Real estate company SBB’s stock fell sharply after it published its interim report on Friday.
Swedish the real estate company SBB’s losses grew strongly in the second quarter of the year.
According to the interim report published by SBB on Friday, the company made a loss of 11.1 billion kroner before taxes in the second quarter. The amount corresponds to approximately EUR 964 million. At the same time last year, the loss was 2.61 billion kroner.
The rental income received by the company fell to 1.75 billion kroner, i.e. approximately 152 million euros. At the same time last year, the rental income was 1.88 billion kroner, or about 163 million euros.
SBB’s CEO Leiv Synnesin According to
“Several parallel processes have been launched to strengthen the company,” he commented in the press release.
Financial news office Bloomberg’s according to one possibility is the listing of SBB’s subsidiaries on the stock exchange.
Interim report after the announcement, the company’s stock went down sharply. At half past six in the evening Finnish time, the share was down 9.5 percent at 5.47 kroner.
According to news agency Reuters, SBB’s shares have lost more than 90 percent of their value since the peak readings in 2021.
Thursday the company said that it intends to sell more properties it owns to their tenants.
According to the press release sent by the company, it has entered into agreements of intent with the tenants of some of its properties worth more than three billion kroner to sell the properties to the tenants. SBB did not reveal in more detail with whom the agreements have been made.
According to the company, it is planned to finalize the sale of the properties by the end of the third quarter of 2023.
After Midsummer, the company said it was discussing the sale of its 51 percent ownership stake in the SBB Educo infrastructure fund with the Canadian real estate investment company Brookfield.
Swedish one of the biggest landlords, Samhällsbyggnadsbolaget i Norden, or SBB, has been in crisis for a long time.
The background of the company’s problems is, among other things, the rising interest rate, which has hit Sweden’s years-long debt-driven real estate boom hard.
In May, credit rating agency S&P downgraded SBB’s credit rating to junk level, i.e. level BB+. After the credit rating was downgraded, the company announced that it would temporarily suspend the dividend payment.
In June, the company announced that it would postpone its dividend payment by a year in order to improve its liquidity.
SBB is one of Sweden’s largest private landlords.
In Finland, SBB owns almost 200 properties. The company has rented real estate in Finland, especially for nursing homes and daycare centers.
According to its own estimate, the value of the company’s properties in Finland at the end of March was 10.5 billion kroner, or almost one billion euros.
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