Swedish Property Stocks End Brutal 2022 With Tough Reset Ahead

Originally published on Bloomberg.com on December 20, 2022 as “Swedish Property Stocks End Brutal 2022 With Tough Reset Ahead.”

In 2021, a Swedish property company was one of Europe’s top stocks. It’s ending 2022 at the very bottom of the leaderboard, with a 73% slump that underpins a sector-wide reset.

The reversal of fortunes for Samhallsbyggnadsbolaget i Norden AB — known as SBB — illustrates the woes of Swedish real estate stocks as they grapple with the fallout from aggressive interest rate hikes, as well as a funding squeeze amid high levels of debt. Peers including Fastighets AB Balder and Castellum AB have plunged at least 50%.

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