The real estate sector is posting significant losses on the Stockholm Stock Exchange following a rise in interest rates, EFN reports.
The real estate index is down approximately 4.5 percent, with heavy declines among more highly leveraged companies. Corem and SBB are falling nearly 7 percent, as is Fastator.
"This is how volatile it can be. Markets overreact in every direction as soon as something happens. Now rates are up and things are messy. 4 percent is a lot, but we have become somewhat hardened over the last few years by poor sentiment and geopolitics that can have a major impact," Johan Edberg, real estate analyst at Handelsbanken, told EFN.
Industry giants such as Catena, Balder, and Castellum are also trading lower, down between 3.2 and 4.6 percent.
Long-term interest rates have increased sharply following higher oil prices driven by the conflict involving Iran.
"The Swedish 5-year yield is up around 15 basis points today and, all else being equal, this naturally has a negative impact on net asset values," says Albin Sandberg, real estate analyst at SB1 Markets.
Castellum AB is a Sweden-based company active within the real estate sector. The Company is engaged in the acquisition, ownership, management and development of property on a long-term basis. The property portfolio of Castellum AB comprises commercial real estate, including offices, public sector properties, warehouses and logistics properties, retail properties and light industry properties, covering approximately 4.3 million square meters of total leasable area. The Company is also involved in the coworking and shared office space sector. Castellum AB operates in approximately 20 cities across Sweden, as well as in Copenhagen, Denmark and Helsinki, Finland.
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