Community service properties, which together with Swedish regulated rental apartments are defined as social infrastructure, constitute SBB’s core holdings and over time shall comprise around 90 percent of the company’s total property value.
The combination of regulated rental apartments and community service properties is unique among listed companies in the Nordic region. They are assets with minimal risk since the supply of rental apartments in Sweden is far below demand due to a regulated market and a growing population, at the same time that the need for community service properties is very extensive for demographic reasons in combination with tenants that are financed by the Nordic welfare states.
The property portfolio of the company is characterized by high letting ratio and long leases. Rental income is comprised of long, secure flows mainly from national and local government and from rental apartments.
As of 31 December 2019, the property portfolio comprised 1,394 properties. The properties’ value totalled SEK 79.5bn, of which housing amounted to SEK 13.2bn, community service properties SEK 61.5bn, and other properties SEK 4.8bn. The total area was approximately 4,233,000 sq.m. with a 12-month rolling rental income according to an earning capacity of SEK 5,217m.
Community service properties
SBB’s community service properties include properties that are used by tenants that are tax financed by the Nordic welfare states. The tenants conduct operations in education, elderly care, support for the disabled and other activities for healthcare and municipal and national administration. For example, SBB owns several municipal buildings, ministry buildings, a large number of elderly housing units, preschools and schools and is the Nordic region’s largest actor in properties for support of the disabled with around 250 such properties. See our Community service properties here.
Rent-regulated residential properties
SBB manages and refines homes in Swedish growth municipalities. Our properties are located in close vicinity to the town centre and with access to very good public transport.
Residential is characterized by high demand and low supply, and thereby a high occupancy rate, as well as low tenant dependence. The Swedish housing market is characterized by strict regulation, lagging housing construction and strong population growth, which has led to a shortage of homes in large parts of Sweden. Sweden is one of the countries with the highest expected population growth in the next few years, both compared with the other Nordic countries and Europe as a whole. On a regional level in Sweden, SBB is well positioned and is found in cities with a positive population growth.