Fastpartner posts second quarter earnings above year-ago result

FastPartner AB

04/07/2023 12:49

STOCKHOLM, July 4 (Reuters) - Swedish commercial
property group Fastpartner  FPAR.ST  on Tuesday reported
second-quarter earnings with a net operating income above
year-ago figures, but said the result did not fully compensate
for increased financing costs. 
    "Our financing is based on short fixed interest rates, so a
change in the Riksbank's policy rate has an immediate impact on
our interest costs," Fastpartner CEO Sven-Olof Johansson said in
a statement.
    Swedish commercial property company Fastpartner  FPARa.ST 
has sought to reassure investors of its financial stability
after Moody's had cut its credit rating to junk status.
    Euro and U.S. dollar investors "have the perception that all
Swedish banks are overexposed to the Swedish real estate sector,
which is highly leveraged and has major problems," Johansson
added.   
    "SBB is the ultimate proof of this and every interest rate
increase from the Riksbank further worsens the situation for
real estate companies," he said.
    The commercial property company said it aims to achieve an
yearly income from property management of 1.1 billion Swedish
crowns ($101.59 million) by the end of 2025.
    
($1 = 10.8279 Swedish crowns)

 (Reporting by Anna Ringstrom; Editing by Jacob
Gronholt-Pedersen)
 ((anna.ringstrom@thomsonreuters.com; +46 8 502 423 74))