Eastnine: MFG cash boosting CEPS - ABG

We incorporate the MFG divestment...
...which pushes CEPS up by ~30%..
...and lowers net LTV to ~27%


Clearly positive for earnings and credit metrics

As we stated in our most recent Fast Comment, Eastnine has completed the MFG divestment. The deal was done at EUR 144m (book value as of Q2 was EUR 163m) and the liquidity will take net LTV from ~52% to ~27%, all else equal. In this update, we simply incorporate the net interest impact from the cash injection, which pushes CEPS up by >30% for 2024e. The minor EPRA NRV revisions stem from the difference between the divestment price and the book value. Going forward, we expect Eastnine to use the available liquidity to acquire properties (property yields around ~7%), which would be further CEPS-accretive.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/eastnine/Equity-research/2023/10/eastnine---mfg-cash-boosting-ceps/