Swedish property group SBB's loss shrinks in Q1 and sees improving capital market
CEO Leiv Synnes says the capital market, which it is dependent on to improve its current financial situation, had developed in a positive direction
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SWEDISH real estate group SBB reported on Monday (May 6) a first-quarter pre-tax loss that was smaller than a year ago but said it needed to improve its liquidity and lower its loan-to-value ratio.
CEO Leiv Synnes said in a statement on Monday that the capital market, which it is dependent on to improve its current financial situation, had developed in a positive direction in the quarter.
“My assessment is that credit margins will likely continue decreasing and that SBB’s part-owned companies can benefit from this more advantageous financing,” the CEO said, after having delayed the publication of the report from April.
The landlord, which owns properties such as hospitals and care homes across Sweden, reported a first-quarter loss before tax of 1.30 billion Swedish kronor (S$162.4 million), compared with a loss of a revised 4.12 billion a year earlier.
High debts, elevated interest rates and wilting economies have hit many European property companies, with Sweden’s real estate sector among the worst affected.
SBB, which racked up debts buying social properties such as schools and hospitals, has seen its credit rating cut to junk over the past year.
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Its shares have lost over 90 per cent of their value since peaking in 2021. REUTERS
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