Slides
Page 1
Q1 2025 13 May 2025
Page 2
| 2 TODAY’SPRESENTERS HELENA LINDAHL Treasury Director LEIV SYNNES CEO DANIEL TELLBERG Finance Director
Page 3
| 3 42% 31% 21% 5% SEK 92.5 bn 55.1 SEKbn Property Value 92.5 SEKbn Total property exposure 4.8% Yield 2.7% Rental income Increase, like-for-like 4.3% Net Operating Income increase, like-for-like 8.5% Vacancy Rate 60% Loan-to-value 2.5% Average Interest rate 1.8 Interest coverage ratio HIGHLIGHTS FOR THE PERIOD Property exposure SEKbn Property exposure Community 38.7 Residential 29.0 Education 19.8 Development 4.9 ▪ Rental income increased by 2.7% ▪ Financial stability and liquidity remain as a priority ▪ Net operating income Increased by 4.3% ▪ SBB’s dispute with a single opportunistic hedge fund was resolved ▪ Negative changes in property value. Value change -0.2% in the quarter ▪ Strategy execution on track Total property exposure including share of significant holdings 92,5 SEKbn Community Residential Education Development Total 92.5
Page 4
| 4 NEW FINANCIAL TARGETS New financial and operational targets ✓ Increase net asset value per share by minimum 12 percent per annum ✓ Net operating income in like-for-like portfolio to increase by at least CPI + 1 percent per annum ✓ Group shall achieve a rating of at least BBB- in the long term ✓ Build efficient and leading companies in all business areas ✓ Carbon-neutral and make buildings energy efficient by 2030 ✓ All buildings to achieve at least energy class E ✓ Improve most properties by at least one energy class
Page 5
| 5 STRATEGYEXECUTION ON-TRACK Progress since December: Independent subsidiaries and associated companies show good progress ✓ Stable financing conditions for Nordiqus, Sveafastigheter and Public Property Invest ✓ Nordiqus raised 8.7 bn through USPP , and refinanced bank debt. Now 17 bn on a 13-year average duration ✓ Sveafastigheter received an expected BBB- (positive outlook) rating from Fitch ✓ Ability to seize opportunities in the market Optimize Community segment: Creating SBB Samhälle, SBB Utveckling ✓ Add resources to manage development properties ✓ Continue to show value-add results Ongoing work to bring down central administrative costs ✓ Entering a positive trend in Q1 with 17% admin costs/rental income vs. 23% in Q4 2024
Page 6
| 6 Community Residential Education Total Property exposure Total Property exposure Total Property exposure 38.7 29.0 19.8 Property value Property value Property value 19.3 19.6 0.5 SBB’s share of property portfolios in JV and Associated companies SBB’s share of property portfolios in JV and Associated companies SBB’s share of property portfolios in JV and Associated companies 19.4 9.4 19.3 TRANSPERENT GROUP STRUCTURE ✓ Transparent ✓ Funding options Development Total Property exposure 4.9 Property value 4.8 SBB’s share of property portfolios in JV and Associated companies 0.1
Page 7
| 7 0.8SEK bn COMMUNITY 18.5SEK bn5.8 % Yield 8 Years WAULT 19.3SEK bn 38.7 ▪ Leading and scalable platform ▪ Elderly care 32% of the property portfolio ▪ Sustainability at the core of the business model ▪ Government funded tenants, minimal risk of rent loss ▪ Partnership confirms the strong value of the portfolio ▪ Rental income close to 100% CPI-Linked Consolidated properties JV and Associated companies Key figures per Q1 2025 & others SEK bn Property value Property exposure including JV and significant holdings SBB’s share of property portfolios in significant holdings SBB’s share of property portfolios in other holdings ▪ Strong current and future demand due to demographics
Page 8
| 8 ▪ Sveafastigheter was listed on Nasdaq first North 2024, recieved an indicative investment grade rating from Fitch in 2025 ▪ Residential holdings are concentrated to Sveafastigheter ▪ Residential properties outside Sveafastigheter is to be divested over time ▪ Rent development for Swedish-regulated tenancies driven by population growth and real economic development ▪ Rent is expected to increase significantly faster than inflation in the coming years 3.4SEK bn RESIDENTIAL 4.2 % Yield 1,518SEK Avg. rent per sq.m 19.6SEK bn 29.0 Consolidated properties (Incl. Sveafastigheter) JV and Associated companies Key figures per Q1 2025 SEK bn Property value Property exposure including JV and significant holdings SBB’s share of property portfolios in other holdings 6.0SEK bn SBB’s share of property portfolios in significant holdings SBB Residential Property AB & othersSBB’s part of Svea + other consolidated residentials
Page 9
| 9 EDUCATION 19.3SEK bn0.5SEK bn Property value 19.8 ▪ Nordiqus is SBB’s platform for educational properties, co-owned with Brookfield ▪ Nordiqus is Europe’s leading public education property platform with growth potential ▪ Government-backed income, high lease renewal rate and close to 100% CPI- linked ▪ High asset quality with predictable earnings has enabled refinancing with an infrastructure investment grade rating ▪ Additional dividend planned to second half of 2025 Consolidated properties JV and Associated companies Key figures per Q1 2025 SEK bn Property exposure including JV and significant holdings SBB’s share of property portfolios in significant holdings
Page 10
| 10 DEVELOPMENT 4.9▪ Offering our tennants development expertise gives us competitive advantages ▪ The Business area is limited to 10 percent of the company’s balance sheet SEK bn Property exposure including JV and significant holdings ▪ Strategic and focused special part of group to create profits from development activities, converting potential into long-term value ▪ Allocated capital must generate at least a 15 percent return on equity Completed projects Projects under development
Page 11
| 11 DEVELOPMENT (CONT.) – SELECTION OF PROJECTS Completed projects Projects under development PROJECT: FRIDHEM TYPE: ELDERLY CARE MUNICIPALITY: ÄNGELHOLM PROJECT: ALTPLATSEN TYPE: RESI + ASSISTED LIVING MUNICIPALITY: GOTHENBURG PROJECT: SÅGKLINGAN TYPE: ELDERLY CARE MUNICIPALITY: VÄSTERÅS PROJECT: GÅRDSJÖSTRAND TYPE: ELDERLY CARE MUNICIPALITY: FLEN PROJECT: SARVTRÄSK TYPE: RESI + ASSISTED LIVING MUNICIPALITY: NACKA PROJECT: TENSTATERASSEN TYPE: ELDERLY CARE MUNICIPALITY: STOCKHOLM
Page 12
| 12 4.8 Yield 2025 Q1% 92 Economic Occupancy ratio incl. Development 2025 Q1% Full-year average Full-year average Full-year average Full-year average 3.9% 4.0% 4.7% 4.9% 0 1 2 3 4 5 6 Percent 2021 Q2 2021 Q3 2021 Q4 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 2024 Q1 2024 Q2 2024 Q3 2024 Q4 2025 Q1 2021 Q1 STABLE YIELD AND OCCUPANCY Economic Occupancy Ratio Yield 0 20 40 60 80 100 Percent 2021 Q2 2021 Q3 2021 Q4 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 2024 Q1 2024 Q2 2024 Q3 2024 Q4 2025 Q1 2021 Q1 Full-year average Full-year average Full-year average 93.9% 95.6% 92.5% Full-year average 95.0%
Page 13
| 13 FINANCIAL STATEMENTS
Page 14
| 14 ▪ Solid quarter ▪ Rental income LFL increased by 2.7% ▪ Net operating income LFL increased by 4.3% ▪ Decrease in total admin, despite 26mn one-off in Q1 SEKm Q1 2025 Q1 2024 Profit impact Like-for-like Net operating income 510 736 -226 +4.3% 49 - 49 Net Admin & Restructuring expenses -204 -222 18 Profit before financial items, value changes in properties and goodwill 355 514 -159 Changes in value, property -131 -1,984 1,853 Impairment of goodwill - - - Other -11 -1 -10 Operating profit 213 -1,471 1,684 Results from associated companies/joint ventures -5 -37 32 Credit losses on receivables from associated companies/joint ventures 9 -31 40 Net interest -157 -262 104 Other financial items 1,837 622 1,214 Tax -308 144 -453 Profit for the period 1,588 -1,035 2,622 KEY TAKEAWAYS – CONSOLIDATED INCOME STATEMENT FOR Q1 2025 Comments SEKm Q1 2025 Q1 2024 Svea -85 -61 SBB excl. Svea -119 -148 Total Admin -204 -209 Other property management income
Page 15
| 15 22 % 60 50 42 33 35 37 35 40 42 46 47 49 47 52 52 54 55 54 62 61 60 15 13 10 12 9 8 12 18 19 19 20 18 19 19 21 19 18 19 20 22 2020 Q2 2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 2024 Q1 2024 Q2 2024 Q3 2024 Q4 2025 Q1 FINANCING Loan to value, % (Unsecured v. Secured) % Loan to value Q1 2025 Secured Loan to value Q1 2025 ▪ Main focus is to reduce debt level and dependence on individual sources of financing ▪ Group shall achieve a rating of at least BBB- in the long term as expressed in new financial targets ▪ Slight decrease in Loan-to-value LTV Secured LTV
Page 16
| 16 ATTRACTIVE LONG-TERM FUNDING 2.5 % 2.5 % Debt Maturity Interest Rate Maturity 2.9 years Average interest rate maturity Q1 2025 72 % With maturity later than 2026 per Q1 2025 2.8 years Average debt maturity Q1 2025 Average interest of debt with maturity later than 2026 per Q1 2025 Average interest rate Q1 2025 0 5,000 10,000 15,000 20,000 SEKm 2025 2026 2027 2028 2029 >2029 7% 16% 32% 17% 26% 2% 0 5,000 10,000 15,000 20,000 SEKm 2025 2026 2027 2028 2029 >2029 12% 17% 35% 15% 20% 1% 1.8 x Interest coverage ratio Q1 2025
Page 17
| 17 77,595 72,622 61,374 57,040 53,764 53,233 54,033 53,689 20,000 40,000 60,000 80,000 100,000 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 LIQUIDITY HAS FACILITATED NOMINAL DEBT REDUCTION ▪ No additional dividend until investment grade ▪ Mainly repay maturing debt ▪ Direct sale of real estate ▪ Sale of 10bn of non-core assets and/or raise equity in subsidaries to adress coming maturity Methods for Continued debt reduction SEKm Nominal Debt, FX like-for-like
Page 18
| 18 TO SUMMARIZE 1 3 Decentralized group structure with four focused business areas 2 Property portfolio characterized by a high occupancy rate, long lease contracts and strong NOI growth 4 Operates in countries with strong credit ratings and favorable population growth Returning to financial stability with well-positioned and well-financed core holdings