(Bloomberg) — Roiled by rising borrowing costs and falling valuations that wiped out $148 billion of shareholder value, European landlords are bracing for a new wave of pain.
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Property companies have about $165 billion of bonds maturing through 2026, while banks are reducing their exposure to the industry and credit costs are at their highest since the financial crisis. That’s left some of the firms at risk of being downgraded to junk status, making it even more expensive for them to borrow.
The headwinds include a crash in office values from the City of London to Berlin, leaving property as the least popular industry among fund managers for the third straight month, according to a Bank of America Corp. survey. Bloated with debt, many landlords will have to turn to asset sales, dividend cuts and rights issues in an attempt to rightsize the firms for a more turbulent future.
“The maturity wall could be a catalyst for transactions to happen because if…
2023-06-03 03:11:57
Link from finance.yahoo.com