Eastnine: MFG option priced at zero – ABG


• Solid Q2 report, NAV down on MFG
• Recent increase in interest rate expectations
• 2023e P/CEPS at ~16x with option

Strong property management, as usual
The Q2 report beat our estimates on NOI (+3%) and IFPM (+4%), again. The LTM NOI margin of ~93% (up 4.9pp y-o-y in Q2) is the highest of all companies we cover. Our estimate changes for CEPS are due to a rapid increase in interest rate expectations in recent weeks, while the EPRA NRV changes stem from the MFG write-down.


ABGSC Commissioned Research