Samhällsbyggnadsbolaget i Norden AB presents new financial and operational targets and a new dividend policy

After Samhällsbyggnadsbolaget i Norden AB (publ)’s (”SBB”) B- and D-shares have been admitted to trading on the main market at Nasdaq Stockholm, the company today presents new financial and operational goals together with a new dividend policy adopted by the Board of Directors. The targets are presented for the purpose of providing the capital market with an updated view of the company's future direction.

SBB's new financial targets (previous levels are given in brackets below):

• Generate growth in net asset value per ordinary share, excluding dividends on ordinary shares, to average at least 12 percent per year over a 5-year period (unchanged)
• Loan to value ratio below 50 percent (unchanged)
• Equity Ratio of at least 45 percent (at least 35 percent)
• Generate an income from sales of building rights to amounting to SEK million 250 to 400 per annum in average (unchanged)
• Secured Loan to value ratio of less than 30 percent (less than 40 percent)
• Interest coverage ratio of at least 3.0 times (2.5 times)

SBB's new operational targets (previous levels are given in brackets below):

• A property portfolio of SEK 55 billion by 2021, with retained BBB+ rating (SEK 40 billion by 2023, with retained investment grade rating)
• Renovations of at least 600 apartments per annum (unchanged)

SBBs new dividend policy is: To generate a steadily increasing annual dividend. (previous goal: Long-term goal of dividend payout ratio of 40 percent of the dividend-based earnings (including dividends on preference shares).

The Board of Directors is expected to propose a first dividend, in accordance with the new policy, of SEK 0.6 per ordinary Class A and B share in respect of the fiscal year 2019, payable in 2020/2021. It is expected that the dividend will be paid quarterly.

Ilija Batljan, CEO of SBB comments on the new targets:

”The company's targets and strategies are based on a focus of building the Nordic region's largest player in social infrastructure, where our core business is to acquire and manage community service properties. In addition to community service properties, we also focus on rent-regulated residential properties, where the ambition is to increase different types of collaboration in the future.”

”SBB is an active player in the transaction market and will continue to be so in the future in order to create conditions for growth. Our strength is based on finding and acting on opportunities in the market and in cooperation with municipalities where our comprehensive and long experience give us a competitive advantage.”

”In addition to the company's focus on transactions, SBB will generate value by renovating and optimizing the existing stock and focusing on sustainability. SBB's ambition is to renovate 600 apartments per annum and reduce CO2 emissions from properties by 30 percent.”

”We are actively working to strengthen our financial position and to achieve a BBB rating within 12 months which with a bigger portfolio could lead to a BBB + rating followed by further reduced financing costs over time."

”SBB also has the ambition to be included in FTSE EPRA Nareit Global Real Estate Index within six months at the latest.”

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. The information was submitted for publication, through the agency of the contact person set out above on September 24, 2019, at 07:45 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. At the beginning of 2018, SBB was named the winner of the Real Estate Company of the Year Award for 2017. The company’s series B shares (short name SBB B) and D shares (short name SBB D) are listed on Nasdaq Stockholm, Large Cap. The company’s preference shares (SBB PREF) are listed on Nasdaq First North Premier Growth Market. Certified Adviser is Erik Penser Bank (contact: certifiedadviser@penser.se / +46 84638300). More information about the company is available at www.sbbnorden.se.