Our long-term issuer rating on Intea Fastigheter AB (publ) remain unchanged following the announcement on 21 May 2025 that the company has raised SEK 1,056m in new equity.
The equity issue reduces Intea's net debt to 11.1bn from 12.2bn, effectively lowering NCR-adjusted net loan to value (LTV) to 46% from 50% on a pro forma basis as of 31 Mar. 2025. We expect this reduction in leverage to be temporary, as the company plans to use the proceeds to finance its ambitious project pipeline, which require an estimated SEK 11.2bn in investments through 2025─2031. Intea may also make acquisitions if opportunities arise. Excluding debt uptake from potential acquisitions or unannounced new projects, we estimate that the company's net LTV will gradually increase to 50% by the end of 2027. Additionally, we anticipate that the company's interest coverage will remain above 3.0x through 2025─2026 before declining to 2.8x in 2027.
The raised proceeds slightly enhances the company's financial flexibility for funding its project pipeline. However, the debt maturity profile will remain front-loaded near term, and the proceeds do not lead to the company's committed sources of liquidity exceeding expected cash outflows, primarily due to substantial project investments.
Overall, we view the addition of new equity and the company's proven ability to access equity markets as supportive of its credit profile. This enables the company to maintain its financial risk profile within stipulated targets while pursuing growth objectives. We expect the company to continue approaching equity markets for funding growth to operate within its long-term net LTV targets of 50─55%.
Related publications
i) Intea Fastigheter AB (publ) 'BBB' long-term issuer rating affirmed; Outlook stable, 14 May 2025.
This commentary does not constitute a rating action.
Contacts:
Gustav Nilsson, analyst, +46735420446, gustav.nilsson@nordiccreditrating.com
Elisabeth Adebäck, analyst, +46700442775, elisabeth.adeback@nordiccreditrating.com