Fidest – Agenzia giornalistica/press agency

Quotidiano di informazione – Anno 32 n° 302

Posts Tagged ‘credi’

CREDI indicates tightened access to debt for property companies

Posted by fidest press agency su sabato, 22 dicembre 2018

In the December issue of the Catella Real Estate Debt Indicator (CREDI), the Main index falls slightly from 49.6 to 48.6, as credit availability has worsened noticeably over the past two quarters. Property companies did experience slightly improved credit terms as interest rates fall to a record low, but uncertainty looms as credit margins appear to rise in the future.“This year’s fourth CREDI survey appear to confirm a shift in the credit market, where access to credit has continued to gradually worsen. Debt is still attractively priced when it is available, but the access to debt is tightening. Furthermore, we have observed a trend since September last year where surveyed banks and property companies have held a fairly positive view of the current credit climate, but their view of the future development has been more pessimistic. However, this anticipated negative development has yet to materialise. In fact, the average interest rate of listed property companies has continued to fall to a record low 2 per cent,” says Martin Malhotra, Project Manager at Catella.
“We will see the effects of the central banks reducing their stimulus programs and tightening up liquidity, which will also affect the Swedish bond market. In particular, the market will demand higher returns for risk, which will make debt financing more expensive for small actors that are perceived to have higher risk. Large actors with low-risk business models, on the other hand, will still be able to find attractively priced debt,” says Arvid Lindqvist, Head of Research at Catella.“While it has been a good year for property companies on the stock market, the average dividend for property-related preference shares increased by 50 bps on the back of investors’ fear of a steeper yield curve. At the same time, the recently introduced class D common share is increasingly being viewed as a replacement for the preference share,” Martin Malhotra concludes.The twenty-fifth edition of the Catella Real Estate Debt Indicator (CREDI) is attached and can also be downloaded from catella.com/en/news-and-pressreleases/research. CREDI consists of two parts: one is an index based on a survey of listed property companies and active banks, and the other a set of indices and analyses based on publicly available data.

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CREDI indicates a stable credit market, despite growing pessimism among banks

Posted by fidest press agency su giovedì, 4 ottobre 2018

In the October issue of the Catella Real Estate Debt Indicator (CREDI), the Main index falls slightly from 54.3 to 49.6, following three straight quarters of improving credit terms. Property companies remain positive, while the banks’ view of the credit market has worsened. Furthermore, the bond market is showing clear signs of levelling out.“This year’s third CREDI survey indicates a stabilization in the credit market, following three quarters with noticeably improved sentiments. The banks’ optimism from the last survey has shifted to a more pessimistic view of the credit market, while property companies remain positive. Credit margins have decreased and credit terms have been extended, but going forward the market believes we will see increased credit margins and reduced access to debt financing. However, the current situation remains positive with the average interest rate for property companies on Nasdaq Stockholm Main Market falling to a record low 2.1 per cent,” says Martin Malhotra, Project Manager at Catella.“Low market interest rates and tight interest margins have made it possible for property companies to be competitive in bidding processes. However, we have entered the final phase of the economic cycle and the direction going forward is gradually higher rates from the central banks, who will also reduce their purchasing of securities. For property companies, this will entail slightly higher market interest rates in general and higher interest margins for companies with higher-risk business models in particular,” says Arvid Lindqvist, Head of Research at Catella.“We are also observing a stabilization in the bond market. Last year was a record year for property-related corporate bonds on Nasdaq Stockholm Main Market, as the volume of outstanding bonds increased by 80 per cent from SEK 51 billion to SEK 91 billion. However, we are now seeing that the bonds’ share of interest-bearing debt has levelled out around the 25 per cent mark for the second straight quarter, while the outstanding volume has increased by merely 4 per cent,” Martin Malhotra concludes.The twenty-fourth edition of the Catella Real Estate Debt Indicator (CREDI) is attached and can also be downloaded from catella.com/en/news-and-pressreleases/research. CREDI consists of two parts: one is an index based on a survey of listed property companies and active banks, and the other a set of indices based on publicly available data. CREDI also includes an analysis of preference shares and an overview of the property market.

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CREDI indicates increased optimism among banks as well as improved credit terms

Posted by fidest press agency su sabato, 7 luglio 2018

In the July issue of the Catella Real Estate Debt Indicator (CREDI), the Main index increases from 50.5 to 54.3, which is the strongest index score since September 2015. Property companies and banks have a positive view of the development of the credit market, while the bond market is showing signs of levelling out.“In this year’s second CREDI survey, we see an increased optimism among banks. For the first time since March 2014, banks have a higher Current Situation index than property companies. Credit availability has improved while credit margins have fallen, which has benefitted borrowers. Property companies on Nasdaq Stockholm Main Market currently has the lowest average interest rate observed in the history of CREDI,” says Martin Malhotra, Project Manager at Catella.“The CREDI Current Situation index is a good leading indicator for Swedish banks’ lending. Accordingly, the Main index increasing to 54.3 indicates that banks will increase their lending slightly in the coming quarters. Furthermore, we are seeing a continued strong interest in centrally located office properties in Stockholm, Gothenburg and Malmö, as well as an increased yield gap compared to properties in B and C locations,” says Arvid Lindqvist, Head of Research at Catella.“In the latest issue of CREDI, we also make an important observation regarding the bond market. After a record year in 2017, where the volume of outstanding bonds among property companies listed on Nasdaq Stockholm Main Market increased by 80 per cent, from SEK 51 billion to SEK 91 billion, bonds’ share of interest bearing debt has levelled out around the 25 per cent mark. It is likely that banks have acknowledged the increasing popularity of bonds by offering better credit terms for borrowers, which is also the reason for the strong results in the latest CREDI survey,” Martin Malhotra concludes.The twenty-third edition of the Catella Real Estate Debt Indicator (CREDI) is attached and can also be downloaded from catella.com/en/news-and-pressreleases/research. CREDI consists of two parts: one is an index based on a survey of listed property companies and active banks, and the other a set of indices based on publicly available data. CREDI also includes an analysis of preference shares and an overview of the property market.

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CREDI indicates an improving credit market

Posted by fidest press agency su mercoledì, 11 aprile 2018

In the April issue of the Catella Real Estate Debt Indicator (CREDI), the Main index increases from 50.3 to 50.5, which is the second consecutive quarter where the Main index is above 50.0.
“In this year’s first CREDI survey, the credit market continues to improve as the Main index increases from 50.3 to 50.5. This is the second consecutive quarter where the CREDI survey indicates an improving credit market, which has not happened since the autumn of 2015. Reduced credit margins and increased access to credit are important reasons for the improved credit climate,” says Martin Malhotra, Project Manager at Catella.“We are seeing a strong interest in centrally located office properties in large cities, especially in Stockholm, while it is becoming increasingly difficult to sell properties in secondary locations. We are expecting to see an increased yield gap between properties in A, B and C locations,” says Arvid Lindqvist, Head of Research at Catella.“Furthermore, we are seeing a continued interest in bonds among property companies. In 2017, property companies listed on Nasdaq Stockholm Main Market increased their volume of bonds by 80 per cent, from SEK 51 billion to SEK 91 billion. In the spring of 2018, we also had the first new issue of property-related preference shares on Nasdaq Stockholm Main Market since May 2016, as NP3 issued preference shares of approximately SEK 288 million,” Martin Malhotra concludes.The twenty-second edition of the Catella Real Estate Debt Indicator (CREDI) is attached and can also be downloaded from catella.com/en/news-and-pressreleases/research. CREDI consists of two parts: one is an index based on a survey of listed property companies and active banks, and the other a set of indices based on publicly available data. CREDI also includes an analysis of preference shares and an overview of the property market.

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CREDI indicates a stabilized credit market, but the future is uncertain

Posted by fidest press agency su giovedì, 21 dicembre 2017

catella10In the December issue of the Catella Real Estate Debt Indicator (CREDI), the Main index increases from 49.8 to 50.3. This is the first time the Main index crosses the 50.0 turning point since September 2015.“In this year’s fourth CREDI survey, we see a stabilized credit market where the Main index increases from 49.8 to 50.3. This is the first time the Main index crosses the 50.0 turning point since the autumn of 2015. Listed property companies have a very positive view of the development of the credit market, which is not surprising considering the strong bond market this past autumn, while banks have a more balanced view of the credit market. Moreover, property companies and banks agree that financing conditions are likely to worsen in the coming quarters,” says Martin Malhotra, Project Manager at Catella.“We are observing a gap in credit availability between the large, well-established property companies and smaller investors who lack a strong track record, and we believe that this gap might increase in the future. Furthermore, we are seeing signs of a repricing of the property market, where properties in the best locations will retain their value, while price expectations will decrease for properties outside attractive locations in the large cities,” says Arvid Lindqvist, Head of Research at Catella.
“We are also observing that property companies increasingly are focusing on bonds instead of preference shares. The most noticeable example is Balder, which during the year has redeemed all of its outstanding preference shares, amounting to nearly SEK 3 billion, while it has issued nearly SEK 20 billion in bonds,” Martin Malhotra concludes.The twenty-first edition of the Catella Real Estate Debt Indicator (CREDI) is attached and can also be downloaded from catella.com/en/news-and-pressreleases/research. CREDI consists of two parts: one is an index based on a survey of listed property companies and active banks, and the other a set of indices based on publicly available data. This edition also includes an analysis of preference shares and an overview of the property market.

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CREDI: Real estate companies increasingly upbeat about the credit market

Posted by fidest press agency su giovedì, 16 marzo 2017

“This year’s first CREDI survey once again shows an improvement in the CREDI Main Index, from 44.4 to 46.5. This is the best outcome since September 2015, strongly driven by a more positive perception of the credit market among listed real estate companies. It also shows that the perceptions of banks and property companies have diverged. This indicates that banks have become more selective in their lending to small and new borrowers,” says catella Lichtenberg, Project Manager at Catella. “We are seeing a clear correlation between real estate companies’ perceptions of the credit market and the performance of equity markets, with the latter being a leading indicator. We are likely to see continued improvement in the CREDI Main Index over the coming six months. The required yield has risen in the transaction market, which is probably because buyers and sellers are increasingly meeting in secondary locations. Most big companies are streamlining their portfolios and focusing on large metropolitan areas, making it possible for players that want to enter the market to bid for properties in secondary locations without facing too much competition,” says Arvid Lindqvist, Head of Research at Catella. “After equity prices rose in the third quarter the stocks of the listed property companies fell back significantly in the fourth which, when combined with continued rises in book values, has now almost entirely eliminated the stock market premium to net assets for real estate companies. However, we are now seeing greater interest in real estate companies’ bonds. Bonds had a record year in 2016, and these now account for almost 16 percent of property companies’ interest-bearing debt,” concludes Martin Malhotra.
The eighteenth edition of the Catella Real Estate Debt Indicator (CREDI) is attached and can also be downloaded from catella.com/credi. CREDI consists of two parts: one is an index based on a survey of listed property companies and active banks, and the other a set of indices based on publicly available data. Read more about the methodology at catella.com/credi. This edition also includes an analysis of preference shares and an overview of the property market.

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