Bonyan’s gross asset value rose 9.0% YTD to EGP 17.4 bn by the end of June 2025, up from the EGP 16.0 bn recorded in December, the EGX’s second most recent addition said in an asset value update (pdf) based on a valuation by the Financial Regulatory Authority-licensed Global Appraisal Tech. This valuation — which outpaced inflation for the period — raises the implied gross asset value to EGP 171.2k per meter, up from 157k per meter at the start of the year and its implied enterprise value per meter of EGP 95.5k per meter at the time of its initial public offering in July.

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Gross asset value? Because Bonyan is a real estate operating company (REOC) and runs a not-so-commonplace business model, gross asset value “serves as the most relevant metric for assessing Bonyan’s performance,” according to CEO Tarek Abdelrahman. Gross asset value counts the total, undiluted value of a company’s assets — think of it as the full retail price of a house before you consider a mortgage.

When accounting for liabilities of around EGP 2.0 bn, this brings the company’s fair asset value to EGP 15.4 bn — around double Bonyan’s current market cap — Ahly Pharos Head of Research Hany Genena highlighted in comments to EnterpriseAM.

“A key theme in the Bonyan story is its direct exposure to interest rates,” explained Genena, who described the company as following a carry trade strategy by borrowing money at lower interest rates to acquire assets with a higher return. Before 2022, the cost of carry was materially decreased by acquiring income-generating properties in a low-interest-rate environment, which were followed by acquisitions in 2023 and 2024 under a higher interest rate environment that raised the cost of carry.

And with encouraging inflation data out recently and the increased likelihood of further interest rate cuts, Bonyan shareholders may have some good news in store. Further decreases in interest rates — with a 200 bps cut expected by Genena in the Monetary Policy Committee’s next meeting — will come with a reduction in the cost of carry, savings which could be shared with shareholders, Genena told us.

Bonyan’s decision not to distribute dividends for at least two to three years was one of the reasons it had a muted debut on the EGX. Bonyan shares ended their first day trading largely flat, despite a favorable valuation. This came on the back of several reasons, including its decision to delay dividends due to ongoing expansion plans and outstanding liabilities. “This is why you see the markdown. Investors don’t expect short-term payouts, and without clear catalysts, they’re hesitant,” Genena told us at the time.

REMEMBER- Bonyan priced its IPO at the lower end of its range (EGP 4.96), suggesting plenty of upside for buyers, given the independent financial advisor said a fair value looks more like EGP 7.52. The EGP 1.8 bn IPO had generated strong demand from both institutional and retail investors, and the listing was accompanied by a solid 1Q earnings release.

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