Samhallsbyggnadsbolaget I Norden Ab Class B · OMXSTO:SBB_B
Samhallsbyggnadsbolaget I Norden Ab Class B — Q2 2024 Earnings Presentation
20 slides from Samhallsbyggnadsbolaget I Norden Ab Class B's earnings presentation, Aug 28, 2024
Slide 1: Executing on our strategy
Executing on our strategy August 2024 Municipal culture centre, Skellefteå Elderly care home, Gävle Skellefteå Award Perseus winning 6 – Municipality residential propertyproperty in Nacka, Stockholm, projected and owned by Sveafastigheter
Slide 2: Presenters
PRESENTERS LEIV SYNNES DANIEL TELLBERG HELENA LINDAHL CEO Finance Director Treasury Director |2
Slide 3: Highlights
HIGHLIGHTS ▪ Rental income increased by 7.2%, like-for-like Properties ▪ Net Operating Income increased by 8.9%, like-for-like ▪ Financial stability and liquidity remain a priority. Reduced debt SEK SEK 103.4bn Total property exposure including 7.8bn in the period and SEK 42.6bn in the last 24 month
Slide 4: Strategy execution on-track
STRATEGY EXECUTION ON-TRACK ▪ Education proves our strategy as Nordiqus refinances bank loans of SEK 8.6bn in the capital market and new credit facilities of SEK 1bn ▪ Sveafastigheter is ready for an IPO or strategic partnership ▪ All joint ventures in Sveafastigheter have been dissolved ▪ New or re
Slide 5: Group structure
GROUP STRUCTURE ✓ Transparent ✓ Funding options Decentralised group structure Community Residential Education Total property exposure Total property exposure Total property exposure SEK 46.0 bn SEK 37.4 bn SEK 19.9 bn Property value Property value Property value SEK 25.8 bn SEK 28.0 bn SEK 0.6 bn SB
Slide 6: Community
COMMUNITY ▪ Leading and scalable platform ▪ Elderly care 25% of the property portfolio ▪ ▪ Sustainability at the core of the business model Government-funded tenants, minimal risk of rent loss SEK 46.0bn ▪ Partnership confirms the strong value of the portfolio Property exposure including JV and sign
Slide 7: Residential
RESIDENTIAL ▪ IPO or strategic partnership in 2024 to enhance funding opportunities for Sveafastigheter and to reduce debt in SBB ▪ 37.4bn Residential holdings are concentrated to Sveafastigheter ▪ Independant board and management SEK Property exposure including JV ▪ Beneficial market conditions and
Slide 8: Education
EDUCATION ▪ SBB co-owns Nordiqus with Brookfield, one of the world’s largest infrastructure investors ▪ Nordiqus is Europe's leading public education property ▪ platform with growth potential Government-backed income, high lease renewal rate and close to 100% CPI-linked SEK 19.9bn Property exposure
Slide 9: 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 Q2 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 93 80 60
Slide 10: Financial statements
FINANCIAL STATEMENTS | 10
Slide 11: Net operating income
NET OPERATING INCOME Period, like-for-like 1 Jan 24 – 1 Jan 23 – SEKm Change, % 30 Jun 24 30 Jun 23 Rental income 1,397 1,303 7.2 Total costs -454 -437 3.9 Net operating income 943 866 8.9 7.2 % Rental income increase, like-for-like NOI for the period 1 January 2024 – 30 June 2024 Share of NOI for t
Slide 12: Key take aways – consolidated income statement (1/2)
KEY TAKE AWAY’S – CONSOLIDATED INCOME STATEMENT FOR THE PERIOD (1/2) 2024-01-01 2023-01-01 Profit Like-for-like SEK m 2024-06-30 2023-06-30 impact change Comments Net operating income 1,455 1,568 -113 +8.9% ▪ Strong NOI growth like-for-like despite less income due to divestment Admin & Restructuring
Slide 13: Key take aways – consolidated income statement (2/2)
KEY TAKE AWAY’S – CONSOLIDATED INCOME STATEMENT FOR THE PERIOD (2/2) 2024-01-01 2023-01-01 Profit Like-for-like SEK m 2024-06-30 2023-06-30 impact change Comments Net operating income 1,455 1,568 -113 +8.9% ▪ Strong NOI growth like-for-like despite less income due to divestment Admin & Restructuring
Slide 14: Key take aways – consolidated balance sheet
KEY TAKE AWAY’S – CONSOLIDATED BALANCE SHEET FOR THE PERIOD Comments SEKm 2024-06-30 2023-06-30 2023-12-31 ▪ Goodwill impairment related to deferred tax. Goodwill 2,372 5,205 2,692 The flipside of deferred tax giving no equity net effect Investment properties 54,417 130,799 73,205 ▪ Reduction in inv
Slide 15: 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 ▪ Long-term ambition of returning to investment grade rating 54 % Loan-to-value Q2 2024 ▪ Historic fluctuation
Slide 16: Attractive long-term funding
ATTRACTIVE LONG-TERM FUNDING Interest Rate Maturity SEKm 20 000 3.4 years Average interest maturity 15 000 14% 27% 15% 2.10 % 10 000 14% 14% 14% 5 000 Average interest rate 1% 0% 1% 0 2024 2025 2026 2027 2028 2029 2030 2031 >2031 Debt Maturity SEKm 3.8 16 000 25% 14 000 years 12 000 Average debt mat
Slide 17: Liquidity has facilitated nominal debt reduction
LIQUIDITY HAS FACILITATED NOMINAL DEBT REDUCTION Nominal Debt, FX like-for-like Methods for Continued debt reduction SEKm 120 000 ▪ No additional dividend ▪ Limited property investments 100 000 98 230 ▪ Limited new acquisitions 88 505 84 407 80 023 80 000 74 957 ▪ Mainly repay maturing debt ▪ Divest
Slide 18: To summarize
TO SUMMARIZE 1 8.9% like-for-like growth in NOI. Rental income increased by 7.2%, like-for-like Financial stability and liquidity remain a priority. Reduced debt SEK 7.8bn in the 2 period and SEK 42.6bn in the last 24 months, like-for-like. Property valuation decrease, signs of levelling off. Improv
Slide 19: Q&A
Q&A | 19
Slide 20: Thank you!
THANK YOU! SBB Samhdllsbyggnadsbolaget {sBB) a
Samhällsbyggnadsbolaget i Norden — Q2 2024 Earnings Presentation on 6ix