SAMHÄLLSBYGGNADSBOLAGET I NORDEN AB (PUBL): YEAR IN BRIEF

  • Rental income was SEK 5,930m (5,121).
  • The operating surplus was SEK 4,047m (3,479).
  • Cash flow from operating activities before changes in working capital was SEK 2,415m (2,232).
  • Profit before tax increased to SEK 29,474m (10,341), of which:
    • Profit from property management is included in the amount of SEK 5,397m (2,474). The profit from property management includes costs for early repayment of loans and other items affecting comparability of SEK -416m (-93).
    • Changes in the values of properties are included in the amount of SEK 21,833m (8,542).
    • Changes in the values of financial instruments are included in the amount of SEK 2,487m (-207).
  • Profit for the period was SEK 25,849m (9,084) after the deduction of deferred tax of SEK -3,378m (-1,092) and current tax of SEK -247m (-165), corresponding to earnings per series A and B ordinary share of SEK 17.35 (6.41) before dilution.
  • The value of the property portfolio amounted to SEK 149.3bn (90.2).
  • Long-term net asset value (EPRA NRV) was SEK 65,466m (37,653), corresponding to SEK 45.11 (28.32) per share.
  • The Board of Directors proposes a dividend of SEK 1.32 (1) per series A and B share be paid out monthly and that a dividend of SEK 2 (2) per series D ordinary share be paid out quarterly.

THE FORTH QUARTER IN BRIEF

  • Rental income increased to SEK 1,695m (1,253).
  • Net operating income increased to SEK 1,082m (810).
  • Profit before tax was SEK 13,728m (4,199), of which the profit from property management was SEK 2,960m (873). The profit from property management result includes costs for early redemption of loans and other non-recurring financing costs of SEK -92m (-45). Changes in value of properties included by SEK 9,851m (3,294).
  • Net income after tax for the quarter amounted to SEK 12,553 million (3,350), corresponding to earnings per share of SEK 8.37 (2.29) after dilution.

” SBB’s rolling 12-month earnings capacity rose by 102 percent compared with the fourth quarter of 2020 and amounted to SEK 8,195m (4,049) at the end of 2021. As of 31 December 2021, earnings capacity per series A and B ordinary share was SEK 5.65 (3.05), an increase of 85 percent over the past year. For the 2022 full year, we forecast earnings of SEK 8.10 per series A and B ordinary share.

SBB’s income comprises secure cash flows from property management of social infrastructure, in which residentials and LSS housing constitutes 54 percent of the property value and 50 percent of the rental income. Educational properties make up 28 percent of both property value and rental income. At 11 years, our average lease term is the longest of any major European property company. We supplement our uniquely secure property management with three revenue-generating and value-adding strategies: Building rights development, new production and investments in existing portfolios, and value-adding transactions. The value-adding strategies strengthen SBB’s earnings, helping generate value over the long term, but also delivered strong cash of SEK 12.6bn in Q4 2021 helping to fund the Amasten bid. These also contributed to earnings per series A and B ordinary share of SEK 17.35 and produced strong cash flow over the year.

At the end of the year, our investment properties amounted to SEK 149.3bn, an increase of SEK 59bn on the preceding year. The increase is even more impressive if, in addition to this, we also take into account that our share of the value of joint ventures/associated companies corresponds to about SEK 35bn. This is all achieved with strict financial discipline and our key ratios are stronger than what is required for a BBB+ rating.

Our focus is on generating the greatest-possible risk-adjusted return for our shareholders, who currently number slightly more than 200,000. SBB continues to deliver strong growth in profit from property management. Compared with 2020, profit from property management increased by 162 percent to SEK 5,397m (2,474). Profit from property management, adjusted for value changes and tax from joint ventures/associated companies and costs affecting comparability, increased by 31 percent to SEK 3,370m (2,567), which is double our target of a yearly increase of 15 percent.

SBB is an inflation hedge. The year 2021 was a record year, with rental income for comparable portfolios rising 1.8 percent on the year-earlier period, which is 145 basis points above last October’s weighted CPI, on which the 2021 increase in rental income is based. The 2021 increase in net operating income for comparable portfolios (like-for-like) was even stronger, ending up at 4.7 percent. Accordingly, we experienced the strongest net operating income trend for comparable portfolios of all major property companies – and far stronger than our closest competitors.

SBB’s long-term efforts are yielding good results in terms of ecological, social and economic sustainability. We are investing extensively to reduce our climate impact. From more than 4,000 companies covered by Sustainalytics globally, SBB has been named as an ESG Regional Top Rated company in 2022.

We also want the result to benefit our shareholders in the form of annually increasing dividends. This year, the Board of Directors proposes a dividend of SEK 1.32 per series A or B share to be paid out monthly,” comments Ilija Batljan, CEO and Founder of Samhällsbyggnadsbolaget i Norden AB.

Attachment: Year-end Report January – December 2021

The Year-end Report can also be found in the following link: corporate.sbbnorden.se/en/reports-and-presentations/.

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 23 February 2022, at 08:00 CET.