Swedish property group Fastpartner upbeat on refinancing outlook (updated)

FastPartner AB

04/07/2023 15:47

(Recasts adding background, detail and company comment)
       STOCKHOLM, July 4 (Reuters) - Swedish property group
Fastpartner  FPARa.ST  shares rose 3% on Tuesday after it told
markets that it had relatively good liquidity and expected to be
able to refinance short-term debt following a credit-rating
downgrade in June.
    High debt, rising interest rates and a wilting economy has
proved a toxic cocktail for many in Sweden's commercial property
sector, leaving commercial landlord SBB  SBBb.ST  fighting for
survival, its shares plunging amid concerns over its financial
position and refinancing debts. 
    "We have a liquidity that is one of the best in the
industry," Fastpartner CEO Sven-Olof Johansson said in a
statement on Tuesday. 
    "Fastpartner has an ongoing discussion with the company's
main banks regarding margins and maturities for the short part
of the loan portfolio and assesses the prospects for refinancing
these loans at market terms as good," the company statement
said. 
    Its shares were up 3.2% at 1440 GMT. 
    The firm in June had its credit rating cut to junk by
Moody's. It said at the time it had enough cash to handle debt
maturities for more than 30 months.     
    In quarterly results published on Tuesday, Fastpartner said 
its net operating income was above year-ago figures, but that
the result did not fully compensate for increased financing
costs.
    Profit from property management in the second quarter fell
30% to 201 million crowns ($18.6 million), it said. 
    Sweden's central bank last week raised its policy rate to
3.75% and flagged at least one more hike this year. 
    ($1 = 10.8303 Swedish crowns)

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