Samhallsbyggnadsbolaget (SBBB SS) Sweden
Real Estate
Stuck in a doom loop - the Swedish real estate group has announced its intention to pause dividend payments on all share classes and cancel the SEK 2.6bn rights issue. The announcement followed S&P’s decision to downgrade SBB to sub-investment grade status. The company’s share price has plunged ~45% as a consequence. SBB (class B/D) equity holders will need to face any one of alternative scenarios ahead. All are fraught with risks.
Edition: 160
- 12 May, 2023
Nordic Property Cos: In search of a miracle
Real Estate
Castellum and Samhallsbyggnadsbolaget are both Swedish property companies with complex ownership structures, impaired corporate governance and stretched balance sheets. The current challenging macroeconomic backdrop has now lifted the veil on the many risks embedded in their corporate structures. In this report Green Street explores the various implications of the recent announcements made by companies’ CEOs and provides insights on how to navigate the current market volatility.
Edition: 148
- 11 November, 2022
Samhallsbyggnadsbolaget (SBBB SS) Sweden
Real Estate
Fallen Angel - affiliate-party transactions skews valuations. Green Street NAV is -25% vs. company-reported. Leverage and debt/EBITDA are amongst the highest across Green Street's coverage - rescue rights issue a distinct possibility in the medium term. Issues examined in their 37-page report include complex capital structure; unusual financial engineering; poor management track record; corporate governance issues; disclosure that lacks transparency and obfuscates the market’s ability to derive an accurate valuation.
Edition: 143
- 02 September, 2022