10 days old, but quite interesting.
https://docs.penser.se/research/2081-A/sbb_news.pdf
Could I get a summary of this? My own Swedish skills are quite weak. 
You can copy the text into Google Translate 
I can’t say I’m surprised that the Swedish Financial Supervisory Authority (Finansinspektionen) is launching an investigation into SBB. According to the press release, the following points are under scrutiny: (browser translation)
Valuation of properties - Laeringsverkstedet portfolio
Accounting for acquisitions as asset acquisitions - Amasten
Accounting for acquisitions as asset acquisitions - Public Houses
Disclosure of significant assumptions per class of real estate
Alternative key figures
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One has to hope that the schools sell.
Even a bit better than expectations…
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It could be quite a rollercoaster today; after all, that EPRA NRV 42->17 per share is quite an update 
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True, the report itself is absolutely terrible reading, but then again, so were the forecasts. 5- was quite alright.
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According to Dagens Industri, the corrections relate to the amount of SBB’s loan obligations. SBB had retroactively corrected the total value of its short-maturity loans to 14.5 billion crowns, whereas the company originally reported the figure as 11.4 billion. The correction was based on a reclassification of long-maturity loans as short-maturity loans.
Individual numerical errors in interim reports are not uncommon for listed companies, but companies usually communicate corrections transparently through separate stock exchange releases. According to DI, the Stockholm Stock Exchange and the Swedish Financial Supervisory Authority have declined to comment on the case or any potential sanctions SBB might face.
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S&P has also downgraded the rating to actual junk status, CCC+. This was the third downgrade within consecutive calendar months, and apart from the first one, the cuts have been quite steep. The main reason is a failure in liquidity management; interest-bearing debts maturing over the next 12 months clearly exceed available sources of liquidity.
EDIT: This indeed came to mind because the DI article also mentioned that the company had not updated the rating change on its investor pages, even though a week had already passed. However, it is now there today:
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The CFO is leaving and SBB’s share price is tanking. Not a strong signal for the future.
A financial journalist from Dagens Industri simply commented “aktien är slut” (the stock is finished). Briefly summarizing the DI video — anything left for the shareholder after the creditors have taken their share is a bonus. And if anything is left, one should be pleasantly surprised.
Back on May 11, @DayTraderXL linked a screenshot where the CFO dumped their shares. Now they are following suit.
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I’ve been wondering if the CFO’s departure is part of the new CEO’s “house cleaning.” After all, he was the CFO of Castellum before SBB, so he knows real estate finance and so on extremely well. This is just speculation, of course, as I wipe the sweat off my brow and stare at the falling share price.
Hemsö received 1bn SEK / €84m in financing. I wonder if they’ll buy SBB’s properties in Finland.
Edit. Or in Sweden. And they would still have time to close the deals by Sept 15 or the end of September to get them into this quarter.
At least the market has reacted positively to the news, and maybe my own faith in the company is starting to slowly return as well. Although I still think there’s a risk that the Swedish Central Bank might raise interest rates a bit. This, of course, wouldn’t be good for SBB.
The repayment of the internal loan is practically sufficient to cover the bond maturing in 2024. In itself, I don’t understand why there is such a celebration on the stock exchange. Liquidity remains shaky, and further measures are needed to prevent the company from reaching an impasse. In fact, credit metrics might even weaken slightly following this maneuver: ICR, because the subsidiary’s income is removed from the income statement, and LTV, because properties are removed from the balance sheet…
The proposed IPO of the Residential division or bringing in co-investors should, for its part, help significantly, but the market is currently so frozen that there don’t seem to be the prerequisites for it. I don’t know how much this new reporting structure will actually improve access to bank financing as management suggests, but if that is the case, it would be a great thing and, in my opinion, positive in itself.
The bond market is closed to the company, and what the company needs most urgently is some form of equity financing so that banks would be more comfortable with financing the company.
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The company’s CEO has been buying both B and D shares. What do you think, is there light at the end of the tunnel or is this a completely hopeless case?
Paywall.
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There is no paywall. And blah blah blah, just to meet the character limit.
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