Our 'A-' issuer and issue ratings on Vacse AB (publ) are unchanged following the publication of its first-quarter 2022 results.
Continued strong occupancy drives solid quarterly performance
Vacse's first-quarter 2022 report was in line with our expectations. Reported revenues in the quarter were SEK 122m (compared with SEK 108m in the first quarter of 2021), while EBITDA was SEK 89m (SEK 83m), corresponding to an EBITDA margin of 73.2% (76.4%) for the period. The lower margin was mainly related to completion of projects and higher energy prices.
Financial metrics remain strong
The NCR-adjusted loan-to-value (LTV) ratio was 36.6%, a decrease from 38.1% a year earlier. The NCR-adjusted EBITDA/net interest ratio was 5.7x, unchanged from the corresponding quarter of 2021. Despite increasing interest rates, Vacse's credit metrics remain strong thanks to a high degree of interest fixing and robust finances. At the end of the quarter, the company had a substantial cash position of SEK 418m.
Figure 1. Vacse key credit metrics, 2018–Q1 2022
| SEKm | 2018 | 2019 | 2020 | 2021 | LTM to 31 Mar. 2022 |
|---|---|---|---|---|---|
| Total revenue | 340 | 369 | 384 | 459 | 472 |
| NCR-adj. EBITDA | 263 | 282 | 296 | 350 | 356 |
| NCR-adj. EBITDA-margin | 77.4% | 76.5% | 77.2% | 76.3% | 75.5% |
| NCR-adj. investment properties | 5,943 | 6,525 | 7,169 | 8,923 | 9,003 |
| NCR-adj. net debt | 2,416 | 2,657 | 2,793 | 3,320 | 3,291 |
| Total assets | 6,166 | 6,702 | 7,431 | 9,506 | 9,695 |
| NCR-adj. net debt/EBITDA | 9.2x | 9.4x | 9.4x | 9.5x | 9.2x |
| NCR-adj. EBITDA/net interest | 4.1x | 5.1x | 5.6x | 5.8x | 5.7x |
| NCR-adj. net LTV | 40.7% | 40.7% | 39.0% | 37.2% | 36.6% |
| Average remaining lease term (years) | 10.8 | 10.1 | 10.8 | 9.9 | 10.4 |
| Occupancy rate | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |
| Average debt maturity (years) | 2.4 | 2.5 | 3.1 | 3.8 | 3.7 |
| Average fixed-interest period (years) | 3.1 | 4.5 | 5.3 | 4.6 | 4.6 |
This commentary does not constitute a rating action.
Contacts:
Yun Zhou, analyst, +46732324378, yun.zhou@nordiccreditrating.com
Marcus Gustavsson, analyst, +46700442775, marcus.gustavsson@nordiccreditrating.com