Eastnine's core segment, Direct Real Estate, delivered income from property management (IFPM) of EUR 2.17m, up 90% y/y. The strong growth trend is mainly explained by acquisitions, but also good operational momentum, underpinned by a 3.4% higher occupancy rate y/y and like-for-like rental growth of 8% y/y in Q2. Net letting of EUR -0.8m, however, could put some pressure on the occupancy rate for 2021E. Property values increased EUR 5.3m q/q, corresponding to a 1.6% value uplift and suggesting a stabilisation of the market, which was confirmed by Eastnine's CEO during the Q2 conference call. We still argue the risks for Eastnine's direct real estate assets are fairly limited, given its stable tenant base, long leases (WAULT: 4.7 years), and centrally located properties. Marketing material commissioned by Eastnine.

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