SAMHÄLLSBYGGNADSBOLAGET I NORDEN AB (PUBL): Interim Report January – June 2020 in brief:

  • Rental income increased to SEK 2,664m (893).
  • The operating surplus increased to SEK 1,817m (560).
  • Cashflow from operating activities before changes in working capital was SEK 1,194m (244).
  • Profit before tax increased to SEK 2,447m (1,060), of which:
  • Profit from property management is included with SEK 924m (254). The profit from property management includes costs for early repayment of loans and other non-recurring costs of SEK -154m (-123).
  • Changes in value of properties are included with SEK 1,789m (894).
  • Changes in the value of derivatives are included with SEK -266m (-88).
  • Profit for the period was SEK 2,595m (933) after deduction of deferred tax of SEK 200m (-90) and current tax of SEK -52m (-37), corresponding to earnings per ordinary share A and B of SEK 1.80 (1.01) before dilution.
  • The value of the property portfolio amounted to SEK 73.0bn (79.5).
  • Long-term net asset value (EPRA NRV) calculated in accordance with EPRA’s new guidelines for net asset value calculations was SEK 25,247m (9,593), corresponding to SEK 19.91 kr (12.69) per share.

THE SECOND QUARTER IN BRIEF

  • Rental income increased to SEK 1,323m (464).
  • Net operating income increased to SEK 922m (320).
  • Operating profit increased to SEK 605m (148).
  • Cash flow from operations before changes in working capital amounted to SEK 750m (147).
  • Net income after tax for the period amounted to SEK 1, 233m (717), corresponding to earnings per share of SEK 0.86 (0.73) before dilution.

Significant events after the end of the period

• At the beginning of July, SBB signed an agreement for the acquisition of a larger portfolio of preschools from the Norwegian Laeringsverkstedet, for an agreed property value of NOK 4,250m. The portfolio consists of 138 properties with approximately 114,000 sq.m. of building area and 601,000 sq.m. of land. Laeringsverkstedet has signed 35-year triple-net agreements for the entire portfolio with a rent of NOK 251.4m.

• After the end of the quarter, SBB has carried out an external valuation of lease agreements that have been signed after the end of the quarter and contracts that will be entered until 30 June 2021. These lease agreements have an average duration of 36 years and a fully indexed operating net income of SEK 325m. The outcome of the valuation shows an extra value that exceeds the acquisition value / investments by SEK 2,242m (fair value gain).

Profit before tax amounted to SEK 2,447m and profit after tax was SEK 2,595m. Adjusted for non-recurring costs and deductions for earnings attributable to preference shares, D shares and hybrid bonds, the result for the period was SEK 2.08 per ordinary share A and B. Our most important asset, our employees have successfully integrated Hemfosa and our margin in terms of surplus ratio was for the first half of 2020 approximately seven percentage points higher (adjusted for one off costs) than the corresponding last year. Net operating income in a comparable portfolio (like for like) increased by seven percent.

Ilija Batljan, CEO and Founder

Attachment: Interim Report January – June 2020

The Interim Report can also be found in the following link: sbbnorden.se/en/investor-relations-main/reports/.

For further information, please contact:

Ilija Batljan, CEO and Founder of Samhällsbyggnadsbolaget i Norden AB, [email protected]

This information is information that Samhällsbyggnadsbolaget i Norden AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was submitted for publication, through the agency of the contact person set out above on July 14, 2020, at 08:00 CET.