S&P rates Humlegarden Fastigheter BBB+

S&P said it gave a BBB+ issuer rating to Humlegarden Fastigheter AB.

“Our rating reflects Humlegarden's well-spread leases across creditworthy tenants, which partly mitigate a moderate portfolio size and some geographic and segment concentration. Humlegarden has a high-quality property portfolio valued at SEK 36.8 billion as of June 30, 2021 with the majority of premises located in central parts of Sweden's capital Stockholm. About 45% of the property value is in the inner city, and the remainder in adjacent areas (20% in Gardet/Hagastaden and 35% in Solna Strand or other areas) with supportive demand-supply dynamics that should continue to support occupancy rates,” the agency said in a press release.

S&P also noted the company is well advanced in terms of sustainability standards, with 91% of the gross leasing area certified according to Sweden's Green Building Council as of June. “This provides the company with a competitive advantage, since we think tenants' and investors' demand is increasingly focusing on green assets.”

The outlook is stable. The agency said it expects Humlegarden’s S&P Global Ratings-adjusted debt to debt plus equity improving below 40% and interest coverage staying above 4.5x.

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