Swedish real estate firms rise on lower-than-expected March inflation

Sagax AB

12/04/2024 10:45

** Swedish real estate firms edge up as consumer prices,
measured with a fixed interest rate, in Sweden rose less than
expected in March to 2.2% y/y, 0.1% m/m
    ** Analysts polled by Reuters had expected an increase of
2.6% y/y and 0.4% m/m
    ** Castellum  CAST.ST , Fabege  FABG.ST , Balder  BALDb.ST 
and Wallenstam  WALLb.ST  rise around 3-4% after the inflation
data was published on Friday, Carlsquare analyst Bertil Nilsson
confirms
    ** Shares in Atrium Ljungberg  ATRLJb.ST , which on Friday
reported better-than-expected Q1 results, also rise almost 2%,
but has a lower interest rate sensitivity than the rest of the
property sector, Nilsson says
    ** High debt, high interest rates and a wilting economy have
hit many European property companies, with the sector in Sweden
among the worst affected
    ** Swedish real estate companies top the STOXX Europe 600
real estate index  .SX86P , which rises about 1%

 (Reporting by Elsa Ohlen and Elviira Luoma)
 ((elsa.ohlen@thomsonreuters.com;))