Swedish real estate cos top STOXX as deals soothe liquidity fears

Fastighets AB Balder

04/07/2023 16:23

** Shares of Swedish real estate stocks rise to top of the STOXX 600  .STOXX  index with
analyst pointing to a series of recent property transactions that suggest these companies are
starting to shift their focus to improving liquidity
    ** High debt burdens, rising interest rates and a wilting economy have created a tricky
environment for Sweden's commercial property companies, with several cut to junk by rating
agencies
    ** Emil Ekholm from Pareto Securities says there have been quite a few property transactions
closing recently, including non-prime assets, showing that the transaction market might be more
liquid than first anticipated
    ** "It's a sign of strength that we see buyers and sellers starting to meet, also in
non-prime transactions. If the real estate companies can divest assets at decent levels, the
liquidity situation might not be as strained as expected," he says
    ** Bertil Nilsson notes that Corem's  COREa.ST  recent divestment and SBB's  SBBb.ST  sale
of eight properties were made at prices lower than previous valuations, but it appears companies
are giving priority to improving their liquidity
    ** SBB  SBBb.ST  shares are up 15%, on track for their largest daily rise in a month
    ** Shares of Balder  BALDb.ST , Castellum  CAST.ST  and Wihlborgs  WIHL.ST  are up 4-6% in
afternoon trade


 (Reporting by Izabela Niemiec; Editing by Amanda Cooper)
 ((Izabela.niemiec@thomsonreutrs.com))