SBB updates its target regarding income from property development

Samhällsbyggnadsbolaget i Norden (publ)’s (”SBB”) Board of Directors has decided to update the financial target regarding income from property development to  “Generated income from property development to average SEK 1,000 to 1,400 million per annum” from previous “Generated income from property development to average SEK 500 to 700 million per annum”.

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

• Generated growth in profit from property management per A and B ordinary share to average at least 15 per cent per year over a five-year period (unchanged)
• Generated income from property development to average SEK 1,000 to 1,400 million per annum (previous target: Generated income from property development to average SEK 500 to 700 million per annum)
• Loan to value ratio below 50 per cent, defined as adjusted debt to debt plus equity below 50 per cent (unchanged)
• Secured Loan to value ratio below 30 per cent (unchanged)
• Interest coverage ratio of at least 3.0 times (unchanged)
• Achieve a BBB+ rating no later than during 1H 2021, and A- in the long term (unchanged)

SBB’s operational targets:

• A property portfolio of SEK 125 billion by 2025, with retained BBB+ rating (unchanged)
• 100 per cent climate neutral by 2030 (unchanged)
• Renovations of at least 600 apartments per annum (unchanged)

SBB’s dividend policy:

• To generate a steadily increasing annual dividend per A and B ordinary share. Based on the current position and outlook, the Board’s ambition is to propose a dividend of SEK 1 per A and B ordinary share to the 2021 Annual General Meeting. (unchanged)

Ilija Batljan, Founder and CEO of SBB:

SBB has a unique value creation model that in addition to safe cash flows from property management also provides recurring income streams via property development, renovations and transactions. Within property development, we have been delivering strongly, SEK 852m in profit for the first nine months of this year. Strong growth in SBB’s portfolio creates the potential of strong recurring earnings of more than SEK 1bn on a yearly basis while at the same time creating value for shareholders andsociety as a whole.

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. The information was submitted for publication, through the agency of the contact person set out above on 3 December 2020, at 16:00 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. The Company’s preference shares (ticker SBB PREF) are listed on Nasdaq First North Premier Growth Market. Certified Adviser is Erik Penser Bank (contact: certifiedadviser@penser.se / +46 84638300). Further information about SBB is available at www.sbbnorden.se.