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Third party research

Oscar Properties: Focus on deleveraging in 2023 - ABG

Oscar Properties Holding

This is a third party research report and does not necessarily reflect our views or values

Download report (PDF)
Positive net leasing in both Q4'22 and 2022
Finalised divestments and more to come
Net LTV of 73.5% and increasing to 77.0% in Q4'23e


Rental income increased ~11% q-o-q in Q4'22

Oscar Properties reported rental income and NOI of SEK 119m and SEK 82m, up by ~11% and ~23% q-o-q, respectively. Moreover, income from property management improved materially q-o-q, although still negative at SEK -14m (-22m). Net leasing was positive at SEK 1.4m in Q4 and SEK 7.7m for 2022, and the occupancy rate improved 1pp q-o-q to 88%. Property value changes amounted to -3.8%, and we forecast another ~6% value decline in 2023. Overall, Q4'22 was better than expected but we still cut estimates as 1) Oscar Properties has decided not to complete a SEK 1,050m portfolio acquisition (vs the reported property value of SEK 6,666m in Q4'22), and 2) interest rate expectations have increased further and Oscar Properties has 88% floating debt. As CEPS is in negative territory for 2023e-2025e, one should not focus on that estimate change, in our view.