Originally published on Bloomberg.com on December 20, 2022 as “Swedish Property Stocks End Brutal 2022 With Tough Reset Ahead.”

In 2021, a Swedish property company was one of Europe’s top stocks. It’s ending 2022 at the very bottom of the leaderboard, with a 73% slump that underpins a sector-wide reset.

The reversal of fortunes for Samhallsbyggnadsbolaget i Norden AB — known as SBB — illustrates the woes of Swedish real estate stocks as they grapple with the fallout from aggressive interest rate hikes, as well as a funding squeeze amid high levels of debt. Peers including Fastighets AB Balder and Castellum AB have plunged at least 50%.

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