SBB, Interim Report January – June 2018: Significant increase in net operating income, Earnings per share SEK 0.67

SAMHÄLLSBYGGNADSBOLAGET I NORDEN AB (PUBL): THE FIRST HALF-YEAR IN BRIEF

  • Rental income increased to SEK 800 million (585).
  • Net operating income increased to SEK 505 million (357).
  • Cash flow from operations before changes in working capital amounted to SEK 155 million (132).
  • Profit before tax amounted to SEK 687 million (2,140), of which:
    • Income from property management totalled SEK 182 million (138). After adjustment for one-off effects, the management result totalled SEK 243 million.
    • Unrealised value changes on properties excluding building rights totalled SEK 452 million (1,468).
    • Unrealised value changes as a result of building rights totalled SEK 54 million (500).
    • Realised value changes relating to properties totalled SEK -4 million (34).
    • Unrealised value changes on derivatives totalled SEK 4 million (-).
  • Net income after tax for the period amounted to SEK 517 million (1,686) after deduction for deferred tax of SEK -156 million (-427) and current tax of SEK -14 million (-27), corresponding to earnings per share of SEK 0.67 (2.93) before dilution.
  • Refurbishment of 151 apartments and the creation of 27 new apartments commenced in the first half of the year.
  • The value of the property portfolio increased by SEK 2.6 billion in the period to SEK 25.6 billion (23). The value of the property portfolio at 30 June 2017 was SEK 21.1 billion.
  • Long term net asset value (EPRA NAV) increased to SEK 7,831 million (7,120), corresponding to SEK 10.61 (9.97) per share.

THE SECOND QUARTER IN BRIEF

  • Rental income increased to SEK 410 million (348).
  • Net operating income increased to SEK 272 million (226).
  • Cash flow from operations before changes in working capital amounted to SEK 116 million (100).
  • Net income after tax for the period amounted to SEK 404 million (1,038), corresponding to earnings per share of SEK 0.56 (1.40) before dilution.

In summary, during the first half of the year we delivered a net operating income of SEK 505 million, SEK 524 million adjusted for non-recurring items, compared with SEK 357 million in the corresponding period of the previous year. We have continued to strengthen our financial position, which led us to achieve a BB rating with positive outlook from Fitch. Our estimated earnings capacity on a rolling 12-month basis at the end of the period was SEK 640 million, an increase from SEK 582m at the end of 2017. We continue to strengthen our community service property portfolio with strong locations in major cities in the Nordic countries and with long-term leases. In addition to the acquisition of elderly care homes in Stockholm, Oslo and Helsinki, we have also expanded our portfolio of rent regulated residentials. We now own about 8,500 tenanted apartments with a further 1,000 apartments in LSS housing, making SBB one of Sweden's largest listed residential property companies.”

Ilija Batljan
CEO and Founder

Attachment: Interim Report January - March 2018

For further information, please contact:

Ilija Batljan, CEO and Founder of Samhällsbyggnadsbolaget i Norden AB, +46 70 518 39 67, ilija@sbbnorden.se

This information is information that Samhällsbyggnadsbolaget i Norden AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was submitted for publication, through the agency of the contact person set out above on July 16, 2018, at 08.00 CET.

About Samhällsbyggnadsbolaget i Norden AB (publ)

The company’s strategy is to own, manage and develop community service properties throughout the Nordic region and rental apartments in growth regions in Sweden. Through the company's commitment and engagement in community participation and social responsibility, municipalities and other stakeholders find the company an attractive long-term partner. SBB was named the winner of the 2017 Real Estate Company of the year Award. The company’s series B shares (short name SBB B) and preference shares (SBB PREF) are listed on Nasdaq First North Premier. Certified Adviser is Erik Penser Bank (www.penser.se). More information about the company is available at www.sbbnorden.se.