© Reuters. FILE PHOTO: The logo of SBB is seen at the company’s headquarters in Stockholm, Sweden, September 14, 2023. REUTERS/Marie Mannes/File Photo
STOCKHOLM (Reuters) -Swedish property group SBB said on Tuesday that its pre-tax loss narrowed in the fourth quarter and it expected to find it easier to reduce its debt pile this year.
Large debts with looming maturities, soaring interest rates and a wilting economy have produced a toxic cocktail for Sweden’s property companies, with many seeing their credit ratings cut to junk over the past year, including SBB.
The landlord, which owns properties across Sweden including hospitals and care homes, reported a fourth quarter pre-tax loss of 4.93 billion Swedish crowns ($479.65 million), compared to a loss of a revised 8.03 billion crowns a year ago.
The group is under pressure to cut its debt amid a slowing property market, with its shares down more than 90% from their 2021 peak.
“We need to continue reducing debt levels and dependence on individual funding sources, and we are working from a solid plan to achieve this. Executing the plan is expected to be easier in 2024 than in 2023,” CEO Leiv Synnes said in an earnings statement.
($1 = 10.2784 Swedish crowns)
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