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

  • Rental income increased to SEK 3,868m (1,400).
  • The operating surplus increased to SEK 2,669m (903).
  • Cashflow from operating activities before changes in working capital was SEK 1,590m (450).
  • Profit before tax increased to SEK 6,142m (1,526), of which:
    • Profit from property management is included in the amount of SEK 1,601m (508). The profit from property management includes costs for early repayment of loans and other non-recurring costs of SEK -206m (-130).
    • Changes in value of properties are included in the amount of SEK 5,248m (1,136).
    • Changes in the value of derivatives are included in the amount of SEK -268m (-118).

     

  • Profit for the period was SEK 5,734m (1,337) after the deduction of deferred tax of SEK -316m (-137) and current tax of SEK -92m (-52), corresponding to earnings per series A and B ordinary share of SEK 4.15 (1.41) before dilution.
  • The value of the property portfolio amounted to SEK 81.2bn (79.5).
  • Long-term net asset value (EPRA NRV) calculated in accordance with EPRA’s new guidelines for net asset value calculations was SEK 30,886m (9,914), corresponding to SEK 24.36 (13.11) per share.
  • SBB’s average interest rate on a 12-month rolling basis has decreased from 1.75 percent to 1.41 percent.

THE THIRD QUARTER IN BRIEF

  • Rental income increased to SEK 1,204m (507).
  • Net operating income increased to SEK 852m (343).
  • Operating profit increased to SEK 677m (254).
  • Cash flow from operations before changes in working capital amounted to SEK 411m (255).
  • Net income after tax for the period amounted to SEK 3,139m (404), corresponding to earnings per share of SEK 2.35 (0.40) before dilution.

”The third quarter of 2020 became SBB’s best quarter ever. Profit before tax amounted to SEK 4,123m and profit after tax was SEK 3,139m, corresponding to earnings per share of SEK 2.35 (0.40). The strong profit growth is delivered with low risk, longer leases, decreasing leverage and a much stronger financial position.

Our average lease duration for community service properties has increased by 28 percent, from 7 to 9 years.

SBB’s average interest rate on a 12-month rolling basis has decreased from 1.75 percent to 1.41 percent. SBB has no exposure to variable interest rates. The average fixed interest rate duration for all interest-bearing liabilities is among the longest in the Nordics at 4.9 years (2.8) and the average debt maturity was 4.7 years (3.4). We have slightly more than SEK 60 billion in unencumbered assets, we have cash including liquidity from properties that have been sold but not yet transferred and financial assets of SEK 9.6bn, as well as available credit commitments of SEK 9.1bnand we show that we have achieved the conditions for a BBB+ rating.

As of 30 September 2020, SBB’s portfolio of building rights amounted to approximately 2,185,000 sq.m. GFA for social infrastructure, corresponding to approximately 29,000 apartments, making SBB one of the leading property developers in the Nordics. This safeguards long-term value creation and sharp increases in net asset value. Two years ago, we communicated our view that we would be able to deliver the highest annual increase in net asset value among all listed Swedish property companies for the years 2019-2021. The outcome for 2019 ended up at a high 73 percent per series A and B ordinary share. After the first nine months of 2020, we are looking at increasing our net asset value per series A and B ordinary share by 22 percent, paving the way for the continued value creation.

Ilija Batljan
CEO and Founder

Attachment: Interim Report January – September 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. The information was submitted for publication, through the agency of the contact person set out above on November 3, 2020, at 08:00 CET.

Samhällsbyggnadsbolaget i Norden AB (publ) (SBB) is the Nordic region’s leading property company in social infrastructure. The Company’s strategy is to long term own and manage social infrastructure properties in the Nordics and rent regulated residential properties in Sweden, and to actively work with property development. Through SBB’s commitment and engagement in community participation and social responsibility, municipalities and other stakeholders find the Company an attractive long-term partner. The Company’s series B shares (ticker SBB B) and D shares (ticker SBB D) are listed on Nasdaq Stockholm, Large Cap. The Company’s preference shares (ticker SBB PREF) are listed on Nasdaq First North Premier Growth Market. Certified Adviser is Erik Penser Bank (contact: [email protected] / +46 84638300). Further information about SBB is available at www.sbbnorden.se.