MaxFastigheter is a Swedish real estate company that owns and develops high yield commercial properties. The portfolio comprise retail (58%), leisure (18%), logistics/industry (15%) and other (9%). The retail exposure is mainly retail parks with discount retail and grocery retail. The company has Dollarstore (18%), Granngården (6%), Leos Lekland (6%), Willys (6%), ICA (4%), Rekryteringsmyndigheten (3%), and Burger King (3%) among its clients. The properties are in Karlstad (35%), Eskilstuna (18%), Västerås (16%), Norrköping/Linköping (12%), Stockholm (10%), Gävle (5%) and Uppsala (4%).
In April, MaxFastigheter announced new financial and operational targets. The financial targets are 1) Increase income from property management by at least 12% p.a., 2) Increase EPRA NAVPS by at least 12% p.a., 3) Loan-to-value < 60% and 4) interest coverage ratio of >2x while the operational targets are 1) Property values of SEK 5bn, 2) Change share listing from First North to the main exchange and 3) No property segment should exceed 50% on a medium-term time horizon. In addition, to the above targets the company has a new dividend policy of not distributing any dividend until the SEK 5bn targets is reached.
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 MaxFastigheter are ownership risk and/or financial risk.