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Fastighets AB Balder (BALDER: BBB Neg): 2Q24 Results

REAL ESTATE
  • Positive: A decent set of results showing stable improvement.
  • Net Debt/Total Assets is now below 50% at 49.8% which management had guided for last quarter.
  • Rental income increase of 3.6% on like-for-like.
  • Occupancy stable at 96%
  • Interest Coverage 2.8x above the 2.0x target but this was 3.0x last time.
  • Slight concern for Secured Bank Loans representing 45% of financing.
  • 71% of debt is hedged. Some companies are higher but if rates are peaking this is not terrible.
  • The company is planning to increase SEK bond financing and spread out its maturities to avoid concentration. Expect fewer EUR issues.
  • Aiming to reduce Debt until ND/EBITDA reaches 11x

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