SBB has an internal management organization. SBB’s management focuses on active work with value-creating development and continuous maintenance of the existing portfolio. A high surplus ratio is one of the company’s sustainability goals, and the company performs management operations with a focus on net operating income. This is partly done through energy- saving investments.
In addition to working with traditional property management, SBB also works with further value-creating activities: property development, investments/renovations and business development.
SBB works actively with property development, which entails development of building rights and participation in property development projects in joint ventures with a limited implementation risk for SBB. The company’s strategy is that around 10 percent of the property portfolio is to be comprised of the property segment Other, which entails cash flow properties with identified development potential. The segment should generate earnings of SEK 250-400m per year on average over a business cycle. The properties that SBB acquires within the segment Other are cash flow properties with development potential that generate cash flow until a detailed development plan and further development. The acquisitions are most often made off market after SBB has held a dialogue with the respective municipality to ensure that the property with the local area is prioritized for upcoming urban development.
Investments and renovations are an important part of SBB’s value-creating management. With an assessed target of 600 renovated apartments per year and an assessed renovation cost of around SEK 5,000/sq.m., around SEK 300m of further value is created every year based on operating net improvements due to already negotiated renovation rents. In addition to this, value is generated through renovations of and investments in community service properties and the earnings effect is estimated at SEK 400m annually in total. For example, SBB has several housing units for the support of the disabled under on-going production.
SBB actively works on business development and value creation through active portfolio management. The business development team led by Business Development Director Oscar Lekander has carried out transactions for nearly SEK 100bn throughout the Nordic region since 2010, of which around half has been with public sector clients. Since 2017, SBB has acquired and sold properties for a total gross value of around SEK 40bn.