Corem Risks Setback as Ericsson Moves Stockholm Ops — Market Talk

Corem risks a clear setback in Kista after Ericsson announced that the company will leave the area, SB1 Markets analyst Niklas Wetterling writes. Ericsson currently rents 56,000 square meters from Corem in Kista, an area north of central Stockholm. SB1 Markets estimates that a termination could mean a 140 million Swedish kronor hit to annual net rental income, based on 2,500 kronor a square meter. "Our forecasts for cash flow per share in 2027 could theoretically be reduced by 60% if the terminations were to take effect now, rather than after 2030." SB1 Markets also sees a risk of negative spillover effects on Corem's other assets in Kista and Stockholm North. The bank expects Corem to continue selling assets in the short term to reduce debt. Shares fall 9.9%. (dominic.chopping@wsj.com)