Swedish real estate companies Castellum, Fabege fall after Q1 results

Wihlborgs Fastigheter AB

26/04/2023 10:16

** Shares in Castellum  CAST.ST  and Fabege  FABG.ST  fall
2.8% and 3.5%, respectively, after the Swedish real estate
companies post Q1 results 
    ** Carlsquare analyst Bertil Nilsson says that, while not a
surprise, the real estate companies' effective interest costs
are increasing "quite sharply" quarter-on-quarter 
    ** "This means that the companies' earnings capacity after
interest costs is deteriorating, which may justify a lower share
price," adds Nilsson
    ** J.P.Morgan says Castellum's first quarter result confirms
the company's "difficult position in terms of refinancing", with
debt costs rising 81% year-on-year
    ** Peer Fabege posts adjusted EPRA Net Tangible Assets (NTA)
2% below estimates according to Barclays
    ** Barclays says Fabege comments highlight a risk of
over-renting due to high indexation and lower office demand
    ** Shares in peer Wihlborgs  WIHL.ST , which posted Q1
results on Tuesday, down 3.7% as of 0915 GMT
    

 (Reporting by Greta Rosen Fondahn)
 ((Greta.RosenFondahn@thomsonreuters.com))