Samhallsbyggnadsbolaget I Norden Ab Class B · OMXSTO:SBB_B
Samhallsbyggnadsbolaget I Norden Ab Class B — FY2023 Earnings Presentation
20 slides from Samhallsbyggnadsbolaget I Norden Ab Class B's earnings presentation, Feb 27, 2024
Slide 1: Creating a strong platform
Creating a strong platform February 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 Property value by country • Executing on the new structure and strategy SEK 3.8bn 7.9bn • Reduced debt SEK 33.5bn last 18 months. (5%) SEK Financial stability and liquidity remain a priority (11%) • 10.9 percent like-for-like growth in full year NOI • All debt is interest rate hedged – Av
Slide 4: Executing on the new structure and strategy
EXECUTING ON THE NEW STRUCTURE AND STRATEGY Implemented decentralised group structure ▪ The three focused business units has improved access to bank funding and ability for equity raising activities ▪ We have deconsolidated Nordiqus (formerly EduCo) which now operates on a stand-alone basis ▪ We hav
Slide 5: Group structure
GROUP STRUCTURE ✓ Transparent ✓ Funding options Decentralised group structure Residential Community Education Property value Property value Property value 28.5bn 44.1bn 0.6bn JV and Associate companies JV and Associate companies JV and Associate companies value value value 6.0bn 1.7bn 10.2bn Yield Y
Slide 6: Residential
RESIDENTIAL ▪ SEK 1.4 billion in total rental value ▪ 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 94 percent for the quarter
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 30% ▪ Partnership confirms the
Slide 8: Education
EDUCATION ▪ SBB owns 49.84% of Nordiqus with total property value of SEK 40.4 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: Nordiqus treatment
NORDIQUS TREATMENT 01-01-2023 - Nordiqus, Discontinued operations 22-11-2023 ▪ As of 22nd November 2023, SBB owns 49.84 SBB’s holding 51.00% percent of Nordiqus Property value, 2023-11-22, SEKm 40,843 Rental income, SEKm 2,086 ▪ As of the majority shift, SBB reports Nordiqus Profit from property man
Slide 11: Net operating income like for like
NET OPERATING INCOME LIKE FOR LIKE Period Like for Like Quarter Like for Like 1 Jan 23 - 31 1 Jan 22 – 31 SEKm Change Q4 2023 Q4 2022 Change Dec 23 Dec 22 Rental income 2,998 2,757 241 752 709 44 Operating costs -617 -593 -24 -168 -148 -20 Maintenance -147 -148 1 -52 -54 2 Property tax -60 -56 -4 -1
Slide 12: Increased yield and stable occupancy
INCREASED YIELD AND STABLE OCCUPANCY Yield percent Full year avg. Full year avg. Full year avg. Full year avg. Full year avg. 6 4.7 % 4.5 % 4.1 % 3.9 % 4.6 % 5 4 3 2 4.8 % Yield Q4 2023 1 0 Rental Occupancy Rate Full year avg. Full year avg. Full year avg. Full year avg. Full year avg. percent 95.5
Slide 13: Key take aways – consolidated income statement for the period
KEY TAKE AWAY’S – CONSOLIDATED INCOME STATEMENT FOR THE PERIOD 2023-01-01 2022-01-01 Like-for-like SEK m 2023-12-31 2022-12-31 Difference change Comments Net operating income 3,209 3,615 -406 +10.9% ▪ NOI was protected and improved like-for-like Admin & Restructuring expenses -878 -809 -69 despite l
Slide 14: 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 54 % • Long-term ambition of returning to investment grade rating LTV Q4 2023 • Historic fluctuation in LTV is
Slide 15: Attractive long-term funding
ATTRACTIVE LONG-TERM FUNDING Interest Rate Maturity SEKm 25,000 32% 3.4 years 20,000 Average interest maturity 15,000 21% 1.78% 17% 10,000 12% 7% 9% 5,000 Average interest 0% 0% 2% rate - 2024 2025 2026 2027 2028 2029 2030 2031 >2031 Debt Maturity SEKm 3.6 16,000 23% 14,000 years 12,000 17% 17% Aver
Slide 16: Liquidity has facilitated nominal debt reduction
LIQUIDITY HAS FACILITATED NOMINAL DEBT REDUCTION Nominal Debt, FX like for like SEKm 120,000 100,000 98,230 87,123 Comments 83,139 78,797 80,000 73,754 ▪ Actively managing debt portfolio has resulted in a substantial like for like 62,384 decrease in debt 60,000 ▪ Good progress, aim to continue to re
Slide 17: Stable liquidity remain a priority
STABLE LIQUIDITY REMAIN A PRIORITY Current Cash Sources/Uses next 12mo SEKm 20000 Comments Expected refinancing of bank loans ▪ Long-term target of min SEK 3bn in 15000 liquidity Bank loan maturity ▪ Aim to keep cash sources/cash uses above 1.0 SBB Infrastructure 10000 Bond maturity ▪ Proceeds from
Slide 18: To summarize
TO SUMMARIZE 1 Executing on the new structure and strategy Reduced debt SEK 33.5bn last 18 months. Financial stability and liquidity remain a 2 priority 3 10.9 percent like-for-like growth in full year NOI All debt is interest rate hedged – Average interest rate at 1.78% and maturity of 3.4 4 years
Slide 19: Q&A
Q&A | 19
Slide 20: Thank you!
THANK YOU! SBB Samhdllsbyggnadsbolaget {sBB) a
Samhällsbyggnadsbolaget i Norden AB (SBB) — FY2023 Earnings Presentation on 6ix