Our 'BBB-' long-term issuer rating on Sweden-based commercial property manager Platzer Fastigheter Holding AB (publ) and the stable outlook on the rating are unchanged following the announcement that the company has initiated share repurchases.
On 10 Dec. 2025, Platzer announced its intention to repurchase SEK 100m of its own shares, which we expect will result in higher leverage than previously anticipated. The share repurchase was announced when the company had limited headroom to our negative rating driver of NCR-adjusted EBITDA/net interest below 2.5x for the rating. Despite this, we expect improved financing terms to offset the impact on interest costs, resulting in a neutral effect on the company's financials, with NCR-adjusted EBITDA/net interest projected at 2.6–2.8x through 2027. We also expect the company to maintain an NCR-adjusted net LTV of 45.5–48.5% over the same period, compared with the negative rating driver of above 50%. We anticipate the company will cancel the repurchased shares rather than use them for transactions, resulting in lower cash flow retention than previously, which could affect our view of the company's financial risk if larger repurchase volumes are pursued.
We expect an improved economic outlook in 2026 to stabilise office occupancy and support a recovery in net letting. Although the office rental market remains challenging, recent activity including a 10-year lease signed in Arendal for 6,700sqm indicates some improvement. The contract is expected to generate SEK 122m in total rental income over the contract duration once the tenant has fully moved in. The move-in will occur sequentially, beginning in Mar. 2026, supporting cash flows.
This commentary does not constitute a rating action.
Contacts:
Gustav Nilsson, analyst, +46735420446, gustav.nilsson@nordiccreditrating.com
Elisabeth Adebäck, analyst, +46700442775, elisabeth.adeback@nordiccreditrating.com