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SBB, Interim Report January – June 2021: Profit after tax per ordinary share of class A and B increased to SEK 5.94 (1.80)

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SAMHÄLLSBYGGNADSBOLAGET I NORDEN AB (PUBL): Interim Report January – June 2021 in brief:

  • Rental income was SEK 2,776m (2,664).
  • The operating surplus was SEK 1,876m (1,817).
  • Cash flow from operating activities before changes in working capital was SEK 1,132m (1,179).
  • Profit before tax increased to SEK 10,059m (2,019), of which:
    • Profit from property management is included in the amount of SEK 1,442m (924). The profit from property management includes costs for early repayment of loans and other non-recurring costs of SEK -197m (-154).
    • Changes in the values of properties are included in the amount of SEK 7,404m (1,789).
    • Changes in the values of financial instruments are included in the amount of SEK 1,221m (-266).
  • Profit for the period was SEK 9,293m (2,595) after the deduction of deferred tax of SEK -669m (200) and current tax of SEK -105m (-52), corresponding to earnings per series A and B ordinary share of SEK 5.94 (1.80) before dilution.
  • The value of the property portfolio amounted to SEK 116.8bn (73.0).
  • Long-term net asset value (EPRA NRV) was SEK 43,992m (25,246), corresponding to SEK 31.02 (19.91) per share.

THE SECOND QUARTER IN BRIEF

  • Rental income increased to SEK 1,451m (1,323).
  • Net operating income increased to SEK 1,018m (922).
  • Operating profit increased to SEK 827m (605).
  • Cash flow from operations before changes in working capital amounted to SEK 743m (758).
  • Net income after tax for the period amounted to SEK 6,558m (1,233), corresponding to earnings per series A and B ordinary share of SEK 4.05 (0.86) before dilution.

FORECAST FOR 2021

For the full year 2021, earnings per ordinary share A and B are estimated to amount to SEK 7.80 which is an increase from the forecast of SEK 5.15 that was provided in the first quarter.

MONTHLY DIVIDEND INVESTIGATION

SBB’s Board of Directors has decided to investigate the possibility of monthly dividends of the ordinary A and B shares from the next Annual General Meeting. The inquiry's conclusion together with the Board's assessment of the scope for dividend from next year will be presented in connection with a capital markets day which is planned to take place during autumn 2021.

”SBB’s 12-month rolling earnings capacity rose by 30 percent compared with the second quarter of 2020 and amounted to SEK 3.79 per series A and B share. Profit after tax was SEK 9.3bn, which together with an increased earnings capacity leads to a higher forecast for a profit of SEK 7.80 per series A and B ordinary share for the full year 2021. We have great potential for value creation. Our valuation yield is 4.34 percent in a market where the yield requirement for our low-risk assets is more often below 3 percent and where our average interest rate is 1.13 percent. Our value-adding strategies continue to out-perform at all levels. By itself, the profit from our two value-adding strategies Development of building rights & new production, and Investments in existing portfolio ended up at SEK 1.7bn for the first half of 2021. Our scenario analysis also shows that we have potential for tens of billions of SEK in added value from our building rights portfolio.”

Ilija Batljan
CEO and Founder

Attachment: Interim Report January – June 2021

The Interim Report can also be found in the following link: corporate.sbbnorden.se/en/reports-and-presentations/.

For further information, please contact:

Ilija Batljan, CEO and Founder of Samhällsbyggnadsbolaget i Norden AB, 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 15 July 2021, at 08:00 CET.

Samhällsbyggnadsbolaget i Norden AB (publ) (SBB) is the Nordic region’s leading property company in social infrastructure. The Company’s strategy is to long term own and manage social infrastructure properties in the Nordics and rent regulated residential properties in Sweden, and to actively work with property development. Through SBB’s commitment and engagement in community participation and social responsibility, municipalities and other stakeholders find the Company an attractive long-term partner. The Company’s series B shares (ticker SBB B) and D shares (ticker SBB D) are listed on Nasdaq Stockholm, Large Cap. Further information about SBB is available at www.sbbnorden.se.

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