SBB Halts Dividend Payment as Sweden Real Estate Concerns Deepen
- Company sees payment ahead of 2024 annual general meeting
- S&P Global earlier cut the company’s credit rating to junk
The Sara Kulturhus, a SBB project, in Skelleftea, Sweden.
Source: Visit Skelleftea
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One of Sweden’s biggest commercial landlords plans to halt payment of its dividend after suffering a ratings cut, in another sign the funding squeeze gripping Sweden’s leveraged property sector is worsening.
SBB — as Samhallsbyggnadsbolaget i Norden AB is more commonly known — is seeking to push back its dividend payment date until “at the latest” ahead of its 2024 annual general meeting. In a statement issued close to 11 p.m. local time, the Stockholm-based company said it will not carry out the issuance of 2.6 billion kronor ($260 million) worth of new class D shares and that it will continue to work on asset sales to strengthen its liquidity.