Samhallsbyggnadsbolaget I Norden Ab Class B · OMXSTO:SBB_B
Samhallsbyggnadsbolaget I Norden Ab Class B — Q1 2024 Earnings Presentation
18 slides from Samhallsbyggnadsbolaget I Norden Ab Class B's earnings presentation, May 6, 2024
Slide 1: Building a strong platform
Building a strong platform May 2024 Municipal culture centre, Skellefteå Elderly care home, Gävle Skellefteå Award Perseus winning 6 – Municipality residential property,property Nacka
Slide 2: Presenters
PRESENTERS LEIV SYNNES DANIEL TELLBERG HELENA LINDAHL CEO Finance Director Treasury Director |2
Slide 3: Highlights
HIGHLIGHTS ▪ Executing on the new structure and strategy Properties ▪ Reduced debt SEK 38.7bn last 21 months. Financial stability and liquidity remain a priority SEK 104.6 bn Property exposure including ▪ 3.0 percent like-for-like NOI growth in Q1 share of significant holdings ▪ Attractive interest
Slide 4: Strategy execution on-track
STRATEGY EXECUTION ON-TRACK ▪ Company structures to own the assets in the Community business area ▪ PPI successfully listed on Oslo Stock Exchange, improving access to growth capital ▪ Final steps taken to structure Sveafastigheter within Residential ▪ Unobo dissolved with SBB as sole owner after se
Slide 5: Group structure
GROUP STRUCTURE ✓ Transparent ✓ Funding options Decentralised group structure Residential Community Education Total property exposure Total Property exposure Total property exposure SEK 37.3 bn SEK 46.6 bn SEK 20.8 bn Property value Property value Property value SEK 28.0 bn SEK 38.8 bn SEK 0.6 bn SB
Slide 6: Residential
RESIDENTIAL ▪ Rent development for Swedish regulated tenancies have outpaced inflation over time ▪ Strong potential - demographics and development opportunities ▪ Long term opportunity for increased rental income ▪ ▪ Occupancy rate of 95 percent for the quarter Strong organization and prudent capita
Slide 7: Community
COMMUNITY ▪ Government-funded tenants, minimal risk of rent loss ▪ Leading and scalable platform - facilitates sourcing opportunities ▪ Rental income close to 100% CPI-linked ▪ ▪ Sustainability at the core of the business model Elderly care as largest property type at ca 31% SEK 46.6 Property exposu
Slide 8: Education
EDUCATION ▪ SBB owns 49.84% of Nordiqus with total property value of SEK 40.5 billion ▪ Nordiqus is co-owned with Brookfield, one of the world’s largest and most competent infrastructure investors ▪ ▪ Nordiqus is Europe's leading public education property platform with growth potential Government-ba
Slide 9: Financial statements
FINANCIAL STATEMENTS |9
Slide 10: Net operating income
NET OPERATING INCOME Period Like for Like 1 Jan 24 - 31 1 Jan 23 – 31 SEKm Change, % Mar 24 Mar 23 Rental income 861 829 3.9 Operating costs -217 -197 -9.9 Maintenance -32 -29 -8.9 Property tax -12 -19 38.1 Net operating income 601 583 3.0 Surplus ratio 69.8% 70.4% JV and Associate companies Share o
Slide 11: Increased yield and stable occupancy
INCREASED YIELD AND STABLE OCCUPANCY Yield percent 6 Full year avg. Full year avg. Full year avg. Full year avg. 4.5 % 4.1 % 3.9 % 4.5 % 5 4.9 4 3 % 2 Yield Q1 2024 1 0 Rental Occupancy Rate Full year avg. Full year avg. Full year avg. Full year avg. percent 94.1 % 93.9 % 95.0 % 95.6 % 100 94 80 60
Slide 12: Key take aways – consolidated income statement for the period
KEY TAKE AWAY’S – CONSOLIDATED INCOME STATEMENT FOR THE PERIOD SEK m 2024-01-01 2023-01-01 Like-for-like Comments 2024-03-31 2023-03-31 Difference change Net operating income 736 742 -6 +3.0% ▪ NOI was protected like-for-like despite less Admin & Restructuring expenses -213 -150 -63 income due to di
Slide 13: Financing in new market conditions
FINANCING IN NEW MARKET CONDITIONS • Main focus to reduce debt level and decrease the dependence on individual sources of financing • Continue strengthening the company's financial position 55 % • Long-term ambition of returning to investment grade rating LTV Q1 2024 • Historic fluctuation in LTV is
Slide 14: Attractive long-term funding
ATTRACTIVE LONG-TERM FUNDING Interest Rate Maturity SEKm 20,000 27% 3.2 years 15,000 Average interest maturity 15% 2.22% 10,000 14% 14% 14% 14% 5,000 Average interest 1% 1% rate 0% 0 2024 2025 2026 2027 2028 2029 2030 2031 >2031 Debt Maturity SEKm 16,000 14,000 22% 25% 3.6 years 12,000 Average debt
Slide 15: Liquidity has facilitated nominal debt reduction
LIQUIDITY HAS FACILITATED NOMINAL DEBT REDUCTION Nominal Debt, FX like for like Methods for Continued debt reduction and SEKm Liquidity Improvements 120,000 100,000 98,230 ▪ No additional dividend ▪ Limited investments 89,266 85,081 ▪ No new acquisitions 80,696 80,000 75,645 64,076 ▪ Refinance matur
Slide 16: To summarize
TO SUMMARIZE 1 Executing on the new structure and strategy Reduced debt SEK 38.7bn last 21 months. Financial stability and liquidity remain a 2 priority 3 3.0 percent like-for-like growth in NOI 4 Attractive interest rate hedges – Average interest rate at 2.22% and maturity of 3.6 years Property val
Slide 17: Q&A
Q&A | 17
Slide 18: Thank you!
THANK YOU! SBB Samhdllsbyggnadsbolaget {sBB) os
Samhällsbyggnadsbolaget i Norden — Q1 2024 Earnings Presentation on 6ix