SB1 Markets reiterates its neutral rating and price target of SEK 3.50 for real estate company Corem following the announcement that Ericsson is set to vacate the Kista area.
The research firm notes that Ericsson currently leases 56,000 square meters from Corem, with the largest lease agreement running until September 2030. A termination is estimated to result in a negative net leasing impact of approximately SEK 140 million per year.
SB1 Markets estimates that Corem's cash flow per share for 2027 could theoretically decrease by 60 percent if the terminations were to take effect immediately. The firm also sees a risk of negative spillover effects on the company's other properties in Kista and Stockholm Nord (representing 15 percent of total assets) and expects continued asset disposals to reduce leverage.
'Overall, the news is negative for Corem', the research house writes.
Corem Property Group AB is a Sweden-based company engaged in the acquisition, management, development and renewal of industrial, storage, logistical and commercial real estate in Sweden and Denmark. The Company’s property portfolio comprises properties primarily located in the south of Sweden, in regions such as Rosersberg and Arninge in Stockholm, Oresund, Vast, Smaland and Malardalen/Norr, as well as in Copenhagen, Denmark. The Company operates Corem AB as a wholy owned subsidiary.
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