Eastnine Aktie

Hello, and a very warm welcome to Eastnine's first quarter results. My name is Kestutis Sasnauskas, I'm CEO of Eastnine; and with me I have Britt-Marie Nyman. We will together present -- guide you through the quarterly results. Today, we are standing from a live studio with some live attendance, which we are very happy for. So very welcome to you as well. And please post your questions during the presentation. We will respond to them at the end of our presentation.

So let's go into the results for the quarter. We see it as a very stable quarter. We're coming from a very high level of occupancy, very high level of revenues in our portfolio. So of course, this growth has flattened out, which is purely a natural thing as we didn't do any acquisitions. Our rental income down approximately 1%. So it's again flat. Profit from property management, minus 2%. This is also reflecting a little bit the buildup of the portfolio of -- not portfolio, but the buildup of our internal resources. We are hiring more people in Poland. But also we had a very cold winter, which actually with slightly higher vacancy affects the profit from property management for this quarter.

Unrealized value changed minor, slightly negative. Net lettings positive, but again, coming from a very high level. Occupancy rate down 0.2%. Again, we are at 95.6% being an office company, it's very high today. Out of this current vacancy, we also have only 2% that we actually marketing in the market. The rest is purely turnover vacancy where we free up some space for already signed leases or maybe very, very close to signing some of them. So generally, we are working on a very high level, and it's going to be kind of difficult to surprise you significantly on one or other site.

We're also preparing for next acquisition, so accumulating more cash. We are refinancing our portfolio. This will continue over next quarters as well. We also have our climate targets being validated now by SBT. So we follow the Science-Based Targets initiative and the path actually for climate neutrality by 2040.

The Board has also proposed a dividend of SEK 1.28 per share.

If we look on the events -- more significant events, we are actually selling 2 properties in Riga. We are reallocating capital to, again, our future acquisitions, focusing on Warsaw. So this is very briefly on what we're doing.

Going back to the basics. Eastnine is a purely office play in the fastest-growing part of Europe, in Poland and the Baltic states. We're actually a company of around 272,000 square meters of office, which prime locations and prime quality, around EUR 1 billion in assets, high occupancy with 96%, rental income of EUR 62 million. The properties are yielding 6.1% loan-to-value of 47%, and average interest of 4.3%.

If we go to longer-term trends, Poland is the fastest-growing economy over the last 25 years. It's continue -- expected to continue to grow. Baltics follow the same path. So we are very excited about this region. If we look -- have a closer look on actually how Poland is developing, this is an Oxford Economics prediction of '26 to '30. And you can see that actually within Poland, the 2 hottest areas are Warsaw and Poznan where we are. There are some other regional cities as well evolving very nicely. But these are the 2 places where we are and we are focusing and those are the places that are expected to continue growing fastest.

What is also nice is that this combination comes with relatively low rental levels. You see it on the staples and relatively high yields. So this actually has potential to comprise and we think that this yield gap should narrow. But actually, when we talk about this yield gap, what does it actually imply?

And if we look on the implications, I took some figures from recent JLL report. You can see the square meter prices. So actually, this combination makes Warsaw come very, very cheap per square meter if you look at the office values. If you look for the Baltics, I think this figure is half of almost half of what we see in Warsaw. So the capital values are relatively low. And of course, given the inflation, given the very fast economic development, there is a huge potential for growth. And of course, this is why we believe this is a very compelling story because we are basically very -- the yields are similar to logistics and the capital value potential is really huge.

If we look on our portfolio, you see that occupancy has been stably high over the -- since 2020. We are taking small waves, but there's no dramatic changes. And of course, this is a very high stability of the underlying business. You can also see on the graph next to it is that rents are actually picking up. And these are the rents that we receive in our properties, our 3 largest properties in 3 main locations: it's in Warsaw, in Vilnius, and in Poznan.

If we look at our portfolio, there's no significant change. I mean we are very office focused entirely on basically only office, 4% is retail and other, which is basically mainly ancillary services through our office offering. We are in 4 markets in 4 cities: Warsaw, Vilnius, Poznan and Riga. Vilnius remains our biggest market.

If you look on Warsaw, you see a picture of Warsaw unit. So this is our jewel and landmark building. It's actually a landmark building even in Warsaw. If we look on Poznan properties, these are, again, 2 amazing properties with significant market share in Poznan. Actually, with these 2 properties, we hold approximately 10% office market in Poznan. And this campus will grow over time. In Vilnius, which is 41% of our market -- of our portfolio, Vilnius remains our main city. We actually have 4 main clusters in the city, which we plan to keep and expand over time.

And if we look in Riga. Riga stands for 7%, of course, now with the divestment of Alojas and Zala 1, the share of Riga will diminish to 3%. But we have quite exciting development project there as well in the future if we decide to go for it. For now, it's on hold. Again, if we look on the tenant list, this is a really impressive multinational tenant list, which is -- has been stable now over a couple of quarters. We are in a very exciting universe with ICT, finance, e-com, medical health exposure, underlying exposure. So this is really the most dynamic companies. And most of the dialogues we have are actually about expansion or making sure that our tenants can continue growing and most of the companies actually continuously hiring in our universe.

If we look on sustainability, which we're working quite a lot. Actually, we are -- we had a very cold winter. So we have a significant increase in energy consumption in heating, you can see up almost 20% during January, February. Of course, this will stabilize over time, but it's been an extraordinary cold winter and long winter in our region, much colder than actually here in Stockholm. Our portfolio is 100% sustainability certified, 97% of the revenues are EU taxonomy aligned, 88% of financing is green, and we earned 5 stars in GRESB with 91 points in total.

So on this, I leave over to you, Britt-Marie.

Thank you, Kestutis. And before I start with some figures, please continue posting questions so we can answer them after the presentation.

Eastnine delivers a stable report for the first quarter, even though we can see some minor changes on the occupancy and also the surplus ratio, they are still on very high level. It looks like the rental income for the first quarter this year is 1% lower than first quarter last year, but this isn't actually true because during the first quarter last year, we had some currency effect of close to EUR 200,000 affecting the rental income. And during the second quarter, it was reclassified to other financial income. So the rental income for the first quarter this year is actually on the same level as last year. The rental income was also affected positively by the indexation of around 2%, but negatively by a lower occupancy.

Property expenses, on the other hand, increased quite a lot. And as Kestutis said and as we hear from many other real estate companies, it was partly because of the cold winter, but also due to the fact, we are recruiting people in Poland, we are replacing external suppliers continuously during the rest of the year. And also the lower occupancy during the first quarter compared to last year affects property expenses since our triple net leases allows us to transfer property expenses to the tenants as long as the premises are let. But if the occupancy increases, so does the property expenses in our income statement.

Central administration costs increased due to new employees at the head office mainly. The interest income increased as a result of new financing, increased financing, and we have placed the money in bank accounts. Other financial income was positive during the first quarter this year, but negative last year, and this is an effect of currency. Profit from property management decreased by 2% mainly as a result of the cold winter and the lower occupancy, and we saw some negative unrealized value changes for the properties, mainly related to the development project, The Pine in Riga.

We saw a slight improvement in the earnings capacity during the quarter. And as you know, this is a theoretical assessment. It's not a prognosis. And for many of the figures, we use current agreements by the quarterly end in this case, for rental income, we use the lease agreements, of course, and the loan agreements, what's stated in them. But in some cases, we also use 12-month rolling figures for property expenses, for example. So we can see that rental income increases by 2%, and this is mainly due to the indexation during the first quarter, while a lower occupancy rate had a somewhat opposite effect. Property expenses increased by 11% during the quarter, and this is related to the same items as in the income statement, the colder winter, a lower occupancy and also new employees in Poland.

Interest income has increased as a result of increased cash and interest expenses increased as a result of new debt. Profit from property management on the bottom line increased by 2%, and this was mainly due to the indexation. We have financing, which is very stable, and we have increased the liquidity continuously, both during the autumn and now during the first quarter.

Key figures, LTV is on the same level as it was by year-end. Total cash increased by EUR 13 million up to EUR 63 million, and it will increase with another EUR 12 million when we are divesting 2 properties in Riga during the second quarter. Interest rate level is on the same level as it was by year-end. Interest coverage ratio and debt ratio somewhat higher, slightly higher and the share of fixed interest almost on the same level. Capital tie-up period and the fixed interest period slightly shorter.

If you look at the debt and interest maturities, you can see that we have hardly anything to refinance in 2026. And in fact, we don't even have this EUR 12 million, as you can see in the green bar now because we have already -- this is related to one of the sold properties in Riga. So we have already paid this loan back to the bank during April.

The debt sources, they were the same by the end of the quarter. But since we repaid the loan for one of the properties in Riga, OP Bank is no longer one of our banks. If we look at ownership and the share, we can see that shares owned by funds. Funds have increased during the quarter, up to 14% now from 8% by year-end. The numbers of shareholders continue to increase, now 7,300. NAV up 2% in SEK and 1% in euro. And the final figure is total shareholder return, which we actually are very proud of because it's on a very competitive level. We have had 13% during the last 12 months and 12% in average during the last 5 years compared to 4% for real estate index.

So this was actually all.

And now we open for questions.

And we have already received some questions. The first one, do you -- does your sale of office buildings in Riga indicate a broader intention to exit the Latvian market? Are you also considering selling the remaining property in Riga?

We haven't communicated that. But of course, I think it's a valid question, of course. But we will review -- we are reviewing it for now.

No decisions taken so far.

Yes.

Another question. What will you do with all the extra liquidity should an acquisition be postponed indefinitely?

We have a lot of prospects.

Well, we don't believe that acquisitions will be postponed indefinitely. We are working on acquisitions as we have indicated before. And of course, that would be a completely different decision and that we would look into.

Yes. And we have always, of course, not only one property that we are interested in. We have a pipeline, and we're working in parallel with different options and phases.

Please, Emil.

Emil from Pareto Securities. Margin-wise, how much impact did the cold winter have from sort of a normalized margin?

That was a tricky question. I don't really know. I can't answer that question directly. I have to look into that.

How much -- sorry.

The cold winter.

Sorry. Margin-wise?

Yes. Margin-wise, how much was the impact from the cold winter from sort of a normalized run rate margin?

What we can see is that our energy, you can see that on the figure.

Yes. We see that the energy cost is around 20% increase. So if we calculate it back, the only part that affects us is actually the vacancy. So the vacancy is around 5% today. So that portion of the vacancy that we couldn't actually offset to the tenants that affected. I don't know exactly, but it's like maybe 1% or maybe something. It's not very big.

Okay. Makes sense. And it looks like the higher vacancy comes from around 1,900 square meters in Poznan, if I'm correct.

Yes.

Is that related to one or more tenants? And what's your prospects on filling up those spaces?

Yes. So the vacancy in Poznan, it's actually 1,900 square meters is related to relocation of one tenant to accommodate for the growth of ROCKWOOL. We have also freed up another 1,000 square meters, which was needed for solving the puzzle of moving a couple of tenants around, to again accommodate bigger space for ROCKWOOL's expansion. And out of this 1,000, actually, 500 is already committed to one tenant. It's not signed yet, but it's committed and 500 is in the market right now. And we will believe that it will probably be taken by one of our existing tenants as well.

And when will ROCKWOOL enter those premises?

I think it's 1st of June or 1st of July, so it's either.

I think it's the second quarter.

Yes.

Okay. And you spoke about it a little bit, but you have been preparing for acquisition now for some time. What's the sort of main reason why you haven't closed anything? Is it agreeing on price or finding the correct funding or...

No. I think for us, we are very selective on what we buy, and we will continue being very selective on what we buy. We've been working on the acquisition for a while now, and there are certain matters that actually caused some delay, but these are outside of our control for the time being. But it doesn't mean that there is any change in our strategy.

Okay. Kestutis, I think that we actually don't have any more questions now.

Okay.

So thank you very much for listening, and thank you very much for coming.

Yes. Thank you for this time, and see you -- at least me during the next quarter.

Yes, because this is my last presentation. I'm retiring within a month.

Thank you very much, Britt-Marie.

Thank you.

Hello, and a very warm welcome to Eastnine's year-end report for 2025. My name is Kestutis Sasnauskas, I'm CEO of Eastnine. And with me is Britt-Marie Nyman, Deputy CEO and CFO. Together, we will guide you through the report today. And do not forget, please post your questions during our presentation, and we will take them once we finished with the formal presentation.

So looking at the last quarter, we continue on a strong growth path, delivering 24% growth in the rental income in comparable portfolio, up 2%. Profit from property management, up 15% and per share is up 8%. This is for the quarter. We have minor negative unrealized value changes. Net letting positive for the quarter. However, occupancy ratio somewhat down. But we are coming from very high level of over 96%. So this fluctuation quarter-to-quarter is very natural.

Surplus ratio somewhat down as well, but remains on a very high level, close to 93%. During the quarter, we recruited Adela Colakovic as new CFO starting from June. And we also extended and prolonged one of our key leases with one of our key tenants, Vinted in Vilnius. If we look over the year, growth has been even more impressive, up 49% in the rental revenue. Comparable portfolio also very strong, up 4%. Profit from property management up 40% and per share was up 28%. Unrealized value changes, EUR 21 million plus. So over the year, this is a significant increase. Net letting slightly negative, but again, coming from very high levels of lease-out ratios.

If we look on the surplus ratio, it was 93.4% over the period. We also refinanced a number of loans preparing for accumulating cash for further acquisitions, and we established our Polish organization during the year. So if you look at Eastnine at a glance, we have 272,000 square meters of leasable area, closer to EUR 1 billion in assets, 96% occupancy. We are purely office company. So this is a very, very high level today.

Rental income of EUR 62 million, yielding -- portfolio yielding approximately 6%, a loan-to-value of 47% and average interest of 4.3%. If you look over the share performance over the last 10 years, we have outperformed basically all indexes, including Warsaw index over the same period of time. So if you look on our targets, we always strive to create sustainable, attractive return. And if you look over the year period, the total share return was around 10%. If you look over a 5-year period, that is 16% annually.

Growth in property portfolio, approximately 3% over the year. We didn't acquire anything during this year, but we're actually preparing for large acquisition to come. Growth in property portfolio overall over a 5-year period is 23% per year. So it's been an enormous fast buildup over the years. Return on equity at 9% over the year, 8% over the longer period of time. And if you look on the dividend proposal, dividend is up 7%. That will come during -- later during the presentation.

Loan-to-value, again, 47% and interest coverage of 2.4. So looking back a little bit, over the last 5 years, we more than doubled our portfolio, but our profit from property management per share actually almost tripled, so closer to tripling. So this is an amazing result over the year. And why is it so? And why we believe into this so much is actually the long-term trends.

Poland is one of the fastest-growing economies in Europe and even globally, but also followed by the 2 small economies, Lithuania and Latvia, where we are existent today with our portfolios. And this region continues to actually evolve. And if you look -- it's not only if we talk about country development and country growth, but actually, if we look over the last 5 years to the large -- to the fastest-growing cities in Europe, actually, among 20 fastest-growing cities in Europe, 10 of them are Polish, and we're present in all of them.

And actually, both Vilnius and Riga are among these cities as well. So -- and they grow twice the pace, at least twice or 3x the pace of 170 city average in Europe. So we are in a very vibrant, very fast-growing, very fast evolving part of the European economy. We also are in the markets yielding the highest yields combined with lowest rents.

And this gap over time should somehow shrink or merge. And in any case, whether the yields go down or rents go up, it will have a positive impact on the property value. So this is why we believe it's a very, very exciting opportunity. If we look on the prime -- development of the prime office rents, actually, we have seen a relatively flat development from '17 to '20. But actually, after COVID, we see still a very positive development with strongest growth in Vilnius, followed by Warsaw, Riga and Poznan. And this is actually what we see in our portfolio as well. If we look on the yields, yields have stabilized, but they are up 150 to 100 bps from the bottom levels. Of course, the biggest correction happened in Warsaw, but it's coming from absolutely lowest yields in the market prior to increase in interest rates. Vacancies are stabilizing.

We see actually relatively strong dynamics in Prime segment. This is the total market statistics. But if you look even for Warsaw, actually total market vacancy is going down. There was a lower supply coming into the market in general. And despite quite significant supply in Vilnius, vacancies are at reasonable levels.

If you look for the Prime segment, those are actually even lower in certain cases. If you look on our portfolio, our actually occupancy has remained very stable. Of course, when we hit the highs of 97%, 96%, it's very natural that we step down a little bit to 95%, but even today, if we look on our portfolio, we don't have -- even have some vacancy in Poznan now.

If we have some vacancy in Vilnius, there's basically very, very little that is marketed externally because all of those vacancies are almost signed up and -- or very close to being signed. So this graph will gradually sort of fluctuate upwards again once tenants start to move in. We also saw positive dynamics in terms of rental revenues. We see a nice increase in Vilnius. We see a nice increase in Poznan based on the main contracts that have been renegotiated.

We didn't have anything to renegotiate in Warsaw. So our Warsaw contracts, that's why the curve actually stayed without any values over 2025. If we look on our portfolio, it remains with Vilnius being our largest market followed by Warsaw and Poznan. 96% of all floor space is office. So goes for our rental revenues as well. So very, very focused operation primarily on prime office. If you look on our tenants, actually, we are exposed to a very exciting part of the economy that is growing. And I think here, I would like to comment a little bit on our 2 biggest extensions over the year.

We -- in the beginning of the year, we extended -- or midyear, we actually extended with Rockwool. The -- both, we extended the contract, the size of the contract and the length of the contract. And we see very clearly that actually the biggest tenants are still in active mode phase. And just before year-end, we extended with Vinted. Again, we extended the size of the contract by approximately 30% space growth and the length of the contract. So the key tenants are actually the normal tendencies they continue actually growing and continue growing in a relatively fast pace. You can see our property portfolio still remaining -- retaining the modern portfolio. We didn't add any properties during the year.

And still -- so there's no change on this slide basically. And if you look on sustainability, today, we have 100% of our portfolio sustainability certified. We have 97% of our revenue taxonomy aligned over 2025 and 88% of green financing. We received 5 stars in GRESB with 91 points, and we are among top 20% of the participants in terms of ranking.

Total energy use is down 0.9%, somewhat slower compared to previous years, but we're actually seeing a very positive trend of people returning to the office. And of course, when there's more people, there is more energy used in the building. So in a way, we're very happy for the statistics. And energy use excluding tenant electricity is down almost 4%. So over to Britt-Marie into more into financial figures.

Thank you. And please remember to post questions during my presentation. If we look at the income statement, we can see a substantial increase in both rental income and net operating income, and this is related to the 2 acquisitions in Poland in 2024. We can see a slightly less increase in percentage when it comes to the quarter, and this is because we took possession of one property in June '24 and the other one in the end of November.

In a comparable portfolio, we saw an increase of 2% during the quarter and 4% during the full year. And this was partly due to indexation and the other part was due to a higher occupancy in average during the period and the year. The acquisitions also increased the interest expenses, of course, since it was -- they were partly financed by new loans, but we also saw a decrease in the interest income since we used cash in the acquisitions.

And the increase in interest expenses was partly offset by a lower interest rate level, both during the quarter and year actually. And other financial income and expenses, this is not a big part of the income statement, but still the change in percentage was high during the quarter, and this is mainly related to negative currency effect as part of Eastnine's operations in other currencies than euro.

Finally, profit from property management increased quite a lot, 15% during the quarter and 40% during the year. We saw only small changes in the earnings capacity during the quarter, and they were mainly related to changes in the occupancy rate during the quarter, which affected both rental income and property expenses and thereby also the net operating income.

The interest income increased due to a higher interest rate on bank accounts and the interest expenses decreased somewhat due to amortizations, but also due to the lower average interest rate level. And we saw an increase in other financial income and expenses related to the new head office in Stockholm, which is bigger than the previous one, and this is budget figures. So that's why.

On the bottom line, profit from property management, slightly lower than previous quarter in the earnings capacity. We have a very, very stable financing with a lot of banks on the other side, financing us. We have refinanced early during 2025 due to good market conditions, and we have barely anything to refinance in 2026.

The LTV by the end of December is on the same level as by the end of September. Liquidity in total, EUR 51 million, almost unchanged. The interest rate level down from 4.4% by the end of September. ICR slightly lower. Debt ratio also lower, which is good. due to full 12 months NOI included. Share of fixed interest, same level as by the end of September, 83%, quite high figure.

Capital tie-up period increased after refinancing and new financing -- sorry, only both refinancing and new financing during the quarter and fixed interest period, more or less the same. If you look at maturities, I said we had barely anything to refinance. You can see in 2026, it says EUR 13 million. That includes amortizations. We have EUR 7 million to refinance. A little bit more in 2027 includes the property Nowy Rynek D in Poznan, almost nothing '28 and a lot in '29 and '30.

When we look at the fixed interest period, it's more or less the same amount. And still the same banks and debt sources as before, 5 of them around 20% each. The property value increased by 3% during the year, up to EUR 960 million, and this was more or less an effect from unrealized value changes. We had a little bit of investments also EUR 6 million, but we saw mainly unrealized changes in value during the first quarter.

And the yield requirements were unchanged in the fourth quarter. It's good to see that we have had a very positive share development during the year. We saw an increase in the share turnover of 19% when we include all markets. Number of shareholders increased by 21%, now above 7,000. NAV increased both in SEK and euro, a little bit more in euro and total shareholder return up 10% during the 12-month period and 16% in average during 5 years.

And this is a very high number compared to other real estate companies in average on the Nasdaq Stockholm, it was 2%. And the Board of Directors proposed an increased dividend to SEK 1.28 per share, split over 4 payments during the coming 12 months. That is an increase of 7%, and it's 41% of profit from property management after current tax. So thank you. We continue with questions.

Any seasonal varieties affecting the NOI margin during the quarter? Or is the slightly lower NOI compared to Q4 '24 only an effect of the lower occupancy rate.

Of course, we are affected by seasonal effects as well as other real estate companies, but we are not -- we don't talk so much about that. So we have a combination.

It's a combination of both, I think.

The higher central admin cost during the quarter, is there any one-off costs included in that? Or should it be viewed as a new run rate given new recruitments?

Not particularly one-off costs. But of course, since we are a growing company from time to time, quarters can be affected by recruitment costs and probably not affecting all of them. So it could be -- part of it could be one-off costs, but nothing particularly.

Did I understand correctly that you are currently in negotiations for a new property acquisition? Size-wise, should we expect EUR 100 million to EUR 150 million acquisition?

I would not like to comment exactly the sizes of the acquisitions. So normally, I mean, if you look historically, we have acquired bigger properties. If you look on the -- the way we are thinking actually is we want to grow much more in Warsaw, where we did our last acquisition. The properties, of course, are bigger in general as the contracts normally that are signed in this market are bigger. And we are very picky in terms of choosing high-quality properties. So for us, of course, it will be -- it's natural that we can do bigger acquisitions probably going forward.

[Foreign Language]

I will answer that question in English. The question was how the competition is evolving in Poland. And any comments on the time frame. Again, very difficult to give any comments on the time frame. Yes, we are working on acquisitions. We have been very clear about it.

We're also accumulating higher cash levels in the company, refinancing our portfolio. And so I wouldn't exclude that something will come within a certain time frame. I again, do not want to give exact time frames. But I can confirm, yes, we are working on further acquisitions. In terms of competition, we see that the number of transactions done on a sort of smaller scale, transactions done up to EUR 50 million is growing. We see that a number of players also looking into the market probably increased somewhat. However, relatively few transactions still taking place. So competition is somewhat maybe growing, but it's not at the levels or nowhere near to the levels that we've seen prior to interest rate increases.

Can you please comment on any material lease expiries in the next 12 months, if any? Of course, we have some...

We have some expiries, but we also have very clear plans for those. And some of them we are happy about because it actually enables us some other -- to mitigate some other growth. But in the coming years, during 2026, at least we see that even though maybe kind of economic occupancy might increase somewhat during Q1, still in paper, it's actually something that is done over the -- to manage the growth of our tenants.

So it's basically the movement of some tenants that we need to do in order to facilitate growth for our growing tenants. So nothing -- on the contrary, I would say that today, we lack space, both in Poland and in Lithuania.

And perhaps it's also good to mention that when it comes to the biggest lease agreements, we have a dialogue long before they mature. So...

Yes, so just as a comment on the leases in general, I think it's important to note that approximately 16% of our stock of leases was renegotiated during this year. Out of it, 76% actually was prolongations. so we have a very tight and positive dialogue with our tenants. It's actually much more -- it's very important for us that it's a very good kind of check of basically how we are performing as a landlord.

And we are very happy that they choose to extend, prolong and extend in many cases. So this has been a very positive and in general, have a very positive feedback from our tenants. So what will happen now is that, of course, we are gradually taking over operations in Poland as we have recruited the team. And we still believe that it will bring a much more significant positive benefit for us going forward actually in those relationships.

I actually think that was all.

Very good. Thank you for your questions, and thank you for listening to us and see you at the next quarterly report.

Thank you.

Thank you for today.

Hello, and very warm welcome to Eastnine's Third Quarter Presentation. My name is Kestutis Sasnauskas; and with me, Britt-Marie Nyman, Deputy CEO and CFO. And today, we will guide you through our third quarter results of 2025.

Before I start, I urge you to post your questions during our presentation, and we will answer them right after the presentation is done.

So let's move into the third quarter. We continue experiencing tailwinds in our operations. Our rental revenue is growing 45% in comparable portfolio at 3.1%. Profit from property management up 48% and per share is 35%. All of these figures depend very much on our last acquisition in Poland, and this growth is mainly attributed to that. But we're also very, very happy to see strong performance in comparable portfolio as well.

We also have positive value changes in our portfolio, though slight, there's no dramatic change, mainly driven by growing market rental levels in the market, which result into positive revaluation of our portfolio. We also refinanced some of our debt and increased our leverage a little bit. This is all in preparation for further -- future acquisitions.

During the quarter, we concluded an extended a lease contract with ROCKWOOL, one of our key tenants in Poznan. The contract grew from almost 7,000 square meters to over 9,000 square meters and extend for another 7 years. We're also working on establishing operations in Poland. We have country manager in place since August already and 4 employees starting in December and February. So all in all, business is as planned.

If we look over period, continued growth figures are more impressive. Again, rental revenue growing 59% and comparable portfolio at strong 4.4%. Profit from property management, up 49% and per share 36%. So again, very strong performance. Unrealized value changes at EUR 24 million over the period. Net letting slightly negative, but we are coming from very high level of occupancy with closer to 97%, slight drop from last quarter, but still significantly above the start of the year. Surplus ratio at almost 94%. Again, very strong operational metrics continue.

So if we look at Eastnine at a glance, we are a property company in the fastest-growing part of Europe with core markets today being Poland, followed by Lithuania and Latvia. And if you look on overall size, I mean, we have 272,000 square meters, almost EUR 1 billion in property assets, 97% occupancy rate. We expect our annual revenue to reach EUR 62 million, properties yield 6.1% with 47% leverage and average interest of 4.4%. And you can see some of the names of our key tenants. I will go into that a little bit later in the presentation.

If you look at Eastnine as a long-term investment over the last 10 years, the share outperformed most of our benchmarks, both EPRA index and -- this is EPRA Developed Market Index and Real Estate Index in Stockholm, so both in euro and SEK. And if we look on the targets that we -- of course, our overreaching target is to deliver attractive return -- total return to shareholders, but also growth with high profitability as we have continued doing it right now. So over the year, we return our investment through Eastnine, returned around 8%, over the 5-year period, around 18%.

Our property portfolio is growing 47% over 1 year and an average of 24%. And this is the ambition that we intend to continue on this growth. If you look historically on our asset base, assets more than doubled over the 5 years, and profit from property management close to 3x. So if we look a little bit on the sort of the market and the long-term trends -- and I continue talking about it, it's just very, very important to understand where we are.

We are actually in the fastest part of Europe -- fastest-growing part of Europe, with Poland topping the growth over the last 25 years. But even for the next coming 5 years, the growth in Poland is expected to be among the highest in Europe. So are the other 2 Baltic markets, which are considerably smaller, but at the same time, developing and evolving extremely nicely.

Again, if you look at the growth parameter, is very important, but it comes as well with very nice investment metrics. We are in the market with the lowest rental levels and in combination with the highest yields. The capital values are significantly below of the surrounding markets, which is a kind of wrong assumption in the longer term. I think that this gap will sometime close. We don't know when it -- of course, there's certain factors affecting it. But I think it is very, very important to remember that this combination, again, in combination with the same financing opportunities as we have in the other European markets is very, very compelling.

If we look at the market per se, I think we are in a bit of a different universe compared to our Nordic peers. We are in a market where rental levels are growing in general and especially in the sort of prime segment. And if we look over the last 5 years, the rental levels in markets like Vilnius increased by 41%; Riga, 19%; Warsaw, 18%; and Poznan, 16%. So positive dynamics, and this dynamic started to accelerate even more over the last 2, 3 years, mainly driven by increased construction costs and inflation. So it's not a kind of market sentiment-driven. It's more driven by the underlying cost, et cetera. So still a very, very positive environment.

The demand also remains very strong in our segment. If we look on the yields, we, again, in the market were -- probably the shift in yields have happened pretty quickly. If you look on Warsaw, we are up 150 basis points compared to the lowest levels back in '21, 125 bps in the Baltics and Poznan around 100 bps. Of course, Poznan comes from a significantly higher level already. So that change of 100 bps is pretty motivated. But the positive thing is over the last 2 years, these yields are now stabilizing, and we see that probably with dropping financing costs, those yields are probably peaking in general. And if you look on maybe separate transactions, this kind of gap from the top to the -- from the bottom to the top, is closer to 200 bps if we look in places like Warsaw.

The other important aspect of the vacancies in the market. In general, we see that vacancies have increased over the years in all markets. It's probably following the sort of normal global trends. Warsaw is the only market that actually is more or less flat since the level of 2017. And it is -- these are statistics for the total market. If we look for prime segment, these statistics differ quite a lot. But if you look on our portfolio, our occupancy was very stable over the years at a very high level, above 90% all the time. And today, we are still at 96.7%. And we also are in the market of increasing rents. And if you look on sort of the graph on the right, you see the latest trends in our core buildings and the rents are upwards -- ticking upwards.

And this is, again, a little bit different sentiment from most what we see in other markets. But the prime segment, prime properties in best locations, they continue to deliver very stable returns, and they are in a very high demand as most of the tenants are actually looking for higher quality products. So this flight-to-quality trend continues and is very, very strong in our region.

If we look on our portfolio overall, 31% of the value is in Warsaw, 22% in Poznan and Vilnius with 40% remains our biggest market. We are very focused on offices. We basically do only office, so 96% of our portfolio is only entire dedicated to offices. And those offices are very modern. So despite these very high yields, this is a very, very modern and young portfolio.

If we look on our tenant base, we are exposed to the most exciting part of the economy. It's IT, it's finance, it's e-com, it's medical health and medical segment. And in general, if you look on our tenant list, these are very strong, either very strong local regional players or multinationals. And of course, the best properties attract the strongest tenants. WAULT is at 3.6 years. Average rent still very low, which is at almost SEK 2,500 per square meter. And this is in the prime segment again. So it's -- we should not forget that.

There is just a slide to show you our portfolio. I mean, it's the same as it was in the previous quarters. We haven't done any acquisitions yet. And if we look on sustainability part, 100% of our portfolio is sustainability certified. We certify under LEED and BREEAM standards. And in BREEAM, we only have Outstanding, and in LEED, we have -- most of our properties are -- or almost all of our properties are in Platinum and only one in Gold, which is again the highest standards of environmental certification. 82% of our revenue is EU taxonomy aligned. Green financing stands for 88% of our total financing.

We received 5 stars in GRESB 91 points, and we are among top 20 in our -- in the -- all universe of real estate companies, we are #2 in our segment of listed peers in Europe, I think. And if you look on our energy performance, we continue working very hard on reducing our energy intensity in the buildings. This year, so far, we reduced our energy intensity by 4.5%. And if we look on -- this is in total portfolio. And if we look on our buildings per se, without tenant electricity, it's down 7.2%. So on this, I will leave over to you, Britt-Marie, to discuss more the quarterly figures.

Thank you very much, Kestutis. Once again, new record results from Eastnine, both during the quarter and the period. This is mainly due to the acquisitions in Poland last year, of course. You can see that both rental income and net operating income increased substantially. But it's also good to see that income in a comparable portfolio increases by 3% in the quarter and 4% in the period, and this is related to indexation and the higher occupancy in average.

The acquisitions, of course, also increased the interest expenses and decreased the interest income since we used partly cash in the acquisitions, while the increase in expenses was partly offset by decreased interest rate level. We saw profit from property management increasing by nearly 50%, both during the quarter and the period, and we saw positive unrealized value changes for properties during the quarter -- third quarter and the first quarter, meaning that the period was also positive. This was related to changes in Poland.

History is, of course, important, but future potential is even more important. And in the earnings capacity, we compare the situation by the end of previous quarter and also 1 year back. It's a theoretical assessment. It's not a prognosis. And as you can see, the profit from property management compared to 1 quarter back decreased by 3%, and this is because we had slightly lower occupancy by the end of September this year compared to the end of June. And we also saw an increase in interest expenses in the earning capacity due to the additional loans that we decided upon in the end of September.

If you compare 1 year back in the earning capacity, we had -- we can see a huge increase during this 12 months, 33% on the bottom line profit from property management, and this is, of course, related to the acquisition of Warsaw units in November last year.

A little bit about financing and some key figures. The LTV decreased somewhat during the last quarter, down from 48% to 47% after amortizations and increased property values. The liquidity is slightly higher after additional financing. The interest rate level and the ICR on the same level. The debt ratio continues to decrease and capital tie-up period increased after additional and new financing -- additional and refinancing, sorry, and the fixed interest period slightly lower, but we have some new swaps starting during the fourth quarter, which will have an effect on both fixed interest period and the share of fixed interest.

And as you can see, we don't have any maturities left in 2025. These EUR 2 million, as you can see, they are only amortizations. And we also said in the report that related to the very good market conditions on the credit market, we might even refinance something more early before maturity. So we are looking into that, and not really much maturing in '26, '27 and '28, a little bit more in '29, of course.

The debt sources are the same as in the end of previous quarter, except for a change. SEB is nowadays our largest bank after the additional financing during the third quarter, followed by Berlin Hyp, Erste and Helaba. The property value has increased by 47% during the last year. And the main reason is the acquisition in Poland in November. But if we look at the unrealized value changes for properties, they were EUR 5 million during the third quarter versus -- which is up 0.5% versus second quarter. And the yield requirements, they were unchanged during the quarter, 6.6%.

If you look into the share, you can see that the liquidity and the trading in the share has increased substantially during this year 216% for the first 9 months up compared to the same period last year. The number of shareholders has also increased, up 8%, 6,400. NAV increased by 4% during the first 9 months in SEK and 7% in euro. And total return for the shareholders during the last year is 8% 12 months and in average during the last 5 years, 18%. So that was all.

So before we conclude, of course, we are in the active phase of preparation for new acquisitions. We're accumulating bigger cash positions. And of course, we work continuously on looking into opportunities to grow our portfolio primarily in Warsaw.

So please continue posting questions. We will start by answering those we already received. The first one. Hi, and once again, congrats to yet another strong report. Could you, if possible, elaborate a bit more around size in [ million euro ] overcoming acquisition? And is it currently only Warsaw that's in focus for Eastnine?

Of course, we are focusing primarily on Warsaw because Warsaw is where we see the biggest opportunities to build our position. We could do something in the markets we are already existent as well. We don't exclude that, but Warsaw is our key priority today.

In terms of size, I think it would be inappropriate to comment. But we believe that we have a really very strong balance sheet today with 9x debt-to-EBITDA ratio. And if we look on forward-looking figures, it's going down to 8.4%. So of course, we have a possibility to increase a little bit our leverage and, of course, do quite significant acquisitions. We normally do relatively sizable transactions.

[ In your ] markets, do you expect highest upside from rental growth or yield compression?

It's very difficult to speculate about the yield compression. But of course, implications of yield compressions are huge. Should the yields start going down, we would see very, very significant uplift in values. At the same time, cash flow is something that we work very hard to make sure that it continues growing and our earnings per share continue growing at a very strong pace. So focus is very much on that.

Of course, the rental levels and the rental contracts normally are longer. They are fixed for a longer period of time. So we have a kind of inflationary adjustments. And you can see actually in our like-for-like growth over the 9 months, we are growing a bit faster than the average inflation, we are doing 4.4% like-for-like growth versus inflation of just below 2 -- around 2 or something, if I recall correctly. So -- but since we have contracted rents, maybe the yield could happen -- moves can happen faster.

Given how supportive banks are right now, how much higher leverage are you comfortable with in terms of LTV or net debt related to EBITDA?

Perhaps, we shouldn't give an exact figure, but somewhat higher at least. As Kestutis said, the net debt in relation to EBITDA is only 9 today, and it's decreasing further if you look at the earnings capacity. So I would say it's a [ bit higher ] at least then and no problem.

I think in general, I mean, we would try to keep it over time just below 10, definitely just to be on a prudent side. At the same time, it could initially go over 10x when we do acquisitions with the potential of reducing it over next coming 12 months as it happened when we did acquisition of Warsaw units. So in general, you should look on the long-term or maybe earnings capacity figure for what we target, and we probably target somewhere to be around 10 or in a comfortable zone, just below 10.

Are you considering taking up bond financing? And if so, what terms, interest rate and amount issued could we expect from a bond issue?

I would say some time, yes, I guess, but it's not right now, perhaps because the interest from banks are -- it's very, very good in the market with very low margins, meaning that with our fairly low LTV, we can still borrow some more money in the banks. It's not a problem. So as long as that possibility is cheaper than bond financing. I guess, it will be the best for us, but sometime in the future, yes.

Yes. I guess, it's very much driven by transaction to transaction. So should there be a very attractive transaction that we can actually use part of the financing with bonds, we will do it as well.

And all these questions will be related to what kind of acquisitions we actually do.

Exactly. So everything is very much related for the further acquisitions. But today, we are accumulating cash for further acquisitions by refinancing by debt mainly.

Update on dividend policy, 30% of EPS. What is long-term goal for increase in EPS per year or next 5 years, dividend per share should increase in line with EPS growth?

I don't think that we actually can say anything more about that. That will be a decision for the Board to give a proposition for the AGM. In the end, we have our dividend policy to follow.

But the dividend policy that is communicated is 30% of the profit from property management after tax. And of course, we also said that we expect the dividends to grow as our profit from property management is growing very rapidly. So in general, I think this is -- there's nothing new to communicate, yes.

I guess, that was it. Any more questions? So please post them.

Okay. It seems that no more questions are coming in. So thank you very much for listening to us today, and we look forward to present to you another exciting Q4. Thank you.

Hopefully. In February. Thank you.

Hello, and a very warm welcome to our first half results presentation. My name is Kestutis Sasnauskas, I'm CEO of Eastnine; and with me is Britt Marie Nyman. Today, we will go through the first half and second quarter and discuss a little bit about the market and the opportunities we see.

So before I start, I just want to note that please post your questions during our presentation, so we can start responding to them directly after. We are building a very exciting company in the fastest growing part of Europe, and it's a company focused on prime offices in prime locations. And our offices is actually yielding not as offices in most of the European countries, actually yielding very highly at 6.2%.

Our surplus ratio is 93.5%, and we enjoy very high occupancy. Our property portfolio over the last 12 months has increased by 47%. So it's an amazing development over the years and especially even during the last quarter. Our rental income is up 62%. In comparable portfolio, we grew 5.1% over this quarter. Profit from property management increasing by 54% and profit from property management per share is growing by 40%.

We have slightly negative unrealized value changes, but only EUR 63,000 in our almost EUR 1 billion portfolio or balance sheet. So it's very minimal. We have slightly negative net letting, but we are coming from very high occupancy rate in general, and our occupancy rate actually during the quarter increased by 1.1% to 97.1%. So basically, we don't have any real vacancy. It's more like moving tenants in and out.

Surplus ratio up to 93.6%. And we hired CEO for Poland or Head of Poland, Julia Racewicz-Lewandowska, who will start in August.

During the period of 6 months, our revenue is up even -- growing even faster, 67%. In comparable portfolio, again, very strong, 4.8%, well above inflation rates. And this is due to higher lease -- very strong leasing over this half year. Profit from property management, up 50% and per share, basically 36%. So again, very, very strong growth. Unrealized value changes are positive over the first half by almost over EUR 90 million. Net letting, basically 0 over this, but it's very difficult for us to increase it positively because of already very, very high letting figures.

We have -- and surplus ratio is almost 94% over this period. So very strong operational performance. And if we look before we go into sort of all the details, I would also like to draw your attention a little bit more to the markets and what's happening in our region. And we start with Poland, which is our very high focus area. It's actually 51% of our portfolio. We see that Poland attracted a lot of headlines, a lot of happening, very positive economic development overall. And Poland continues actually to grow very, very fast.

If we look actually at the areas where we are actually situated in Warsaw, this is how it looked back in 2009. And this is from the same place how it looks 2024. So it's been an enormous transformation that a lot of people have missed, and we believe it's actually -- it's very, very exciting this dynamic and very fast-growing market. If we look on GDP figures on the growth, actually, Poland is -- has surpassed Sweden in GDP in current prices back in 2018, and it actually continues. It's almost now 50% above the Swedish level.

If we look on the growth figures, of course, growth have been almost 5x faster during the last 10 years in Poland versus Swedish market. So we have actually a very strong underlying dynamics, both economic growth, growth in office jobs and growing demand for office per se. So with these dynamics, of course, it's wonderful to have a very strong property portfolio.

We have -- you can see pictures of our last 3 acquisitions since -- in Poland. Two of them were done during last year, and this is actually a result of our very significant growth. But I would also like to draw attention to 2 factors, not only that we have a very positive economic environment, which creates growth per se. We also are in the segment of top located modern offices, which are today in very high demand.

The office market is split today with sort of some offices are not in very high demand and which are probably not as good located, but in good locations, modern offices are in very, very high demand. And we actually see this today because all of our Polish portfolio is 100% leased. And here, you see all of our portfolios. It's very modern, very centrally located premises in both Vilnius, which is our still largest market, in Riga and in both Poznan and Warsaw.

If you look on overall portfolio, property value of EUR 955 million, approaching EUR 1 billion, 271,000 square meters of leasable space, an annual rent of EUR 62.5 million, again, surplus ratio on a high side and yield requirements in valuations of 6.6%. Average value of our portfolio per square meter is a mere EUR 3,500. So it's relatively low value compared to most of the Western peers.

An average age portfolio is 7.8 years. So again, very young, very modern portfolio and enjoying very high occupancy. Out of the whole stock, 96% is pure offices, 4% is other ancillary -- mainly ancillary services to our offices like restaurants, gyms, et cetera, et cetera. If you look on the value split, we have Vilnius with the biggest market, followed by Warsaw today, Poznan and Riga. So it's a nicely diversified portfolio overall. Again, our tenants are coming from the most exciting parts of the economy. It's ICT, it's finance, it's e-com, it's med tech and medical health sectors and a number of other very modern sectors.

If you look on the Right-hand side of the presentation, you see the key tenant relationships, Warta being the sort of second largest Polish insurance company, Allegro is a leading e-com player in Eastern Europe, followed by very prominent names. So it's a very, very strong tenant list and all of them enjoying quite significant growth over the years and actually continue growing.

If you look on our sustainability work, we have today 100% certified portfolio, and it's not only certified, it's in the highest brackets like LEED Platinum or BREEAM Outstanding. Green financing stands for 89% of our financing. We have 5 stars in GRESB with 92 points. Green leases at 45%. We have them mainly in the Baltics. We are starting this work in Poland as acquisitions have been quite recent. And our portfolio today is 82% taxonomy aligned.

If you look on energy performance, we are reducing energy, still a lot to be done here. We see a huge potential to still continue even though our properties are among the top in the sector per se. And if you look on the yield curve, we actually -- our portfolio is yielding similar to logistics type of properties. At the same time, we see a great value potential in the long term as rental growth is about -- is continuing growing slightly, but there's a positive trend, and there is a very strong economic sentiment in our region.

So on this, let's move to the figures.

Thank you, Kestutis. Just a reminder, please keep posting questions. We are happy to share another very solid report from Eastnine. We start by comparing the second quarter this year with the same quarter last year and rental income and net operating income increased quite a lot, and this is mainly due to the last year's acquisitions in Poland, of course.

The income in a comparable portfolio increased by more than 5%, and this was mainly related to a higher occupancy, but also indexation in the beginning of the year. The acquisitions also increased the central administration and the interest expenses, of course, and had a negative effect on the interest income because we used some cash in the acquisitions.

The central administration costs was also affected by costs for recruitment during the quarter and digitalization. Profit from property management increased by as much as 54% and the property values were stable with hardly any unrealized value changes for properties.

If you look at the period, January, June, we can see the same effects. The most important thing that is different is actually the unrealized value changes for properties during the period. During the first quarter, they were positive, EUR 90 million, and thereby, they are also positive during the period related to value changes in Poland.

The earning capacity is a theoretical assessment based on Eastnine's earnings during 12 months based on current loan agreements and current lease agreements and to some certain extent, when it comes, for example, to property expenses and central administration, it's rolling 12-month figures. And when it's interest income and interest expenses, it's based on the current amount and the current interest level.

We can see, we compare the situation by the end of June with the situation previous quarter. But on this slide, this time, we have also compared to 1 year back the earnings capacity. And the interest income -- sorry, the rental income increased by 1% compared to the end of March, and this is due to a higher occupancy, for example, and the interest expenses decreased mainly due to a lower interest rate level.

And on the bottom line, profit from property management continued to increase 2%. And if we compare to the earning capacity 1 year back, the increase was as high as 44%, and this is due to the acquisition of Warsaw Unit in November. Nowy Rynek E was already included in these figures in the earning capacity by that time.

Profit from property management per share continued to increase up to EUR 0.34 for a 12-month period. And of course, the difference is bigger if we compare 1 year back. The surplus ratio a little bit lower compared to a quarter ago, and this is related to increasing property expenses since we use rolling 12-month figures, but you can see a quite substantial increase compared to 1 year back.

The net debt decreased somewhat during the last quarter, but increased if we compare 1 year back, and that's because we have just quite a lot of cash. Interest rate level continues coming down now to 4.4%. It was as high as 4.7% a couple of quarters back. We have a healthy leverage level and also a diversified debt portfolio. The LTV still at 48%, same as previous quarter. Liquidity, a couple of millions higher. Interest rate level down to 4.4%. Interest coverage ratio increased a little bit up to 2.5%. The capital tie-up period and the fixed interest period somewhat shorter since we didn't do any refinancing or new financing during the quarter, the share of fixed interest increased to 84%.

If we look at maturities, both for the capital and for fixed interest, the green ones -- the green bars are the capital tie-up period and the blue ones are the fixed interest. You can see that this year, we only have EUR 36 million to refinance, and we have already started that refinancing and the interest from banks are -- is actually huge. And that's very positive. It's a positive market, and we can probably see that in the end when we have refinanced them during the autumn.

Still same debt sources, and we have approximately 20% from 5 different banks all over Europe. All financing is in euro. Property values increased by 47% during the last year, but were stable during the last quarter. We had no unrealized value changes during the quarter, but quite a lot during the first quarter this year. Yield requirement in the valuations came up 0.04 percentage points during the quarter, up to 6%, which rounded means up to 6.6%. We had 6.7% as the highest.

If you look at the share and Eastnine share as an investment, we can see an increased interest in the share. The share price has increased by 6% until the end of June, been trading at all-time high after that quite recently. The NAV per share increased by 2% in SEK and 5% in euro during the period, up to SEK 55 -- slightly above SEK 55. The total shareholder return for the last 12 months was 16% and in average, 18% during the last 5 years.

The share turnover has increased by 160% during the last 6 months, including all marketplaces. And we can also see an increased interest from institutional investors and foundations in the shareholder list, which is positive. And the shareholding split is more than 80% Swedish and around 20 other countries. We have a proven growth and strategy execution. The property value has increased by more than 150% since 2020 until the end of June. And the profit per share from property management, almost the same from 2020 to the rolling 12-month figures and even 187% if we include the figures in the earnings capacity.

Finally, if we look at Eastnine as a long-term investment, we can see that the Eastnine share has outperformed both real estate index in Sweden, in Stockholm and in Europe as well as NASDAQ Stockholm and Warsaw Stock Exchange since 2014.

Yes. And summing up, we are very happy for the very strong performance of our portfolio. Our properties are very attractive today and attractively located, and they are very modern in prime locations in capital cities of the Baltics, Warsaw and in a very strong regional city of Poznan.

So on back of this, we are focusing continuously to build our organization. We are driving a big digitalization process to make -- to enable us to build a very efficient and modern organization, but also continuously looking for further acquisitions with focus on Poland and primarily Warsaw.

So on this, we open up for questions.

Yes. And I know this question was coming, given where both the leverage and the share price is to -- sorry, can you quantify what the huge interest from banks mean in terms of expected changes in lending margins going forward?

No, I will not be exactly, but it will be all-time low as far as that I can go. But if it in the end means that our average interest level will come down, will, of course, also depend on how much of the debt we decide to fix and what fixing level we get and what fixing level we had before. So it's not only the margin. It's important to remember.

How are you affected by Swedish inflation, which surprised negatively today?

We are financing in Euribor market. So we are a euro company. 100% of revenue is euros, 100% of financing is euros with Euribor margin. So we are very much affected by European inflation figures in which Sweden has a relatively small impact.

Given where both the leverage and the share price is today, are you looking at more accretive, attractive perhaps deals like Warsaw units, including payments with shares?

The answer is yes.

How come rental income is down quarter-to-quarter? Yes, that's a good question. It's actually the fact that we had a sort of -- If you include in rental income, other financial income, we had a little bit too high figure for other financial income in this quarter, and it was too low in the previous quarter, and we had a little bit too high figure in rental income during the first quarter, and it's a bit too low in this quarter. It's related to rental guarantees. So if you even them out during the quarters, you get sort of the long-term level.

Any more questions?

Okay. Since no more questions are coming, and I guess everybody is waiting to go out in this rainy summer day. So thank you very much for listening to us today, and see you in autumn.

By summer.

Thank you.