UK Ground Rent reforms could cost investors GBP30bn, according to some reports. In our coverage, MandG has relevant exposure. But the capital impact has been largely absorbed in advance; leverage is where the impact would be more important. UK Ground Rent reforms could cost GBP30bn The UK Government has indicated it will table reforms to limit residential Ground Rents which, by some estimates, could cost investors GBP30bn. Insurers and pension funds are holders of these assets. So while we have yet to see firm proposals, we take this moment to assess the different scenarios and the potential impact. MandG has exposure, but has already absorbed a significant capital impact Of the listed companies in our coverage, MandG is the name with relevant exposure, totalling GBP859m (or 15% of market cap). While this appears to be a large number, our analysis suggests that MandG has already recognised a high-single-digit percentage points impact on the capital ratio. In a 75% write-down scenario, we expect the group would see only a mid-single digit impact on capital coverage - and this would largely be due to tiering restrictions. Impact on MandG''s leverage is more important; we apply a 5% haircut to our TP The impact on leverage would, however, be more substantial. The group ended FY23 at 35% on a management view, vs a target of 30% by 2025. Our scenario would add c.3ppts to the leverage ratio, making this target difficult to reach, even after the GBP300m note is called in July. In such a scenario, one could expect slower dividend growth. We recognise the risks around the Ground Rent topic by adopting a mid-single digit % haircut to our Target Price - but the upside remains attractive, and we reiterate our Outperform rating.