SAMHÄLLSBYGGNADSBOLAGET I NORDEN AB (PUBL)

Summary of period

First nine months

The period in brief, continuing operations

Rental income for the period amounted to SEK 2,926m (3,512).
Rental income increased by 5.9 percent in comparable portfolios.
Net operating income amounted to SEK 2,045 million (2,496).
Net operating income increased by 7.4 percent in comparable portfolios.
Profit from property management, excluding exchange rate differences, amounted to SEK 1,803m (1,272).
Cash flow from operating activities before changes in working capital was SEK 310m (806).
The loss before tax amounted to SEK -6,721m (-17,357), of which:
Profit/loss before financial items, changes in value of properties and goodwill are included in the amount of SEK 1,300m (1,873), including acquisition and restructuring costs of SEK -14m (-39).
Changes in value of properties are included in the amount of SEK -5,353m (-10,493).
Dissolution of goodwill regarding deferred tax amounts to SEK -351m (-201) and impairment of goodwill amounts to SEK -1,076m (-).
The loss from joint ventures and associated companies was included in the amount of SEK -1,443m (-4,362).
Financial items amounted to SEK 649m (-2,085), of which profit from the early redemption of loans is included in the amount of SEK 1,181m (-113) and exchange rate differences in the amount of SEK 59m (-1,168).
Changes in the values of financial instruments are included in the amount of SEK -193m (-2,085).
The loss for the period amounted to SEK -5,434m (-15,536) after the deduction of deferred tax of SEK 1,788m (2,303) and current tax of SEK -501m (-482), corresponding to a loss per Class A and B ordinary share of SEK -3.92 (-11.47) before dilution.
The value of the property portfolio amounted to SEK 53,867m (73,205).

• Long-term net asset value (EPRA NRV) was SEK 14,350m (18,888), corresponding to SEK 9.87 (12.99) per share before dilution.

Significant events during the third quarter

On 19 June 2024, SBB announced its intention to implement a mandatory payment of deferred interest on hybrid bonds. The payment of deferred interest occurred on 3 July 2024.
On 2 July, the dividend approved by the Annual General Meeting on 28 April 2023 was disbursed. The record date was 27 June 2024.
On 3 July, SBB resolved, in accordance with the terms of the hybrid bonds, to postpone the interest payments on all of its hybrid bonds.
On 5 July, a bond exchange offer was conducted whereby holders of bonds and hybrid bonds issued by SBB's Parent Company and by SBB Treasury OY were offered the opportunity to exchange existing bonds for cash and bonds issued by the subsidiary Sveafastigheter. Overall, bonds and hybrid bonds for a nominal value of EUR 275m, SEK 721m and NOK 40m were exchanged. These transactions resulted in a capital gain of SEK 1.7bn. Of this amount, SEK 0.4bn is attributable to bonds and has been reported as the gain on premature loan redemptions, and SEK 1.3bn is attributable to hybrid bonds that have been reported as an increase in equity attributable to holders of ordinary share in the third quarter.
On 28 August, it was announced that SBB's associated company Nordiqus had secured refinancing of SEK 8.6bn. This was made possible by Nordiqus' financing gaining an investment grade rating based on the credit rating method for infrastructure.

Significant events following the end of the quarter

On 1 October, SBB announced that it would be in-sourcing its financial management, providing an estimated annual saving of SEK 25m, with full effect as of 2026.
On 18 October, SBB's subsidiary Sveafastigheter was listed on the Nasdaq First North Premier Growth Market. Sveafastigheter is a key holding in SBB's Residential business area. The offer, including the over-allotment option, comprised
88 million shares, equivalent to 44 percent of the total number shares in Sveafastigheter. The offer price was SEK 39.5. Following the listing of Sveafastigheter, the stabilization agent has implemented stabilization measures resulting in SBB holding about 122.4 million shares in Sveafastigheter, equivalent to 61.2 percent as of 27 November 2024. Proceeds from the IPO was SEK 3,065m.
On 24 October, SBB received an inquiry from the Swedish Financial Supervisory Authority regarding a review of the annual report 2021 handed over by the Board for Swedish Accounting Supervision to the Financial Supervisory Authority in April 2024. The review, which has been disclosed of in earlier annual reports, covers certain valuations of properties and acquisitions stated in the annual reports for the financial years 2021 and 2020, which have been audited by the company's auditors.

SBB has submitted a response to the Financial Supervisory Authority on 19th November. No assessment of the final outcome of these reviews can currently be made, but will be addressed in the financial reporting for 2024 or later, depending on when the processes are completed.

On 25 October, SBB and K2A agreed to divest part of the Ångpannan 10 property, the Ångpannan 12 property, and part of the Västerås 1:202 property in Västerås to Intea with the transfer of the properties estimated to occur in the second quarter of 2025. The transaction is based on an underlying property value of SEK 620m, with SBB's share of the transaction being estimated to free-up about SEK 300m in cash.
In November, SBB's associated company, Fitch awarded Public Property Invest ASA an investment grade rating of BBB- with a positive outlook.
In November, SBB entered into an agreement to sell the Västerås Sågklingan 6 and Flen Vävskeden 21 properties to Nordisk Renting. The transaction is based on an underlying property value of SEK 679m and total proceeds of about SEK 672m. The properties are not mortgaged, meaning that the transaction proceeds accrue to SBB in their entirety.

SEK 53.9BN

Property value 30 September 2024

SEK 102.5BN

Total property exposure incl. share of non-consolidated holdings 30 September 2024

5.9%

Rent growth in comparable portfolios January-September 2024

SEK 9.87

Long-term net asset value per share 30 September 2024

7.4%

Increase in net operating income in comparable portfolios January-September 2024

2.33%

Average interest rate 30 September 2024

SBB key ratios

	1 Jan 2024 30 Sep 2024	1 Jan 2023 30 Sep 2023	1 Jul 2024 30 Sep 2024	1 Jul 2023 30 Sep 2023	1 Jan 2023 31 Dec 2023
Property-related key ratios
Market value of properties, SEKm	53,867	76,198	53,867	76,198	73,205
Number of properties	846	1,833	846	1,833	1,172
Number of m2 , thousands	2,200	4,392	2,200	4,392	3,048
Surplus ratio, %	70	76 1)	73	81	75
Yield, %	4.9	4.7 1)	4.9	4.7 1)	4.8
Change in rental income, comparable portfolios, %	5.9	9.5	3.1	8.7	8.8
Change in net operating income, comparable portfolios, %	7.4	12.5	3.7	13.2	10.9
Economic occupancy ratio, %	91.6	96.3	91.6	96.3	94.2
Average lease term, WAULT; community and educational properties, years	8	10	8	10	7
Financial key ratios
Rental income, SEKm	2,926	3,512	805	1,195	4,581
Net operating income, SEKm	2,045	2,496	589	927	3,209
Profit/loss for the period, continuing operations, SEKm	-5,434	-15,536	-2,005	-2,473	-18,827
Cash flow from operating activities before changes in working capital, SEKm	310	806	323	276	1,222
Equity attributable to Parent Company shareholders, SEKm	14,433	20,649	14,433	20,649	17,909
Return on equity, %	-17	-33	-7	-9	-43
Loan-to-value ratio, %	62	52 1)	62	52 1)	54
Secured loan-to-value ratio, %	19	19 1)	19	19 1)	18
Equity/assets ratio, %	31	36 1)	31	36 1)	34
Adjusted equity/assets ratio, %	33	40 1)	33	40 1)	37
Non-pledged quota, multiple	1,34	1.76 1)	1,34	1.76 1)	1.60
Interest-coverage ratio, multiple	1.7	2.6 1)	-	-	2.1
Share-related key ratios
Current net asset value (EPRA NTA), SEKm	12,821	17,445 3)	12,821	17,445 3)	16,363
Actual net asset value (EPRA NTA), SEK/share	8,81	11.99 3)	8,81	11.99 3)	11.25
Actual net asset value (EPRA NTA) after dilution, SEK/share	8,81	11.99 3)	8,81	11.99 3)	11.25
Long-term net asset value (EPRA NRV), SEKm	14,350	21,014 3)	14,350	21,014 3)	18,888
Long-term net asset value (EPRA NRV), SEK/share	9,87	14.45 3)	9,87	14.45 3)	12.99
Long-term net asset value (EPRA NRV) after dilution, SEK/share	9,87	14.45 3)	9,87	14.45 3)	12.99
EPRA earnings (company-specific), SEKm	-327	-243 2)	157	840 2)	-1,322 2)
EPRA earnings (EPS) (company-specific), SEK/share	-0,22	-0.17 2)	0,11	0.58 2)	-0.91 2)
EPRA earnings after dilution (EPS diluted) (company-specific), SEK/share	-0,22	-0.17 2)	0,11	0.58 2)	-0.91 2)
EPRA Vacancy rate	8.4	3.7	8.4	3.7	5.8
Earnings per Class A and B ordinary share, SEK	-3,92	-13.55 2)	-1,36	-3.27 2)	-15.81 2)
Earnings per Class D ordinary share, SEK	1.50	1.50	0.50	0.50	2.00
Average number of Class A and B ordinary shares	1,454,615,648			1,454,254,329 1,454,615,648 1,454,310,545 1,454,345,401
Average number of Class D ordinary shares	178,056,399	193,865,905	149,208,126	193,865,905	193,865,905
Number of Class A and B ordinary shares	1,454,615,648			1,454,615,648 1,454,615,648 1,454,615,648 1,454,615,648
Number of Class D ordinary shares	149,208,126	193,865,905	149,208,126	193,865,905	193,865,905

¹⁾ This key ratio has been calculated including assets held for sale

²⁾ This key ratio has been calculated including discontinued operations

³⁾ This key ratio has been updated because the company has changed its accounting principle for addressing issue costs. See Equity on page 24 for further information.

CEO Leiv Synnes

SBB owns residentials in Sweden and premises for publicly funded social infrastructure in the Nordic region.

Strong companies emerge

By listing Sveafastigheter on Nasdaq First North, SBB has achieved another major step in its strategy to focus more clearly on its core business and to optimize its financing. Sveafastigheter is now Sweden's largest listed pure-play residential company and has a management team focused on improving net operating income long term. Over the coming years, I believe that there will be particularly favourable conditions for strong net operating income development thanks to good general rental growth in the market and planned improvement measures. Financially, Sveafastigheter is strong with a 40 percent loan-to-value ratio and an average interest rate of 3 percent, which means that we have the ambition that they will obtain an investment grade rating in 2025.

Nordiqus, SBB's associated company in educational infrastructure, has already financed its operations with investment grade financing. Both Nordiqus and Sveafastigheter can now improve their day-to-day operations without financial stress. They can also capitalise on their leading platforms and financial strength to identify additional business opportunities and to grow organically.

SBB's third major business area alongside residential and educational properties is community service properties. In the second quarter, SBB participated in the IPO of Public Property Invest ASA, which is now in a strong position to expand its property portfolio and improve operations. A target for the upcoming years is to create the right conditions for all assets in the segment. A sign that we are on the right track is that PPI received an investment grade rating of BBB- with a positive outlook from Fitch in November. We have started, but are far from finished, structuring SBB's community service properties.

Benefitting from strong project operations

A large proportion of SBB's residential projects and residential building rights are now part of the subsidiary Sveafastigheter, which is recognized as skilful in residential development. Among other things, they have received awards in sustainability and for having the most satisfied tenants in new production. Between 2021 and 2023, Sveafastigheter has been granted building rights for 2,351 apartments.

Together with K2A, SBB has developed a project in which a centrally located property in Västerås will be developed into approximately 34,600 m2 of state-of-the-art, sustainable premises with the Swedish Prison and Probation Service as the tenant. We have agreed to sell the project with access in 2025, where SBB's share of the profit amounts to SEK 210m and

the liquidity contribution is expected to be SEK 300m in the coming year.

In November, SBB signed agreements to sell the elderly care properties Sågklingan 6 in Västerås and Vävskeden 21 in Flen which were developed by SBB. The purchase price was SEK 679m, compared with total project costs of SEK 573m. The project profit was thus SEK 106m or 19 percent.

SBB retains a solid project and property development portfolio, as well as a number of identified cash flow properties with development potential. With a number of restructuring projects behind us, I believe we have greater potential to shift more resources to property development. The aim is to generate recurring project profits and to increase rental income through higher rent levels, larger premises and lower vacancy.

Focus on core business

The property management organization will focus solely on the core business of leasing premises, carrying out investments in consultation with new and existing tenants, and otherwise providing good service to our tenants. SBB has considerably reduced the number of partnerships and concentrated its holdings in larger units in order to make administration more efficient. From time to time, there may be reasons for new partnerships, but the long-term trend is towards rationalisation and increased transparency.

Strengthened organization

SBB has significantly strengthened its organization. Subsidiaries and associated companies have been given qualified staff and improved structures. Resources have been added to

central treasury, finance, legal and accounting functions. At the end of the year, insourcing of financial management and implementation of new financial systems will be completed, which in the long term will generate annual savings of SEK 25m per year.

The central administration costs have been affected by several complex structures, a high rate of structuring and legal processes. The aim is to normalize the central costs by the end of 2025. While all changes present challenges, the changes we are currently making will lower costs and raise quality in the long term.

A shifting market

The wind has clearly shifted in the capital market for Swedish real estate companies. For example, their credit margins have halved to 1.4 percent this year for bonds in SEK and with a credit rating of BBB. At the same time, we see that property companies are now increasingly able to raise equity to strengthen their financial positions or to invest aggressively. This represents a significant improvement compared to before.

My belief is that the credit market will improve further after the turn of the year, with the leading property companies achieving even lower credit margins. With a some lag, better access to capital will lead to increased demand for properties. This will, in turn, have a positive impact on property valuations.

Lower market interest rates result in higher valuations and cheaper financing, but also indicate a slowdown in the economy leading to lower inflation and lower rent increases in indexed leases, as well as weaker demand for commercial premises in particular. For SBB, this means that more resources need to be devoted to retaining existing tenants and securing new ones.

The residential segment is expected to perform well moving forward, as rent growth in recent years has not kept pace with general price increases, and is expected to catch up over the next few years. This could have significant effects. Over long time series, residential rents in Sweden are rising faster than inflation, where one explanatory factor is that in a normal year we get real wage increases and welfare improvements.

Net operating income in comparable portfolios increased by 7.4 percent

Income and net operating income decreased compared with the previous year, which is due to SBB choosing to sell assets to improve its financial position. However, for comparable portfolios, income increased by 5.9 percent during the period and net operating income increased by 7.4 percent.

The actions we take now will equip SBB much better for the future. "

The rental occupancy rate fell slightly during the quarter to 92 percent, which is mainly due to completed residential projects where leasing is ongoing and to upcoming projects where we are vacating the property. Excluding projects, the occupancy rate has been slightly negatively affected by increased vacancies in public offices.

Changes in value

During the year, changes in property value have been approximately -4.4 percent and, during the third quarter, the change has been only -0.8 percent. We note that a large number of companies have reported rising values for the quarter, indicating the general trend and increasingly positive sentiment. We believe that during the fourth quarter we will see either unchanged or rising values, and that we will continue to see this trend in 2025, in pace with falling interest rates and increased liquidity in the transaction market.

Average interest rate of 2.33 percent

SBB continues to have long-term financing with low average interest rates. At the end of the quarter, the average interest rate was 2.33 percent and the average maturity was 3.3 years. Debt maturing after 2026 has an average interest rate of 2.37 percent. We are working actively to reduce our interest-bearing liabilities and to improve the company's financial position. By choosing to amortize rather than refinance loans as they mature, we ensure that it takes longer for the higher interest rates to be reflected in SBB's interest expenses. Excluding Sveafastigheter, the average interest rate is 1.98 percent.

Improved financing structure

Nordiqus' portfolio of educational properties with long-term contracts is well-suited for long-term financing. Over the year, American capital market financing with investment grade was carried out for terms of ten to fifteen years. Nordiqus has redeemed all loans with Nordic banks, partly because they do not offer equally long-term financing.

Residential properties in Sweden have access to a secure source of capital in the form of the banks' mortgage institutes. During the financial crisis, the banks mortgage institutes were one of the few sources of funding that

functioned properly. Most of SBB's residentials are now part of Sveafastigheter which is predominantly financed by mortgage institutes. Sveafastigheter's capital structure allows the capital market to compete with mortgage institutes.

SBB's financing structure proved vulnerable when demand for bonds decreased and the intended financing could not be raised from the banks. The broadening of the shareholder base in Nordiqus and Sveafastigheter has led to both improved loan conditions and an injection of capital, which has been used, among other things, to reduce bond debt. The work of creating optimal financing is not complete, but the result will be that SBB has access to several sources of capital and that dependence on these is less than has been the case. The actions we take now will equip SBB much better for the future.

Baseless claim from opportunistic hedge fund

SBB's dispute with a single opportunistic hedge fund is close to a ruling in a UK court. The case will be heard by the court in January, with a ruling likely being announced in March 2025. The opportunistic fund considers that changes in value in joint ventures not affecting cash flow, are to be included in the cash flow measure of interest coverage ratio. No other SBB bondholders or banks, expect changes in value to be included in such a cash flow measure. In a press release on 31 May 2023, SBB refuted claims that it had violated the terms on interest coverage ratio in the EMTN programmes and therefore considers the claims received from the opportunistic fund to be unfounded and that position remains.

Financial stability is prioritized

SBB's main priority is to achieve a stable financial position. Measures are continuously being taken within the framework of the new strategy, which will lead to improved liquidity and more reasonable financing. Falling property prices and a harsh financing market have posed challenges in recent years as SBB has been working towards a stronger financial situation. My belief is that efforts to improve the financial situation will be easier moving forward.

Leiv Synnes CEO

Sveafastigheter's IPO

On 18 October, trading in Sveafastigheter AB (public) ("Sveafastigheter") commenced on the Nasdaq First North Premier Growth Market, marking the company's launch as a listed company. Prior to the IPO, Sveafastigheter was a wholly owned subsidiary within SBB group. Sveafastigheter becomes a key holding for SBB in the Residential business area.

The IPO and the broadening of Sveafastigheter's shareholder base affords the company favourable conditions to take advantage of its unique market position and to obtain appropriate conditions for growth. With a focused management team, the intention is to improve the efficiency of the operations, resulting in increased profitability and benefiting both SBB and the other shareholders in Sveafastigheter.

From SBB's perspective, the broadening of its shareholder base represented a continuation of the strategy to decentralize the group's structure by establishing wholly and partly owned business units. SBB benefits from establishing business units able to independently increase flexibility in financing, improve financial reporting, increase specialization, enable faster decision-making, promote closer cooperation with tenants and further generate value. SBB also expects the listing to strengthen its balance sheet, thereby improving SBB's financial position.

About Sveafastigheter

The company's business concept is to own, actively manage and build attractive rental apartments in growth regions in Sweden, focusing on the well-being of its tenants, the company's profitability, as well as on local community involvement and strong sustainability efforts. With an in-house and local management organization, Sveafastigheter is focused on active property management to drive profitable organic growth prioritizing tenants satisfaction and cost control. Sveafastigheter also has developed a highly standardized renovation process and continuously assesses apartments when they are vacant. The company has a history of conducting renovations with good profitability, generating value both for tenants and the company.

With a structural demand for residentials throughout Sweden and in the regions where Sveafastigheter owns properties, the group has conducted, and will continue to conduct, new development of properties, predominantly in Stockholm-Mälardalen region. With its longterm presence in the market, Sveafastigheter's internal project organization has established a respectable reputation for reliability and responsibility, which is crucial in the development process alongside municipalities. Since 2014, Sveafastigheter's project organization has conducted projects with a property value of more than SEK 3.6bn and a return on invested capital of 16 percent.

As of 30 September 2024, Sveafastigheter (which was formed through the merger of SBB's residential property companies Sveafastigheter Bostadsutveckling, Hemvist and Unobo) directly holds residential assets of SEK 27.7bn SEK of which 24.5bn are the value of 14,547 apartments across 263 different properties. In addition, Sveafastigheter has about 1,150 apartments under development, which, along with the managed properties, will generate net operating income with an annual earnings

capacity of about SEK 1,017m. Sveafastigheter's ambition is to continue generating value for shareholders, targeting average annual growth in net asset value per ordinary share of at least 12 percent over a business cycle. Sveafastigheter strives to achieve this target by prioritizing efficient property management, focusing on tenant satisfaction, increased economic occupancy and decreased costs, as well as by renovating at least 2,000 apartments over the next five years. In addition, and to support net asset value growth, Sveafastigheter targets commencing construction of at least 600–800 apartments annually over the next five years and continuously increasing its project portfolio by obtaining at least 800 land allocation agreements for new production annually. Consequently, Sveafastigheter aims to increase its surplus ratio, including property administration, to more than 70 percent within the next five years, while also maintaining a strong balance sheet with a loan-to-value ratio of 40–50 percent.

SBB continues to consolidate Sveafastigheter. For more information on Sveafastigheter during the period, see page 11.

Samhällsbyggnadsbolaget i Norden

SBB was founded in 2016 and has a decentralized group structure with three focused business areas: Community, Residential and Education. SBB operates in Sweden, Norway, Finland and Denmark – countries with strong credit ratings and favourable population growth. SBB's property portfolio is characterized by a high occupancy rate and long leases.

Property exposure

SEK 102.5BN

Property exposure including share of non-consolidated holdings

SEK BN	Market value	Share of property portfolio, significant holdings	Share of property portfolio, other holdings
Community	24.8	18.4	1.8
Residential	28.5	5.9	3.5
Education	0.6	19.1	÷
Total	53.9	43.4	5.3

Additional information provided on page 8

Property exposure

44% Community

■ 37% Residential

■ 19% Education

Holdings

		Property portfolio					SBB's exposure
Amounts in SEKm	SBB's holdings of ordinary shares	Market value	Rental income 4)	Net operating income 4)	Market value	Rental income	Net operating income
Consolidated holdings
Community
Elderly care units	100.0%	6,659	465	395	6,659	465	395
LSS	100.0%	4,791	328	290	4,791	328	290
Central government infrastructure and town halls	100.0%	4,564	258	204	4,564	258	204
Hospitals and health centres	100.0%	3,198	273	195	3,198	273	195
Public offices	100.0%	1,908	202	123	1,908	202	123
Other	100.0%	1,673	30	27	1,673	30	27
Project and building rights properties	100.0%	2,037	141	49	2,037	141	49
Subtotal Community	100.0%	24,830	1,697	1,283	24,830	1,697	1,283
Residential
Rental apartments	100.0%	22,665	1,405	939	22,665	1,405	939
Project and building rights properties	100.0%	5,799	-	-	5,799	-	-
Subtotal Residential	100.0%	28,465	1,405	939	28,465	1,405	939
Education
Preschool	100.0%	114	7	7	114	7	7
Compulsory/Upper-secondary school	100.0%	339	27	20	339	27	20
University	-	-	-	-	-	-	-
Project and building rights properties	100.0%	119	-	-	119	-	-
Subtotal Education	100.0%	573	35	27	573	35	27
Total, consolidated holdings		53,867	3,137	2,249	53,867	3,137	2,249

			Property portfolio			SBB's exposure
Amounts in SEKm	SBB's holdings of ordinary shares	Market value	Rental income4)	Net operating income 4)	Market value	Rental income	Net operating income
Community
SBB Social Facilities AB	100.0%	9,458	648	464	9,458	648	464
SBB Infrastructure AB 1)	100.0%	5,458	388	264	5,458	388	264
Public Property Invest ASA 2)	36.26%	9,475	669	602	3,435	242	218
Residential
SBB Residential Property AB	100.0%	5,942	371	194	5,942	371	194
Education
Nordiqus AB	49.84%	38,325	2,403	2,035	19,101	1,198	1,014
Total essential, non-consolidated holdings		68,657	4,479	3,559	43,394	2,847	2,154
Total consolidated holdings and essential non-consolidated holdings		122,524	7,616	5,808	97,261	5,984	4,404
Other non-consolidated holdings 3)
Community		-	-	-	1,768	109	33
Residential		-	-	-	3,483	206	108
Education		-	-	-	-	-	-
Total, other non-consolidated holdings		-	-	-	5,251	315	142
Total		122,524	7,616	5,808	102,513	6,300	4,546

¹⁾ SBB Infrastructure owns properties in Sweden for a market value of SEK 5.5bn. SBB Infrastructure also holds additional securities of SEK 3.6bn from SBB in the form of properties valued at SEK 3.6bn for the loan held by the company. The portfolio is operated and managed by SBB Infrastructure through a property management agreement with Castlelake.

²⁾ As of 31 March 2024, SBB has a 44.84-percent holding in Public Property Invest ASA (PPI). In the second quarter, a non-cash issue of properties from SBB to PPI was implemented together with a public distribution to shareholders, which resulted in Public Property Invest ASA receiving proceeds of about NOK 1.5bn and increasing property its property portfolio to about NOK 10bn. As a result, SBB's participation in the ordinary shares decreased from 44.84% to 36.26%.

³⁾ Other investments. The holdings are: Heba, JM, Studentbostäder i Norden, KlaraBo, Arlandastad, Preservium Property, Origa Care, Solon Eiendom, and One publicus.

⁴⁾ Rental income and net operating income in accordance with earnings capacity.

SBB owns a leading and scalable platform specialized in the ownership and property management of properties housing publicly funded activities. The portfolio is primarily comprised of nursing homes, LSS properties and public offices, all of which stand out in terms of growing demand, inflation-hedged cash flows and minimal risk of rental losses.

Consolidated holdings

Attractive demographics where SBB operates generate opportunities for growth as well as minimizing the risk for declining demand.
The lease terms for the properties are long, with public and publicly funded tenants.
With 27 percent of the portfolio being comprised of elderly care units, there is an ever-increasing demand for such assets, driven by an ageing population.
Rents typically rise more than inflation thanks to near-full inflation indexing and tenant adjustments.
SBB maintains experienced property management and project organization that work continuously to generate additional value and well-being for our tenants.

Details of SBB's directly owned property portfolios are available on pages 27-28.

Joint ventures and associated companies

SEK 18.4 BN

SBB's share of property portfolio in significant holdings

SEK 5.3 BN

SBB's net investment in significant holdings

		Public Property Invest ASA1)	SBB Infrastructure AB1) 2)		SBB Social Facilities AB1) 3)
Significant joint ventures and associated companies	1 Jan 2024 30 Sep 2024	1 Jan 2023 30 Sep 2023	1 Jan 2024 30 Sep 2024	1 Jan 2023 30 Sep 2023	1 Jan 2024 30 Sep 2024	1 Jan 2023 30 Sep 2023
SBB's holding, %	36.26	44.84	100	-	100	-
Profit/loss from property management	80	170	-170	-	-67	-
Share in the profit/loss of joint ventures and associated companies	-87	-258	-485	-	-170	-
Profit/loss of joint ventures and associated companies 1)	40	-258	-485	-	-307	-
Property portfolio
Holding's property portfolio	9,475	8,857	5,458	-	9,458	-
SBB's holding, %	36.26	44.84	100	-	100	-
SBB's holdings in property portfolio	3,435	3,971	5,458	-	9,458	-
Investment
Share in joint ventures and associated companies	1,870	1,486	5	-	203	-
Receivables from joint ventures and associated companies	-	-	-	-	3,348	-
Net investment	1,870	1,486	5	-	3,551	-

Other joint ventures and associated companies	1 Jan 2024 30 Sep 2024	1 Jan 2023 30 Sep 2023
Closing carrying amount, share of capital, SEKm	626	564
Share in the profit/loss of joint ventures and associated companies	127	44
Profit/loss of joint venture and associated companies, SEKm1)	65	-171

1) The profit/loss of joint ventures and associated companies includes the gain/loss on sales, impairment and revaluations.
2) SBB Infrastructure AB was acquired on 15 March 2024.
3) SBB Social Facilities AB was acquired on 13 June 2024.

Further details regarding SBB's associated companies and joint ventures are presented on pages 33-34.

Significant holdings attributable to the business area

Public Property Invest ASA

The company owns and manages public properties in Norway primarily within the police and judiciary, and public offices segments. A property platform with growth opportunities listed on Oslo Børs (Oslo Stock Exchange).

SBB Infrastructure AB and SBB Social Facilities AB

SBB Infrastructure AB and SBB Social Facilities AB are joint ventures operated together with Castlelake, with the support of Atlas SP Partners. The companies own and manage public properties. These companies were formed in the first six months of 2024, in connection with collaborative and financing agreements being signed. The agreement between the parties prescribes joint control, with the holdings therefore being reported as joint ventures.

Through its holding in Sveafastigheter, SBB owns and manages rent-regulated residentials in Sweden's growth regions. The combination of high demand and strong underlying driving forces results in a low-risk profile and a steadily growing operating surplus over time.

Consolidated holdings

1) SEK 27.7bn of which is attributable to Sveafastigheter.

Sveafastigheter is one of Sweden's largest, streamlined residential companies with 14,547 apartments in property management. The property portfolio comprises a breadth of rent regulated residentials in Sweden's growth regions. The buildings are managed and developed with a presence and local commitment of a proprietary property management organization. Sveafastigheter develops and builds new and sustainable residentials in locations where demand for residential is greatest. Sveafastigheter has 1,150 apartments currently in production and 6,680 apartments in project development, with 93 percent of these being located in the Stockholm/Mälardalen region.

Significant events during and after the quarter

In the second quarter, construction commenced on three new production projects in Stockholm, Nacka and Skellefteå. The projects comprise a total 540 apartments with a total estimated annual rental value of about SEK 82m on completion.
During the quarter, 80 apartments were completed within a new production project in Karlstad, with an annual rental value of SEK 8m.
After the quarter, the company's shares were listed on the Nasdaq First North Premier Growth Market. The listing added more than 10,000 new shareholders.
After the quarter, Sveafastigheter refinanced its bank debt maturing in 2024 with new loans with maturity dates in 2027. The company has also entered into an agreement regarding a credit facility of SEK 1,000m.

Details of SBB's directly owned property portfolios are available on pages 26-27.

Joint ventures and associated companies

SEK 5.9 BN

SBB's share of property portfolio in significant holdings

SEK 3.0 BN

SBB's net investment in significant holdings

Significant holdings attributable to the business area

SBB Residential Property AB

A property portfolio comprising rent-regulated residentials in Sweden, governed and jointly controlled together with Morgan Stanley.

	SBB Residential Property AB 3)
Significant joint ventures and associated companies (SEKm)	1 Jan 2024 30 Sep 2024	1 Jan 2023 30 Sep 2023
SBB's holding, % 1)	100	100
Profit/loss from property management	-102	-20
Share in the profit/loss of joint ventures and associated companies	-190	10
Profit/loss of joint ventures and associated companies 2)	135	10
Property portfolio
Holding's property portfolio	5,942	6,088
SBB's holding, %	100	100
SBB's holdings in property portfolio	5,942	6,088
Investment
Share in joint ventures and associated companies	2,987	3,520
Receivables from joint ventures and associated companies	23	-
Net investment	3,010	3,520

Other joint ventures and associated companies	1 Jan 2024 30 Sep 2024	1 Jan 2023 30 Sep 2023
Carrying amount, share of capital, SEKm	1,235	1,604
Share in the profit/loss of joint ventures and associated companies, SEKm	-151	-37
Profit of joint ventures and associated companies, SEKm 2)	-12	-3,647

¹⁾ SBB's holding refers to SBB's proportion of ordinary shares. Preference shares in SBB Residential Property AB are reported as a liability in SBB Residential Property AB. The shareholders' agreement between ordinary shareholders and preference shareholders prescribes shared decisive influence, with the holding therefore being reported as a joint venture.

Further details regarding SBB's associated companies and joint ventures are presented on pages 33-34.

²⁾ The profit/loss of joint ventures and associated companies includes the gain/loss on sales, impairment and revaluations.

³⁾ SBB Residential Property AB was acquired on 16 August 2023.

SBB has a nearly 50-percent holding in Europe's largest property company focusing on social infrastructure for the public education sector. Long-term, indexed leases generate stable earnings.

Consolidated holdings

SEK 0.6 BN

Property value

SBB invests primarily in educational infrastructure through its holdings in Nordiqus whose property portfolio in education amounts to SEK 38,325m. See page 14 for more information.
In addition, SBB directly owns educational properties in Sweden and Denmark for a total value of SEK 573m (622). See pages 27-28 for more information.

	Market value, SEKm
Consolidated holdings	30 Sep 2024	31 Dec 2023
Sweden	412	465
Denmark	161	158
Total	573	622

Joint ventures and associated companies

SEK 19.1 BN

SBB's share of property portfolio in significant holdings

SEK 14.3 BN

SBB's net investment in significant holdings

	Nordiqus AB
Significant joint ventures and associated companies	1 Jan 2024 30 Sep 2024	1 Jan 2023 30 Sep 2023
SBB's holding, %	49.84	-
Profit from property management	469	-
Share in the profit/loss of joint ventures and associated companies	-662	-
Profit/loss from joint ventures and associated companies1)	-879	-
Property portfolio
Holding's property portfolio	38,325	-
SBB's holding, %	49.84	-
SBB's holdings in property portfolio	19,101	-
Investment
Share in joint ventures and associated companies	9,085	-
Receivables from joint ventures and associated companies 2)	4,073	-
Net investment, carrying amount	13,158	-
Accrued acquisition cost, claim 2)	1,168	-
Net investment	14,326	-

1) The profit/loss of joint ventures and associated companies includes the gain/loss on sales, impairment and revaluations.
2) The carrying amount of the claim amounted to SEK 4,073m. The nominal value of the claim amounted to SEK 5,251m.

Further details regarding SBB's associated companies and joint ventures are presented on pages 33-34.

SBB owns a 49.84 percent holding of Nordiqus, with a total property value of SEK 38.3bn.
Nordiqus is owned jointly with Brookfield, one of the world's largest infrastructure investors.
Nordiqus is Europe's leading platform for public educational infrastructure with growth potential.
Government-supported income, high lease-renewal rate and 95 percent CPI-adjusted.
Until and including 21 November 2023, profit/loss attributable to Nordiqus is reported as discontinued operations.
Nordiqus property portfolio is managed by SBB by way of a asset management agreement.

Nordiqus was formed in 2022 and is a driving force in education infrastructure. The company owns, manages and develops more than 600 preschools, schools and universities – which is one of the leading portfolios for educational infrastructure in the Nordics. Nordiqus strives to meet both today's demands and tomorrow's needs for educational premises to provide future generations with the best conditions and environments to foster productive learning.

Events during the quarter

The third quarter of 2024 began with Nordiqus conducting its first refinancing, equivalent to about SEK 8.6bn with private placement bonds in SEK and NOK distributed between maturities of 10 to 15 years.
The average rent is SEK 1,944 per m2 and year, with a remaining lease term of 12 years.
During 2024, SEK 194m has been invested in the portfolio. The total approved project volume amounts to about SEK 1bn.
Work is in progress with tenant adaptation and expansion of the Mosjö School in Örebro. The tenant has moved into two of three stages and work is currently in progress on the final stage, including the kitchen, dining room and crafts and music rooms.
Hälsovetenskapligt Centrum (Health Sciences Centre) has inaugurated its new, customized premises in Guldheden, Gothenburg. Physicians and psychiatrists will be trained on these premises. Research will also be conducted to promote and improve public health.

Noblaskolan in Boden was customized for the tenant with new classrooms, new ventilation and lighting, for example, as well as a new multi-sport pitch in the school yard.
In the summer of 2024, Nordiqus offered summer jobs to 65 young people, who joined Nordiqus partners, to help manage and maintain the preschools and schools during the summer holidays.

Consolidated income statement

Amounts in SEKm	1 Jan 2024 30 Sep 2024	1 Jan 2023 30 Sep 2023	1 Jul 2024 30 Sep 2024	1 Jul 2023 30 Sep 2023	1 Jan 2023 31 Dec 2023
Continuing operations
Rental income	2,926	3,512	805	1,195	4,581
Property expenses
Operating costs	-690	-764	-157	-190	-1,021
Maintenance	-138	-176	-40	-54	-257
Property tax	-54	-76	-19	-23	-95
Net operating income	2,045	2,496	589	927	3,209
Administration	-730	-584	-208	-284	-878
Acquisition and restructuring costs	-14	-39	21	-14	-90
Profit before financial items, changes in value of properties and goodwill	1,300	1,873	401	628	2,241
Changes in value of properties	-5,353	-10,493	-913	-3,522	-13,321
Dissolution of goodwill regarding deferred tax	-351	-201	-31	-123	-227
Goodwill impairment	-1,076	-	1,076	-	-
Results, production of residentials	-18	-4	-4	-2	-17
Operating profit/loss	-5,499	-8,825	-1,623	-3,018	-11,324

Profit/loss of joint ventures and associated companies	-1,443	-4,362	-364	-701	-6,017
of which, profit/loss from property management	-87	316	-136	-179	169
of which, change in value	-1,365	-891	-247	-380	-2,498
of which, tax	-165	43	-114	36	196
of which, gain/loss on sales	150	-3,440	43	-3	-3,416
of which, impairment and revaluation	24	-390	90	-176	-469
Credit losses on receivables from joint ventures and associated companies	-235	-	-188	-	-
Interest income and similar items	443	177	242	38	266
Interest expenses and similar items	-1,021	-976	-290	-253	-1,406
Gain/loss on premature loan redemptions	1,181	-113	382	-1	36
Translation gains/losses	59	-1,168	88	944	-144
Leasing expenses	-13	-5	-4	-1	-10
Changes in value of financial instruments	-193	-2,085	-160	-136	-2,580
Profit/loss before tax	-6,721	-17,357	-1,917	-3,129	-21,179
Tax for the year	-501	-482	-164	-117	-443
Deferred tax	1,437	2,102	45	649	2,569
Reversal of deferred tax regarding business combinations	351	201	31	123	227
PROFIT/LOSS FOR THE PERIOD, continuing operations	-5,434	-15,536	-2,005	-2,473	-18,827
Profit/loss for the period, discontinued operations	-	-3,022	-	-2,289	-2,763
PROFIT/LOSS FOR THE PERIOD	-5,434	-18,559	-2,005	-4,762	-21,590
Profit/loss for the period attributable to:
Parent Company shareholders	-5,240	-18,991	-1,917	-4,669	-22,054
Non-controlling interest	-194	432	-88	-94	464
PROFIT/LOSS FOR THE PERIOD	-5,434	-18,559	-2,005	-4,762	-21,590

Earnings per Class A and B ordinary share before dilution, continuing operations	-3.92	-11.47	-1.36	-1.80	-13.91
Earnings per Class A and B ordinary share after dilution, continuing operations	-3.92	-11.47	-1.36	-1.80	-13.91
Earnings per Class D ordinary share, continuing operations	1.50	1.50	0.50	0.50	2.00
Earnings per Class A and B ordinary share before dilution, discontinued operations	-	-2.08	-	-1.57	-1.90
Earnings per Class A and B ordinary share after dilution, discontinued operations	-	-2.08	-	-1.57	-1.90
Earnings per Class D ordinary share, discontinued operations	-	-	-	-	-
Earnings per Class A and B ordinary share before dilution, total continuing and discontinued operations	-3.92	-13.55	-1.36	-3.37	-15.81
Earnings per Class A and B ordinary share after dilution, total continuing and discontinued operations	-3.92	-13.55	-1.36	-3.37	-15.81
Earnings per Class D ordinary share, total continuing and discontinued operations	1.50	1.50	0.50	0.50	2.00

Consolidated statement of comprehensive income

Amounts in SEKm	1 Jan 2024 30 Sep 2024	1 Jan 2023 30 Sep 2023	1 Jul 2024 30 Sep 2024	1 Jul 2023 30 Sep 2023	1 Jan 2023 31 Dec 2023
Profit/loss for the period	-5,434	-18,559	-2,005	-4,762	-21,590
Items that may be reclassified to profit/loss for the period
Share of other comprehensive income of joint ventures and associated companies	-87	-175	-146	3	-175
Translation gains/losses	-344	-689	-	201	-1,057
COMPREHENSIVE INCOME FOR THE PERIOD	-5,865	-19,423	-2,151	-4,558	-22,822
Comprehensive income for the period attributable to:
Parent Company shareholders	-5,671	-19,855	-2,063	-4,464	-23,286
Non-controlling interest	-194	432	-88	-94	464
COMPREHENSIVE INCOME FOR THE PERIOD	-5,865	-19,423	-2,151	-4,558	-22,822

Comments on the consolidated income statement

Rent growth of 5.9 percent in comparable portfolios

Rental income for the period amounted to SEK 2,926m (3,512). In a comparable portfolio, rental income increased by 5.9 percent compared with the corresponding period in the preceding year.

SEK 1,755m (2,231) of rental income derived from Community, SEK 1,161m (1,264) from Residential and SEK 10m (17) from Education.

Economic occupancy rate of 91.6 percent

The economic occupancy ratio at the end of the period was 91.6 percent (96.3). The decline is largely attributable to assets with a high occupancy ratio having been sold to joint ventures and to residential projects having been completed that, prior to letting being completed, have a lower occupancy ratio. The decline is also due to a certain decrease in demand from public tenants. The average contract length for properties within the Community and Education segments was 8 years (10).

Net operating income rose 7.4 percent in comparable portfolios

In a comparable portfolio, costs increased by 2.7 percent compared with the corresponding period in the preceding year. The trend in net operating income is positive, due to favourable rent growth and lower growth in costs. Property expenses during the period amounted to SEK -881m (-1,016).

Administration costs, and acquisition and restructuring costs

Administration costs for the period amounted to SEK -730m (-584). Acquisition and restructuring costs amounted to SEK -14m (-39). These are costs directly attributable to completed restructuring measures and those in progress. The restructuring costs for the period pertain to the establishment of in-house financial management. Had these costs been reported as administration costs, administration costs would have totalled SEK -744m (-623).