OREANDA-NEWS. October 04, 2010. Eastern Property Holdings released rather neutral 1H10 IFRS results yesterday. Rental income was 48% down YoY (we expected the drop) due to high vacancy rates and lower rental rates. While Berlin House is almost 100% let out, the vacancy rate for the office center Petrovsky Fort is around 33%, reported the press-centre of OTKRITIE Financial Corporation.

View: We do not see any near-term catalysts for the stock. EPH completed the acquisition of the remaining 50% stake in Geneva House, an office and retail development located in Moscow, but the company does not expect any income from the scheme in 2010.

Valuation & Action: The stock currently trades at a 73% discount to the last reported NAV, while EM peers trade at a 4% premium.