Our 'BBB-' long-term issuer rating on Platzer Fastigheter Holding AB (publ) is unchanged following the publication of its third-quarter results.
Quarterly revenues up year on year, margins stable
Platzer's revenues for the third quarter were broadly in line with our expectations, and some 6% higher than the corresponding quarter of 2020. The company's NCR-adjusted EBITDA margin remained stable at 71.7%, compared with 71.9% in the corresponding quarter of 2020 and above our expectation of around 70% over our forecast period through 2023.
Credit metrics likely to remain steady
As of 30 Sep. 2021, Platzer's NCR-adjusted loan-to-value (LTV) ratio was 47.5%, while its NCR-adjusted net debt/EBITDA was 13.9x, in line with our previously forecast figures. Our view of financial risk remains unchanged, reflecting our expectations that financial gearing will remain at around current levels over the near term.
Figure 1. Platzer key credit metrics, 2017–Q3 2021
| SEKm | 2017 | 2018 | 2019 | 2020 | LTM to 30 Sep. 2021 |
|---|---|---|---|---|---|
| Total revenue | 995 | 1,044 | 1,124 | 1,142 | 1,177 |
| NCR-adj. EBITDA | 681 | 731 | 785 | 814 | 844 |
| NCR-adj. EBITDA-margin | 68.4% | 70.0% | 69.8% | 71.3% | 71.7% |
| NCR-adj. investment properties | 15,559 | 18,388 | 20,509 | 22,605 | 24,604 |
| NCR-adj. net debt | 8,236 | 9,468 | 9,802 | 10,740 | 11,690 |
| Total assets | 15,936 | 19,016 | 21,106 | 23,286 | 25,693 |
| NCR-adj. net debt/EBITDA | 12.1x | 13.0x | 12.5x | 13.2x | 13.9x |
| NCR-adj. EBITDA/net interest | 3.5x | 3.6x | 4.3x | 4.1x | 4.1x |
| NCR-adj. net LTV | 52.9% | 51.5% | 47.8% | 47.5% | 47.5% |
| Average remaining lease term (years) | 3.4 | 3.5 | 3.4 | 3.1 | 3.4 |
| Occupancy rate | 95.0% | 95.0% | 94.0% | 93.0% | 91.0% |
| Average debt maturity (years) | 1.6 | 2.2 | 2.4 | 2.3 | 2.4 |
| Average interest fixing (years) | 3.2 | 4.1 | 4 | 3.2 | 2.8 |
This commentary does not constitute a rating action.
Contacts:
Marcus Gustavsson, analyst, +46700442775, marcus.gustavsson@nordiccreditrating.com
Mille Fjeldstad, analyst, +4799038916, mille.fjeldstad@nordiccreditrating.com