2020 ranking of gender equality among listed companies in Sweden.
• In the 2020 employee survey, 100 per cent of Eastnine employees rated Eastnine as a "Great Place to Work", and the "Trust Index" amounted to 95 per cent.
• Eastnine's green financing framework has obtained the highest possible rating, Dark Green and Excellent, from CICERO, an independent evaluation institute.
• Eastnine obtained five starts in GRESB's review of sustainability efforts among real estate companies globally, and is thereby part of the 20 per cent highest ranked of global real estate companies.
• The sustainability report, which was produced according to the Global Reporting Initiatives guidelines and published as part of the 2020 annual report, contains information about the company's primary concerns, sustainability goals and indicators.

Related parties

Eastnine AB has a related party relationship with its subsidiaries, see Note 31 in the 2020 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 (29) per cent of voting rights in the Company.

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 policies and valuation methods as applied for the last Annual Accounts. New or revised IFRS standards or other IFRIC interpretations applying from 1 January 2021 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

New or amended IFRS standards or new interpretations from the IFRS Interpretations Committee, which have been approved by the EU and entered into force on 1 January 2021, are not currently considered to have a significant extent on Eastnine's earnings or financial position.

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

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, inter alia, estimates and assumptions of future cash flows as well as a determination of the discounting rate and yield requirements. 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 MFG, one of Eastnine's other investments and which were acquired during Eastnine's 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. The exemption is applicable to businesses that are or have been a venture capital investment entity or securities fund, mutual fund or similar entity, including insurance funds. Eastnine has made the assessment that the exemption is applicable. This assessment is unchanged from the time in which Eastnine was an investment entity, and is the same as applied to the Annual Accounts 2020.

The purpose of the holding in the remaining business is exclusively to generate returns from dividends and/or an increase in value, and the shares are to be held for a limited time. Furthermore, the business as an "investment entity" is clearly and objectively separable from the business as a real estate company, and there are no points of contact between the holdings related to each of the concerns.

Eastnine also holds ownership and voting shares in East Capital (Lux) SCA, SICAV-SIF (umbrella fund), amounting to 12 per cent (12). For Eastnine, this holding results in a 43 per cent (43) share of the returns from the sub-fund East Capital Baltic Property Fund II. The fund was started by a General Partner, whose business consists of managing funds. According to the rules and agreements entered into by the investors in the fund and the General Partner, the General Partner handles all management and makes all investment decisions, with no ability conferred to Eastnine or the investors to influence the fund management and their decisions.

This share has been assessed not to constitute an associated company, as Eastnine can not and has not been able to exert neither controlling nor significant influence over the fund. The holding is therefore reported as an investment in accordance with IFRS 9, Financial Instruments. The assessment is the same as that made in the Annual Accounts for 2020.

Segment Reporting

Eastnine classifies and evaluates its various segments based on geography as well as the nature of the investments. The Company's senior management follows up on the holdings in the following segments, which correspond to the reporting provided to the Company's board: Properties in Lithuania, Properties in Latvia, and Other investments. The segment reporting is changed compared to the previous year, and the period for comparative figures has been recalculated.

Events after the end of the period

• Eastnine has acquired two properties, one in Riga and one in Vilnius. The total purchase consideration amounted to EUR 35.5m. Both properties are certified with LEED Platinum. The properties are expected to be taken into possession before end of the second quarter of 2021.
• The Company has raised a new credit of EUR 10m, secured in an existing property.

Assurance from the CEO

The C.E.O. 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 May 2021

Kestutis Sasnauskas CEO

This interim report has not been subject to review by the Company's auditors.

Share

Eastnine's share price rose by 1 per cent during the first quarter and was SEK 126.0 (125.0) at the end of the period. Long-term NAV per share rose by 4 per cent to SEK 152 (147), due to a strong profit from property management as well as positive unrealised value changes to properties and a strengthening of the EUR compared to SEK.

Share price development and volume

Eastnine's share price rose marginally during the period to SEK 126.0 as at 31 March. The highest closing price was noted on 3 March at SEK 129.6 and the lowest on 28 January at SEK 117.2.

Eastnine's market capitalisation amounted at the end of the period to SEK 2.8 billion (2.8). The average daily volume on Nasdaq has increased to 26,720 shares (18,743) during the period. The free float was 62.8 per cent (62.8) at the end of the period.

Net asset value

The long-term NAV per share rose by SEK 5, corresponding to 4 per cent, amounting at the end of the period to SEK 152 (147). The value in EUR rose by 2 per cent to 14.9 (14.6). Equity per share rose by SEK 5, corresponding to 4 per cent, to SEK 146 (141). The value in EUR rose by 2 per cent to 14.3 (14.0).

Positive unrealised value changes in properties, derivatives and other investments, positive profit from property management as well as a stronger EUR toward the SEK contributed to the increase in NAV per share.

SHARE PRICE 2021 SHARE PRICE AND NET ASSET VALUE

	2021	2020
	31 Mar	31 Dec
Equity, EUR	14.3	14.0
Long-term net asset value, EUR	14.9	14.6
Share price, EUR	12.3	12.4
Equity, SEK	146	141
Long-term net asset value, SEK	152	147
Share price, SEK	126.0	125.0

Number of shares

Eastnine's share is listed on Nasdaq Stockholm Mid Cap, sector Real Estate. The total number of shares in Eastnine amounted to 22,370,261 on 31 March 2021. Adjusted for repurchased shares held in treasury, the number of issued shares amounted to 22,149,061.

The number of known shareholders was 4,964 (4,990). Two owners, Peter Elam Håkansson and Arbona AB, held at least ten per cent of the total number of shares in the Company (Keel Capital's holdings, in the table, have been rounded upwards to 10.0 per cent). The proportion of shares that are Swedish-owned amounted to 75.4 per cent (73.9).

Buy-back

On 31 March 2021, the Company held 221,200 own shares in treasury, corresponding to around 1.0 per cent of total outstanding shares. Repurchased shares may come to be used in Eastnine's LTIP programme.

LARGEST SHAREHOLDERS AS AT 31 MARCH 2021

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.

Dividend

The Board of Directors has proposed a dividend of SEK 3.00 per share (2.70) for the 2020 financial year, with payments evenly distributed over four occasions in May, August and November 2021, and February 2022. Refer to the calendar for precise dates. The proposed dividend would correspond to an increase of 11 per cent and amount to 66 per cent of the 2020 profit from property management, net of tax.

The dividend would be distributed on four occasions per year, instead of two as previously, in order to improve the liquidity of the stock and even out the Company's cash flow.

Shareholders	Number of shares	%
Peter Elam Håkansson1	6,074,754	27.2
Arbona AB (publ)	2,240,328	10.0
Keel Capital	2,231,496	10.0
Lazard Asset Management	1,480,434	6.6
ICA-handlarnas Förbund	1,000,000	4.5
Patrik Brummer	832,930	3.7
Norges Bank	648,823	2.9
Kestutis Sasnauskas	461,818	2.1
Nordnet Pensionsförsäkring	461,451	2.1
Avanza Pension	444,726	2.0
Dimensional Fund Advisors	334,646	1.5
Karine Hirn	258,917	1.2
Jacob Grapengiesser	167,861	0.8
SEB Fonder	144,169	0.6
Susanna Wiman	133,249	0.6
15 largest	16,915,602	75.6
Eastnine AB (repurchased shares)	221,200	1.0
Other	5,233,459	23.4
Total	22,370,261	100.0

1Private and via companies (East Capital Holding AB and Rytu Invest AB). Source: Monitor

Summary financial reports

Q1 EASTNINE INTERIM REPORT JANUARY – MARCH 2021 21

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	2021	2020	2020	2020/2021
EUR thousands	Jan-Mar	Jan-Mar	Jan-Dec	Apr-Mar
Rental income	5,099	4,475	19,186	19,811
Property expenses	-486	-431	-1,689	-1,744
Net operating income	4,613	4,044	17,497	18,067
Central administration expenses	-1,123	-824	-3,515	-3,815
Interest expenses	-1,014	-863	-3,703	-3,855
Other financial income and expenses	-22	-95	-268	-194
Profit from property management	2,454	2,262	10,011	10,202
Unrealised changes in value of properties	1,466	-2,738	17,383	21,587
Unrealised changes in value of derivatives	339	-235	-782	-208
Unrealised changes in value of investments	1,942	-21,283	13,443	36,667
Realised value changes and dividends from investments	-	-	640	640
Profit/loss before tax	6,201	-21,994	40,695	68,889
Current tax	-	-	-	-
Deferred tax	-551	-259	-4,540	-4,832
Net profit/loss for the period/year1	5,649	-22,253	36,155	64,057
Number of shares issued, adjusted for repurchased shares, thousand	22,149	21,149	22,149	22,149
Weighted average number of shares before dilution, thousand	22,149	21,149	21,269	21,516
Weighted average number of shares after dilution, thousand	22,206	21,199	21,319	21,571
Earnings per share before dilution, EUR	0.26	-1.05	1.70	2.98
Earnings per share after dilution, EUR	0.25	-1.05	1.70	2.97

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

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

	2021	2020	2020
EUR thousands	31 Mar	31 Mar	31 Dec
ASSETS
Non-current assets
Intangible assets	2	2	2
Investment properties	374,200	288,020	372,400
Right-of-use assets, leaseholds	1,369	1,179	1,197
Equipment	160	208	174
Long-term securities holdings	104,093	67,426	102,152
Other non-current receivables	137	175	465
Total non-current assets	479,961	357,010	476,389
Current assets
Other current assets	2,484	2,268	1,557
Cash and cash equivalents	24,232	43,883	24,278
Total current assets	26,716	46,151	25,836
TOTAL ASSETS	506,677	403,160	502,225
EQUITY AND LIABILITIES
Equity
Share capital	3,660	3,660	3,660
Other contributed capital	257,924	252,230	257,850
Retained earnings including net profit/loss for the period/year	54,082	-9,972	48,432
Total equity	315,666	245,917	309,942
Non-current liabilities
Liabilities to credit institutions	151,832	137,907	153,208
Derivatives	2,405	2,198	2,745
Deferred tax liabilities	11,406	6,574	10,855
Lease liability	1,347	1,152	1,175
Other non-current liabilites	1,743	1,800	1,790
Total non-current liabilities	168,733	149,631	169,772
Current liabilities
Liabilities to credit institutions	19,791	5,200	19,943
Other liabilities	1,633	1,893	1,703
Accrued expenses and deferred income	853	519	865
Total current liabilities	22,277	7,613	22,510
TOTAL EQUITY AND LIABILITIES	506,677	403,160	502,225

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

		Other
	Share	contributed	Retained	Total
EUR thousands	capital	capital	earnings	equity
Opening equity 1 January 2020	3,660	252,252	12,280	268,192
Net profit/loss for 1 January-31 March	-	-	-22,253	-22,253
Long-term incentive program	-	-22	-	-22
Closing equity 31 March 2020	3,660	252,230	-9,972	245,917
Net profit /loss for 1 April-31 December	-	-	58,407	58,407
Dividend to shareholders	-	-5,403	-	-5,403
Sale of treasury shares	-	10,872	-	10,872
Long-term incentive program	-	148	-	148
Closing equity 31 December 2020	3,660	257,847	48,435	309,942
Net profit/loss for 1 January-31 March	-	-	5,649	5,649
Long-term incentive program	-	74	-	74
Closing equity 31 March 2021	3,660	257,921	54,084	315,666

CONSOLIDATED STATEMENT OF CASH FLOW

	2021	2020	2020	2020/2021
EUR thousands	Jan-Mar	Jan-Mar	Jan-Dec	Apr-Mar
Operating activities
Profit/loss before tax	6,201	-21,994	40,695	68,889
Adjustments not included in cash flow from operating activities	-3,619	24,330	-29,694	-57,643
Income tax paid	-	-	-	-
Cash flow from operating activities before changes in working capital	2,582	2,336	11,001	11,246
Cash flow from changes in working capital
Increase (-)/decrease(+) in other current receivables	-599	87	508	-178
Increase (+)/decrease(-) in other current payables	-129	-771	-549	93
Cash flow from operating activities	1,854	1,652	10,960	11,161
Investing activities
Investments in existing properties	-334	-541	-2,300	-2,093
Acquisition of properties	-	-	-62,461	-62,461
Purchase of equipment	-1	-2	-17	-16
Cash flow from investing activities	-335	-543	-64,778	-64,570
Financing activities
New loans	-	6,636	40,950	34,314
Repayment of loans	-1,528	-1,300	-5,570	-5,798
Payment of lease liabilities	-26	-23	-99	-102
Dividend to shareholders	-	-	-5,403	-5,403
Sale of treasury shares	-	-	10,872	10,872
Changes in other non-current liabilities	-	55	-	-55
Cash flow from financing activities	-1,554	5,368	40,750	33,828
Cash flow for the period	-35	6,477	-13,068	-19,580
Cash and cash equivalent at the beginning of the period	24,278	37,406	37,406	43,883
Exchange rate differences in cash and cash equivalents	-11	-	-60	-71
Cash and cash equivalent at the end of the period	24,232	43,883	24,278	24,232

KEY FIGURES

	2021	2020	2020	2020/2021
	Jan-Mar	Jan-Mar	Jan-Dec	Apr-Mar
Surplus ratio, %	90	90	91	91
Loan-to-value ratio, %	36	40	36	36
Loan-to-value ratio, properties (LTV), %	46	50	46	46
Debt ratio, multiple	12.0	15.0	12.4	12.0
Interest coverage ratio, multiple	3.4	3.6	3.7	3.6
Return on equity, %	7.2	-34.6	12.5	22.8
Cashflow per share from operating activities, EUR	0.08	0.08	0.52	0.52
Cashflow per share, EUR	0.00	0.31	-0.61	-0.91
Earnings per share before dilution, EUR	0.26	-1.05	1.70	2.98
Profit from property management per share, EUR	0.11	0.11	0.47	0.47

SEGMENT REPORTING

Eastnine classifies and evaluates the various segments based on geography and the nature of the investments. Segments are presented from the point of view of management and are divided into the following segments: Properties in Lithuania, Properties in Latvia and Other investments.

EUR thousands	Properties	Properties	Other
1 Jan-31 Mar 2021	in Lithuania	in Latvia	investments	Unallocated	Total
Rental income	4,548	551	-	-	5,099
Property expenses	-314	-173	-	-	-486
Net operating income	4,235	378	-	-	4,613
Central administration expenses	-		- -	-1,123	-1,123
Interest expenses	-857	-155	-	-3	-1,014
Other financial income and expenses	-8		- -	-14	-22
Profit from property management	3,370	223	-	-1,140	2,454
Unrealised changes in value of properties	1,160	306	-	-	1,466
Unrealised changes in value of derivatives	339		- -	-	339
Unrealised changes in value of investments	-		- 1,942	-	1,942
Profit/loss before tax	4,869	530	1,942	-1,140	6,201
Deferred tax	-551		- -	-	-551
Net profit/loss for the period	4,318	530	1,942	-1,140	5,649
Investment properties	312,900	61,300	-	-	374,200
of which investments/acquisitions during the period	-40	-294	-	-	-334
Long-term securities holdings	-		- 104,093	-	104,093
Liabilities to credit institutions	145,403	26,220	-	-	171,623

EUR thousands	Properties	Properties	Other
1 Jan-31 Mar 2020	in Lithuania	in Latvia	investments	Unallocated	Total
Rental income	3,551	924	-	-	4,475
Property expenses	-273	-158	-	-	-431
Net operating income	3,278	766	-	-	4,044
Central administration expenses	-	-	-	-824	-824
Interest expenses	-701	-161	-	-	-863
Other financial income and expenses	-95	-	-	-	-95
Profit from property management	2,482	604	-	-824	2,262
Unrealised changes in value of properties	-114	-2,624	-	-	-2,738
Unrealised changes in value of derivatives	-235	-	-	-	-235
Unrealised changes in value of investments	-	-	-21,283	-	-21,283
Profit/loss before tax	2,133	-2,020	-21,283	-824	-21,994
Deferred tax	-259	-	-	-	-259
Net profit/loss for the period	1,873	-2,020	-21,283	-824	-22,253
Investment properties	226,200	61,820	-	-	288,020
of which investments/acquisitions during the period	532	9	-	-	541
Long-term securities holdings	-	-	67,426	-	67,426
Liabilities to credit institutions	115,901	27,207	-	-	143,107

LONG-TERM SECURITIES HOLDINGS

Tables below reflect the long-term securities holdings measured at fair value in level 3. Segment "Other investments" consist of the holdings in East Capital Property Fund II (EC BPF II) and JSC Melon Fashion Group (MFG). The 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.

Changes in long-term securities holdings measured at fair value in level 3, EUR thousands	Other investments
	EC BPF II	MFG	Total
Opening balance 1 January 2020	21,812	66,897	88,709
Unrealised changes in values recognised net in profit/loss	1,019	12,423	13,443
Closing balance 31 December 2020	22,831	79,320	102,152
Unrealised changes in values recognised net in profit/loss	384	1,558	1,942
Closing balance 31 March 2021	23,215	80,878	104,093

VALUATION ASSUMPTIONS

	2021	2020	2020
Investment properties	31 Mar	31 Mar	31 Dec
Weighted yield requirement, %	5.8	6.1	5.8
Average rent, EUR/sq.m./month	15.0	15.1	15.0
Average discount rate, %	7.1	7.2	7.2
Long-term inflation, %	1.5	2.0	1.5
Long-term vacancy rate, %	4.5	4.5	4.5

Long-term securities holdings	Segment	Valuation method1	Valuation assumptions1
East Capital Baltic Property Fund II	Other investments	DCF	WACC 7-9%, yield requirement 6-8%.
			Long-term growth 3.5%, long-term operating margin
			8.3%, WACC 14,6%, minority and liquidity discount of
JSC Melon Fashion Group	Other investments	DCF	25% is applied.

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

SENSITIVITY ANALYSIS

31 March 2021

Investment properties, EUR thousands	Assumptions		Properties in Lithuania		Properties in Latvia
Market rental level, %	+/- 5.0	13,309	-13,404	7,312	-7,283
Long-term floor space occupancy rate, percentage points	+/- 1.0	3,393	-3,401	1,859	-1,862
Yield requirement, percentage points	+/- 0.25	-8,999	9,813	-9,749	10,840

31 March 2021

31 March 2021	Other investments
Long-term securities holdings, EUR thousands	Assumptions	EC BPF II			MFG
Yield requirement, percentage points	+/- 0.5	-1,460	1,667	-	-
Weighted average cost of capital, percentage points	+/- 0.5 EC BPF II +/- 1.0 MFG	-1,478	1,531	-7,085	8,503
Long-term growth, percentage points	+/- 0.4	-	-	2,016	-1,876
Long-term operating margin, percentage points	+/- 0.5	-	-	3,227	-3,226

Market risks, EUR thousands

Effect on profit/loss		2021	2020		2021	2020
and equity	Change, %	31 Mar	31 Dec	Cash flow and current earning	31 Mar	31 Dec
Currency rate, EUR/RUB	+/- 10	8,088	7,932	Market interest rate, +/- 50 bps	+86 / -86	+87 / -87
Value of EC BPF II and MFG	+/- 10	10,409	10,215	Market interest rate, +/- 100 bps	-110 / -172	-107 / -173

Assets and debts of foreign currency, EUR thousands

	2021	2020		2021	2020
Cash and liabilities	31 Mar	31 Dec	Long-term securities holdings1	31 Mar	31 Dec
Currency in SEK	259	270	Currency in rouble (RUB)	80,878	79,320
Lease liabilities in SEK	442	468

¹Holdings in JSC Melon Fashion Group.

INCOME STATEMENT - PARENT COMPANY

	2021	2020	2020	2020/2021
EUR thousands	Jan-Mar	Jan-Mar	Jan-Dec	Apr-Mar
Other income	470	435	1,738	1,774
Central administration expenses	-1,054	-677	-3,104	-3,481
Operating profit/loss	-584	-242	-1,366	-1,708
Unrealised changes in value of investments	1,558	-21,631	12,423	35,612
Financial income	339	344	1,381	1,376
Financial expenses	-17	-6	-84	-95
Profit/loss before tax	1,296	-21,534	12,355	35,185
Tax	-	-	-	-
Net profit/loss for the period	1,296	-21,534	12,355	35,185

BALANCE SHEET - PARENT COMPANY

	2021	2020	2020
EUR thousands	31 Mar	31 Mar	Dec 31
ASSETS
Fixed assets
Right-of-use asset, leaseholds	464	571	491
Equipment	65	83	70
Shares in group companies	142,471	143,433	142,447
Long-term securities holdings	80,878	45,266	79,320
Loans to group companies	27,527	27,527	27,527
Total non-current assets	251,405	216,881	249,856
Current assets
Other current assets	1,816	3,225	1,398
Cash and cash equivalents	10,537	2,626	10,995
Total current assets	12,352	5,850	12,393
TOTAL ASSETS	263,757	222,731	262,248
EQUITY AND LIABILITIES
Equity
Restricted capital
Share capital	3,660	3,660	3,660
Unrestricted capital
Share premium reserve	257,922	252,252	257,848
Retained earnings including net profit/loss for the year	805	-34,402	-491
Total equity	262,387	221,509	261,017
Non-current liabilities
Lease liability	442	544	468
Other non-current liabilites	136	43	113
Total non-current liabilities	578	587	581
Current liabilities
Other liabilities	435	364	155
Accrued expenses and deferred income	357	271	496
Total current liabilities	792	635	651
TOTAL EQUITY AND LIABILITIES	263,757	222,731	262,248

QUARTERLY OVERVIEW

INCOME STATEMENT

Q1 2021	Q4 2020						Q2 2019
5,099	5,251	4,993	4,467	4,475	4,161	3,142	3,099
							-387
4,613	4,983	4,483	3,987	4,044	3,751	2,795	2,712
-1,123	-834	-992	-865	-824	-1,184	-826	-936
-1,014	-1,029	-959	-852	-863	-790	-498	-526
-22	-59	-14	-100	-95	-78	-101	-109
2,454	3,061	2,519	2,170	2,262	1,699	1,370	1,141
1,466	14,997	-198	5,322	-2,738	3,914	2,810	3,483
339	-109	-12	-426	-235	702	-311	-740
1,942	21,981	9,139	3,605	-21,283	11,918	1,782	760
-	640	-	-	-	2,588	22	1,595
6,201	40,570	11,448	10,671	-21,994	20,821	5,673	6,239
-551	-3,066	-285	-931	-259	-1,246	-604	-575
5,649	37,504	11,163	9,740	-22,253	19,575	5,069	5,664
	-486	-267	-510	-480	-431	-410	Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 -347

BALANCE SHEET - CONDENSED
	2020	2020	2020	2020	2020	2019	2019	2019
EUR thousands	31 Mar	31 Dec	30 Sep	30 Jun	31 Mar	31 Dec	30 Sep	30 Jun
Investment properties	374,200	372,400	356,940	336,200	288,020	290,256	203,276	199,882
Long-term securities holdings	104,093	102,152	80,170	71,031	67,426	88,709	101,881	98,117
Other assets	4,151	3,395	8,541	13,077	3,831	3,951	2,595	1,628
Cash and cash equivalents	24,232	24,278	13,804	21,688	43,883	37,406	40,596	42,772
TOTAL ASSETS	506,677	502,225	459,456	441,996	403,160	420,322	348,348	342,399
Shareholders' equity	315,666	309,942	261,502	250,253	245,917	268,192	248,583	243,480
Long-term liabilities to credit institutions	151,832	153,208	168,568	159,338	137,907	132,571	81,628	84,297
Current liabilities to credit institutions	19,791	19,943	6,111	5,783	5,200	5,200	3,560	1,780
Other liabilities	19,387	19,131	23,275	26,622	14,136	14,359	14,577	12,842
TOTAL EQUITY AND LIABILITIES	506,677	502,225	459,456	441,996	403,160	420,322	348,348	342,399

QUARTERLY KEY FIGURES

		100			101
PROPERTY-RELATED	Q1 2021	Q4 2020	Q3 2020	Q2 2020	Q1 2020	Q4 2019	Q3 2019	Q2 2019
Leasable area, sq.m. thousand	120.2	121.0	121.1	113.9	99.5	99.5	74.5	74.5
Number of properties	10	10	11	10	9	9	6	6
Investment properties, EURk	374,200	372,400	356,940	336,200	288,020	290,256	203,276	199,882
Surplus ratio, %	90	95	90	89	90	90	89	88
Floor space occupancy rate, %	90.7	92.6	94.2	96.1	95.7	92.7	90.2	87.7
Average rent, EUR/sq.m./month	15.0	14.9	14.8	14.9	15.0	14.7	14.7	14.7
WAULT, years	4.2	4.4	4.6	4.7	4.9	5.0	3.0	3.3
Weighted yield requirement, %	5.8	5.8	6.1	6.1	6.1	-	-	-
Environmentally certified properties, % of sq.m.	87	87	79	84	72	72	75	75

FINANCIAL	Q1 2021	Q4 2020	Q3 2020	Q2 2020	Q1 2020	Q4 2019	Q3 2019	Q2 2019
Rental income, EURk	5,099	5,251	4,993	4,467	4,475	4,161	3,142	3,099
Net operating income, EURk	4,613	4,983	4,483	3,987	4,044	3,751	2,795	2,712
Profit from property management, EURk	2,454	3,061	2,519	2,170	2,262	1,699	1,370	1,141
Loan-to-value ratio, %	36	36	40	41	40	36	28	29
Loan-to-value ratio, properties (LTV), %	46	46	49	49	50	47	42	43
Capital tie-up period on Liabilities to credit institutions, year	2.7	3.0	3.2	3.1	3.3	3.5	4.0	4.2
Interest tie-up period on Liabilities to credit institutions, year	2.1	2.3	2.5	2.5	2.8	3.1	3.9	4.2
Debt ratio, multiple	12.0	12.4	14.1	15.2	15.0	17.1	13.0	14.1
Equity/asset ratio, %	62	62	57	57	61	64	71	71
Interest coverage ratio, multiple	3.4	4.0	3.6	3.5	3.6	3.2	3.8	3.2
Average interest rate, %	2.3	2.3	2.3	2.3	2.3	2.3	2.3	2.3
Return on equity, %	7.2	52.5	17.5	15.7	-34.6	30.3	8.2	9.3

SHARE-RELATED	Q1 2021	Q4 2020	Q3 2020	Q2 2020	Q1 2020	Q4 2019	Q3 2019	Q2 2019
Equity, EURk	315,666	309,942	261,502	250,253	245,917	268,192	248,583	243,480
Long-term net asset value (LT-NAV), EURk	329,477	323,542	271,927	260,381	254,689	276,470	256,316	250,298
Market capitalisation, EURk	272,424	275,527	225,289	236,472	212,439	276,546	225,322	213,772
Market capitalisation, SEK thousand	2,790,782	2,768,633	2,364,465	2,474,440	2,309,477	2,905,881	2,415,223	2,258,720
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	22,149	22,149	21,149	21,149	21,149	21,149	21,149	21,149
Weighted average number of shares, adjusted for repurchased shares, thousand	22,149	21,627	21,149	21,149	21,149	21,187	21,200	21,227
Cashflow per share from operating activities, EUR	0.08	0.20	0.13	0.06	0.08	0.22	0.06	0.12
Cashflow per share, EUR	0.00	0.49	-0.37	-1.05	0.31	-0.15	-0.10	-0.05
Earnings per share before dilution, EUR	0.26	1.73	0.53	0.46	-1.05	0.93	0.24	0.27
Profit from property management per share, EUR	0.11	0.14	0.12	0.10	0.11	0.08	0.06	0.05
Dividend per share, EUR	-	0.30	-	-	-	0.26	-	-
Dividend per share, SEK	-	3.00	-	-	-	2.70	-	-
Equity per share, EUR	14.3	14.0	12.4	11.8	11.6	12.7	11.8	11.5
Equity per share, SEK	146	141	130	124	126	133	126	122
Long-term net asset value per share, EUR	14.9	14.6	12.9	12.3	12.0	13.1	12.1	11.8
Long-term net asset value per share, SEK	152.4	146.8	135	129	131	137	130	125
Share price, EUR	12.3	12.4	10.7	11.2	10.0	13.1	10.7	10.1
Share price, SEK	126.00	125.00	111.80	117.00	109.20	137.40	114.20	106.80

OTHER	Q1 2021	Q4 2020	Q3 2020	Q2 2020	Q1 2020	Q4 2019	Q3 2019	Q2 2019
EUR/SEK	10.24	10.05	10.50	10.46	10.87	10.51	10.72	10.57
EUR/RUB	88.76	90.50	91.00	80.03	85.73	69.72	70.73	71.83

INTERPRETATION OF KEY FIGURES

	Q1 2021	Q4 2020	Q3 2020	Q2 2020	Q1 2020	Q4 2019	Q3 2019	Q2 2019
Rental income	5,099	5,251	4,993	4,467	4,475	4,161	3,142	3,099
Net operating income	4,613	4,983	4,483	3,987	4,044	3,751	2,795	2,712
Surplus ratio, %	90	95	90	89	90	90	89	88
Investment properties and
Long-term securities holdings	478,293	474,552	437,110	407,231	355,446	378,965	305,157	297,999
Liabilities to credit institutions	171,623	173,151	174,679	165,121	143,107	137,771	85,187	86,077
Loan-to-value ratio, %	36	36	40	41	40	36	28	29
Investment properties	374,200	372,400	356,940	336,200	288,020	290,256	203,276	199,882
Liabilities to credit institutions	171,623	173,151	174,679	165,121	143,107	137,771	85,187	86,077
Loan-to-value ratio, properties (LTV), %	46	46	49	49	50	47	42	43
Equity	315,666	309,942	261,502	250,253	245,917	268,192	248,583	243,480
Add back derivatives	2,405	2,745	2,636	2,624	2,198	1,963	2,665	2,353
Add back deferred tax	11,406	10,855	7,789	7,504	6,574	6,315	5,069	4,465
Long-term net asset value, EURk	329,477	323,542	271,927	260,381	254,689	276,470	256,316	250,298
Net operating income	18,067	17,497	16,265	14,577	13,301	11,946	10,316	9,625
Central administration expenses	-3,815	-3,515	-3,865	-3,699	-3,770	-3,873	-3,744	-3,539
Total	14,252	13,982	12,400	10,878	9,531	8,074	6,572	6,086
Liabilities to credit institutions	171,623	173,151	174,679	165,121	143,107	137,771	85,187	86,077
Debt ratio, multiple	12.0	12.4	14.1	15.2	15.0	17.1	13.0	14.1
Profit from property management	2,454	3,061	2,519	2,170	2,262	1,699	1,370	1,141
Interest expenses	1,014	1,029	959	852	863	790	498	526
Profit before interest expenses	3,468	4,090	3,478	3,022	3,125	2,489	1,868	1,667
Interest coverage ratio, multiple	3.4	4.0	3.6	3.5	3.6	3.2	3.8	3.2
Net profit, annualised	22,598	150,016	44,652	38,960	-89,012	78,302	20,277	22,657
Average equity	312,804	285,722	255,877	248,085	257,055	258,388	246,031	242,890
Return on equity, %	7.2	52.5	17.5	15.7	-34.6	30.3	8.2	9.3

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

Yield, earning capacity

Net operating income in relation to the book values of the properties, excluding development properties.

Yield requirement, properties

The yield requirement is used in valuations and relate to the yield requirement at the end of the calculation period. The yield requirement is based on 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.

Net operating income

Rental income less property expenses.

Profit from property management

Earnings before value changes, dividends received and taxes.

Average rental income

Average rent at the end of the period.

Rental income

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

Rental value

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

Net letting

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

Triple-net rent

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 upkeep.

Lettable area

Total area available for letting.

Occupancy rate, by area

Occupancy rate 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.

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.

Vacancy rate, by area

Vacancy rate in relation to lettable area.

WAULT

Abbreviation denoting average remaining agreement term of rental agreements, weighted according to contracted rental income (Weighted Average Unexpired Lease Term). The indicator shows the weighted risk of future vacancies.

Surplus ratio

Net operating income in relation to rental income.

FINANCIAL KEY FIGURES

Return on equity

Net profit/loss for the period, 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 as a per cent of average equity attributable to the segment.

Loan-to-value ratio

Liabilities to credit institutions in relation to the sum of the values of investment properties and long-term securities holdings.

Loan-to-value ratio (LTV), properties

Liabilities to credit institutions in relation to the value of investment properties.

EBITDA

Abbreviation denoting profit before depreciation, amortisation and impairment (Earnings before Interest, Tax, Depreciation and Amortisation).

Average capital tie-up period

Average remaining term for liabilities to credit institutions by the end of the period.

Average fixed interest term Average remaining 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

Period's cash flow divided by the weighted average number of shares during the period.

Cash flow from operating activities per share

Period's cash flow from operating activities divided by the weighted average number of shares during the period.

Interest coverage ratio

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

Debt coverage ratio

Liabilities to credit institutions at the end of the period in relation to the rolling twelve-month net operating income less deductions for central administration expenses.

Equity/asset ratio

Equity in relation to total assets.

SHARE-RELATED KEY FIGURES

Equity

Total equity.

Equity per share

Total equity in relation to the number of shares issued (excluding treasury shares).

Profit from property management per share

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

Long-term net asset value

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

Long-term net asset value per share

Long-term net asset value in relation to the number of shares issued (excluding treasury shares).

Earnings per share

Earnings for the period attributable to equity holders of the Parent Company in relation to the average number of shares issued (excluding repurchased shares held in treasury).

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.

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.

Property

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

GRESB

Short for Global Real Estate Sustainability Benchmark.

Green leases

Lease agreements where Eastnine and the tenant has agreed on proactive efforts to promote and improve the sustainability of the property/premises.

ICT

Short for Information and Communication Technology.

IFRS

Abbreviation for International Financing Reporting Standard. IFRS is an international reporting standard for the preparation of group statements.

Sustainability certification frameworks

BREEAM is an abbreviation of Building Research Establishment Environmental Assessment Method. LEED is an abbreviation of Leadership in Energy and Environmental Design.

Zero-interest floor

Clause in credit agreements meaning that a negative Euribor interest rate is considered as zero.

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.

Net asset value discount/premium

The difference between net asset value and market capitalisation. If market cap is lower than NAV the shares are traded at a NAV discount; if market cap is higher, shares are traded at a premium.

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.

Share buy-back

Purchasing of own shares on the stock market. Swedish companies have the option to own up to 10 per cent of the total number of shares they have issued, given approval from the AGM.

Q1 EASTNINE INTERIM REPORT JANUARY - MARCH 2021 31

Financial calendar

Annual General Meeting 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

Payments of shareholder dividends according to proposal to AGM:

1

1

1

Dividend record date 7 May 2021 Expected date of payment

Dividend record date 17 August 2021 Expected date of payment

Dividend record date 16 November 2021 Expected date of payment

Dividend record date 1 February 2022 Expected date of payment

12 May 2021

20 August 2021

19 November 2021

¹ 4 February 2022

Subscribe and have financial statements and press releases sent to your e-mail at www.eastnine.com or by sending a message to info@eastnine.com.

The information in this interim report is the information which Eastnine AB is required to disclose under the EU Market Abuse Regulation Act. It was released for publication at 07.00 a.m on 5 May 2021.

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 Corporate ID no. 556693-7404

1 Record dates have been proposed to the AGM, which will reach a decision. Payments of dividends are estimated to take place on the third banking day following the record date, under the management of Euroclear Sweden AB.