Heimstaden - comment

Heimstaden Bostad held their Q2 conference call this morning reiterating their target to maintain Investment Grade status. Management highlighted the potential of asset disposals and/or equity injection with expected timing before year-end. Heinstaden Bostad continues to access the secured market.  Pricing in the German and Danish secured lending remains at 80-110bps over.  Dutch/Swedish and Norwegian markets have all widened to 170-220bps for secured lending. 

The bigger issue is at Heimstaden AB who rely on dividends from Heimstaden Bostad, which at the current trajectory, will not be paid this year. Hemistaden AB is in the process of selling some of their owned property but progress remains very slow. 

We are working on a full investment note on the Heimstaden complex and will publish it next week.