Amasten owns, manages, acquires and develops properties in Swedish growth municipalities. The portfolio consists of rental apartments (90%) and commercial properties (10%) in northern and central Sweden. The company has been listed on Nasdaq First North since 2014. Amasten has its own, new production concept, which is to build apartments using pre-fabricated modules produced in China with Swedish project management. The project portfolio comprises ~1,000 apartments.
Amasten has ~1,000 rental apartments in its current project portfolio. The company guides that ~130 apartments will be completed in 2020 and the remaining apartments in 2021. Hence, we see potential in development profits and increases in CEPS from its current project portfolio. Amasten owns 29.6% of SSM Holding, which may give it access to SSM’s building rights and allow the integration of Amasten’s Riki concept with SSM.
Real estate companies are subject to macro risks, supply of premises risk, supply of capital risk, debt availability risk, forex risk, regulatory risk, rental income risk, property cost risk, property value risk and ownership risk. We argue that specific risks related to Amasten are ownership risk and product risk.