Interim Report Q1 2026
SBB invests in social infrastructure companies in the Nordic region
We have three core holdings – Sveafastigheter, Public Property Invest and Nordiqus. This means that an investment in SBB provides a unique exposure to three market leading companies, two listed and one unlisted, within social infrastructure. Market leaders attract more business opportunities, have better access to capital and can execute transactions with greater precision.
The fact that all three core holdings raised long-term financing in the capital market during the first quarter was a sign of strength. All are financed with investment grade ratings, which results in favorable financing terms.
In addition to liabilities in operating companies, SBB has bond debt that provides leverage for development. The bonds carry an average interest rate of 1.73 percent, which is a favorable level.
Sveafastigheter – stable growth and robust demand
Sveafastigheter continues to deliver a stable performance. The company reported healthy demand for its newly built properties, which was confirmed by a property divestment in Nacka, amounting to SEK 438m, that yielded a price that was 24 percent higher than the amount invested. Sveafastigheter also entered the European bond market, issuing a bond that matures in 2031.
Income in comparable portfolios increased by 4.9 percent during the quarter. A reasonable assumption is that the revenues have a limited downside, but rather will continue to grow in a stable manner. This is the nature of the Swedish apartment building rental market.
Public Property Invest – solid financing structure and BBB+ rating
Public Property Invest secured a BBB+ rating and successfully raised financing on the European bond market, which was completely in accordance with the plan the company set for itself in connection with the acquisition from SBB during the fourth quarter. The combination of a strong market position and good access to capital provides the company with an excellent basis for continued growth with low risk.
Nordiqus – consolidating its leading position
Nordiqus is consolidating its position as the leader in education infrastructure in the Nordics. The company completed acquisitions for SEK 1.8bn in Stockholm and Gothenburg during the quarter. Long leases and stable financing provided by North American institutions create predictable cash flows and low risk in profit from property management.
Property exposure grows by SEK 2.8 bn
SBB’s property exposure increased by SEK 2.8 bn during the quarter to SEK 78.7 bn. In particular, core holdings are growing and now amount to 76 percent of the property exposure. The trend will continue, with smaller holdings being divested to simplify the company structure, reduce debt and allocate resources to the core holdings.
Value trend – signs of recovery in the market
The market for residential and community service properties has shifted from stabilization to selective recovery, with improved financing conditions and enhanced pricing transparency now driving transaction activity. SBB’s consolidated portfolio noted marginal value appreciation during the quarter, which is a positive start to the year.
Net operating income increases win in the long run
SBB’s property exposure has the ability to generate steadily increasing cash flows, which sooner or later leads to value increases. Since the beginning of 2023, income in comparable portfolio that have been consolidated have increased by 26.2 percent and net operating income by 32.5 percent.
Net asset value – increases despite currency headwinds
Net asset value rose to SEK 8.22 per share during the quarter. Positive contributions were received from our larger core holdings. The fact that the increase was not greater is mainly due to negative exchange rate effects. The underlying business reported a favorable performance, providing a solid foundation for upcoming quarters.
An increasingly robust and transparent structure
Adaptability and a long-term approach are the hallmarks of SBB’s corporate culture. These are crucial attributes because we should expect market conditions to change in the future. The more sustainable and transparent corporate structure we are currently building will strengthen our capacity to act when attractive opportunities arise, and will make it easier for us to adapt to any fluctuations in the financial and property markets.
Toward a more solid financial position
Our liquidity planning horizon is good and we can therefore work strategically to strengthen our financial position. A less complex corporate structure will make it easier to raise capital, and we believe there are many opportunities for the portfolio companies to show rent growth and value appreciation going forward. Such a development will contribute to lower SBB’s indebtedness and giving the company a more robust balance sheet.
Clear direction toward long-term value creation
SBB is continuing to progress in the right direction. Our core holdings are well positioned and they will further strengthen their market positions. There are strong indications that community service properties and residential properties will benefit from our current position in the economic cycle.
Nordic population growth creates long-term support for demand for housing and community service properties, which provides a structurally attractive market dynamic.
Regardless of the state of the economy, we will continue to streamline our structure, cut costs and deleverage by divesting non-priority assets. Determined efforts yield results – and SBB is on the path to a stronger and more value-driven future.
Leiv Synnes, CEO