Eastnine: Highly accretive deal - ABG

Warsaw Unit adds ~40% to top-line...
...and >15% to CEPS in 2025/2026e
Impressive execution, share now at 12.5x 2025e CEPS


Warsaw enters with a bang

As noted in our Fast Comment from this Tuesday, Eastnine has completed the largest office transaction in Europe YTD, buying Warsaw Unit for EUR 280m. The property comprises 59,400 sqm, is fully occupied with tenants such as Warta, Allegro, Danske Bank, Telia, McKinsey, Swedbank and CBRE, and has a rental value of EUR 18m. Based on the earnings capacity provided by the company in conjunction with the deal announcement, the NOI margin is anticipated to be in the high 90s, taking the group NOI margin up by ~1.5pp. Similarly, the group WAULT increases by ~0.4 years and the occupancy comes up ~1.6pp. We raise our CEPS estimates by ~15.5% for 2025e and ~17.5% for 2026e.