Landlord Heimstaden Bostad Scraps Dividend to Protect Rating
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Heimstaden Bostad AB has decided to pause payouts to protect its credit rating from further downgrades. S&P Global Ratings demoted the landlord to the lowest possible investment-grade rating at the end of 2023.
The landlord won’t pay out dividends for any of its share classes, it stated in its full-year report. The decision “shows our firm commitment to support our credit profile and dedication to our investment grade rating,” Deputy CEO Christian Fladeland said in the report, which also noted a 8.5 billion kronor total comprehensive loss in the fourth quarter. That was driven by a -1.6% change in property values, primarily in Sweden and Germany.