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SBB in Sweden reports Q3 2023 pre-tax loss of $ 287 mn
ECONOMY & POLICY

SBB in Sweden reports Q3 2023 pre-tax loss of $ 287 mn

In the third quarter, the Swedish property group SBB, burdened by debt, announced a widened pre-tax loss. The company, which possesses properties throughout Sweden, including hospitals and care homes, disclosed a pre-tax loss of 3.13 billion Swedish crowns for ongoing operations, in contrast to a loss of a revised 2.56 billion crowns the previous year.

This result fell short of the expectation of a 2 billion-crown loss projected by Carlsquare analyst Bertil Nilsson. SBB's shares experienced a 6% decline in early trading.

During the quarter, the company reduced its property values by 3.52 billion crowns, a move prompted by analysts' warnings about the ongoing pressure on property values due to high interest rates. The combination of substantial debts with impending maturities, escalating interest rates, and a weakening economy has created a problematic situation for Sweden's commercial property companies. Over the past year, many, including SBB, have witnessed downgrades in their credit ratings to junk.

In the third quarter, the Swedish property group SBB, burdened by debt, announced a widened pre-tax loss. The company, which possesses properties throughout Sweden, including hospitals and care homes, disclosed a pre-tax loss of 3.13 billion Swedish crowns for ongoing operations, in contrast to a loss of a revised 2.56 billion crowns the previous year. This result fell short of the expectation of a 2 billion-crown loss projected by Carlsquare analyst Bertil Nilsson. SBB's shares experienced a 6% decline in early trading. During the quarter, the company reduced its property values by 3.52 billion crowns, a move prompted by analysts' warnings about the ongoing pressure on property values due to high interest rates. The combination of substantial debts with impending maturities, escalating interest rates, and a weakening economy has created a problematic situation for Sweden's commercial property companies. Over the past year, many, including SBB, have witnessed downgrades in their credit ratings to junk.

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