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REAL ESTATE: Fastighets AB Balder (BALDER: / BBB neg): Preview 16th July

REAL ESTATE
  • Given S&P’s Negative Outlook earnings take heightened importance for this name.
  • Moody’s had cut them to Junk before the rating was withdrawn last year.
  • The share price has more than doubled since 2023’s nadir. EPS estimates for the full year have risen about 15% since January.
  • On the earnings call last time, management said that LTV could be managed down to close to 50% without disposals.
  • Fixed Charge cover was 3.0x last quarter – well above the 2.0x internal target. Moody’s wanted to see >3.0x on a sustained basis.
  • No imminent need to tap the bond markets but Mar 2025 will see EUR 500m mature.

Consensus:
Revenue SEK 3,174
EBITDA SEK 2,119
Net Debt SEK 129,336

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