NCR comments: Stenhus Fastigheter i Norden AB (publ) Q1 2022 report

Our 'BB' issuer rating on Stenhus Fastigheter i Norden AB (publ) is unchanged following the publication of its first-quarter 2022 results.

Quarterly revenues sharply higher year on year
Stenhus Fastigheter's revenues in the first quarter were SEK 117.6m (compared with SEK 27.8m in the first quarter of 2021) and NCR-adjusted EBITDA was SEK 79.0m (SEK 18.2m). The company's NCR-adjusted last-12-month EBITDA margin remained broadly stable at 68.4%.

Key credit metrics likely to weaken but remain within policy levels
As of 31 Mar. 2022, Stenhus Fastigheter's NCR-adjusted loan-to-value (LTV) ratio was 46.1%, slightly lower than the 46.5% recorded a quarter earlier. The company's financial profile remains relatively strong, although we expect its credit metrics to weaken due to the proposed acquisition of Randviken Fastigheter AB (publ) in the third quarter of 2022. The intention to acquire Randviken was announced in April 2022 and if Stenhus Fastigheter were to acquire all of the shares, its property portfolio would roughly double in size. We expect Stenhus Fastigheter's credit metrics to remain within current policy levels if the transaction goes ahead as planned.

Figure 1. Stenhus Fastigheter key credit metrics, 2020–Q1 2022

This commentary does not constitute a rating action.

Contacts:
Marcus Gustavsson, analyst, +46700442775, marcus.gustavsson@nordiccreditrating.com
Yun Zhou, analyst, +46732324378, yun.zhou@nordiccreditrating.com