Our 'BB' issuer rating on Stenhus Fastigheter i Norden AB (publ) (Stenhus Fastigheter) is unchanged following the publication of its fourth-quarter 2021 results.
Significant revenue and portfolio growth
Stenhus Fastigheter's revenues in the fourth quarter of 2021 were SEK 110m (compared with SEK 19m in the fourth quarter of 2020). The substantial increase was a result of a transaction-intense year in which the company's portfolio increased to 116 properties from only 14. The NCR-adjusted EBITDA margin increased to 68.6% from 65.7% previously, as operations were ramped up in the course of the year.
Financial metrics resilient
As of 30 Dec. 2021, Stenhus Fastigheter's NCR-adjusted loan-to-value (LTV) ratio was 46.5%, while its NCR-adjusted net debt/EBITDA was 17.5x, broadly in line with our expectations. Our view of financial risk remains unchanged, reflecting our expectations that financial gearing will increase somewhat as the company pursues its ambitious growth plans.
Figure 1. Stenhus Fastigheter key credit metrics, 2020–2021
| SEKm | 2020* | 2021 |
|---|---|---|
| Total revenue | 21 | 284 |
| NCR-adj. EBITDA | 14 | 194 |
| NCR-adj. EBITDA-margin | 65.7% | 68.6% |
| NCR-adj. investment properties | 1,646 | 7,303 |
| NCR-adj. net debt | 254 | 3,397 |
| Total assets | 2,115 | 8,071 |
| NCR-adj. net debt/EBITDA | 18.7x | 17.5x |
| NCR-adj. EBITDA/net interest | 3.6x | 3.7x |
| NCR-adj. net LTV | 15.5% | 46.5% |
| Average remaining lease term (years) | 8.8 | 6.4 |
| Occupancy rate | 92.5% | 95.1% |
| Average debt maturity (years) | 2.2 | 2.7 |
| Average fixed-interest period (years) | 2.1 | 0.8 |
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