SBB updates its LTV target

Samhällsbyggnadsbolaget i Norden (publ)’s (”SBB”) Board of Directors has decided to update the financial target regarding LTV from below 55 % to below 50 %. 

The updated target and SBB's other financial and operational targets are presented below (previous levels are given in brackets):

  • 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 (below 55 percent)
  • Equity Ratio of at least 35 percent (unchanged)
  • Generate an income from sales of building rights to average 250 to 400 MSEK per annum (unchanged)
  • Secured Loan to value ratio less than 40 percent (unchanged)
  • Interest coverage ratio of at least 2.5 times (unchanged)
  • Long-term goal of dividend payout ratio of 40 percent of the dividend-based earnings (including dividends on preference shares) (unchanged)

SBB's operational goals:

  • A property portfolio of SEK 40 billion by 2023, with retained investment grade rating (unchanged)
  • Renovations of at least 600 apartments per annum (unchanged)
  • To change its listing from First North Premier to Nasdaq Stockholm's main list in 2019 (unchanged)

”We are actively working to strengthen our financial position in order to achieve an investment grade rating. By updating the LTV target, we take another step on that journey,” says Ilija Batljan, CEO and Founder of SBB.

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 March 27, 2019, 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. 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), D shares (short name SBB D) and preference shares (SBB PREF) are listed on Nasdaq First North Premier. Certified Adviser is Erik Penser Bank (contact: certifiedadviser@penser.se / +46 84638300). More information about the company is available at www.sbbnorden.se.

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