SBB Norden (SBB) Q2 2025 earnings summary

Executive summary

• Property exposure increased by SEK 902 million in H1 2025, reaching SEK 93.7 billion, driven by growth in subsidiaries and strategic acquisitions.

• Rental income grew 1.3% and net operating income rose 3.7% like-for-like compared to the same period last year.

• Profit rebounded to SEK 861 million in H1 2025 from a significant loss last year, with Aker becoming a major shareholder holding 29% of votes.

• Subsidiaries and associated companies contributed to growth, with effective cost control and strengthened core business confidence.

• Strategy execution is on track, with improved cost control and major transactions optimizing the portfolio.

Financial highlights

• Net operating income for H1 2025 was SEK 1,155 million, up 3.7% like-for-like, with total liquidity at SEK 3.9 billion and SEK 1,125 million in unused credit facilities.

• Loan-to-value ratio decreased to 59% following the Q2 share issue, and interest coverage ratio improved to 2.3x.

• Average interest rate was 2.5% with 2.7 years average maturity; 75% of debt matures after 2026.

• Profit for the period was SEK 808 million, a turnaround from a SEK -3,304 million loss in Q2 2024.

• Cash flow from operating activities before working capital was SEK 502 million, up from SEK -13 million.

Outlook and guidance

• Management expects continued rental growth above inflation in the residential segment and improved net operating income and occupancy.

• Demand for elderly care is forecasted to rise by up to 33% by 2033, supporting community property growth.

• Strategic focus on efficient platforms and capital allocation to generate at least 15% return on equity in development.

• Ongoing divestment of non-core assets to optimize capital structure and reduce leverage.

• The company is optimistic about property valuations and long-term prospects as financing costs decrease and market conditions stabilize.