Samhallsbyggnadsbolaget I Norden Ab Class B · OMXSTO:SBB_B
Samhallsbyggnadsbolaget I Norden Ab Class B — Q3 2023 Earnings Presentation
20 slides from Samhallsbyggnadsbolaget I Norden Ab Class B's earnings presentation, Nov 13, 2023
Slide 1: Ability to adapt to new conditions
Ability to adapt to new conditions November 2023 Skellefteå Perseus 6 – Municipal property Gävle Söder 66:9 – Elderly care Skellefteå Perseus Stockholm 6 – Municipality Brevstället property 2 – Award winning residential property
Slide 2: Presenters
PRESENTERS LEIV SYNNES DANIEL TELLBERG HELENA LINDAHL CEO Finance Director Treasury Director |2
Slide 3: Highlights
HIGHLIGHTS Property value by country • New group structure and strategy SEK 19.9bn 10.4bn • Reduced debt SEK 20.5bn last 15 months. (17%) SEK Financial stability and liquidity remain a priority (9%) • 12.5 percent like-for-like growth in NOI • 86% of the gross debt has a fixed interest rate – 86.1bn
Slide 4: Result of the strategic review
RESULT OF THE STRATEGIC REVIEW A new group structure and strategy were presented during the quarter, strengthening our financial position over the long term. Continued strategic sales and raising capital to increase flexibility ▪ Sold properties for SEK 8.4 billion in the last 15 months ▪ SBB Reside
Slide 5: The new group structure
THE NEW GROUP STRUCTURE ✓ Transparent ✓ Funding options Decentralised group structure Residential Community Education Property value Property value Property value 29.4bn 46.2bn 42.7bn JV and Associate companies JV and Associate companies JV and Associate companies value value value 6.9bn 2.1bn - Yie
Slide 6: Residential
RESIDENTIAL ▪ SEK 1.3 billion in total rental value ▪ Rent development for Swedish regulated tenancies have outpaced inflation over time ▪ Strong potential - demographics and development opportunities ▪ Low downside risk in revenue ▪ Occupancy rate of 94 percent for the quarter ▪ Strong organization
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 ▪ 30% elderly care as largest property type ▪ Interest in partnerships fr
Slide 8: Education
EDUCATION ▪ Europe’s leading public education property platform with growth potential ▪ Government-backed income with 13-year leases with minimum tenant turnover ▪ High lease renewal rate and close to 100% CPI- linked ▪ Will become an associate company with a strong equity partner ▪ Prudently financ
Slide 9: Financial statements
FINANCIAL STATEMENTS |9
Slide 10: EduCo treatment
EDUCO TREATMENT 2023-01-01 - 2023-09-30 Continuing Discontinued ▪ At the end of the period, SBB owned 51 per operations operations SBB Total Rental income 3,512 1,753 5,265 cent of EduCo. On 24 September2023, SBB Property costs -1,016 -265 -1,281 entered into an agreement to sell an Net operating in
Slide 11: Net operating income like for like
NET OPERATING INCOME LIKE FOR LIKE 9.5 Period Like for Like Quarter Like for Like 1 Jan 23 - 1 Jan 22 – SEKm 30 Sep 23 30 Sep 22 Change Q3 2023 Q3 2022 Change % Rental income 2,477 2,262 216 836 769 67 Rental income increase like for like Operating costs -517 -512 -5 -129 -145 16 Maintenance -112 -1
Slide 12: 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. 4.7 % 4.5 % 4.1 % 3.9 % 5 4 3 2 4.75 % Yield Q3 2023 1 0 Rental Occupancy Rate Full year avg. Full year avg. Full year avg. Full year avg. percent 95.5 % 94.1 % 93.9 % 95.0 % 100 80 60 40
Slide 13: Key take aways – consolidated income statement for the period
KEY TAKE AWAY’S – CONSOLIDATED INCOME STATEMENT FOR THE PERIOD SEK m 2023-01-01 2022-01-01 Like-for-like Comments 2023-09-30 2022-09-30 Difference change Net operating income 2,496 2,831 -335 +12.5% ▪ Income for the period decreases following divestments. Like-for-like continues to Admin & Restructu
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 53 % LTV Q3 2023 • Long-term ambition of returning to investment grade rating 19 % Secured LTV Q3 Loan to valu
Slide 15: Attractive long-term funding
ATTRACTIVE LONG-TERM FUNDING Interest Rate Maturity SEKm 20000 18000 16000 19% 21% 3.1 years Average interest 14000 14% maturity 12000 11% 11% 11% 10000 11% 8000 6000 2.29% 4000 2% Average interest 2000 rate 0 Q4 2023 2024 2025 2026 2027 2028 2029 >2030 Debt Maturity SEKm 20000 18000 16000 19% 20% 3
Slide 16: Liquidity has been used to reduce debt
LIQUIDITY HAS BEEN USED TO REDUCE DEBT Nominal Debt, FX like for like SEKm 120 000 100 000 98 230 89 276 Comments 85 137 80 706 80 000 75 595 ▪ Actively managing debt portfolio has resulted in a substantial like for like decrease in debt 60 000 ▪ Good progress, aim to continue to reduce debt through
Slide 17: Short-term liquidity remain a priority
SHORT-TERM LIQUIDITY REMAIN A PRIORITY Current Cash Sources/Uses next 12mo SEKm 21 000 Expected refinancing of 19 000 loans, >5bn Comments 17 000 Loan maturity, 6.5bn ▪ Done much, much in pipeline Earnings capacity 15 000 ▪ Introduced a long-term target of min Commercial Paper 13 000 SEK 3bn in liqu
Slide 18: To summarize
TO SUMMARIZE 1 New group structure and strategy Reduced debt SEK 20.5bn last 15 months. Financial stability and liquidity remain a 2 priority 3 12.5 percent like-for-like growth in NOI 4 89% of the gross debt has a fixed interest rate – Average interest maturity of 3.1 years 5 Continued pressure on
Slide 19: Q&A
Q&A | 19
Slide 20: Thank you!
THANK YOU! SBB Samhdllsbyggnadsbolaget {sBB) a
Samhällsbyggnadsbolaget i Norden AB (SBB) — Q3 2023 Earnings Presentation on 6ix