Our 'BBB+' issuer and issue ratings on Intea Fastigheter AB (publ) (Intea) are unchanged following the publication of its results for the fourth quarter of 2021.
Increased in-house operations improve full-year margins
Following an eventful year, with substantial acquisitions and intensified IPO preparations, Intea reported revenues of SEK 193.5m in the fourth quarter, compared with SEK 151.0m in the fourth quarter of 2020. The company's NCR-adjusted last-12-month EBITDA margin increased to 74%, compared with 70% a year earlier, partly as a result of moving property management functions in-house during the year.
Somewhat elevated loan to value set to improve following 2022 IPO
As of 31 Dec. 2021, Intea's NCR-adjusted net loan-to-value (LTV) ratio was 54.4%, up 2pp year on year. While net LTV is relatively weak, interest coverage has strengthened due to better earnings and a lower average interest rate. We expect the company's metrics to improve when it completes a planned IPO in the first half of 2022.
Figure 1. Intea key credit metrics, 2017–2021
| SEKm | 2017 | 2018 | 2019 | 2020 | 2021 |
|---|---|---|---|---|---|
| Total revenue | 283 | 372 | 488 | 549 | 733 |
| NCR-adj. EBITDA | 169 | 232 | 321 | 383 | 540 |
| NCR-adj. EBITDA-margin | 59.9% | 62.5% | 65.8% | 69.9% | 73.7% |
| NCR-adj. investment properties | 5,345 | 7,004 | 9,371 | 10,238 | 17,955 |
| NCR-adj. net debt | 2,843 | 3,815 | 5,056 | 5,363 | 9,760 |
| Total assets | 5,521 | 7,226 | 9,622 | 10,816 | 18,539 |
| NCR-adj. net debt/EBITDA | 16.8x | 16.4x | 15.7x | 14.0x | 18.1x |
| NCR-adj. EBITDA/net interest | 3.4x | 4.1x | 4.0x | 3.7x | 4.4x |
| NCR-adj. net LTV | 53.2% | 54.5% | 53.9% | 52.4% | 54.4% |
| Average remaining lease term (years) | 6.2 | 6.2 | 6.6 | 6.2 | 6 |
| Occupancy rate | 98.5% | 99.0% | 99.0% | 99.2% | 99.0% |
| Average debt maturity (years) | 4.4 | 3.8 | 3.4 | 3.3 | 3.3 |
| Average fixed-interest period (years) | 4.6 | 4.4 | 4.7 | 4.9 | 3.2 |
This commentary does not constitute a rating action.
Contacts:
Marcus Gustavsson, analyst, +46700442775, marcus.gustavsson@nordiccreditrating.com
Gustav Nilsson, analyst, +46735420446, gustav.nilsson@nordiccreditrating.com