Preferensaktier och obligationer som fastighetsfinansiering

Sammanfattning: The recent turbulence in the financial markets has contributed to the banks becoming more restrictive to lend to real estate financing. Deleveraging in Europe's banking sector has also contributed to banks reducing their leverage and increasing capital adequacy to meet the new requirements. Loan-to-value ratios in real estate loans have fallen while banks' interest margins have increased, which has made property investors to look for alternative sources of funding in the capital markets. The two most interesting forms of financing for real estate right now is bonds and preferred shares as they fit property companies that generate stable and predictable cash flows. A bond is an interest-bearing debenture certifying that the purchaser has lent money to the company that issued the bond. It's a very safe security since the only reason you would not be able to get your money back is if the company goes bankrupt. Preference shares structure is something between an ordinary share and a bond. The preference share generates an annual fixed predetermined dividend paid before common shareholders receive dividend which makes it much more predictable and stable relative to an ordinary share. Demand for investing in bonds and preference shares is considered good since equity investors have shown strong interest and these securities offer a good risk adjusted return The property companies that has issued both bonds and preferred shares have been selected to be further examined in this paper. The property companies currently consist of Corem Property Group, Fastighets AB Balder, Klövern AB and Sagax AB. Since 2007, all of these companies diversified their financing primarily through the issuing of preference shares and bonds, and the majority has moved towards a greater proportion of equity. It is clear that alternative sources of financing such as preferred shares and bonds will become more common in the future as it is abroad.