Our 'BBB-' issuer rating on Platzer Fastigheter Holding AB (publ) (Platzer) is unchanged following the publication of its fourth-quarter results.
Strong margins and controlled growth support business risk profile
Platzer's revenues for the fourth quarter were broadly in line with our expectations, and some 8% higher than the corresponding quarter of 2020. The company's NCR-adjusted last-12-month EBITDA margin remained stable at 72.1%, compared with 71.3% a year earlier and above our expectation of around 70% over our forecast period through 2023. We expect Platzer's somewhat elevated vacancy rate to decrease as the company finalises ongoing development projects.
Credit metrics likely to remain steady
As of 30 Dec. 2021, Platzer's NCR-adjusted loan-to-value (LTV) ratio was 48.3%, while its NCR-adjusted net debt/EBITDA was 14.6x, slightly higher than our expectations. Our view of financial risk remains unchanged, reflecting our expectations that financial gearing will remain at around current levels or improve over the near term.
Figure 1. Platzer key credit metrics, 2017–2021
| SEKm | 2017 | 2018 | 2019 | 2020 | 2021 |
|---|---|---|---|---|---|
| Total revenue | 995 | 1,044 | 1,124 | 1,142 | 1,200 |
| NCR-adj. EBITDA | 681 | 731 | 785 | 814 | 865 |
| NCR-adj. EBITDA-margin | 68.4% | 70.0% | 69.8% | 71.3% | 72.1% |
| NCR-adj. investment properties | 15,559 | 18,388 | 20,509 | 22,605 | 26,061 |
| NCR-adj. net debt | 8,236 | 9,468 | 9,802 | 10,740 | 12,598 |
| Total assets | 15,936 | 19,016 | 21,106 | 23,286 | 26,957 |
| NCR-adj. net debt/EBITDA | 12.1x | 13.0x | 12.5x | 13.2x | 14.6x |
| 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% | 48.3% |
| Average remaining lease term (years) | 3.4 | 3.5 | 3.4 | 3.1 | 3.8 |
| Occupancy rate | 95.0% | 95.0% | 94.0% | 93.0% | 91.0% |
| Average debt maturity (years) | 1.6 | 2.2 | 2.4 | 2.3 | 2.3 |
| Average fixed-interest period (years) | 3.2 | 4.1 | 4.0 | 3.2 | 3.0 |
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