Our 'BBB+' issuer and issue ratings on Fastighets AB Stenvalvet (publ) (Stenvalvet) are unchanged following the publication of its fourth-quarter 2021 results.
Quarterly and annual revenues boosted by acquisitions
Stenvalvet reported SEK 253m in revenues for the fourth quarter of 2021 and SEK 940m for the full year. This compared favourably with the SEK 890m recorded in 2020 and our full-year 2021 estimate of SEK 921m. Revenues were supported by acquisitions in the course of the year including the addition of four properties to the portfolio in the fourth quarter. The NCR-adjusted EBITDA margin was 66.7% for the full year, slightly above our estimate of 66.3%. Adjusted net interest costs were in line with our expectations, resulting in NCR-adjusted EBITDA/net interest of 5.5x, compared with our expectation of 5.3x. Unrealised value changes of SEK 977m in the fourth quarter resulted in value changes of SEK 2.8bn for the full year. This significantly reduced NCR-adjusted loan-to value (LTV) to 41.6% at year-end from 45.3% a year earlier.
Change-of-control event triggered
In the course of the fourth quarter, the company's owners, the Church of Sweden's pension foundation and the Swedish Foundation for Strategic Research, acquired shares originally owned by Kåpan Pension, using their right of first refusal. This followed an attempt by Samhällsbyggnadsbolaget i Norden AB (publ) to purchase Kåpan Pension's shares in the company earlier in the year. The transfer of the shares in January 2022 triggered a change-of-control event that required Stenvalvet to propose repurchase of all outstanding bonds. Bonds worth a total SEK 762m were redeemed in the process, which was covered by available liquidity. Since end-2021, Stenvalvet has sold properties totalling SEK 2.1bn, reducing annual revenues by SEK 96m.
Figure 1. Stenvalvet key credit metrics, 2017–2021
| SEKm | 2017 | 2018 | 2019 | 2020 | 2021 |
|---|---|---|---|---|---|
| Total revenue | 742 | 812 | 888 | 890 | 940 |
| NCR-adj. EBITDA | 503 | 541 | 586 | 595 | 627 |
| NCR-adj. EBITDA-margin | 67.8% | 66.6% | 66.0% | 66.9% | 66.7% |
| NCR-adj. investment properties | 9,941 | 11,105 | 12,070 | 13,564 | 17,955 |
| NCR-adj. net debt | 4,770 | 5,121 | 5,116 | 6,147 | 7,476 |
| Total assets | 10,321 | 11,484 | 12,541 | 13,990 | 18,834 |
| NCR-adj. net debt/EBITDA | 9.5x | 9.5x | 8.7x | 10.3x | 11.9x |
| NCR-adj. EBITDA/net interest | 6.2x | 5.7x | 5.5x | 5.4x | 5.5x |
| NCR-adj. net LTV | 48.0% | 46.1% | 42.4% | 45.3% | 41.6% |
This commentary does not constitute a rating action.
Contacts:
Mille Fjeldstad, analyst, +4799038916, mille.fjeldstad@nordiccreditrating.com
Marcus Gustavsson, analyst, +46700442775, marcus.gustavsson@nordiccreditrating.com