Bloomberg: SBB has been the epicenter of Sweden’s commercial real estate woes, but the problems go deeper
Sweden’s embattled landlords are facing intensifying pressure to sell properties to raise cash, as $17 billion in debt matures over the next 18 months.
In January, Fastighets AB Balder became the first Swedish landlord to get a junk rating.
Four companies have bonds approaching yields that are at least 10 percentage points higher than Riksbank notes, putting them in distressed territory.
This year, debt maturities are relatively manageable at $4.9 billion, but the hurdle more than doubles to $12.1 billion in 2024.
Heimstaden Bostad — a subsidiary of Heimstaden AB — has the largest amount due at $2.5 billion
Shares in real estate firms have fallen more than 60% since the peak in late 2021, making rights issues a less favorable option.
Bloomberg 3 juli 2023
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