The board's decision to adopt a new business plan must be seen in light of the fact that the previous business plan ran until the end of 2023. Most of the targets in the previous business plan will be met by the end of the year, except the goal of a property portfolio of EUR 700 million. However, after the sale of the holding in MFG in August this year, the portfolio volume can be achieved.
"Our intention is to manage our current acquisition capacity in the best possible way by optimizing acquisitions both in terms of specific property and timing. We can state that there are several really interesting investment alternatives in the current market", says Kestutis Sasnauskas, Eastnine’s CEO.
Summary of new business plan:
# Vision: Eastnine will create and provide the best venues where ideas can flow, people meet, and successful business operations develop (unchanged).
# Business idea: Eastnine will be the leading long-term provider of modern and sustainable office premises in prime locations at selected markets in the Baltics and Poland (previously also logistics premises).
# Overarching target: To create a sustainable, attractive total return on investment for its shareholders (unchanged).
# Growth target: Eastnine’s long-term ambition is to grow the property portfolio in order to increase profitability (previously EUR 700 million by the end of 2023).
Financial targets:
# Return on equity should be at least 10 per cent over time (unchanged).
# Profit from property management per share should increase (new).
# Dividends are to correspond to at least 50 per cent of profit from property management, after deductions for current tax, over time (unchanged).
Financial limits:
# Eastnine is aiming for a Loan-to-value ratio1 (LTV) of around 50 per cent over a business cycle (new). The LTV may not exceed 60 per cent (unchanged).
# The interest coverage ratio shall be at least 2.0x (unchanged).
Environmental sustainability targets: Eastnine aims to be a leader in sustainability in our regions, by striving towards the following targets:
# 100 per cent EU taxonomy aligned property business (new).
# Climate neutral property operations by 2030 (unchanged) and reduced emissions from constructions and tenant improvements (new).
# 100 per cent sustainability certified property portfolio (unchanged).
# GRESB 5 Star rating (unchanged).
Core values (new):
# Solution oriented
# Creative
# Responsive
# Transparent