The Stockholm-based company is positioned as the canary in the coal mine for Europe’s teetering real estate market.
With Swedish housing prices projected to fall as much as 20% in one of the world’s bubbliest property markets, its business model faces renewed pressure.
As valuations decline and the cost of capital rises, SBB risks being pushed into fire sales to defend its credit ratings.
Its financial risks have caught the attention of short-seller Fraser Perring’s Viceroy Research LLC, which issued a series of scathing reports about the company.
SBB has about $500 million of debt maturing next year and $1 billion in bonds and loans coming due in 2024, according to data compiled by Bloomberg.
“It won’t really be possible to shift all this into bank loans.”
Bloomberg 9 september 2022