SBB Norden (SBB) Q1 2025 earnings summary

Executive summary

• Like-for-like rental income increased by 2.7% and net operating income grew by 4.3% year-over-year, reflecting solid operational performance and cost control.

• Profit for Q1 2025 rebounded to SEK 1,588m, a turnaround from a significant loss in the prior year, mainly due to positive value changes and lower net interest.

• The group is executing a strategy focused on core holdings, decentralization, and building leading companies in each business area.

• Subsidiaries such as Nordicus, Svea Fastigheter, and PPI are performing well, with ongoing asset acquisitions, development activities, and improved credit ratings.

• Dispute with a hedge fund resolved, reducing financial risk and allowing focus on cost control and segment optimization.

Financial highlights

• Net operating income for Q1 2025 was SEK 510m, up 4.3% in comparable portfolios, with profit for the period at SEK 1,588m.

• Like-for-like revenue growth was 2.7% year-over-year.

• Total changes in value were minus SEK 131m, with unrealized changes in value at minus SEK 36m.

• FX gains contributed SEK 1.9 billion to other financial items, supporting the bottom line.

• Return on equity for shareholders was 48% for Q1 2025.

Outlook and guidance

• New financial targets include growing net asset value per share by at least 12% per year and increasing net operating income by at least 1% above inflation.

• Long-term goal is to regain investment-grade rating, with a focus on reducing debt and widening funding sources.

• No dividends will be paid until investment-grade status is restored.

• Continued asset sales and reduced lending to associated companies are expected to improve liquidity.

• Recovery in property prices is anticipated over the next few quarters.