Our 'BBB' issuer rating on Bonnier Fastigheter AB (Bonnier Fastigheter) is unchanged following the publication of its results for January–April 2021.
Stable results contain no surprises
The results were broadly in line with our expectations, although revenues and EBITDA were down from the corresponding period a year earlier, reflecting the net effect of acquired and divested properties. Vacancy levels increased to 7%, but we do not view this as a cause for concern, as the increase was due to acquired vacancies. The office market in Stockholm and Uppsala remains strong, supporting our assessment of the operating environment.
Currently strong credit metrics likely to weaken
As of the 30 Apr. 2021, Bonnier Fastigheter's NCR-adjusted loan-to-value ratio was 21.4% while NCR-adjusted net debt/EBITDA was 6.3x, significantly stronger than our previously forecast figures. Our view of financial risk remains unchanged, reflecting our expectations that financial gearing will increase as the company pursues debt-financed acquisitions and executes its ambitious project development pipeline.
Figure 1. Bonnier Fastigheter key credit metrics, 2017–T1 2021
| SEKm | 2017 | 2018 | 2019 | 2020 | LTM to 30 Apr. 2021 |
|---|---|---|---|---|---|
| Total revenue | 523 | 591 | 712 | 740 | 720 |
| NCR-adj. EBITDA | 330 | 379 | 476 | 497 | 477 |
| NCR-adj. investment properties | 10,118 | 12,705 | 13,717 | 14,038 | 14,075 |
| NCR-adj. net debt | 1,950 | 3,538 | 3,445 | 2,991 | 3,017 |
| Total assets | 10,432 | 12,782 | 13,972 | 14,540 | 14,592 |
| NCR-adj. net debt/EBITDA | 5.9x | 9.3x | 7.2x | 6.0x | 6.3x |
| NCR-adj. EBITDA/net interest | 4.6x | 5.8x | 7.2x | 7.8x | 8.1x |
| NCR-adj. net LTV | 19.3% | 27.8% | 25.1% | 21.3% | 21.4% |
This commentary does not constitute a rating action.
If you have any questions, please contact:
Marcus Gustavsson, credit rating analyst, +46700442775, marcus.gustavsson@nordiccreditrating.com
Sean Cotten, chief rating officer, +46735600337, sean.cotten@nordiccreditrating.com