SBB Norden (SBB) Stockholm Corporate Finance Conference 2024 summary

Strategic focus and business areas

• Operates through three main segments: community, residential, and education properties, with total property exposure of SEK 103.4bn as of Q2 2024.

• Community properties account for SEK 46.0bn, residential SEK 37.4bn, and education SEK 19.9bn in property exposure.

• Decentralized group structure supports flexibility and targeted growth in each segment.

• Focus on countries with strong credit ratings and favorable population growth.

• High occupancy rates, long lease contracts, and strong NOI growth underpin portfolio stability.

Financial performance and stability

• Loan-to-value ratio at 54% and interest coverage ratio at 2.0x as of Q2 2024.

• Average interest rate stands at 2.10% with average debt maturity of 3.8 years.

• 66% of debt matures after 2026, with an average interest rate of 2.37% for this portion.

• Net operating income increased by 8.9% and rental income by 7.2% year-over-year for H1 2024.

• Main focus remains on reducing debt and regaining investment grade rating.

Segment highlights and growth initiatives

• Community segment features government-funded tenants, minimal rent loss risk, and nearly 100% CPI-linked rental income.

• Residential segment, concentrated in Sveafastigheter, plans for IPO or strategic partnership in 2024 to enhance funding and reduce debt.

• Residential rents in Sweden have outpaced both salary and CPI growth, supporting strong returns.

• Education segment co-owns Nordiqus, a leading European public education property platform, with high lease renewal rates and CPI-linked income.

• High asset quality in education segment has enabled refinancing at infrastructure investment grade.