Our 'BBB-' long-term issuer rating on CA Fastigheter AB (CA Fastigheter) is unchanged following the publication of its third-quarter results. The announcement represents the company's first publicly reported quarterly financial statement.
Rental income and EBITDA in line with expectations
CA Fastigheter's figures for the 12 months ended September were in line with our projections for adjusted EBITDA and net debt for full-year 2021. In fact, the company's adjusted 12-month credit metrics are in line with our full-year 2021 expectations. The company's NCR-adjusted EBITDA margin for the 12 months to September increased to 49%. Excluding the impact of sales on the project portfolio, the ratio fell to 52.4% (compared with 53.4% in 2020).
LTV stable despite lack of property revaluations in 2021
As of 30 Sep. 2021, CA Fastigheter's NCR-adjusted loan-to-value (LTV) ratio was 40.3%, in line with our expectations for the full year. The company issued a SEK 500m bond in June 2021, and has increased gross debt by over SEK 900m since end-2020. However, liquid assets and short-term financial placements have also increased materially, offsetting much of the impact on the adjusted credit metrics. The company has not revised the values of its investment properties in 2021, but has increased the total value of the portfolio by SEK 317m since the beginning of the year, reflecting SEK 41m in new acquisitions, other investments and the impact of foreign exchange rates on the value its German assets. The value of the project portfolio has increased by an additional SEK 85m during 2021.
Figure 1. CA Fastigheter key credit metrics, 2017–Q3 2021
| SEKm | 2017* | 2018* | 2019 | 2020 | LTM to 30 Sep. 2021 |
|---|---|---|---|---|---|
| Total revenue | 1,063 | 931 | 667 | 786 | 763 |
| NCR-adj. EBITDA | 400 | 339 | 316 | 364 | 374 |
| NCR-adj. EBITDA-margin | 37.6% | 36.4% | 47.3% | 46.3% | 49.0% |
| NCR-adj. investment properties | 12,441 | 12,083 | 12,967 | 13,704 | 14,105 |
| NCR-adj. net debt | 4,807 | 3,894 | 5,304 | 5,424 | 5,683 |
| Total assets | 7,616 | 7,824 | 14,724 | 15,331 | 16,673 |
| NCR-adj. net debt/EBITDA | 12.0x | 11.5x | 16.8x | 14.9x | 15.2x |
| NCR-adj. EBITDA/net interest | 3.2x | 2.2x | 2.9x | 3.2x | 3.1x |
| NCR-adj. net LTV | 38.6% | 32.2% | 40.9% | 39.6% | 40.3% |
| Occupancy rate | 92.2% | 92.6% | 93.7% | 94.5% | 95.3% |
| Average debt maturity (years) | - | - | - | 2.1 | 2.4 |
| Average interest fixing (years) | - | - | - | 4.2 | 3.4 |
This commentary does not constitute a rating action.
Contacts:
Sean Cotten, chief rating officer, +46735600337, sean.cotten@nordiccreditrating.com
Yun Zhou, analyst, +46732324378, yun.zhou@nordiccreditrating.com