Samhallsbyggnadsbolaget I Norden Ab Class B · OMXSTO:SBB_B
Samhallsbyggnadsbolaget I Norden Ab Class B — Q3 2024 Earnings Presentation
19 slides from Samhallsbyggnadsbolaget I Norden Ab Class B's earnings presentation, Nov 27, 2024
Slide 1: Q3 Presentation
Q3 PRESENTATION November 2024
Slide 2: Today's Presenters
TODAY’S PRESENTERS LEIV SYNNES DANIEL TELLBERG HELENA LINDAHL CEO Finance Director Treasury Director |2
Slide 3: Highlights for the Period
HIGHLIGHTS FOR THE PERIOD ▪ Rental income increased by 5.9 %, like-for-like Properties ▪ NOI increased by 7.4 %, like-for-like ▪ Financial stability and liquidity remain a priority SEK 102.5bn ▪ Reduced debt by SEK 43.4bn in the last 24 months, like-for-like Total property exposure including share o
Slide 4: Strategy Execution On-Track
STRATEGY EXECUTION ON-TRACK Progress since June: ✓ Bond exchange in July generated SEK 1.6bn equity to shareholders ▪ New bonds in Sveafastigheter which can be repaid without cost ✓ Listed Sveafastigheter in October ▪ Sweden’s largest listed pure-play housing company ▪ Operations focused on core bus
Slide 5: Transparent Group Structure
TRANSPERENT GROUP STRUCTURE Decentralised group structure Community Residential Education Total property exposure Total property exposure Total property exposure SEK 45.0 bn SEK 37.9 bn SEK 19.7 bn Property value Property value Property value SEK 24.8 bn SEK 28.5 bn SEK 0.6 bn SBB’s share of propert
Slide 6: Community
COMMUNITY ▪ Leading and scalable platform ▪ Elderly care 27% of the property portfolio 45.0bn ▪ Sustainability at the core of the business model ▪ Government-funded tenants, minimal risk of rent loss SEK ▪ Partnership confirms the strong value of the portfolio Property exposure including JV and sign
Slide 7: Residential
RESIDENTIAL ▪ Residential holdings are concentrated to Sveafastigheter ▪ Sveafastigheter was made independent and listed on Nasdaq Stockholm in October 2024 to enhance funding opportunities for Sveafastigheter and to reduce debt in SBB ▪ Beneficial market conditions SEK 37.9bn Property exposure incl
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 19.7bn Property exposure
Slide 9: Stabilised Yield and Stable Occupancy
STABILISED 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 3 2 4.9 % Yield Q3 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 80 92 %
Slide 10: Financial Statements
FINANCIAL STATEMENTS | 10
Slide 11: Continued Improvement of NOI
CONTINUED IMPROVEMENT OF NOI NOI for the period 1 January 2024 – 30 September 2024 5.9 % Rental income increase, like- SEK 42% 2,249m for-like Jan-Sep 2024 57% 7.4 % Net Operating Income increase, like- Residential Community Education for-like Jan-Sep 2024 Share of NOI for the period in significant
Slide 12: Key Takeaways – Consolidated Income Statement for Q3 2024
KEY TAKEAWAY’S – CONSOLIDATED INCOME STATEMENT FOR Q3 2024 Like-for-like SEKm Q3 2024 Q3 2023 Profit impact change Comments Net operating income 589 927 -338 +3.7% ▪ Strong NOI growth like-for-like Admin & Restructuring expenses -187 -298 +111 ▪ Reorganization and legal processes are Profit before f
Slide 13: Key Takeaways – Consolidated Balance Sheet for the Period
KEY TAKEAWAY’S – CONSOLIDATED BALANCE SHEET FOR THE PERIOD Comments SEKm 2024-09-30 2023-09-30 2023-12-31 Goodwill 1,264 2,717 2,692 ▪ Reduction in investment properties mainly related to transactions with JV:s and associated companies Investment properties 53,867 76,198 73,205 Other tangible assets
Slide 14: Financing in New Market Conditions
FINANCING IN NEW MARKET CONDITIONS ▪ Main focus to reduce debt level and dependence on individual sources of financing ▪ Long-term ambition of returning to investment grade rating 62 % ▪ Increase in loan-to-value due to dividend payout, hybrid reduction, and Loan to value Q3 2024 property value chan
Slide 15: Attractive Long-Term Funding
ATTRACTIVE LONG-TERM FUNDING Interest Rate Maturity SEKm 20 000 3.0 years 26% Average interest maturity 15 000 Q3 2024 23% 16% 2.33 % 10 000 14% 11% 9% 5 000 Average interest rate 1% Q3 2024 0% 0% 0 2024 2025 2026 2027 2028 2029 2030 2031 >2031 Debt Maturity SEKm 20 000 29% 3.3 years 15 000 Average
Slide 16: Liquidity Has Facilitated Nominal Debt Reduction
LIQUIDITY HAS FACILITATED NOMINAL DEBT REDUCTION Nominal Debt, FX like-for-like Methods for Continued debt reduction ▪ No additional dividend SEKm 100 000 98 230 ▪ Limited property investments ▪ Limited new acquisitions 88 008 83 905 80 000 79 580 ▪ Mainly repay maturing debt 74 577 ▪ Direct sale of
Slide 17: To Summarize
TO SUMMARIZE 1 Decentralized group structure with three focused business areas 2 Operates in countries with strong credit ratings and favorable population growth Property portfolio characterized by a high occupancy rate, long lease contracts 3 and strong NOI growth Returning to financial stability w
Slide 18: Q&A
Q&A | 18
Slide 19: Thank You
THANK YOU SBB SamhaUsbyggnadsbolaget |19
Samhällsbyggnadsbolaget i Norden — Q3 2024 Earnings Presentation on 6ix