Samhallsbyggnadsbolaget I Norden Ab Class B · OMXSTO:SBB_B
Samhallsbyggnadsbolaget I Norden Ab Class B — Investor Day (June 2020)
73 slides from Samhallsbyggnadsbolaget I Norden Ab Class B's investor day presentation, Jun 17, 2020
Slide 1: Capital Markets Day
CAPITAL MARKETS DAY 17th June 2020 Ulricehamn Svalan 7 – Care home Linköping Adjunkten 2 – Elderly care Sigtuna 2:227 – Pre-school
Slide 2: Disclaimer
DISCLAIMER IN REVIEWING THIS PRESENTATION AND ITS CONTENTS, YOU ARE AGREEING TO ABIDE BY THE TERMS OF THIS DISCLAIMER. THIS PRESENTATION AND ITS CONTENTS ARE BEING MADE AVAILABLE TO EACH RECIPIENT SOLELY FOR ITS INFORMATION AND IS SUBJECT TO AMENDMENT. If you are not the intended recipient of this p
Slide 3: Today's Presenters – Team of Strong Track Record
TODAY’S PRESENTERS – TEAM OF STRONG TRACK RECORD Ilija Batljan Lars Thagesson Krister Karlsson Eva-Lotta CEO and Deputy CEO and Deputy CEO and Stridh Founder COO Property Development CFO Manager Oscar Lekander Rosel Peter Annika Business Ragnarsson Olausson Ekström Development Head of Finance Chief
Slide 4: Agenda for Today
AGENDA FOR TODAY Topic Presenter I. SBB Introduction Ilija Batljan, Lars Thagesson II. Our business model – How we create shareholder value Income from property management Annika Ekström, Fredrik Holm Income from property development Krister Karlsson, Jenny Asmundsson, Erik Hävermark Income from ren
Slide 5: I. SBB Introduction
I. SBB Introduction Ilija Batljan Lars Thagesson CEO and Founder Deputy CEO and COO Borlänge Spännaren 10 – City hall
Slide 6: SBB Today
SBB TODAY Company snapshot Portfolio book value by country ✓SBB operates in the world’s safest real estate asset classes – community service properties in the Nordics where tenants are SEK 11.8bn government-funded and highly regulated portfolio value value upside residentials (15%) Swedish SEK 6.7bn
Slide 7: Favourable Demographic Trends Driving Demand for SBB's Underlying Assets
FAVOURABLE DEMOGRAPHIC TRENDS DRIVING DEMAND FOR SBB’S UNDERLYING ASSETS Key considerations Population growth across all the Nordics Population evolution Sweden Norway Finland Denmark ✓ Strong population growth expected in the 35 Nordic countries (c.2.4m additional 30 inhabitants up to 2040), concen
Slide 8: Highly Limited COVID-19 Impact to Date
HIGHLY LIMITED COVID-19 IMPACT TO DATE Almost unaffected by COVID-19 Rental Income1 ✓ 7 years WAULT Other 12% Total government- backed: ✓ Deferred payments of only SEK 12m and discounts corresponding to only SEK Group Housing 88% 1m YTD, in relation to total rental income of SEK 1.3bn in Q1 2020 6%
Slide 9: SBB Pillars of Strategy
SBB PILLARS OF STRATEGY Key pillars to deliver attractive returns Portfolio has grown from SEK 16.9bn to SEK 80bn+ over 3 years… 80,2 GAV (SEKbn) 23,8 27,2 Unique and difficult to SEK 80bn and growing low- 16,9 replicate long-term risk Nordic social relationships with infrastructure property municip
Slide 10: The Community Service Property Champion and 3rd Largest Listed Player in the Nordics
THE COMMUNITY SERVICE PROPERTY CHAMPION AND 3RD LARGEST LISTED PLAYER IN THE NORDICS GAV (SEKbn) 151,2 The Social Infrastructure Champion in the Nordics 96,3 80,2 73,0 69,3 65,3 55,8 53,8 50,3 47,6 47,2 47,0 44,6 38,9 37,3 23,2 21,1 12,4 Balder Castellum SBB Fabege Kojamo Pandox Klovern Wallenstam O
Slide 11: Strong Management Team and Board of Directors
STRONG MANAGEMENT TEAM AND BOARD OF DIRECTORS Active and hands-on management team with exceptional experience and track-record 25 years Management team’s average years of experience Ilija Batljan Lars Thagesson Krister Karlsson Eva-Lotta Stridh CEO and Founder Deputy CEO and COO Deputy CEO and Prope
Slide 12: SBB Executing the Plan and Maintaining Promises
SBB EXECUTING THE PLAN AND MAINTAINING PROMISES 1 Growth of the Property Portfolio 55bn (by 2021) 80bn 40bn (by 2023) Target Set Target Achieved ✓ Mar-19 Sep-19 Dec-19 2 Hemfosa Successfully Integrated: On Track to Exceed the Synergies Announced and Deleveraging Completed ✓ Created the Social Infras
Slide 13: Additive Recurring Value-Creating Activities Beyond Traditional Property Management
ADDITIVE RECURRING VALUE-CREATING ACTIVITIES BEYOND TRADITIONAL PROPERTY MANAGEMENT Committed to additive recurring income streams Property Property Real estate development renovations and sustainability transactions ■ Sale of building rights for social ■ Renovations across SBB’s residential and ■ A
Slide 14: How We Create Value in Reality
HOW WE CREATE VALUE IN REALITY Real estate ◼ Acquired a residential property with 476 apartments in 2016 transactions Property ◼ Signed an agreement with the tenant association with an average rent after renovation of SEK 1,250/sq.m. management Lease Termination Apartment Inspection Project Preparat
Slide 15: Income from Property Management
Our business model – How we create shareholder value Income from Property Management Annika Ekström Fredrik Holm Head of Asset Head of Asset Management, Management, Community Service Residential Borlänge Spännaren 10 – City hall
Slide 16: Successful Combination with Hemfosa Resulting in Best-in-Class Asset Management
SUCCESSFUL COMBINATION WITH HEMFOSA RESULTING IN BEST-IN-CLASS ASSET MANAGEMENT Target of reaching a property ✓ The Social Infrastructure portfolio value of SEK 55bn Champion in the Nordics by 2021, communicated in September 2019, surpassed Hemfosa selected properties Hoppet 6, Solgatan 1, Alingsås
Slide 17: Experienced Asset Management Team with Local Market Knowledge
EXPERIENCED BUSINESS-MINDED ASSET MANAGEMENT TEAM WITH LOCAL MARKET KNOWLEDGE Experienced asset management team Local market presence ✓ Local market presence in all of SBB’s major investment markets ✓ In-house asset management and property management capabilities Country office ✓ Extensive network a
Slide 18: Overview of SBB Portfolio: Community Service Properties
SEK 61.5bn 77%2 OVERVIEW OF SBB PORTFOLIO: COMMUNITY SERVICE PROPERTIES Portfolio value This unique asset class is defined by low risk publicly financed tenants, long leases with low tenant turnover, high demand and attractive lease terms Low risk municipality and Attractive lease terms governmental
Slide 19: Overview of SBB Portfolio: Rent-Regulated Residential Properties
OVERVIEW OF SBB PORTFOLIO: RENT-REGULATED RESIDENTIAL SEK 13.5bn 17%1 PROPERTIES IN SWEDISH GROWTH MUNICIPALITIES Portfolio value 100% focus on rent-regulated properties in Sweden Key portfolio figures Selected SBB properties SEK SEK 10,987 13.5bn 863m Number Portfolio Passing of Rent apartments Dis
Slide 20: Property Management in Summary
PROPERTY MANAGEMENT IN SUMMARY Number of full time employees Dream team in social infrastructure asset management 252 FTEs (YE) 91% 132 62 6 Safest assets in the world 2016 2017 2018 2019 Investment properties value evolution 80 GAV (SEKbn) 215% Clear economies of scale achieved 23 25 8 2016 2017 20
Slide 21: Additive Recurring Income Streams
Our business model – How we create shareholder value Additive Recurring Income Streams Borlänge Spännaren 10 – City hall
Slide 22: Property Development
SBB’S ADDITIVE RECURRING INCOME STREAMS PROPERTY DEVELOPMENT Property Property Real estate renovations and development transactions sustainability Krister Karlsson Erik Hävermark Jenny Asmundsson Deputy CEO and Head of Project Head of Business Development Property Development Development for Propert
Slide 23: Demographic Needs and Supply Shortage
DEMOGRAPHIC NEEDS AND SUPPLY SHORTAGE Population growth across all the Nordics1 Supply shortage Sweden Norway Finland Denmark ■ Clear undersupply of community service properties Planned (2019–2022) and needed units (2022) in Sweden2 35 +2.4m 30 2.4x 300 25 Millions 20 124 4.3x 119 15 28 10 5 Elderly
Slide 24: SBB: One of the Largest Property Developers in the Nordic Region
SBB: ONE OF THE LARGEST PROPERTY DEVELOPERS IN THE NORDIC REGION Top Nordic property developers by building rights on own balance sheet Develop-to-sell business model (no. of residential units, c. 70 sq.m. per apartment) Mixed business model 39 900 Develop-to-hold business model 25 700 25 000 21,200
Slide 25: Income from Social Infrastructure Building Rights Starts at Zoning
INCOME FROM SOCIAL INFRASTRUCTURE BUILDING RIGHTS STARTS AT ZONING Building right development Development for own management Value creation • Building rights are developed from project concepts to legally enforceable • With property development for own management SBB co- detailed development plans g
Slide 26: Planning Process – Complex Process with Many Decisions
PLANNING PROCESS – COMPLEX PROCESS WITH MANY DECISIONS AND NEED FOR TRUST, RELIABILITY AND ABILITY TO GET THINGS BUILT Zoning is a complicated time-consuming process, and good relations with the municipalities and officials becomes a crucial aspect | 26
Slide 27: Development Projects in Various Detailed Planning Phases
SBB HAS DEVELOPMENT PROJECTS IN VARIOUS DETAILED PLANNING PHASES TOTALLING APPROXIMATELY 1.8M SQ.M. WITH A HUGE SURPLUS VALUE POTENTIAL Planning process Decision from Sent to planning authorities Political decision External Internal planning planning to initiate zoning to approve GFA building valuat
Slide 28: SBB Can Extract Further Value from Its Development Projects
SBB CAN EXTRACT FURTHER VALUE FROM ITS DEVELOPMENT PROJECTS, BEYOND THE SALE OF BUILDING RIGHTS UPON ZONING ✓ For each developed building right, SBB makes a strategic decision of either selling the building right externally or alternatively to a JV upon zoning, or developing the building right for o
Slide 29: SBB Can Extract Further Value from Its Development Projects
SBB CAN EXTRACT FURTHER VALUE FROM ITS DEVELOPMENT PROJECTS, BEYOND THE SALE OF BUILDING RIGHTS UPON ZONING Illustrative scenarios AA BB C C 100% sold to external 50% sold / 50% development for 100% development Description – usage of building rights for potential development (1.38m sq.m.) parties ow
Slide 30: Selected Ongoing Projects
SELECTED ONGOING PROJECTS ✓ 15 year lease with Västerås municipality (Swedens’s 7th largest municipality) for new office right next to train station (less than 1 hour from Stockholm Central Station) ✓ No break clauses Västerås ✓ 100% indexed to CPI ✓ 25 year lease with Nykvarn municipality for new N
Slide 31: Project Development Team
PROJECT DEVELOPMENT TEAM A project development team of 7 people with great expertise in developing residential and community service properties Since we develop on our own properties or land, all technical conditions are known to us The buildings that we develop are largely standardised, making cost
Slide 32: Property Development in Summary
PROPERTY DEVELOPMENT IN SUMMARY Property Property Real estate renovations and development transactions sustainability SEK 500m Undersupply and increasing demand, i.e. minimal market risk 1.8 million building rights whereof 400,000 already have won legal force Highly skilled and experienced team crea
Slide 33: Property Renovations and Sustainability
SBB’S ADDITIVE RECURRING INCOME STREAMS PROPERTY RENOVATIONS AND SUSTAINABILITY Property Property Real estate renovations and development transactions sustainability Peter Olausson Marika Dimming Chief Technical Officer Investor Relations and Head of Sustainability | 33
Slide 34: Value-Enhancing Renovations Across the Residential and Community Service Properties
VALUE-ENHANCING RENOVATIONS ACROSS THE RESIDENTIAL AND COMMUNITY SERVICE PROPERTIES SBB’s rent-regulated residential renovation process SBB’s community service properties renovation process ■ Residential rents are determined by the ‘utility value system’ ■ Several renovations of and investments in c
Slide 35: Unique Residential Renovation Business Model in Sweden
UNIQUE RESIDENTIAL RENOVATION BUSINESS MODEL IN SWEDEN ▪ ILLUSTRATIVE EXAMPLE OF INCREASE IN RENT THROUGH RESIDENTIAL RENOVATION Rent formula After renovation but with Before After renovation 𝑁𝑜𝑟𝑚𝑎𝑡𝑖𝑣𝑒 𝑟𝑒𝑛𝑡 ∗ additional room created (𝐴𝑟𝑒𝑎 + 𝐴𝑝𝑎𝑟𝑡𝑚𝑒𝑛𝑡 𝑝𝑜𝑖𝑛𝑡𝑠) ∗ 77…
Slide 36: Illustrative Renovation and Creation of Additional Room
ILLUSTRATIVE RENOVATION AND CREATION OF ADDITIONAL ROOM 1 room and kitchen over 41 sq.m. with existing floor plan Renovation from Ground Up Kitchen Bathroom ■ The apartment is renovated from the ground up – all vertical piping ■ New, modern kitchen with ■ New, tiled bathroom with is replaced along w
Slide 37: Unique Rent Setting Model Upon Renovation Allows for Significant Upside
UNIQUE RENT SETTING MODEL UPON RENOVATION ALLOWS FOR SIGNIFICANT UPSIDE Key considerations Rent and yields levels across new / non-renovated / renovated dwellings ✓ Since 1997, average rent increase has been Rent levels (SEK/sq.m.) Yield Area New production Non-renovated Post-renovation Low High bet
Slide 38: Significant Upside Potential from Renovation
SIGNIFICANT UPSIDE POTENTIAL FROM RENOVATION Significant upside potential in non-renovated portfolio ■ With a target of 600 renovated apartments per Number of apartment renovations year and assessed renovation cost of # of apartments c. SEK 5,000/sq.m.: ■ Estimated c. SEK 240m recurring earnings ef
Slide 39: Vision 2030 – Becoming the World's Most Sustainable Property Company (1/2)
VISION 2030 – BECOMING THE WORLD’S MOST SUSTAINABLE PROPERTY COMPANY (1/2) Selected Ecological Sustainability Goals Selected UN global sustainable development goals 100% ▪ 100 % renewable electricity in the entire Renewable property portfolio and minimizing carbon dioxide emissions by reducing the e
Slide 40: Vision 2030 – Becoming the World's Most Sustainable Property Company (2/2)
VISION 2030 – BECOMING THE WORLD’S MOST SUSTAINABLE PROPERTY COMPANY (2/2) Selected Social Sustainability Goals Summer interns to support integration in SBB’s residentials The company is offering summer jobs to youths living in SBB's residential Member of ▪ Continuing to be a member of Public Housin
Slide 41: Property Renovations and Sustainability in Summary
PROPERTY RENOVATIONS AND SUSTAINABILITY IN SUMMARY Property Property Real estate renovations and development transactions sustainability SEK 500m SEK 600m Sweden has a unique rent setting model based on utility value Large remaining value potential in the portfolio SBB is fully committed to supporti
Slide 42: Real Estate Transactions
SBB’S ADDITIVE RECURRING INCOME STREAMS REAL ESTATE TRANSACTIONS Property Property Real estate renovations and development transactions sustainability Oscar Lekander Carl Lundh Mortimer Business Development Project Development Manager Manager | 42
Slide 43: Community Service Market (1/2)
COMMUNITY SERVICE MARKET (1/2) Key drivers of demand Clear undersupply of community service properties ✓ Demographic trends in the Nordic countries: Planned (2019–2022) and needed units (2022) ▪ Increased number of people 80+ years # planned investment units by municipalities (2019-2022) ▪ High leve
Slide 44: Community Service Market (2/2)
COMMUNITY SERVICE MARKET (2/2) Market size Ownership structure ✓ Community service market in the Nordic countries is ✓ Historically, municipalities, counties and state owned the dominated by municipalities, counties and states properties in which they had their operations ✓ Increasing number of publ
Slide 45: Swedish Rent Regulated Residentials Market
SWEDISH RENT REGULATED RESIDENTIALS MARKET Market size Ownership structure ✓ The Swedish dwelling stock in multi-dwelling buildings ✓ In Sweden, 46% of all rental apartments are owned by public consists of approximately 2.46m apartments housing companies ▪ Of the 2.46m apartments, approximately 59%
Slide 46: Case Study – Partnership with the Municipality of Skellefteå
CASE STUDY – PARTNERSHIP WITH THE MUNICIPALITY OF SKELLEFTEÅ Comments Summary ▪ Partnership with Skellefteå municipality regarding a a new culture house, including a Property name Skellefteå Perseus 6 congress hall ▪ Skellefteå is one of the wealthiest municipalities in Sweden and have decided to Le
Slide 47: SBB Actively Works on Transactions as a Means to Create Value
SBB ACTIVELY WORKS ON TRANSACTIONS AS A MEANS TO CREATE VALUE Strategic Rigorous disposals Focus acquisitions of non-core assets on social infrastructure Other 6% Total of SEK 20.2bn Residential 2018 – 2020 YTD 17% 94% Total of SEK 62.3bn1 SEK 11.0bn Social 2018 – Q1 2020 infrastructure Community di
Slide 48: Asset Disposals According to Plan Since Acquisition of Hemfosa
ASSETS DISPOSALS ACCORDING TO PLAN SINCE ACQUISITION OF HEMFOSA Historical disposal development (SEKbn) Announced disposal post combination with Hemfosa ◼ c. SEK 11bn of target disposal announced in Dec-19 / Jan-20 20,2 ▪ Of which SEK 10.9bn1 already disposed ◼ Releases significant proceeds for de
Slide 49: Real Estate Transactions in Summary
REAL ESTATE TRANSACTIONS IN SUMMARY Property Property Real estate renovations and development transactions sustainability SEK 500m SEK 600m SEK 400m Active portfolio management generating regular recurring profits to SBB Strong relationships with municipalities and other market participants Highly e
Slide 50: The Community Service Property Champion and 3rd Largest Listed Player in the Nordics
THE COMMUNITY SERVICE PROPERTY CHAMPION AND 3RD LARGEST LISTED PLAYER IN THE NORDICS GAV (SEKbn) 151,2 The Social Infrastructure Champion in the Nordics 96,3 80,2 73,0 69,3 65,3 55,8 53,8 50,3 47,6 47,2 47,0 44,6 38,9 37,3 23,2 21,1 12,4 Balder Castellum SBB Fabege Kojamo Pandox Klovern Wallenstam O
Slide 51: Positioning Versus Reference Listed Companies (1/3)
POSITIONING VERSUS REFERENCE LISTED COMPANIES (1/3) SBB’S PORTFOLIO OFFERS SOLID FUNDAMENTALS PUTTING IT IN POLE POSITION TO CAPITALISE FROM ONE OF THE SAFEST NORDIC ASSET CLASSES… Community services Residential Property value 80.2 36.4 69.2 (SEKbn)1 Portfolio figures Portfolio 77 % 17 % 6 % - other
Slide 52: Positioning Versus Reference Listed Companies (2/3)
POSITIONING VERSUS REFERENCE LISTED COMPANIES (2/3) … HOWEVER, MARKETS ARE YET TO FULLY APPRECIATE THE UNIQUE NATURE OF SBB’S BUSINESS MODEL SBB earnings based on earnings capacity from property management 50 % Government-backed income 100% rent-regulated 40 % NAV per share CAGR L3Y from 1Q20 NAV CA
Slide 53: Positioning Versus Reference Listed Companies (3/3)
POSITIONING VERSUS REFERENCE LISTED COMPANIES (3/3) … HOWEVER, MARKETS ARE YET TO FULLY APPRECIATE THE UNIQUE NATURE OF SBB’S BUSINESS MODEL Earnings capacity from property management SBB earnings based on earnings capacity including additive income streams 2 50 % Government-backed income 100% rent-
Slide 54: III. Balance Sheet Strength and Treasury Update
III. Balance Sheet Strength and Treasury Update Eva-Lotta Stridh Rosel Ragnarsson CFO Finance Manager Borlänge Spännaren 10 – City hall
Slide 55: Solid Balance Sheet and Diversified Sources of Funding
SOLID BALANCE SHEET AND DIVERSIFIED SOURCES OF FUNDING Assets (SEK 96.5bn) Equity and Liabilities (SEK 96.5bn) ▪ A+B+D : SEK 24,152m ■ Shares in associated companies/JVs - SEK ■ Equity excl. hybrid ▪ Pref.: SEK 15m SEK 34,875m Total equity ▪ NCI: SEK 366m 1,124m (1%) - SEK 24,533m (25%) (36.1 %) ■ H
Slide 56: Delivery on Deleveraging Ambitions
DELIVERY ON DELEVERAGING AMBITIONS Strong cash generation enabling deleveraging, supporting the goal of a BBB+ rating in the next 12 months Equity 40 % 32% 32% 41% 43% 30% 36% ratio 64% 60% 61% 59% 58% 56% 57% 56% 53% 50% 50% 55%3 LTV (%)¹ 46% 43% 44% 41% 40% 2017 FY 2018 H1 2018 FY 2019 H1 2019 FY
Slide 57: Hybrids – An Attractive Source of Funding
HYBRIDS – AN ATTRACTIVE SOURCE OF FUNDING Key benefits of hybrids 2013-2020YTD European hybrid issuances by sector ▪ Very well-known structure allowing SBB to benefit from 50% equity Utility content by the three rating agencies, as well as 100% equity-accounting Telco by IFRS 1% O&G ◼ Real estate 9%
Slide 58: Simplifying the Share Structure
SIMPLIFYING THE SHARE STRUCTURE Share of class A Share of class B Share of class D Preference shares Listed – ✓ ✓ ✓ Share count 209,977,491 1,058,115,105 106,519,951 30,713 Voting rights 1 vote per share 1/10 vote per share 1/10 vote per share 1/10 vote per share ✓ Class A and Class B common shares
Slide 59: Strong Balance Sheet with a Low Cost of Debt and Long-Dated Maturity Profile
STRONG BALANCE SHEET WITH A LOW COST OF DEBT AND LONG-DATED MATURITY PROFILE Diverse debt and capital structure Long-dated maturity profile1 51%1 / 55%2 Debt structure matures beyond 4 years 2% 18% 17% 8% 24% 31% Latest Developments Debt nominal value (SEKm) 8% 10% 16% 16% 7% 22% 29% 29% 15,168 52,2
Slide 60: Enhanced Combined Business Profile with Rating Agencies Leading Towards Lower Financing Costs
ENHANCED COMBINED BUSINESS PROFILE WITH RATING AGENCIES LEADING TOWARDS LOWER FINANCING COSTS Recent events in the capital markets “We expect improving credit metrics primarily on the back of asset disposals.“ ✓ BBB- rating with stable outlook affirmed by S&P in report “We acknowledge that SBB has f
Slide 61: Capital Market Activity – Robust Access to Funding
CAPITAL MARKET ACTIVITY – ROBUST ACCESS TO FUNDING Capital market activity per year1 Capital market activity per issuance type 2017-20 YTD1 Issuance (SEK) Issuance (SEK) Latest bond issuances 38.6bn In February 2020, SBB successfully issued a EUR750m senior unsecured bond, Unsecured which will matur
Slide 62: Balance Sheet and Treasury in Summary
BALANCE SHEET AND TREASURY IN SUMMARY Strong financial position kr Diversified funding ✓ Deleveraging according to plan Full speed ahead to BBB+ | 62
Slide 63: IV. New Goals
IV. New Goals Ilija Batljan CEO and Founder Borlänge Spännaren 10 – City hall
Slide 64: New Targets
NEW TARGETS Objective SBB’s objective is to acquire, manage and develop properties that will create a high risk-adjusted return for its shareholders Financial targets Operational targets Dividend policy Income from property Profit from property mgmt1) Growth development A property portfolio of SEK 1
Slide 65: Closing Remarks
CLOSING REMARKS Profit from property management based on world’s safest assets with AAA governments backed income, targeting an average growth of more than 15 per cent per year per A and B ordinary shares Unique model with 3 additive recurring income streams including new focus on using our kr build
Slide 66: Q&A
Q&A Borlänge Spännaren 10 – City hall
Slide 67: V. Appendix
V. Appendix Borlänge Spännaren 10 – City hall
Slide 68: Key Achievements and Highlights
KEY ACHIEVEMENTS AND HIGHLIGHTS M&A: Hemfosa combination Proved resilience during COVID-19 Corporate growth ▪ Acquisition of Hemfosa successfully ▪ Portfolio almost untouched by the market ▪ Best-in-class management team completed turbulence: rent collection in May >99% ▪ Member of FTSE EPRA Nareit
Slide 69: Putting Our Assets in Motion
PUTTING OUR ASSETS IN MOTION Last 12-month rental income and NOI Maintenance and Investments2 Community Services 4.7 % 5.9 % 5.8 % 5.6 % 78.7% 78.6% 90.0 %6,000 90.0 % 1,096 1400 75.7% 74.7% 80.0 % 75.9% 75.8% 80.0 % 1200 5,000 164 982 1,007 70.0 % 4,092 4,033 70.0 % 1000 902 60.0 %4,000 60.0 % 765
Slide 70: Property Development Key Drivers
PROPERTY DEVELOPMENT KEY DRIVERS Current residential or Development Selectively Selectively Finding new projects in community service properties participating in developing for its collaboration with properties within the acquired JVs own management municipalities portfolio ■ Properties that have un
Slide 71: Rent-Regulated Residential Portfolio Provides Stable Income and Limited Downside Risk
RENT-REGULATED RESIDENTIAL PORTFOLIO PROVIDES STABLE INCOME AND LIMITED DOWNSIDE RISK, COUPLED WITH POTENTIAL FOR VALUE GROWTH 1 780 ✓ Only Swedish rent-regulated residential units1 Rent (SEK/sqm) 2 1.8x ✓ New-build ✓ Focus on cities with favorable demographics such as underlying 1 015 apartment ren
Slide 72: Beyond Selling Building Rights, SBB Can Extract Further Upside
BEYOND SELLING BUILDING RIGHTS DEVELOPMENT UPON ZONING, SBB CAN EXTRACT FURTHER UPSIDE FROM ITS BUILDING RIGHTS Building rights portfolio as of Q1 2020 Illustrative scenarios AA BB CC Per sq.m. 50% sold / 50% GFA (sq.m.) Value (SEKm) 100% sold to external 100% development for (SEK) Description devel
Slide 73: SBB Balance Sheet
SBB BALANCE SHEET Assets, SEKm FY 2016 FY 2017 FY 2018 FY 2019 Q1 2019 Q1 2020 Comments Goodwill - - 24 6,687 24 6,691 Investment properties 1 7,572 23,001 25,243 79,542 27,201 80,235 Other tangible fixed assets 6 10 5 21 4 21 ▪1 Investment properties: Land lease agreements - - - 445 52 450 ▪ Compri
Samhällsbyggnadsbolaget i Norden — Investor Day (June 2020) on 6ix