Our 'BBB+' issuer and issue ratings for Vacse AB (publ) are unchanged following the publication of its year-end results.
Continued stable development
The Q4/2019 report for Vacse was mostly inline with our expectations. Revenues of SEK 94m (compared to SEK 89m in Q4/2018), EBITDA of SEK 70m (SEK 69m), corresponding to an EBITDA margin of 75% for the quarter (77%). Net interest cost was slightly below our expectations in the quarter resulting in a higher interest coverage ratio of 5.1x for 2019. The company reports that its project properties are developing according to plan. The average remaining lease term for the management property portfolio of 10.1 years (10.8 years Q4/2018) and the occupancy rate is 100%.
Financial position remains strong, credit metrics in line with the rating
During the quarter, Vacse lowered its loan-to-value to 40.7% from 41.8% in third quarter, through amortisation and slightly increased property values resulting from further yield compression.
Since the end of 2019, Vacse has entered into the Nordic Investment Bank loan of SEK 400m, and repaid its SEK 350m revolving credit facility, prolonging the debt maturity profile from 2.5 years as of 31 Dec 2019 to about 3.8 years.
This commentary does not reflect a rating action.
Analyst contact details:
Mille O. Fjeldstad, Credit Rating Analyst, +47 99 03 89 16, mille.fjeldstad@nordiccreditrating.com
Daniel Johansson, Credit Rating Analyst, +46 732 32 43 78, daniel.johansson@nordiccreditrating.com