Eastnine is in a rapid growth phase. Over the past four years, the company has established itself as a leading office owner in the Baltics by building up a portfolio of modern and centrally located office properties to a value of approximately EUR 410 million. At the end of 2020, a new business plan was adopted which, among other things, included the goal that the property portfolio will grow to EUR 700 million by the end of 2023.
“Logistics is a good complement to our office portfolio. The logistics segment has an attractive direct yield and strong cash flows, which can make a positive contribution to both earnings and growth”, says Eastnine's CEO Kestutis Sasnauskas.
“We will from now on focus on both the best office and logistics properties. The exact timing of acquisitions in each segment depends on which opportunities arise and which deal is considered to be best at each individual time.”
"Eastnine shall be the leading, long-term provider of modern and sustainable office and logistics premises in prime locations in the Baltics."
The broadening of the strategy towards another attractive property type, logistics, means that the risk level decreases through diversification. Acquisition of logistics properties would also mean that the tenant concentration decreases. Demand for office and logistics premises as well as properties in the Baltics follows the same trend as in the Nordic countries, i.e. a gradual increase in demand with subsequent yield compression.