As I stated in my last post, Eastnine is now in an enviable position. Not only are they cash-rich, they are also present in a market where yields are high enough to generate decent returns even on an unlevered basis. Eastnine itself trades at an implied cap rate of about 8%, which is the highest on the Swedish stock market. As it happens, that’s matches the levels at which Baltic Horizon Fund sold its fully let office buildings Duetto I and II (construction years 2017/2018) recently.
Do you think it would be value accretive for Eastnine shareholders to issue shares at the current valuation discount? I guess it would make sense if Baltic Horizon is trading at an even deeper discount. So then you can use the cash to cover the debts.
Also, looking at the properties, seems that some are quite old (https://www.baltichorizon.com/properties/). Well, I guess they can prune some properties after the fact, if it ever happens.
Anyhow, as always, very interesting write up! Cheers!
Do you think it would be value accretive for Eastnine shareholders to issue shares at the current valuation discount? I guess it would make sense if Baltic Horizon is trading at an even deeper discount. So then you can use the cash to cover the debts.
Also, looking at the properties, seems that some are quite old (https://www.baltichorizon.com/properties/). Well, I guess they can prune some properties after the fact, if it ever happens.
Anyhow, as always, very interesting write up! Cheers!