Swedish property company SBB postpones dividend payout for a year, ET RealEstate

June 23, 2023

STOCKHOLM: Swedish real estate company SBB has postponed its 2023 dividend payment for a year, the company said on Wednesday as it continues to fight to improve its liquidity.

The dividend, which was originally meant to be paid monthly, has been paused since early May, when the company scrapped a planned rights issue after its credit rating was downgraded to junk status on concerns over its liquidity and short-term debt.

Rising interest rates, soaring inflation and growing debt have hit real estate companies in Sweden, with policymakers noting a risk to financial stability.

The company will now pay the dividend in full on June 28, 2024, the last business day on which it can be made before a month-end cutoff.

Shareholders voted at an extraordinary general meeting last week to allow the board to choose the date of the payment but criticised its original decision to approve the dividend in April.

SBB had been a favourite among retail investors due to its monthly dividend payout but shares in the company have fallen sharply over the past few months. They are also subjected to more short-selling than any other Swedish stock, according to data from the country’s financial regulator.

In attempts to appease investors the company replaced its CEO and founder, sold shares in a construction company at a loss, and widened a strategic review to look at selling parts or the whole of the business.

The company has said previously it aims to reduce its debt by selling off assets amounting to roughly 6 billion Swedish crowns ($562 million) during the coming year.

  • Published On Jun 22, 2023 at 05:18 PM IST

Join the community of 2M+ industry professionals

Subscribe to our newsletter to get latest insights & analysis.

Download ETRealty App

  • Get Realtime updates
  • Save your favourite articles

Scan to download App

Source link

Abhay Singh

Web Developer

Leave a Comment