SAMHÄLLSBYGGNADSBOLAGET I NORDEN AB (PUBL)

Summary of period

First six months of the year

The period in brief, continuing operations

Rental income for the period amounted to SEK 2,121m (2,317).
Rental income increased by 7.2 percent in comparable portfolios.
Net operating income amounted to SEK 1,455 million (1,568).
Net operating income increased by 8.9 percent in comparable portfolios.
Profit from property management, excluding exchange rate differences, amounted to SEK 1,430m (1,116).
Cash flow from operation activities before changes in working capital was SEK -13m (917).
Profit before tax amounted to SEK -4,805m (-14,151), of which:
Profit before financial items, value changes in properties and goodwill amounted to SEK 899m (1,323), including acquisition and restructuring costs of SEK -35m (-24).
Changes in the values of properties amounted to SEK -3,579m (-6,971).
Profit from joint ventures and associated companies amounted to SEK -1,987m (-3,661).
Financial items amounted to SEK 230m (-2,813), of which profit from the early redemption of loans amounted to SEK 798m (-112) and exchange rate differences amounted to SEK -30m (-2,112).
Changes in the values of financial instruments amounted to SEK -34m (-1,949).
Profit for the period amounted to SEK -3,429m (-13,064) after deduction of deferred tax of SEK 1,392m (1,374) and current tax of SEK -337m (-365), corresponding to profit per Class A and B ordinary share of SEK -2.70 (-10.17) before dilution.
The value of the property portfolio amounted to SEK 54,417m (73,205).
Long-term net asset value (EPRA NRV) was SEK 14,647m (27,616), corresponding to SEK 10.07 (18.99) per share before dilution.

Significant events during the second quarter

In April 2024, SBB participated in the IPO of Public Property Invest AS (PPI). In connection with the IPO, SBB transferred properties to PPI with a book value of SEK 1.7 billion, with associated liabilities of SEK 0.4 billion, in exchange for 31.6 million shares in PPI. In connection with the property sale, previous deferred tax of SEK 129 million was reversed. In addition, SBB subscribed to 11.7 million shares at a price of NOK 14.5. During the period, SBB recognised an impairment of the holding of SEK -734 million attributable to the dilution effect.
On 30 April, SBB published its 2023 Annual Report. Here, certain profit/loss and balance sheet items were corrected compared with the year-end report published on 27 February 2024. SBB has produced a correction page for the Year-end Report which is available on SBB's website.
On 13 June, SBB established a new joint venture company, SBB Social Facilities AB, together with Castlelake. In connection with establishing the joint venture company, cash and cash equivalents of approximately SEK 5.7bn were made available for SBB through a loan agreement with SBB Social Facilities. The portfolio will be operated and managed by SBB Social Facilities through a property management agreement with SBB.
During the quarter, SBB divided Unobo AB and SBB Kåpan Bostad AB, companies it previously owned together with Riksbyggen and Kåpan Tjänstepension respectively. This entails SBB having taken over a combined 6,500 apartments, distributed between 75 properties with a total of about 428,000 m2 . The properties will become part of Sveafastigheter.
On 19 June 2024, SBB announced its intention to implement a mandatory payment of all deferred interest on hybrid securities. The payment of deferred interest occurred on 3 July 2024.
SBB conducted a programme to repurchase Class D ordinary shares. A total of 44,657,779 Class D ordinary shares were repurchased and are now held as treasury shares.
SBB's Annual General Meeting on 28 June 2024 re-elected Board Members Lennart Schuss, Ilija Batljan, Sven-Olof Johansson, Hans Runesten and Lars Rodert as Board Members. Lennart Sten was elected as the new Chairman of the Board.

Significant events following the end of the quarter

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 with 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 will be reported as a gain on the early redemption of loans, and SEK 1.3bn is attributable to hybrid bonds that will be reported in the third quarter as increase in equity attributable to holders of ordinary shares.

SEK 54.4BN

Property value 30 June 2024

SEK 103.4BN

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

7.2%

Rent growth in comparable portfolios January-June 2024

SEK 10.07

Long-term equity ratio per share 30 June 2024

8.9 %

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

2.10 %

Average interest rate 30 June 2024

SBB key ratios

	1 Jan 2024 30 Jun 2024	1 Jan 2023 30 Jun 2023	1 Apr 2024 30 Jun 2024	1 Apr 2023 30 Jun 2023	1 Jan 2023 31 Dec 2023
Property-related key ratios
Market value of properties, SEKm	54,417	130,799	54,417	130,799	73,205
Number of properties	843	2,043	843	2,043	1,172
Number of m2 , thousands	2,178	4,699	2,178	4,699	3,048
Surplus ratio, % 1)	69	73	71	76	75
Yield, %	4.9	4.5	4.9	4.5	4.8
Change in rental income, comparable portfolios %	7.2	9.0	9.6	7.9	8.8
Change in net operating income, comparable portfolios %	8.9	9.6	11.3	6.3	10.9
Economic letting ratio, %	92.8	96.3	92.8	96.3	94.2
Average lease term, community and educational properties, years	10	11	10	11	7
Financial key ratios
Rental income, SEKm	2,121	2,317	1,012	1,164	4,581
Net operating income, SEKm 1)	1,455	1,568	720	826	3,209
Profit/loss for the period, continuing operations, SEKm	-3,429	-13,064	-2,271	-9,040	-18,827
Cash flow from operating activities before changes in working capital, SEKm	-13	917	-100	632	1,222
Equity attributable to Parent Company shareholders, SEKm	15,401	24,903	15,401	24,903	17,909
Return on equity, %	-10	-23	-7	-16	-43
Loan-to-value ratio, %	54	52	54	52	54
Secured loan-to-value ratio, %	18	19	18	19	18
Equity/assets ratio, %	33	36	33	36	34
Adjusted equity/assets ratio, %	34	40	34	40	37
Non-pledged quota, multiple	1.65	1.79	1.65	1.79	1.60
Interest coverage ratio, multiple1)	2.0	2.9	-	-	2.3
Share-related key ratios
Current net asset value (EPRA NTA), SEKm	12,154	22,274	12,154	22,274	16,363
Actual net asset value (EPRA NTA), SEK/share	8.36	15.32	8.36	15.32	11.25
Actual net asset value (EPRA NTA) after dilution, SEK/share	8.36	15.31	8.36	15.31	11.25
Long-term net asset value (EPRA NRV), SEKm	14,647	27,616	14,647	27,616	18,543
Long-term net asset value (EPRA NRV), SEK/share	10.07	18.99	10.07	18.99	12.99
Long-term net asset value (EPRA NRV) after dilution, SEK/share	10.07	18.98	10.07	18.98	12.99
EPRA Earnings (Company-specific), SEKm 1)	-449	-1,696	-356	-1,503	-1,322
EPRA Earnings (EPS) (Company-specific), SEK/share 1)	-0.31	-1.17	-0.24	-1.03	-0.91
EPRA earnings after dilution (EPS diluted) (company-specific), SEK/share1)	-0.31	-1.17	-0.24	-1.03	-0.91
EPRA Vacancy rate	7.2	3.7	7.2	3.7	5.8
Earnings per Class A and B ordinary share, SEK 1)	-2.70	-10.17	-1.68	-6.18	-15.81
Earnings per Class D ordinary share, SEK	1.00	1.00	0.50	0.50	2.00
Average number of Class A and B ordinary shares	1,454,615,648		1,454,143,768 1,454,615,648 1,454,145,660 1,454,345,401
Average number of Class D ordinary shares	192,639,043	193,865,905	191,384,917	193,865,905	193,865,905
Number of Class A and B ordinary shares	1,454,615,648		1,454,226,534 1,454,615,648 1,454,226,534 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⁾ Including discontinued operations.

CEO Leiv Synnes

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

Community properties have the ability to annually increase rental income in line with inflation through leases that are indexed to the consumer price index. The consumer price index has risen over the past three years by a total of 22 percent in Sweden and by similar numbers in other Nordic countries.

Among rent-regulated residentials in Sweden, the rental trend exceeds inflation over longer time series, which is partly explained by developments in the real economy. In the short term, increases in housing rents have fallen behind the increase of inflation the past three years by about 11 percent in Stockholm County. My belief is that residentials will make up for this difference, and a little more, over the upcoming years. Today, we already know that rent level increases will exceed the market's inflation assumptions for 2025.

In the long term, rental income drives property prices. In the short term, interest rate levels and the availability of capital are more important drivers. Market interest rates rise and fall, while property rent levels increase over time. Occasionally, long-term correlations are missed when short-term developments are given greater focus.

I believe that inflation and interest rates will abate at lower levels over the period ahead, than those we have witnessed in recent years. Many factors suggests that major property companies will benefit from a recovering bond market in the autumn, with both prices and terms being expected to be very competitive with bank financing.

As a rule, properties' yield trail developments in the capital market with a certain delay. As capital flows into the property market, this has a positive impact on valuations of property companies and their properties. There are good arguments that both rent increases and lower capital costs will have a positive impact on property values going forward.

Net operating income in comparable portfolios increased by 8.9 percent

Rental income and net operating income have decreased compared to a year ago, which is due to SBB selling assets to improve its financial position. For the comparable portfolio, rental income increased by 7.2 percent during the period, and the net operating income increased by 8.9 percent. The occupancy rate at 93 percent is both stable and high.

Average interest rate of 2.10 percent

SBB still has a long-term financing with low average interest rates. At the end of the quarter, the average interest rate was 2.10 percent, and the average maturity was 3.8 years. Debt maturing after 2026 carries 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 delay the impact of the higher interest rate on SBB's interest expenses.

Nordiqus raises funding with investment grade rating

Following the end of the period, Nordiqus has refinanced bank loans of SEK 9bn through funding from the capital market with maturities of 10 and 15 years.

The infrastructure financing programme has received strong investment grade credit rating. At the same time, Nordiqus obtained new credit facility of SEK 1bn for the financing of investments. It is gratifying that Nordiqus is developing well and that a large number of longterm investors want to finance the operations.

Nordiqus' entry into the capital market confirms our strategy of bringing in shareholders in subsidiaries with strong market positions, and plan to do the same with Sveafastigheter. Reduced refinancing risks and stable cash flows in core holdings affect SBB positively.

Well-positioned and well-financed core holdings

We expect to receive a good ongoing dividend from Nordiqus. The same applies to our associate company, Public Property Invest. Both companies have high earning capacity and a strong financial position. Our strategy is to implement ownership diversification in core holdings and create strong market positions and financial positions, which is also the ambition for Sveafastigheter.

Sveafastigheter issues bonds prior to shareholder distribution

The process of broadening the shareholder base in Sveafastigheter is progressing as planned. We consider this an important part of our strategy to strengthen SBB's financial position and reduce our indebtedness. We expect this to generate significant value for our shareholders and to improve our ability to raise capital.

In the second quarter, SBB dissolved its partial ownership of SBB Kåpan Bostad AB and Unobo AB. A large Sveafastigheter organization, with wholly owned properties, will increase the efficiency of property management going forward. At the same time, Sveafastigheter's expertise can be fully utilized throughout the portfolio, resulting in increased revenue generation.

Sveafastigheter issued bonds for SEK 1.7bn in early July. In connection with the transaction, SBB repurchased bonds for SEK 2.2bn, with a nominal value of SEK 3.9bn. The transaction impacted shareholder equity by SEK 1.7bn and will be included in the third quarter report.

During the quarter, bank loans were refinanced, resulting in Sveafastigheter subsequently having loans from seven Nordic banks besides the aforementioned bonds. These loans, combined, limit financial risk and competition when refinancing in the future. About 40 percent of Sveafastigheter's property portfolio is mortgaged.

The strategy remains to seek a broadening of the shareholder base in Sveafastigheter, which is now well organized and well consolidated.

The strategy remains to seek a broadening of the shareholder base in Sveafastigheter, which is now well organized and well consolidated."

Joint ventures with Castlelake

During the period, SBB completed two transactions with Castlelake, establishing two joint ventures. The transactions generated surplus cash and cash equivalents of SEK 10.9bn. This cash is being used to reduce debt and service financial commitments.

Continuing efforts to achieve a reasonable level of financial risk

SBB's new company structure is characterized by a clear portfolio strategy and property management model that will create a long-term stable financial position and highlight the value in the property portfolio. Achieving a stable financial position is SBB's foremost priority, and we have, therefore, implemented a series of measures within the framework of the new strategy to safeguard the company's liquidity. Thanks to these measures, we can affirm that SBB is now on the right track.

Our dismantling of former structures, implementation of measures and initiation of partnerships to stabilize the financial position entail increased complexity in the financial reporting during a transitional period. We remain determined to reduce the number of complex structures and to establish comprehensible and transparent accounting and a less expensive administration

High transition costs

The rapid pace of the transition work and legal processes has generated high central costs for some time. Once these processes are completed and financial stability is achieved, the costs are expected to decrease significantly. My assessment is that, compared to the current level, we can halve these costs by the end of 2025.

Delivering on the strategic plan

We have established a new group structure that can effectively generate shareholder value over time, building on a decentralized property management model involving independent portfolio companies. By streamlining the property portfolio and establishing wholly or partially owned portfolio companies, our financial position is strengthened, while the value of our property portfolio is more clearly illustrated. We are now working in three clearly defined business areas, facilitating property management, increasing transparency, and improving the conditions for raising capital.

Although we still have much to do, I am nonetheless pleased to be able to affirm that we are progressing in the right direction, not only in our work at SBB but also in our current view of increasingly improving market conditions, which contrast strongly with the situation a year ago. We are making progress in reducing our level of debt and our dependence on individual financing formats - and we are working on a strong plan to achieve this.

This is all made possible by SBB's amazing employees. I extend my warmest gratitude to you. Our strategic transformation would never have been possible without your hard work.

Leiv Synnes CEO

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 lease contracts.

Property exposure

SEK 103.4BN

Property exposure Including share of non-consolidated holdings

SEK BN	Property value	Share of property value, significant holdings	Share of property value, other holdings
Community	25.8	18.5	1.8
Residential	28.0	5.9	3.4
Education	0.6	19.3	-
Total	54.4	43.8	5.2

More information on p. 7

Property exposure

Holdings

	SBB's holdings		Property portfolio		SBB's exposure
	of ordinary shares	Market value	Rental income 4)	Net operating income 4)	Market value	Rental income	Net operating income
Consolidated holdings
Residential
Rental apartments	100.0%	21,811	1,328	879	21,811	1,328	879
Project and building rights properties	100.0%	6,221	-	-	6,221	-	-
Subtotal Residential	100.0%	28,032	1,328	879	28,032	1,328	879
Community
Elderly care units	100.0%	6,572	487	410	6,572	487	410
LSS	100.0%	4,827	328	289	4,827	328	289
Central government infrastructure and town halls	100.0%	4,588	262	208	4,588	262	208
Hospitals and health centres	100.0%	3,263	274	197	3,263	274	197
Public offices	100.0%	2,082	203	123	2,082	203	123
Other	100.0%	1,694	30	27	1,694	30	27
Project and building rights properties	100.0%	2,791	151	58	2,791	151	58
Subtotal Community	100.0%	25,819	1,735	1,314	25,819	1,735	1,314
Education
Preschool	100.0%	114	7	6	114	7	6
Compulsory/Upper-secondary school	100.0%	339	30	23	339	30	23
University	-	-	-	-	-	-	-
Project and building rights properties	100.0%	114	-	-	114	-	-
Subtotal Education	100.0%	566	36	29	566	36	29
Total, consolidated holdings		54,417	3,100	2,222	54,417	3,100	2,222

	SBB's holdings	Property portfolio			SBB's exposure
	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%	9,453	648	470	9,453	648	470
SBB Infrastructure AB 1)	100.0%	5,469	384	271	5,469	384	271
Public Property Invest ASA 2)	36.3%	9,815	688	619	3,559	249	224
Residential
SBB Residential Property AB	100.0%	5,947	349	212	5,947	349	212
Education
Nordiqus AB	49.84%	38,777	2,403	2,035	19,326	1,198	1,014
Total, significant non-consolidated holdings		69,461	4,472	3,607	43,754	2,828	2,192
Total consolidated holdings and significant non-consolidated holdings		69,461	4,472	3,607	98,315	5,928	4,414
Other non-consolidated holdings 3)
Community		-	-	-	1,769	109	33
Residential		-	-	-	3,442	203	108
Education		-	-	-	-	-	-
Total, other non-consolidated holdings		69,461	4,472	3,607	5,211	312	141
Total		123,878	7,572	5,829	103,382	6,240	4,555

¹⁾ SBB Infrastructure owns properties in Sweden for a market value of SEK 4.1bn. SBB Infrastructure also holds additional securities of SEK 3.7bn from SBB in the form of properties valued at SEK 3.7bn for the loan held by the company. The portfolio is operated and managed by SBB Infrastructure through a property management agreement with SBB.

²⁾ As of 31 March 2024, SBB has a 44.84-percent holding in Public Property Invest ASA. 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 by associated companies 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 owning and administrating properties with publicly funded assets, which stands out through its growing demand, inflation hedged cash flows and minimal risk of rent losses.

Consolidated holdings

SEK 25.8BN Property value 5.71 % Yield 9.6 years Average remaining lease length, WAULT

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 extensive, with public and publicly funded tenants.
With 25 percent of the portfolio comprising elderly care units, there is an ever-increasing demand for such assets, driven by an ageing population.
Rents typically rise more than inflation due to near-full inflation indexing and tenant adjustments.
SBB has an experienced project and property management organization which works continuously to generate additional value.

Details of SBB's directly owned property portfolios are available on pages 22-23.

60% Sweden
30% Finland
8% Norway
3% Denmark

Property value, by country Property value per category

25% Elderly care units
19% LSS
18% Central government infrastructure and town halls
13% Hospitals and health centres
11% Project and building rights properties
8% Public offices
7% Other

Joint ventures and associated companies

SEK 18.5BN

SEK 5.5BN

SBB's share of property portfolio in significant holdings

SBB's net investment in significant holdings

	Public Property Invest AS1) SBB Infrastructure AB1) 2)		SBB Social Facilities AB1) 3)
Significant joint ventures and associated companies	1 Jan 2024 30 Jun 2024	1 Jan 2023 30-06-2023	1 Jan 2024 30 Jun 2024	1 Jan 2023 30-06-2023	1 Jan 2024 30 Jun 2024	1 Jan 2023 30 Jun 2023
SBB's holding, %	36.26%	44.84%	100%	-	100%	-
Profit from property management	128	131	-122	-	8	-
Share in the profit/loss of joint ventures and associated companies	-98	-120	-408	-	-46	-
Profit/loss from joint ventures and associated companies 1)	-833	-120	-635	-	-46	-
Property portfolio
Holding's property portfolio	9,815	9,043	5,469	-	9,453	-
SBB's holding, %	36.26%	44.84%	100%	-	100%	-
SBB's holdings in property portfolio	3,559	4,055	5,469	-	9,453	-
Investment
Share in joint ventures and associated companies	1,929	1,576	8	-	311	-
Receivables from joint ventures and associated companies	-	-	-	-	3,402	-
Net investment	1,929	1,576	8	-	3,713	-

Other joint ventures and associated companies	1 Jan 2024 30 Jun 2024	1 Jan 2023 30-06-2023
Closing carrying amount, share of capital, SEKm	630	-
Share in the profit/loss of joint ventures and associated companies	159	-
Profit from joint venture and associated companies, SEKm1)	66	-

1) Profit/loss from joint ventures and associated companies include capital gains from 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 29-30.

Significant holdings attributable to the business area

Public Property Invest AS

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 venture companies 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 agreements and capital contributions being signed. As the shareholder agreements between the holders of ordinary shares and preference shares requires decisions to be made jointly, SBB exercises a significant, but not decisive, influence whereby the holdings are reported as a joint venture.

SBB owns and administrates rent regulated residentials in growing Swedish communities. The combination of high demand and strong underlying driving forces results in a low-risk profile and a capacity for generating a steadily growing operating surplus over time.

Consolidated holdings

SEK 28.0BN Property value 4.03% Yield SEK 1,371 Average rent per m2

Swedish residentials are generally subject to rent levels below the market rate. Rent regulation brings steadily increasing rent levels over time. Following the introduction of the system, rent levels have never been lowered.
Over time, the rent trend for Swedish rent-regulated residentials has outpaced inflation.
The occupancy rate of the properties is 95 percent. There is generally a housing shortage in SBB's markets.
Since 18 December 2023, the wholly owned subsidiary Sveafastigheter manages SBB's residential portfolio. The residentials portfolio has considerable potential with attractive demographics and property development opportunities.
An IPO or strategic partnership is planned for Sveafastigheter in 2024 to improve financing opportunities.
On 7 February, the new Board of Directors of Sveafastigheter was presented. The Board is headed by Chairman Peter Wågström, with a mandate to establish and lead an independent Sveafastigheter in preparation for, and following, a possible distribution to shareholders.

Details of SBB's directly owned property portfolios are available on pages 23-24.

Property value per region 37% University towns 36% Stockholm/Mälardalen 19% Gothenburg/Malmö 28,032 9% Other SEKm 37% 36% 19% 9%

Sveafastigheter is one of Sweden's largest pure play housing companies with more than 14,000 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 with a proprietary property management organization. Sveafastigheter develops and builds new and sustainable residentials in locations where demand for housing is greatest. Sveafastigheter has 690 apartments currently in production and 7,220 apartments in project development, with 91 percent of these being located in the Stockholm/Mälardalen region.

Events during the quarter

In the second quarter of the year, the company's joint ventures, previously held together with Kåpan Tjänstepension. Unobo, jointly held with Riksbyggen, was also dissolved. The legal structuring was also completed within the framework of the formation of the new Sveafastigheter Group.
During the second quarter, SBB's bondholders were offered the opportunity to exchange bonds issued by SBB for bonds issued by Sveafastigheter. The offer entailed bonds being issued for a value of SEK 1.7bn in the third quarter.
During the second quarter, agreements were signed green-lighting two new production projects in Stockholm and Skellefteå and, following the end of the quarter, an agreement was signed for a new production project in Nacka (outside Stockholm) involving a total of 540 apartments.

Joint ventures and associated companies

SEK 5.9BN

SEK 3.1BN

SBB's share of property portfolio in significant holdings

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 Jun 2024	1 Jan 2023 30 Jun 2023
SBB's holding, % 1)	100	-
Profit from property management	-75	-
Share in the profit/loss of joint ventures and associated companies	-134	-
Profit/loss from joint ventures and associated companies 2)	191	-

Property portfolio
Holding's property portfolio	5,947	-
SBB's holding, %	100	-
SBB's holdings in property portfolio	5,947	-
Investment
Share in joint ventures and associated companies	3,042	-
Receivables from joint ventures and associated companies	19	-
Net investment	3,061	-

Other joint ventures and associated companies	1 Jan 2024 30 Jun 2024	1 Jan 2023 30-06-2023
Carrying amount, share of capital, SEKm	1,315	-
Share in the profit/loss of joint ventures and associated companies, SEKm	-79	-
Profit from joint ventures and associated companies, SEKm 2)	1	-

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. As the shareholder agreement between the holders of ordinary shares and preference shares requires decisions to be made jointly, SBB exercises a significant, but not decisive, influence whereby the holdings are reported as a joint venture.

²⁾ Profit/loss from joint ventures and associated companies include capital gains from sales, impairment and revaluations.

³⁾ SBB Residential Property AB was acquired on 16 August 2023. Further details regarding SBB's associated companies and joint ventures are presented on pages 29-30.

SBB has a 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 0.6BN Property value

• Profit attributable to previously consolidated holdings now included in Nordiqus are reported as discontinued operations.

Details of SBB's directly owned property portfolios are available on pages 23-24.

	Market value, SEKm
Consolidated holdings	30 Jun 2024	31 Dec 2023
Sweden	405	465
Denmark	162	158
Total	566	622

Joint ventures and associated companies

SEK 19.3BN

SBB's share of property portfolio in significant holdings

SEK 14.6BN

SBB's net investment in significant holdings

	Nordiqus AB
Significant joint ventures and associated companies	1 Jan 2024 30 Jun 2024	1 Jan 2023 30 Jun 2023
SBB's holding, %	49.84	-
Profit from property management	768	-
Share in the profit/loss of joint ventures and associated companies	-513	-
Profit/loss from joint ventures and associated companies1)	-730	-
Property portfolio
Holding's property portfolio	38,777	-
SBB's holding, %	49.84	-
SBB's holdings in property portfolio	19,326	-
Investment
Share in joint ventures and associated companies	9,381	-
Receivables from joint ventures and associated companies 2)	4,037	-
Net investment, carrying amount	13,418	-
Accrued acquisition cost, claim 2)	1,214	-
Net investment	14,632	-

1) Profit/loss from joint ventures and associated companies include capital gains from sales, impairment and revaluations.
2) The carrying amount of the claim amounted to SEK 4,037m. 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 29-30.

SBB has a 49.84 percent holding in Nordiqus, with a total property value of SEK 38.7bn.
Nordiqus is owned jointly with Brookfield, one of the world's largest and most skilled infrastructure investors.
Nordiqus is Europe's leading platform for public educational properties 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 through a 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 study.

Events during the quarter

The average rent is 1,954 SEK per square meter per year, with a remaining contract term of 12 years.
New and renegotiated contracts in 2024 correspond to an annual revenue increase of 12.6 million SEK.
During 2024, 93.5 million SEK has been invested in the portfolio. The total approved project volume amounts to approximately 1.1 billion SEK, of which 0.8 billion SEK had been realized by Q2, with a total return of

4.8 percent.

Work is ongoing with tenant improvements and the expansion of Mosjö School in Örebro, where new study-promoting facilities are being created for the public school.
Contracts have been signed and work has begun on tenant improvements at Guldheden in Gothenburg, where Nordiqus is enabling the University of Gothenburg to offer new educational programs in high-quality facilities.
A contract has been signed for the tenant adaptation of Noblaskolan in Boden where Nordiqus is future-proofing the school's functionality and quality for students at this popular school.

Consolidated income statement

Amounts in SEKm	1 Jan 2024 30 Jun 2024	1 Jan 2023 30 Jun 20231)	1 Apr 2024 30 Jun 2024	1 Apr 2023 30 Jun 20231)	1 Jan 2023 31 Dec 2023
Continuing operations
Rental income	2,121	2,317	1,012	1,164	4,581
Property expenses
Operating costs	-532	-574	-227	-240	-1,021
Maintenance	-98	-122	-48	-71	-257
Property tax	-35	-53	-17	-27	-95
Net operating income	1,455	1,568	720	826	3,209
Administration	-522	-222	-313	-82	-878
Acquisition and restructuring costs	-35	-24	-21	-14	-90
Profit before financial items, value changes in properties and goodwill	899	1,323	385	730	2,241
Changes in value, property	-3,579	-6,971	-1,595	-4,748	-13,321
Reversal/impairment of goodwill regarding deferred tax	-320	-78	-320	-78	-227
Results, production of residentials	-14	-2	-13	0	-17
Operating profit/loss	-3,015	-5,728	-1,544	-4,097	-11,324
Profit/loss from joint ventures and associated companies	-1,987	-3,661	-1,795	-3,292	-6,017
of which, profit from property management	272	494	26	248	169
of which, change in value	-1,340	-512	-1,131	-186	-2,498
of which, tax	-51	8	14	11	196
of which, gain/loss on sales	108	-3,437	116	-3,311	-3,416
of which, impairment and revaluation	-975	-214	-820	-53	-469
Interest income and similar items	201	140	42	88	266
Interest expenses and similar items	-730	-724	-309	-351	-1,406
Results of early repayment of loans	798	-112	2	4	36
Translation gains/losses	-30	-2,112	126	-1,630	-144
Leasing expenses	-9	-5	-4	0	-10
Changes in the value of financial instruments	-34	-1,949	-20	-750	-2,580
Profit before tax	-4,805	-14,151	-3,502	-10,029	-21,179
Tax for the year	-337	-365	-223	-250	-443
Deferred tax	1,392	1,374	1,133	1,161	2,569
Reversal of deferred tax regarding business combinations	320	78	320	78	227
PROFIT FOR THE PERIOD, continuing operations	-3,429	-13,064	-2,271	-9,040	-18,827
Profit/loss for the period, discontinued operations	-	-733	-	-859	-2,763
PROFIT FOR THE PERIOD	-3,429	-13,796	-2,271	-9,897	-21,590
Profit for the period attributable to:
Parent Company shareholders	-3,323	-14,322	-2,273	-8,744	-22,054
Non-controlling interest	-106	526	2	-1,153	464
PROFIT FOR THE PERIOD	-3,429	-13,796	-2,271	-9,897	-21,590

Earnings per Class A and B ordinary share before dilution, continuing operations	-2.70	-9.67	-1.68	-5.59	-13.91
Earnings per Class A and B ordinary share after dilution, continuing operations Earnings per Class D ordinary share, continuing operations	-2.70 1.00	-9.67 1.00	-1.68 0.50	-5.59 0.50	-13.91 2.00

Earnings per Class A and B ordinary share before dilution, discontinued operations	-	-0.50	-	-0.59	-2.86
Earnings per Class A and B ordinary share after dilution, discontinued operations	-	-0.50	-	-0.59	-2.86
Earnings per Class D ordinary share, discontinued operations	-	-	-	-	2.00
Earnings per Class A and B ordinary share before dilution, total continuing and discontinued operations	-2.70	-10.17	-1.68	-6.18	-15.81
Earnings per Class A and B ordinary share after dilution, total continuing and discontinued operations	-2.70	-10.17	-1.68	-6.18	-15.81
Earnings per Class D ordinary share, total continuing and discontinued operations	1.00	1.00	0.50	0.50	2.00

¹⁾ In accordance with IFRS 5, comparison periods have been recalculated to exclude discontinued operations.

Consolidated statement of comprehensive income

Amounts in SEKm	1 Jan 2024 30 Jun 2024	1 Jan 2023 30 Jun 2023	1 Apr 2024 30 Jun 2024	1 Apr 2023 30 Jun 2023	1 Jan 2023 31 Dec 2023
Profit for the period	-3,429	-13,796	-2,271	-9,897	-21,590
Items that may be reclassified to profit for the period
Share of other comprehensive income of joint ventures and associated companies	59	-178	45	-180	-175
Translation gains/losses	-344	-890	300	239	-1,057
COMPREHENSIVE INCOME FOR THE PERIOD	-3,714	-14,864	-1,927	-9,838	-22,822
Comprehensive income for the period attributable to:
Parent Company shareholders	-3,608	-15,390	-1,929	-8,685	-23,286
Non-controlling interest	-106	526	2	-1,153	464
COMPREHENSIVE INCOME FOR THE PERIOD	-3,714	-14,864	-1,927	-9,838	-22,822

Comments on the consolidated income statement

Rent growth of 7.2 percent in comparable portfolios

Rental income for the period amounted to SEK 2,121m (2,317). In a comparable portfolio, rental income increased by 7.2 percent compared with the corresponding period in the preceding year.

SEK 1,333m (1,469) of rental income derived from Community, SEK 781m (835) from Residential and SEK 7m (13) from Education.

Occupancy rate of 92.8 percent

The economic occupancy rate at the end of the period was 92.8 percent (95.5). The average lease term for properties in the Community Service segment was ten years (11).

Net operating income rose 8.9 percent in comparable portfolios

In a comparable portfolio, costs increased by 3.9 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 -666m (-749).

Profit before value changes and goodwill

Administration costs for the period totalled SEK -522m (-222). Acquisition and restructuring costs amounted to SEK -35m (-24) and were predominantly attributable to the decentralization of the Group's structure.

Value changes

Changes in the value of properties over the period amounted to SEK -3,579m (-6,971), of which SEK -802 (-390) were realized changes in value and SEK -2,777m (-7,894) were unrealized changes in value. Value changes include general rent development, re-negotiations of existing agreements and newly signed leases generating higher net operating income which contributed positively to unrealized value changes. The negative change in value is explained by higher yield requirements. During the period, the property portfolio had a negative change in value of 3.8 percent. Over the period, the average yield requirement rose from 5.19 percent to 5.28 percent.

Over the period, SBB sold properties for SEK 20,737m, predominantly by establishing two joint venture companies together with Castlelake. These transactions resulted in an accounting loss of SEK -529m for the period. Total investments in these properties amounted to SEK 37m and the value generated was SEK 904m. Realized value changes are calculated based on the value most recently reported and not on acquisition value.

Profit/loss from joint ventures and associated companies

Profit from joint ventures and associated companies was SEK -1,987m (-3,661). See further information on pages 29-30.

Net financial items

Net financial items for the period amounted to SEK 230m (-2,813). The change depends predominantly on capital gains/losses attributable to the repurchasing of bonds and on reduced effects of translation gains/losses. Interest-bearing liabilities decreased by SEK 25,880m over the past 12 months, of which a decrease of SEK 6,705m was noted for the period.

The financial costs include the results of the early redemption of loans by SEK 798m (-112) for the period. Translation differences of SEK -30m (-2,112) were reported for the period. The translation losses are mainly attributable to the recalculation of loans in EUR to extent these are not matched by hedges in the form of net assets in EUR and currency derivatives.

Value changes for financial instruments amounted to SEK -34m (-1,949) for the period. The item comprises changes in value for financial investments in shares of SEK -43m (-1,267) and is attributable to the negative price trend for the shares in the portfolio, as well as value changes regarding derivatives of SEK 9m (-681).

Profit after tax

Profit after tax for the period was SEK -3,429m (-13,064). Tax on the profit for the period was SEK 1,375m (1,087), of which SEK -337m (-365) pertained to current tax and SEK 1,392m (1,452) pertained to deferred tax related primarily to properties and tax-loss carryforwards.

Discontinued operations

On 24 September 2023, SBB entered into an agreement with Brookfield regarding the sale of a further 1.16 percent of the shares in Nordiqus. The sale was subject to customary completion conditions, which were met on 22 November 2023, from which date the operations were reported as an associated company. Profit for the period attributable to the discontinued operations amounted to SEK 0m (-733).

Segment reporting

During the third quarter of 2023, SBB changed its segmentation to Community, Residential and Education. See page 40 for more information.

Period January-June, 2024

				Total	Group-wide items and	Group
Period 1 Jan 2024 - 30 Jun 2024 (SEKm)	Community	Residential	Education	segments	eliminations	total
Continuing operations
Rental income	1,333	781	7	2,121	-	2,121
Property expenses	-361	-301	-4	-666	-	-666
Net operating income	972	480	3	1,455	-	1,455
Administration	-	-	-	-	-522	-522
Acquisition and restructuring expenses	-	-	-	-	-35	-35
Profit before financial items, value changes in properties and goodwill	972	480	3	1,455	-577	899
Changes in value, property	-2,217	-953	-57	-3,579	-	-3,579
Dissolution of goodwill after property sales	-320	-	-	-320	-	-320
Results, production of residentials	-	-14	-	-14	-	-14
Operating profit/loss	-1,565	-488	-54	-2,458	-557	-3,015
Profit from joint ventures and associated companies	-1,448	191	-730	-1,987	-	-1,987
Interest income	-	-	-	-	201	201
Interest expenses and similar	-	-	-	-	29	29
Changes in the value of financial instruments	-	-	-	-	-34	-34
Profit before tax	-3,013	-297	-784	-4,445	-361	-4,804
Tax	-	-	-		1,375	1,375
Profit/loss for the period, continuing operations	-3,013	-297	-784	-4,445	1,014	-3,429
Investment properties	25,819	28,032	566	54,417	-	54,417
Investments	326	284	-2	608	-	608
Value per m2 (SEK)	21,876	28,934	19,918	24,990	-	24,990
Surplus ratio	73%	61%	48%	69%	-	69%

Period January-June, 2023

Period 1 Jan 2023 – 30 Jun 2023 (SEKm)	Community	Residentials	Education	Total segments	Group-wide items and eliminations	Group total
Continuing operations
Rental income	1,469	835	13	2,317	-	2,317
Property expenses	-393	-354	-3	-749	-	-749
Net operating income	1,077	482	10	1,568	-	1,568
Administration	-	-	-	-	-222	-222
Acquisition and restructuring expenses	-	-	-	-	-24	-24
Profit before financial items, value changes in properties and goodwill	1,077	482	10	1,568	-246	1,323
Changes in value, property	-2,955	-3,994	-22	-6,971	-	-6,971
Dissolution of goodwill after property sales	-54	-24	-	-78	-	-78
Results, production of residentials	-	-2	-	-2	-	-2
Operating profit/loss	-1,932	-3,538	-12	-5,482	-246	-5,728
Profit from joint ventures and associated companies	-206	-3,455	-	-3,661	-	-3,661
Interest income	-	-	-	-	140	140
Interest expenses and similar	-	-	-	-	-2,954	-2,954
Changes in the value of financial instruments	-	-	-	-	-1,949	-1,949
Profit before tax	-2,138	-6,993	-12	-9,143	-5,008	-14,151
Tax	-	-	-	-	1,087	1,087
Profit/loss for the period, continuing operations	-2,138	-6,993	-12	-9,143	-3,920	-13,064

Investment properties	50,841	36,461	622	87,923	-	87,923
Investments	923	612	5	1,540	-	1,540
Value per m2 (SEK)	26,163	27,729	25,919	26,789	-	26,789
Surplus ratio	73%	58%	79%	68%	-	68%

Second quarter, 2024

				Total	Group-wide items and	Group
Period 1 Apr 2024 – 30 Jun 2024 (SEKm) Continuing operations	Community	Residentials	Education	segments	eliminations	total
Rental income	618	393	-	1,012	-	1,012
Property expenses	-166	-126	-1	-294	-	-294
Net operating income	452	268	-1	720	-	720
Administration	-	-	-	-	-313	-313
Acquisition and restructuring expenses	-	-	-	-	-21	-21
Profit before financial items, value changes in properties and goodwill	452	268	-1	720	-335	385
Changes in value, property	-1,002	-249	8	-1,595	-	-1,595
Dissolution of goodwill after property sales	-320	-	-	-320	-	-320
Results, production of residentials	-	-13	-	-13	-	-13
Operating profit/loss	-870	5	7	-1,209	-335	-1,544
Profit from joint ventures and associated companies	-1,273	336	-858	-1,795	-	-1,795
Interest income	-	-	-	-	42	42
Interest expenses and similar	-	-	-	-	-185	-185
Changes in the value of financial instruments	-	-	-	-	-20	-20
Profit before tax	-2,143	341	-851	-3,004	-498	-3,502
Tax	-	-	-	-	1,230	1,230
Profit/loss for the period, continuing operations	-2,143	341	-851	-3,004	732	-2,271
Investment properties	25,819	28,032	566	54,417	-	54,417
Investments	184	271	3	458	-	458
Value per m2 (SEK)	21,876	28,934	19,918	24,990	-	24,990
Surplus ratio	73%	68%	-211%	71%	-	71%

Second quarter, 2023

Period 1 Apr 2023 – 30 Jun 2023 (SEKm)	Community	Residentials	Education	Total segments	Group-wide items and eliminations	Group total
Continuing operations
Rental income	730	428	6	1,164	-	1,164
Property expenses	-177	-160	-2	-338	-	-338
Net operating income	553	269	4	826	-	826
Administration	-	-	-	-	-82	-82
Acquisition and restructuring expenses	-	-	-	-	-14	-14
Profit before financial items, value changes in properties and goodwill	553	269	4	826	-97	730
Changes in value, property	-2,089	-2,654	-5	-4,748	-	-4,748
Dissolution of goodwill after property sales	-54	-24	-	-78	-	-78
Results, production of residentials	-	-	-	-	-	-
Operating profit/loss	-1,590	-2,409	-1	-3,999	-97	-4,097
Profit from joint ventures and associated companies	166	-3,457	-	-3,292	-	-3,292
Interest income	-	-	-	-	88	88
Interest expenses and similar	-	-	-	-	-1,977	-1,977
Changes in the value of financial instruments	-	-	-	-	-750	-750
Profit before tax	-1,424	-5,867	-1	-7,291	-2,736	-10,029
Tax	-	-	-	-	989	989
Profit/loss for the period, continuing operations	-1,424	-5,867	-1	-7,291	-1,747	-9,040
Investment properties	50,841	36,461	622	87,923	-	87,923
Investments	388	313	2	703	-	703
Value per m2 (SEK)	26,163	27,729	25,919	26,789	-	26,789
Surplus ratio	76%	63%	69%	71%	-	71%

Full-year, 2023

Period 1 Jan 2023 – 31 Dec 2023 (SEKm)	Community	Residentials	Education	Total segments	Group-wide items and eliminations	Group total
Continuing operations
Rental income	2,937	1,621	23	4,581	-	4,581
Property expenses	-732	-634	-6	-1,372	-	-1,372
Net operating income	2,205	987	17	3,209	-	3,209
Administration	-	-	-	-	-878	-878
Acquisition and restructuring expenses	-	-	-	-	-90	-90
Profit before financial items, value changes in properties and goodwill	2,205	987	17	3,209	-968	2,241
Changes in value, property	-6,295	-6,899	-127	-13,321	-	-13,321
Dissolution of goodwill after property sales	-202	-24	-	-227	-	-227
Results, production of residentials	-	-17	-	-17	-	-17
Operating profit/loss	-4,292	-5,953	-110	-10,357	-968	-11,324
Profit from joint ventures and associated companies	-698	-4,853	-467	-6,017	-	-6,017
Interest income	-	-	-	-	266	266
Interest expenses and similar	-	-	-	-	-1,524	-1,524
Changes in the value of financial instruments	-	-	-	-	-2,580	-2,580
Profit before tax	-4,990	-10,806	-577	-16,374	-4,807	-21,179
Tax	-	-	-	-	2,353	2,353
Profit/loss for the period, continuing operations	-4,990	-10,806	-577	-16,374	-2,454	-18,827
Investment properties	44,101	28,482	622	73,205	-	73,205
Investments	1,305	1,207	8	2,520	-	2,520
Value per m2 (SEK)	22,449	26,979	22,029	24,014	-	24,014
Surplus ratio	75%	61%	73%	70%	-	70%

Consolidated balance sheet

ASSETS Fixed assets Intangible assets Goodwill 2,372 5,205 2,692 Total intangible 2,372 5,205 2,692 assets Tangible assets Investment properties 54,417 130,799 73,205 Land lease agreements 528 812 378 Equipment, machinery and 97 106 106 installations Total tangible 55,041 131,717 73,689 assets Financial fixed assets Share in joint ventures and associated 16,616 5,883 17,876 companies Receivables from joint ventures and 8,191 1,363 4,839 associated companies Derivatives 491 1,300 481 Financial fixed assets at fair value 810 948 849 Other non-current receivables 415 2,024 1,965 Total financial fixed assets 26,523 11,518 26,009 Total fixed assets 83,936 148,439 102,390 Current assets Properties held for sale 243 139 155 Current receivables Derivatives 159 207 203 Financial fixed assets at fair value 138 - 185 Accounts receivable 74 117 100 Current tax assets 262 171 260 Land lease agreements 20 30 15 Other receivables 406 1,135 347 Prepaid expenses and accrued income 390 722 392 Total current receivables 1,450 2,382 1,502 Cash investments 207 206 214 Cash and cash equivalents 5,747 1,679 3,845 Total cash and cash equivalents and 5,953 1,885 4,060 cash investments Total current assets 7,647 4,405 5,702 TOTAL ASSETS 91,583 152,844 108,107	Amounts in SEKm	30 Jun 2024	30 Jun 2023	31 Dec 2023

Comments

Goodwill

At the end of the period, goodwill amounted to SEK 2,372m (2,692). At the end of the period, SEK 279m (597) of reported goodwill was attributable to the difference between nominal tax and the deferred tax calculated on the acquisition of properties in corporate form that must be disclosed in connection with "business combinations." Remaining goodwill consists primarily of synergy effects in the form of reduced financing and administration costs.

Investment properties

As of 30 June 2024, the value of the properties amounted to SEK 54,417m (73,205). The value of the property portfolio has been based on external valuations made by Newsec, JLL, Savills, Cushman & Wakefield Realkapital and Colliers. The valuations have been based on an analysis of future cash flows for each property, taking into account the current lease terms, market situation, rental levels, operating, maintenance and management administration costs and investment needs. An average yield requirement of 5.28 percent (5.19) has been used in the valuation. The value of the properties includes SEK 1,381m for building rights that have been valued through the application of the local price method, which means that the assessment of the value is based on comparisons of prices for similar building rights. Fair value has thus been assessed in accordance with IFRS 13 level 3. See further on investment properties on pages 23-28.

Sensitivity analysis

The property valuations are made according to accepted principles based on certain assumptions. The table below presents how the value has been impacted by a change in certain parameters assumed for the valuation. The table provides a simplified illustration as a single parameter is unlikely to change in isolation.

	Change	Value impact, SEKm
Rental value	+/- 5%	2,052 / -2,052
Property expenses	+/- 5%	-710 / 711
Discount rate	+/- 0.25 percentage points	-1,610 / 1,786
Yield requirements	+/- 0.25 percentage points	-1,552 / 1,733

Property portfolio change

Amounts in SEKm

Opening fair value, 1 Jan 2024	73,205
Acquisition	3,973
Of which, winding-up of joint ventures and associated companies	3,404
Of which, other acquisitions	569
Investments	608
Sales	-20,737
Of which, formation of joint ventures and associated companies	-15,212
Of which, contributions to joint ventures and associated companies	-1,709
Of which, sales to minority shareholders	-3 096
Of which, other sales	-720
Reclassification	-92
Unrealized value changes	-2,775
Reclassification	-92
Translation differences	235
Fair value at end of period	54,417

Joint ventures and associated companies

SBB's commitments to joint ventures and associated companies comprise shareholdings and loans to companies in which SBB does not have a decisive influence. These companies consist both of companies conducting property management operations and companies conducting property development operations.

The largest holdings comprise the companies: SBB Residential Property AB, SBB Infrastructure AB, SBB Social Facilities, Public Property Invest AS and Nordiqus AB. For more information, see pages 29-30.

At the end of the period, shares in joint ventures and associated companies amounted to SEK 16,616m (17,876) and receivables from joint ventures and associated companies to SEK 8,191m (4,839).

Cash and cash equivalents and cash investments

Cash and cash equivalents comprise available bank balances amounting to SEK 5,747m (3,845) and cash investments, comprising shares in listed companies, amounting to SEK 207m (214). Blocked cash and cash equivalents amounted to SEK 140m (16).

Consolidated balance sheet

Amounts in SEKm	30 Jun 2024	30 Jun 2023	31 Dec 2023

EQUITY AND LIABILITIES Share capital	165	165	165
Other contributed capital	26,624	26,610	26,624
Reserves	-1,258	-748	-915
Retained earnings, incl. comprehensive income for the year	-10,131	-1,122	-7,967
Equity attributable to Parent Company shareholders	15,401	25,397	17,909
Hybrid bonds	13,311	15,741	15,741
Other reserves	1,158	1,975	1,036
Non-controlling interest	168	12,103	2,445
Total equity	30,038	54,719	37,131
Long-term liabilities
Liabilities to credit institutions	13,419	21,367	11,116
Bond loans	32,833	45,674	40,540
Derivatives	283	400	264
Deferred tax liabilities	1,143	7,337	2,726
Leasing liabilities	528	812	378
Other non-current liabilities	59	237	92
Total long-term liabilities	48,264	75,827	55,116
Current liabilities
Liabilities to credit institutions	3,003	5,863	7,861
Commercial papers	0	320	-
Bond loans	6,134	8,364	2,576
Derivatives	23	1,249	1,290
Accounts payable	116	340	121
Land leases	20	30	15
Current tax liabilities	151	128	99
Other liabilities	716	4,452	726
Approved dividend	2,133	-	2,133
Accrued expenses and prepaid income	983	1,553	1,040
Total current liabilities	13,280	22,298	15,861
TOTAL EQUITY AND LIABILITIES	91,583	152,844	108,107

Comments

Equity

Equity attributable to Parent Company shareholders amounted to SEK 15,401m (17,909) at end of the period. Total equity amounted to SEK 30,038m (37,131) at end of the period.

Deferred tax

In Sweden, deferred tax is calculated at a nominal tax rate of 20.6 percent on differences between the reported and tax value of assets and liabilities, as well as of tax loss carryforwards. In Norway and Denmark, the corresponding tax rate is 22.0 percent and in Finland, it is 20.0 percent. As of 30 June 2024, the net deferred tax liability amounted to SEK 1,179m (2,726) and is largely attributable to investment properties and tax loss carryforwards. The closing consolidated deficit totalled SEK 4,498m as of 30 June 2024. Tax loss carryforwards totalling SEK 1,580m were exercised during the period.

Interest-bearing liabilities

At the end of the period, interest-bearing liabilities in the Group amounted to SEK 55,389m (62,093), of which SEK 16,422m (18,977) pertained to liabilities to credit institutions and SEK 38,967m (43,116) pertained to bond loans.

See further under the section Financing on pages 31-34.

Consolidated changes in equity

	Equit	y attributable to	Parent Comp	oany's shareh	olders	Equity attrib hybrid b		Holdings without
Amounts in SEKm	Share capital	Other contri- buted capital	Reserves ¹⁾	Retained earnings ³⁾	Total	Hybrid- bond ³⁾	Other reserves ²⁾	controlling influence	Total equity
Opening equity, 1 Jan 2023 ⁴⁾	165	26,612	142	16,905	43,825	15,741	1,080	2,691	63,337
Profit for the period	-	-	-	-14,322	-14,322	-	=	526	-13,796
Other comprehensive income	-	-	-890	-178	-1,068	-	-	-	-1,068
Comprehensive income for the period	-	-	-890	-14,500	-15,390	-	-	526	-14,864
Warrants repurchase	-	-	-	-4	-4	-	=	-	-4
Tax effects in equity	-	-	-	238	238	-	-	-	238
Conversion of mandatory convertible bonds	=	-2	=	2	-	-	=	-	-
Currency revaluation, hybrid bonds	-	-	-	-893	-893	-	893	-	-
Dividend	-	-	-	-2,482	-2,482	-	=	-	-2,482
Dividend hybrid bond	-	-	-	-278	-278	-	=	-	-278
Acquired minority interests	-	-	-	-	-	-	=	9,456	9,456
Redemption minority holdings	-	-	-	-110	-110	-	-	-570	-680
Total equity 30-06-2023	165	26,610	-748	-1,122	24,903	15,741	1,975	12,103	54,719
Profit for the period	-	-	-	-7,732	-7,732	-	=	-62	-7,794
Other comprehensive income	-	-	-167	3	-164	-	-	-	-164
Comprehensive income for the period	-	-	-167	-7,729	-7,896	-	-	-62	-7,958
Warrants repurchase	-	-	-	-1	-1	-	=	-	-1
Tax effects in equity	-	-	-	-139	-139	-	-	-	-139
Conversion of mandatory convertibles	-	14	-	-13	1	-	-	-	1
Currency revaluation, hybrid bonds	-	-	-	937	937	-	-937	-	-
Dividend	-	-	-	-	-	-	-	-	-
Dividend hybrid bond	-	=	-	-270	-270	=	=	-	-270
Interest withheld on hybrid bonds	-	=	-	358	358	=	=	-	358
Acquired minority interests	-	-	-	-	-	=	-	384	384
Redemption minority holdings	-		=	12	12	-	-	-9,982	-9,970
Closing equity, 31 Dec 2023	165	26,624	-915	-7,967	17,909	15,741	1,036	2,445	37,131
Opening equity, 1 Jan 2024	165	26,624	-915	-7,967	17,909	15,741	1,036	2,445	37,131
Profit for the period	-	-	-	-3,323	-3,323	-	-	-106	-3,429
Other comprehensive income	-	-	-344	59	-285	-	-	-	-285
Comprehensive income for the period	-	-	-344	-3,264	-3,608	-	-	-106	-3,714
Tax effects in equity	-	-	-	-283	-283	-	-	-	-283
Issue of warrants	-	-	-	12	12	-	-	-	12
Repurchase of Class D shares	-	-	-	-352	-352	-	-	-	-352
Currency revaluation, hybrid bonds	-	-	-	-379	-379	-	379	-	0
Redemption of part of hybrid bond	-	-	-	1,974	1,974	-2,430	-257	-	-713
Dividend, hybrid bond, 2023	-	-	-	-357	-357	-	-	-	-357
Reverse dividend hybrid bond, 2023 repurchased bonds	-	-	-	57	57	-	-	-	57
Interest withheld on hybrid bond, 2024	-	-	-	-105	-105	-	-	-	-105
Redeemed minority interests	-	-	-	533	533	-	-	-2,171	-1,638
Total equity 30 Jun 2024	165	26,624	-1,258	-10,131	15,401	13,311	1,158	168	30,038

¹⁾ Reserves consist of hedge accounting and translation differences.

Comments

As of 30 June 2024, equity amounted to SEK 30,038m (37,131).

Hybrid bonds

Equity includes hybrid bonds issued for a book value of SEK 14,470m. The nominal value of the hybrid bonds is SEK 13,311m. Over the period, hybrid bonds of SEK 2,430m (0) were repurchased.

Accrued dividends (interest) on hybrid bonds amounted to SEK -357m (-). Accrued dividend regarding repurchased bonds amounts to SEK 57m (-). Accrued dividends on hybrid bonds regarding 2024 amounts to SEK -105m. A total of SEK -404m was accrued by end of the period. The dividend was paid on 3rd of July.

²⁾ Other reserves comprise translation gains/losses regarding hybrid bonds.
3) In accordance with a press release issued on 29 December 2023, dividends on the hybrid bond were paused, corresponding to accrued dividends (interest) of SEK 137,058,212 as of 30 June 2024.

⁴⁾ The company has changed accounting principle for the management of issue costs. These were previously managed under capital attributable to hybrid bonds but are now included in retained earnings. This has resulted in the opening balances for equity being adjusted.

Reserves

Translation differences in the translation of net assets in subsidiaries in Norway, Finland and Denmark from local currency to SEK amounted to SEK -344m of the change in equity during the period.

Repurchase of Class D shares

During the quarter, SBB carried out a programme to repurchase Class D ordinary shares. A total 44,657,779 Class D ordinary shares were repurchased that are now held as treasury shares. The repurchase decreased SBB's equity by SEK 352m.

Non-controlling interest

Non-controlling interests amounted to SEK 168m (2,445). The change is mainly attributable to Unobo. Also included are minority shareholdings in a few companies within the Sveafastigheter-group, with SBB not holding all of the shares in those companies.

Equity/assets ratio

The equity ratio was 33 percent (34), the adjusted equity ratio was 34 percent (37), and the loan-to-value ratio was 54 percent (54).

Consolidated cash flow statement, condensed

Amounts in SEKm	1 Jan 2024 30 Jun 2024	1 Jan 2023 30 Jun 2023	1 Apr 2024 30 Jun 2024	1 Apr 2023 30 Jun 2023	1 Jan 2023 31 Dec 2023
Operating activities
Profit before tax, continuing operations	-4,805	14,229	3,502	-10,107	-21,179
Profit before tax, discontinued operations	-	-833	-	-997	-6,090
Adjustment for non-cash flow items
Depreciation	10	2	5	-	6
Changes in value, property	3,579	8,284	1,595	5,952	18,051
Dissolution of goodwill following property sales	320	78	320	78	797
Goodwill impairment	-	-	-	-	1,794
Results, production of residentials	14	2	13	-	17
Profit from joint ventures and associated companies	1,987	3,661	1,795	3,292	6,017
Changes in the value of financial instruments	34	1,949	21	750	2,580
Dividends from joint ventures and associated companies	131	282	-	2,051	283

Net interest income	-231	3,129	143	282	1,818
Interest paid	-911	-1,094	-577	-470	-2,236
Interest received	146	146	77	91	220
Paid tax	-287	-460	-120	-291	-856
Cash flow from operating activities before changes in working capital	-13	917	-100	632	1,222
Cash flow from changes in working capital
Increase (-)/Decrease (+) of operating receivables	-282	139	6	660	1,057
Increase (+)/Decrease (-) of operating liabilities	-184	322	-272	-849	-929
Cash flow from operating activities	-478	1,378	-366	450	1,350
Investment activities
Investments in properties	-566	-1,767	-430	-824	-2,901
Acquisitions of subsidiaries less acquired cash and cash equivalents	-400	-753	-199	-3	-1,629
Disposals of subsidiaries less cash and cash equivalents	9,832	296	5,814	229	12,675
Investments/divestitures in equipment, machinery and installations	-	-71	-	-1	-75
Investments/disposals in joint ventures and associated companies	-173	2,564	-173	2,717	2,470
Change in receivables from joint ventures and associated companies	-105	-476	-7	-443	781
Cash flow from financial assets	341	-663	336	819	-194
Change in other non-current receivables	-15	-1,063	-22	-1,172	-998
Cash flow from investing activities	8,915	-606	5,320	1,323	10,129

Financing activities Issue of warrants	12	-	12	-	-

Repurchase warrants	-	4	-	-	-5
Repurchase compulsory convertibles	-	-	-	-4	-
Redemption of mandatory convertible	-	-2	-	-2	1
Dividend paid	-	-1,652	-	-770	-1,659
Divestiture to minority	-	8,654	-	-9	9,057
Contribution from minority	18	-	-	-	-
Redeemed minority	47	-680	47	-680	-
Borrowings	3,409	23,250	3,409	7,758	21,544
Repayment of loans	-8,938	-31,182	-5,229	-11,860	-38,885
Change in cash collateral	-	-2,178	-	-	-2,048
Changes in other non-current liabilities raised	-38	275	-93	212	-52
Cash flow from financing activities	-6,555	-3,520	-2,206	-5,356	-12,047
Cash flow for the period	1,881	-2,748	2,747	-3,583	-568
Cash and cash equivalents at the beginning of the period	3,845	4,429	3,003	5,299	4,429
Cash flow for the period	1,881	-2,748	2,747	-3,583	-568
Translation gains/losses in cash and cash equivalents	20	-2	-4	-37	-16
Cash and cash equivalents at the end of the period	5,747	1,679	5,747	1,679	3,845

Property portfolio

Rental income by business area

Largest tenants (Community and Education)

Largest municipalities (Residentials)

Tenant	Rental income, rolling 12-month, SEKm	% of total
Esperi	106	6.0%
Attendo	104	5.9%
Finnish state	102	5.8%
Humana	70	4.0%
Municipality of Skellefteå	65	3.7%
Region Skåne	39	2.2%
Danish state	39	2.2%
Municipality of Boden	38	2.2%
Municipality of Västerås	36	2.0%
Mehiläinen Oy	35	2.0%
Scania CV AB	29	1.6%
Swedish state	28	1.6%
Region Dalarna	28	1.6%
Municipality of Karlskrona	28	1.6%
Helsinki, capital region	25	1.4%
Norlandia	25	1.4%
Ambea	24	1.4%
Pohde	24	1.3%
Anocca AB	24	1.3%
City of Gothenburg	23	1.3%
20 largest tenants	893	50.4%
Other	879	49.6%
Total	1,772	100.0%

	Number of	No. thousand	Rental income, rolling	% of
Municipality	apartments	m2	12-month, SEKm	total
Linköping	1,534	109	139	10.5%
Skellefteå	1,362	99	122	9.2%
Helsingborg	941	65	88	6.6%
Höganäs	744	57	76	5.7%
Falun	724	47	64	4.8%
Karlskrona	371	43	60	4.5%
Stockholm	431	33	56	4.2%
Västerås	413	24	55	4.2%
Borås	506	39	51	3.9%
Södertälje	440	25	44	3.3%
Kävlinge	407	27	39	2.9%
Sundbyberg	199	20	37	2.8%
Umeå	482	27	36	2.7%
Landskrona	366	28	33	2.4%
Nykvarn	322	16	31	2.3%
Avesta	475	32	29	2.2%
Borlänge	318	20	28	2.1%
Norrtälje	271	19	25	1.9%
Eskilstuna	198	14	23	1.8%
Trelleborg	167	14	21	1.6%
20 largest municipalities	10,671	758	1,055	79.4%
Other	2,905	211	273	20.6%
Total	13,576	969	1,328	100.0%

Property portfolio

			Property portfolio			Earnings capacity
Business area	Area, thousand	m2 Market value	SEK/m2	Building rights and project value	Economic letting ratio	Rental income	SEK/m2	Net operating income	Lease terms	Initial direct return
Community
Sweden	738	15,387	17,211	2,688	92%	931	1,262	656	11	5.17%
Norway	85	2,054	23,425	65	96%	118	1,391	102	9	5.13%
Finland	315	7,693	24,294	38	90%	618	1,961	501	6	6.54%
Denmark	42	685	16,151	-	99%	68	1,611	55	4	8.04%
Total, Community	1,180	25,819	19,511	2,791	92%	1,735	1,470	1,314	10	5.71%
Residentials
University locations	415	10,263	20,708	1,668	94%	537	1,295	353	-	4.10%
Stockholm/Mälardalen	183	9,998	33,889	3,812	98%	330	1,807	238	-	3.85%
Gothenburg/Malmö	228	5,400	22,763	217	97%	313	1,376	210	-	4.06%
Other municipalities	144	2,516	12,865	669	81%	148	1,030	78	-	4.20%
Total, Residentials	969	28,176	22,512	6,366	94%	1,328	1,371	879	-	4.03%
Education
Sweden	18	405	16,082	114	100%	21	1,183	17	13	5.71%
Norway	-	-	-	-	-	-	-	-	-	-
Finland	-	-	-	-	-	-	-	-	-	-
Denmark	10	162	15,623	-	100%	15	1,454	12	9	7.62%
Total, Education	28	566	15,915	114	100%	36	1,281	29	11	6.39%
Total	2,178	54,561	20,799	9,271	93%	3,100	1,424	2,222	10	4.91%

Project and property development

For SBB, project and property development entails a continuous process of refining the property portfolio, which continues in parallel with the ongoing property management operations. Buildings are redesigned to enable additional volumes and operations, while underutilized areas of land within properties can be transformed into new building rights through zoning applications. Depending on the prevailing market conditions within the company's various geographies and segments, building rights can, in turn, become cash flow generating properties for our own property management operations, or can be divested externally. Since the often hidden potential within the company's land holdings constitutes a major portion of the value creation within the refinement process, SBB targets being able to regularly develop and provide building rights over time. Developing building rights benefits the company when participating in tenders and competitions as the company is often able to provide construction-ready or developable land. The major building rights and project development portfolio also provides SBB with opportunities for organic growth over time and helps increase the company's net operating income and profit.

As part of the company's sustainability work and in line with the UN's global sustainability goals, Vision 2030 and the refinement efforts are conducted focusing particularly on properties adjacent to transport facilities with an already developed infrastructure. With pre-purposed land being prioritized for refinement and

with existing street networks being further developed, additional green areas can be preserved and resource consumption kept down. In addition to the notion that the role of the car in society will gradually diminish, SBB's refinement work is driven by the need for communications, services, care facilities, schools and healthcare centres to be available in the vicinity. Most of the company's development properties are within designated communication nodes with direct access, both to rail traffic and other community services.

Building rights development

Segment / Planning phase	SBB's share	Phase 1 – Project concepts	Phase 2 – Ahead of a planning decision	Phase 3 – With planning approval	Phase 4 – Zoning plans having gained legal force	Total GFA (m2 )	Book value (SEK thousands)	Per m2 (SEK)
Residential	67%	186,852	-	255,530	219,295	661,677	1,153,777	1,744
Community service properties	87%	516,540	-	435,280	639,714	1,591,534	1,529,696	961
Education	53%	332,725	-	136,785	227,447	696,957	239,900	344
Total	76%	1,036,117	-	827,595	1,086,456	2,950,168	2,923,373	991
SBB's share of total	100%					2,481,925	2,229,229	898

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Community

degree of completion production in progress 17,2% return on remaining investment

New production in progress

	SBB's share	No. m²	No. projects	Rent (SEKm)	Net operating income (SEKm)	Invest- ment (SEKm)	Developed (SEKm)	Continuing operations (SEKm)	Yield (rent)	Yield (net operating income)
Community	100%	6,406	1	17	16	244	155	90	7.1%	6.6%
Community, Joint Venture	50%	7,038	1	12	10	275	153	122	4.4%	3.5%
Total	74%	13,444	2	29	26	519	308	211	5.6%	5.0%
SBB's share of total	100%	9,925		23	21	382	232	150	6.1%	5.5%

Investments in existing portfolio

	No. m²	No. projects	Net operating income (SEKm)	Investment (SEKm)	Developed (SEKm)	Remaining (SEKm)	operating income)
Community	6,891	1	7	125	115	10	5.3%

Currently in project development

	SBB's share	No. m²
Community	100%	67,199
Community, Joint Venture	50%	45,146
Total	78%	112,345
SBB's share of total	100%	89,772

Building rights development

Segment / Planning phase	SBB's share P	Phase 1 – roject concepts	Phase 2 – Ahead of a planning decision	Phase 3 – With planning approval	Phase 4 – Zoning plans having gained legal force	Total GFA (m²)	Book value (SEK thousands)	Per m² (SEK)
Community	100%	401,215	-	369,120	577,514	1,347,849	968,063	718
Community, Joint Venture	64.4%	115,325	-	66,160	62,200	243,685	561,633	2,305
Total	87%	516,540	-	435,280	639,714	1,591,534	1,529,696	961
SBB's share of total	100%					1,556,953	1,329,696	854

52% Stockholm/Mälardalen
0% University cities
0% Gothenburg/Malmö
0% Oslo/Copenhagen/Helsinki
48% Other growth municipalities

Geographical distribution of project development (incl. joint ventures)

75% Stockholm/Mälardalen
11% University cities
6% Gothenburg/Malmö
0% Oslo/Copenhagen/Helsinki
8% Other growth municipalities

Geographical distribution, building rights portfolio (incl. joint ventures)

36% Stockholm/Mälardalen
27% University cities
6% Gothenburg/Malmö
4% Oslo/Copenhagen/Helsinki
27% Other growth municipalities

Residential

degree of completion production in progress

return on remaining investment

of residentials production in Sweden's metropolitan regions and university cities

New production in progress

	SBB's share	No. apts.	No. m²	No. projects	Rent (SEKm)	Net opera- ting income (SEKm)	Invest- ment (SEKm)	Deve- loped (SEKm)	Continuing operations (SEKm)	Yield (rent)	Yield (net operating income)
Residential	100%	689	29,082	4	66	54	1,130	813	317	5.8%	4.8%
Residential, Joint Venture	50%	208	11,188	1	33	28	530	384	145	6.3%	5.2%
Total	84%	897	40,270	5	99	82	1,660	1,197	463	6.0%	4.9%
SBB's share of total	100%	793	34,676		82	68	1,395	1,005	390	5.9%	4.9%

Investments in existing portfolio

	No. m²	No. projects	Net operating income (SEKm)	Investment (SEKm)	Developed (SEKm)	Remaining (SEKm)	operating income)
Residential	34,928	3	4	94	88	6	4.4%

Currently in project development

	SBB's share	No. apts.	No. m²
Residential	100%	7,416	401,636
Residential, Joint Venture	53%	2,894	155,114
Total	89%	10,310	556,756
SBB's share of total	100%	8,943	481,217

Building rights development

Segment / Planning phase	SBB's share	Phase 1 – Project concepts	Phase 2 – Ahead of a planning decision	Phase 3 – With planning approval	Phase 4 – Zoning plans having gained legal force	Total GFA (m²)	Book value (SEK thousands)	Per m² (SEK)
Residential	100%	124,982	=	131,590	181,795	438,367	396,321	904
Residential, Joint Venture	49.5%	61,870	-	123,940	37,500	223,310	757,456	3,392
Total	67%	186,852	-	255,530	219,295	661,677	1,153,777	1,744
SBB's share of total	100%					572,327	771,540	1,348

46% Stockholm/Mälardalen
54% University cities
0% Gothenburg/Malmö
0% Oslo/Copenhagen/Helsinki
0% Other growth municipalities

Geographical distribution of project development (incl. joint ventures)

65% Stockholm/Mälardalen
30% University locations
2% Gothenburg/Malmö
0% Oslo/Copenhagen/Helsinki
3% Other growth municipalities

Geographical distribution, building rights portfolio (incl. joint ventures)

30% Stockholm/Mälardalen
33% University locations
22% Gothenburg/Malmö
0% Oslo/Copenhagen/Helsinki
16% Other growth municipalities

Education

Investments in existing portfolio

	SBB's share	No. m2	No. projects	Net operating income (SEKm)	Investment (SEKm)	Developed (SEKm)	Remaining (SEKm)	Yield (net operating income)
Nordiqus	49.8%	19,775	6	17	294	194	100	5.6%
SBB's share of total	100.0%	9,856		8	146	96	50	5.6%

Currently in project development

	SBB's share	No. m2
Education	100%	13,184
Education, Joint Venture	50%	6,440
Total	86%	19,624
SBB's share of total	100%	16,404

Building rights development

Segment / Planning phase	SBB's share	Phase 1 – Project concepts	Phase 2 – Ahead of a planning decision	Phase 3 – With planning approval	Phase 4 – Zoning plans having gained legal force	Total GFA (m2 )	Book value (SEK thousands)	Per m2 (SEK)
Education	100%	7,000	-	0	3,530	10,530	16,800	1,595
Education, Joint Venture	49.8%	325,725	-	136,785	223,917	686,427	223,100	325
Total	53%	332,725	-	136,785	227,447	696,957	239,900	344
SBB's share of total	100%					352,645	127,993	363

Information on the project portfolio is based on assessments of the size, focus and scope of the projects. The information also builds on assessments of future project costs and rental value. Such assessments and assumptions should not be seen as a forecast. Assessments and assumptions involve uncertainties regarding the implementation, design and size, schedules, project costs and future rental value of the projects. Data on the project portfolio are reviewed regularly and assessments and assumptions are adjusted as a result of projects, currently in project development, being completed, of new projects being added, or of conditions changing.

Strategic holdings in joint ventures and associated companies

As part of the company's active portfolio management, SBB has invested in joint ventures and associated companies to acquire attractive properties and assets that are not otherwise available on the regular transaction market, as well as to establish additional contact points in the property market and to benefit from strong organizational platforms outside SBB to maintain continued growth in cash flow. Partnerships can also be initiated to facilitate capital acquisition.

Some of the companies conduct property development projects, while other companies own investment properties. The largest holdings comprise the companies: SBB Social Facilities AB, SBB Infrastructure AB, Public Property Invest AS, SBB Residential Property AB and Nordiqus AB.

SBB Infrastructure AB and SBB Social Facilities AB

Public Property Invest AS

Public Property Invest AS owns and manages public properties in Norway primarily within the police and judiciary, and public offices segments. The remainder of the company is owned by institutional and private investors.

SBB Residential Property AB

SBB Residential Property AB owns a housing portfolio comprising rent-regulated residentials. The company was formed in July 2023 and has issued preference shares in connection with the company entering into an agreement on raising capital with an investment fund managed by Morgan Stanley. As the shareholder agreement between the holders of ordinary shares and preference shares requires decisions to be made jointly, SBB exercises a significant, but not decisive, influence whereby the holdings are reported as a joint venture.

Nordiqus AB

Nordiqus AB was formed in 2022 and, as of 2023, owns and manages a portfolio comprising more than 600 educational properties across the Nordics. The portfolio consists of preschools, schools, elementary schools, high schools and universities.

		30 Jun 2024
Amounts in SEKm	Community	Residentials	Education	Total
Book value, 1 Jan 2024	1,739	5,961	10,176	17,876
Acquisitions for the year	262	0	-	262
Shareholder contributions	2,288	143	-	2,431
Dividends for the year	-6	0	-125	-131
Disposals for the year	-	-1,848	-	-1,848
Translation differences	13	-	-	13
Other comprehensive income in equity	-	0	59	59
Impairment and revalua tion of participation	-1 024	313	-217	-928
Share of profit	-393	-213	-513	-1,119
Book value, 30 Jun 2024	2,878	4,357	9,381	16,616

Business area	Community SBB Social Facilities AB		Community		Community		Residentials		Education
			SBB Infrastructure AB		Public Property Invest AS		Property AB	SBB Residential	Nordiqus AB
	1 Jan 2024 30 Jun 2024	31 Jan 2023 30 Jun 2023	1 Jan 2024 30 Jun 2024	31 Jan 2023 30 Jun 2023	1 Jan 2024 30 Jun 2024	31 Jan 2023 30 Jun 2023	1 Jan 2024 30 Jun 2024	31 Jan 2023 30 Jun 2023	1 Jan 2024 30 Jun 2024	31 Jan 2023 30 Jun 2023
SBB's share	100%	-	100%	-	36.26%	44.84%	100%	-	49.84%	-
Rental income, SEKm	51	-	114	-	309	290	186	-	1,194	-
Net operating income, SEKm	50	-	86	-	277	263	110	-	983	-
Profit from property management, SEKm	8	-	-122	-	128	131	-75	-	768	-
Profit for the period, SEKm	-46	-	-408	-	-233	-269	-134	-	-1,029	-
SBB's share of profit from property management, SEKm	8	-	-122	-	25	59	-75	-	383	-
SBB's share of profit/loss, SEKm	-46	-	-408	-	-98	-121	-134	-	-513	-
Market value of properties, SEKm	9,453	-	5,469	-	9,815	9,043	5,947	-	38,777	-
Number of properties	98	-	164	-	61	48	212	-	652	-
Number of m2 , thousands	441	-	261	-	368	307	283	-	1,329	-
Economic letting ratio, %	96%	-	93%	-	93%	95%	92%	-	96%	-
Average lease term, years	5.6	-	5.3	-	4.8	5.6	N/A	-	12.3	-
Interest-bearing liabilities, SEKm 1)	5,597	-	5,103	-	5,520	5,665	2,360	-	21,494	-
Average interest rate, %	6.73	-	8.00	-	5.47	4.82	13.00	-	3.65	-
Debt maturity, years	1.90	-	1.66	-	3.06	1.71	4.13	-	2.05	-
Interest term, years	0.25	-	0.25	-	1.51	1.60	4.13	-	8.51	-
1) Excluding subordinated shareholder loans.
	30 Jun 2024	30 Jun 2023	30 Jun 2024	30 Jun 2023	30 Jun 2024	30 Jun 2023	30 Jun 2024	30 Jun 2023	30 Jun 2024	30 Jun 2023
Participations in associated companies/joint ventures, SEKm	311	-	8	-	1,929	1,576	3,042	-	9,381	-
Receivables from associated companies/joint ventures, SEKm	3,402	-	-	-	-	-	19	-	4,043	-

	1 Jan 2024 – 30 Jun 2024				1 Jan 2023 – 30 Jun 2023				1 Jan 2023 – 31 Dec 2023
Business area	Commu nity	Residen tials	Education	Total	Commu nity	Residen tials	Education	Total	Commu nity	Residen tials	Education	Total
Share in the profit/loss of joint ventures and associated companies
Profit from property management	-46	-65	383	272	86	408	-	494	108	65	-5	169
Change in value	-263	-135	-941	-1,340	-164	-347	-	-512	-621	-1,305	-573	-2,498
Tax	-84	-13	45	-51	-2	10	-	8	46	40	110	196
Total share of profit/loss in joint ventures and associated companies	-393	-213	-513	-1,120	-80	71	-	-9	-467	-1,199	-467	-2,133
Profit from disposals of joint ventures and associated companies	-	108	-	108	-126	-3,312	-	-3,438	-169	-3,246	-	-3,416
Impairment and revaluation of shares and receivables in joint ventures and associated companies	-1,055	297	-217	-975	-	-214	-	-214	-62	-407	-	-469
Profit/loss from joint ventures and associated companies	-1,448	191	-730	-1,987	-206	-3,455	-	-3,661	-698	-4,853	-467	-6,017

	1 Apr 2024 – 30 Jun 2024				1 Apr 2023 – 30 Jun 2023
Business area	Commu nity	Residen tials	Education	Total	Commu nity	Residen tials	Education	Total
Share in the profit/loss of joint ventures and associated companies
Profit from property management	-56	4	79	27	44	206	-	250
Change in value	-112	-76	-942	-1,131	-36	-146	-	-182
Tax	-81	-4	99	15	-5	8	-	3
Total share of profit/loss in joint ventures and associated companies	-250	-76	-764	-1,091	3	69	-	72
Profit from disposals of joint ventures and associated companies	-	116	-	116	1	-3,312	-	-3,311
Impairment and revaluation of shares and receivables in joint ventures and associated companies	-1,024	297	-94	-821	161	-214	-	-52
Profit/loss from joint ventures and associated companies	-1,273	336	-858	-1,795	166	-3,457	-	-3,292

Financing

SBB owns and manages a property portfolio with the capacity to generate increasing net operating income – for the period, the increase was 8.9 percent in comparable portfolios. Most of SBB's financing is non-current and on favourable terms, carrying an average interest rate of 2.10 percent at the end of the period. SBB has reduced its debt by SEK 25,879m to SEK 55,389m over the past 12 months, with a reduction of SEK 6,704m being achieved during the period.

Finance function

The finance function shall support the company's core business by minimizing the cost of capital in the long term. Its task is to manage existing debt, raise new loans for investments and acquisitions, streamline cash management and, by means of good control and analysis, limit the financial risks. The work is governed by the company's finance policy, which is adopted by the Board once a year. The finance policy regulates reporting, monitoring and control. All financial issues of strategic importance are dealt with by the Board. Sustainability is a natural part of our business model and SBB works to ensure that 100 percent of our borrowing in the capital market and the loan market will be sustainable by 2030. This is done by entering green loans, as well as by issuing social and green bonds.

Interest-bearing liabilities decreased by SEK 6,704m

SBB reduced its debt by SEK 6,704m over the period. The loan-to-value ratio remains at 54 percent. The market value of SBB's liabilities is lower than their book value, meaning that SBB generates equity in its books when bonds are repurchased before maturity. In the first six months of the year, repurchases contributed SEK 2,8bn to the shareholders' equity. Repurchases after the period have contributed an additional SEK 1.7bn. The market value of SBB's properties are assessed externally each quarter and are reported at fair value in the balance sheet.

Key ratios	policy	30 Jun 2024	31 Dec 2023
Interest-bearing liabilities, SEKm	-	55,389	62,093
Loan-to-value ratio	< 50%	54%	54%
Secured loan-to-value ratio	< 30%	18%	18%
Interest coverage ratio (incl. disconti nued operations), multiple	> 3.0	2.0	2.1
Liquidity, SEKm		5,747	3,845
Debt maturity, years	2 – 5	3.5	3.6
Interest term, years		3.1	3.4

Need to raise credit scores

In 2023, the credit ratings from both S&P and Fitch were lowered from BBB to CCC+ with a negative outlook. Following the end of the period, S&P further lowered the credit rating to SD. The credit rating from Fitch remains unchanged at CCC+ with negative future prospects. SBB is endeavouring to eventually regain a credit rating of at least BBB-, corresponding to "Investment Grade." Among other things, this requires lower indebtedness and improved liquidity.

Liquidity

At the end of the period, available cash and cash equivalents were SEK 5,747m, cash investments amounted to SEK 207m. Overall, it is concluded that SBB needs to improve its liquidity and general financial position. SBB has a long-term plan that will generate appropriate liquidity.

Despite a difficult market over the past two years, SBB has conducted a large number of transactions to safeguard adequate liquidity. While it was difficult to sell major property portfolios, SBB did have opportunities to divest individual properties.

SBB assesses that the property market will be stronger for SBB looking ahead and that the number of transactions will increase. This is partly due to an increasingly strong credit market, in which terms are growing more favourable and volumes are increasing. Over the next 12 months, it is likely that SBB will be able to conduct several smaller sales and perhaps some larger transactions, which will, aggregated, translate into a substantial volume on reasonable terms. SBB intends to present additional sales on an ongoing basis as these processes are completed.

Over the past year, SBB has worked with strategic measures to strengthen the company's liquidity and financial position, particularly by creating strong subsidiaries. As planned, following the end of the period, Nordiqus has obtained an infrastructural investment grade rating, with which it has successfully been able to issue bonds in SEK and NOK for a value equivalent to SEK 8.6bn with tenors of 10 to 15 years. The process of broadening the shareholder base of Sveafastigheter is progressing as planned. During the spring, the financing of Sveafastigheter was completed and seven Nordic banks will be

participating in Sveafastigheter's financing. The banks' strong interest builds on Sveafastigheter being a company with a strong financial position and conservative financial planning. A successful distribution of Sveafastigheter to shareholders is expected to cover SBB's capital needs for 2024 and 2025. SBB currently takes a highly restrictive approach to new acquisitions. Upcoming acquisitions are attributable to agreements entered into previously. That, and a cautious attitude towards new investments, will allow cash flow from the property operations to be earmarked for other purposes.

In 2023, SBB's liquidity was affected negatively by the termination of short-term financing in the form of commercial papers with associated credit facilities. As of 30 June 2024, SBB had no commercial papers outstanding.

General uncertainty in the market and specific uncertainty for SBB has made it difficult to extend bank loans far in advance. It is considered possible to refinance maturing bank loans, which has also occurred over the past year. If a bank loan is not extended, the mortgage deed is released in full and can be used in securing a loan from new financiers. Despite a difficult market in 2022 and 2023, SBB has demonstrated the company's ability to attract equity as well as debt. SBB commenced partnerships with Brookfield and Morgan Stanley in 2023, as well as with Castlelake in 2024. SBB is conducting several discussions regarding new or expanded partnerships aimed at further strengthening SBB's financial position.

Interest and capital maturities

The advantage of long-term financing is that interest expenses change slowly as interest rates rise. SBB's average interest rate of 2.10 percent is significantly below prevailing market interest rates. The interest rate on SBB's long-term bond financing is particularly favourable.

Over the past 18 months, indebtedness has decreased by SEK 30,585m. SBB is working actively to reduce its absolute level of debt. By repaying loans at maturity, the effects of higher interest rates are reduced.

Capital maturities

(SEKm)	Unsecured liability, nominal	Secured liability, nominal	Total nominal liability	Share, %
Q3 2024	-	1,662	1,662	3%
Q4 2024	472	1,288	1,761	3%
Q1 2025	5,175	19	5,194	9%
Q2 2025	534	19	553	1%
Next 12 months	6,182	2,988	9,170	16%
Q3-Q4 2025	544	606	1,150	2%
2026	5,680	2,771	8,451	15%
2027	9,421	6,154	15,575	28%
2028	7,892	339	8,231	15%
2029	9,036	90	9,127	16%
2030	-	90	90	0%
2031	-	1,064	1,064	2%
> 2031	568	2,218	2,786	5%
Total	39,324	16,320	55,644	100%

Interest maturities

(SEKm)	Unsecured liability, nominal	Secured liability, nominal	Total nominal liability	Share, %	interest rate hedges1)	Share, including interest rate hedges, %	Average interest rate, including interest rate hedges, %
2024	3,097	10,649	13,746	25%	5,040	9%	5.29%
2025	4,683	-	4,683	8%	7,970	14%	2.19%
2026	5,680	261	5,941	11%	8,241	15%	1.86%
2027	8,367	5,410	13,777	25%	16,058	29%	2.28%
2028	7,892	-	7,892	14%	8,392	15%	0.85%
2029	9,036	-	9,036	16%	8,764	16%	1.35%
2030	-	-	-	-	582	1%	0.64%
2031	-	-	-	-	-	-	-
>2031	568	-	568	1%	592	1%	2.85%
Total	39,324	16,320	55,644	100%	55,640	100%	2.10%

¹⁾ Including cross currency basis swaps.

Reconciliation nominal liability

	SEKm	Share, %
Non-current liabilities
Liabilities attributable to credit institutions	13,419	24%
Bonds	32,833	59%
Current liabilities
Liabilities attributable to credit institutions	3,002	5%
Bonds	6,134	11%
Total interest-bearing liabilities	55,389	100%
Accrued loan expenses and premiums/discounts	256
Total nominal liability	55,644

SBB's sustainability work

Samhällsbyggnadsbolaget i Norden AB (SBB) creates sustainable environments in which people want to live, work and spend time well into the future. Being the largest Nordic player in social infrastructure, SBB's local efforts contribute to general societal development that is socially, environmentally and economically sustainable. SBB's locally based property management provides close and direct customer contacts, while SBB's size provides opportunities for making the necessary investments in the properties.

Sustainability is an integrated part of SBB's business model and SBB strives to be the world's most sustainable property company. SBB has set out a long-term strategy and vision for 2030 detailing its long-term targets and a Sustainability Policy for the concrete implementation of the targets and vision. The persistent work in the area of sustainability has produced results in the form of an improved ESG risk rating. Analysis company Sustainalytics assesses SBB's ESG-risk as very low at 10.6 (on a scale from 0 to 50, the limit for negligible risk is 10) and risk management is considered strong. SBB thus tops the list of comparable companies based on market capitalization.

The climate issue is one of humanity's greatest challenges and SBB has a responsibility for future generations to contribute solutions and reduce its own climate impact. SBB conducts intensive and targeted efforts to improve energy performance throughout the property portfolio, focusing particularly on the buildings with the worst performance. An action plan has been prepared with concrete measures for each individual property currently in energy class F or G. The measures are implemented continuously, with the focus for the upcoming quarters being to further increase the pace of implementation.

Social sustainability is an important part of our promise to build a better society. As of 30 June, SBB held social assets with a total GFA of 1,674 thousand m2 .

Our overarching objectives

E – Climate and environment

Reduced energy consumption and climate impact by 5 percent annually in comparable portfolios
Reduced Scope 3 climate emissions by 30 percent by 2025 and by 60 percent by 2030, compared with the base year of 2020.
Reduced water consumption in comparable portfolios by 1 percent annually
Climate-adapted property portfolio

S – Social sustainability

Zero serious injuries and zero fatalities, refers to all internal and external personnel working at SBB's workplaces and projects.
Good working conditions for all internal and external personnel working at SBB's workplaces and projects, in line with relevant collective agreements
Robust processes to foster good working conditions throughout the supply chain

G – Governance and financing

100-percent sustainable
SBB is to be classified as a green share on Nasdaq Stockholm

financing

The various asset classes have been judged by the independent Institutional Shareholder Services (ISS) to make a significant contribution to the UN Global Goals for Sustainable Development (SDGs) numbers 3, 4 and 10. In addition, SBB also holds community properties of some 467 thousand m2 , that have yet to be classified in accordance with the sustainable financial framework.

Our objective is to achieve good economic growth without incurring negative consequences for the climate and the social environment. SBB continues to invest in sustainable financing by entering into green loans, issuing social and green bonds and reducing energy consumption. As of 30 June, social bonds, green bonds and green loans made up 33 percent of the total debt portfolio, in nominal amounts (excluding social hybrid bonds).

Energy consumption MWh

	Community		Residentials		Education
Comparable portfolios, degree day corrected	1 Jul 2023 30 Jun 2024	1 Jul 2022 30 Jun 2023	1 Jul 2023 30 Jun 2024	1 Jul 2022 30 Jun 2023	1 Jul 2023 30 Jun 2024	1 Jul 2022 30 Jun 2023
Electricity	23,999	24,332	12,989	11,864	-	-
Heating	15,850	16,465	38,737	40,975	-	-
Cooling	33	41	-	-	-	-
Total	39,882	40,839	51,726	52,839	-	-
Change (%)	-2.3%		-2.1%		-
Sample size (number of properties)	84		157		-
Sample size (area)	326,791		387,866		-
Intensity (kWh/m2 )	122.04	124.97	133.36	136.23	-	-

Currently in project development, Q2 2024

	Number/ number of m2	Number of wooden buildings	Proportion of wooden buildings	Number certified	Proportion certified	Proportion of solar cells	Proportion of geothermal heat
Number of projects	3	-	0%	3	100%	100%	33%
Number of m2	24,938	-	0%	24,938	100%	100%	33%

Number of energy projects – in progress and completed in the quarter

			Community		Residentials			Education				Total
	Num ber in pro gress	Number com pleted	Num ber of MWh in pro gress	Number of MWh com pleted	Num ber in pro gress	Number com pleted	Num ber of MWh in pro gress	Number of MWh com pleted	Num ber in pro gress	Number com pleted	Num ber of MWh in pro gress	Number of MWh com pleted	Share of total energy consumption, in progress and completed
Solar panels	5	-	977	-	11	-	1,000	-	-	-	-	-	0.6%
Heat pump	6	-	318	-	2	-	400	-	1	1	50	90	0.3%
Energy-efficient heating and ventilation	6	1	1,243	44	33	-	2,600	-	-	1	-	20	1.2%
Control and regulation technology	5	-	540	-	4	-	300	-	1	-	100	-	0.3%
Energy efficient lighting	2	1	154	8		-		-	-	1	-	2	0.0%
Other	6	-	311	-	2	-	70	-	-	-	-	-	0.1%
Total	30	2	3,543	52	52	-	4,370	-	2	3	150	112	2.4%

The share and shareholders

Samhällsbyggnadsbolaget's Class B share (ticker SBB B) and Class D share (ticker SBB D) are traded on Nasdaq Stockholm, Large Cap. As of 30 June, the number of Class B ordinary shares totalled 1,244,638,157, while Class D shares totalled 193,865,905. There are also 209,977,491 Class A ordinary shares in the company. During the quarter, SBB carried out a programme to repurchase Class D ordinary shares. A total of 44,657,779 Class D ordinary shares were repurchased and are now held as treasury shares. On 30 June 2024, series B ordinary shares were trading at SEK 5.39, and series D shares at SEK 7.09 The market capitalization of the Class B shares (including the value of unlisted Class A ordinary shares at the same price) was SEK 7,840m, and for the Class D shares, it was SEK 1,375m.

SBB's share is liquid and has been part of OMXS30 since 1 July 2022. Over the past 12 months, an average of approximately 31.5m Class B shares were traded per day for an average daily value of approximately SEK 136.6m.

SBB works actively with its investor base by participating in roadshows, presentations and events for private and institutional investors.

	Share price, SEK
	30 Jun 2024	30-06-2023
Class B shares	5.39	4.13
Class D shares	7.09	4.50

		Average daily turnover, SEKm
		Jan-Jun 2024 Jan-Jun 2023
Class B shares	136.6	407.2
Class D shares	9.4	19.6

Shareholders

At the end of the second quarter of 2024, there were 212,393 known shareholders, corresponding to a decrease of 16.5 percent compared with the corresponding point in 2023. On 30 June 2024, share capital amounted to SEK 165m at a quotient value of SEK 0.10 per share. At the Annual General Meeting, holders are entitled to one vote per Class A ordinary share and to 0.1 votes per Class B and D ordinary share. Holders of Class D ordinary shares are entitled to five times the total dividend on Class A and B ordinary shares, although not to more than SEK 2 per share and year.

Treasury shares

At the end of the period, the company held 44,657,779 (-) Class D shares as treasury shares. These are not included in the calculation of the number of shares outstanding.

Shareholder structure as of 30 June 2024

Shareholders	Class A shares	Class B shares	Class D shares	Share capital, %	Votes, %
Ilija Batljan	109,053,868	26,691,920	1,030,000	8.53	32.01
Arvid Svensson Invest	42,444,700	24,199,429	-	4.16	12.84
Dragfast AB	36,163,467	25,000,000	-	3.81	11.07
Sven-Olof Johansson	22,315,456	32,684,544	-	3.43	7.32
Vanguard	-	46,529,954	6,348,018	3.30	1.51
Avanza Pension	-	28,903,505	16,197,481	2.81	1.29
BlackRock	-	42,996,146	-	2.68	1.23
Handelsbanken Fonder	-	38,721,457	4,087,996	2.67	1.23
Futur Pension	-	32,293,489	2,377,851	2.16	0.99
Swedbank Försäkring	-	27,177,906	3,900,819	1.94	0.89
Gösta Welandson and companies	-	23,146,364	224,000	1.46	0.67
Marjan Dragicevic	-	22,000,000	-	1.37	0.63
Lennart Schuss	-	20,943,334	-	1.31	0.60
Cardano Asset Management	-	17,647,604	-	1.10	0.51
Storebrand Fonder	-	17,234,098	-	1.07	0.49
Other	-	818,468,407	115,141,961	58.21	26.72
Total number of shares outstanding				100	100
Aktier i eget förvar	-	-	44 657 779
Totalt antal aktier	209 977 491	1 244 638 157	193 865 905

Parent Company

Income statement of Parent Company

Amounts in SEKm	1 Jan 2024 30 Jun 2024	1 Jan 2023 30 Jun 2023	1 Apr 2024 30 Jun 2024	1 Apr 2023 30 Jun 2023	1 Jan 2023 31 Dec 2023

Net sales	67	68	58	33	202
Personnel costs	-43	-39	-25	-18	-83
Other operating expenses	-265	-139	-192	-47	-428
Operating profit	-240	-110	-159	-32	-309
Profit from financial items
Results from associated companies/joint ventures	-11	-3,636	-11	-3,636	-3,787
Interest income and similar items	10,012	3,526	5,071	2,588	10,027
Interest expenses and similar items	-11,125	-3,383	-5,658	-2,499	-9,744
Results of early repayment of loans	44	-112	0	-108	-117
Translation gains/losses	-971	-1,858	156	-1,618	527
Changes in the value of financial instruments	-16	-1,423	-17	-659	-2,439
Profit after financial items	-2,308	-6,997	-619	-5,965	-5,843
Appropriations	-	-	-	-	192
Profit before tax	-2,308	-6,997	-619	-5,964	-5,651
Tax	462	-174	80	-214	284
PROFIT/LOSS FOR THE PERIOD	-1,846	-7,171	-539	-6,179	-5,368

Statement of comprehensive income of Parent Company

Amounts in SEKm	1 Jan 2024 30 Jun 2024	1 Jan 2023 30 Jun 2023	1 Apr 2024 30 Jun 2024	1 Apr 2023 30 Jun 2023	1 Jan 2023 31 Dec 2023
Profit for the period	-1,846	-7,171	-539	-6,179	-5,368
Other comprehensive income	-	-	-	-	-
COMPREHENSIVE INCOME FOR THE PERIOD	-1,846	-7,171	-539	-6,179	-5,368

Comments on the Parent Company's income statement and balance sheet

The Parent Company's operations consist of Group-wide functions such as business development, transactions, property development and financing. The company has 36 employees. Personnel costs and other costs totalled SEK -389m (-178).

Parent Company balance sheet, condensed

Amounts in SEKm	30 Jun 2024	30 Jun 2023	31 Dec 2023
ASSETS
Fixed assets
Financial fixed assets
Shares in Group companies	35,180	36,106	28,378
Participations in associated companies/joint ventures	10,321	575	10,443
Receivables from Group companies	-	7,740	-
Receivables from associated companies/joint ventures	4,412	463	4,612
Deferred tax assets	952	457	774
Financial fixed assets at fair value	737	1,374	752
Derivatives	481	1,279	470
Other non-current receivables	-	1,010	1,382
Total financial fixed asset Total fixed assets	52,083 52,083	49,004 49,004	46,810 46,810

Current assets
Current receivables Financial fixed assets at fair value	441	-	726
Derivatives	159	207	203
Accounts receivable	6	34	1
Current tax assets	80	45	52
Other receivables	13	500	14
Prepaid expenses and accrued income	386	110	151
Total current receivables	1,085	897	1,147
Cash investments	169	160	173
Cash and bank balances	4,528	1,294	3,463
Total current assets	5,782	2,350	4,783
TOTAL ASSETS	57,865	51,354	51,593
EQUITY AND LIABILITIES
Restricted equity
Share capital	165	165	165
Unrestricted equity
Share premium fund	27,724	27,712	27,712
Retained earnings	-25,782	-21,854	-20,969
Hybrid bonds	14,172	17,416	16,480
Profit for the year	-1,846	-7,171	-5,368
Total non-restricted equity	14,269	16,103	17,855
Total equity	14,434	16,269	18,020
Untaxed reserves	85	85	85
Long-term liabilities
Liabilities to credit institutions	2,862	3,559	1,798
Bond loans	15,694	23,795	22,058
Derivatives	283	400	264
Liabilities from Group companies	14,121	-	2,462
Total long-term liabilities	32,959	27,754	26,582
Current liabilities
Liabilities to credit institutions	585	837	2,244
Commercial papers	-	320	-
Bond loans	6,134	1,455	685
Derivatives	23	1,249	1,290
Accounts payable	5	7	5
Other liabilities	129	2,963	156
Liability, dividend	2,133	-	2,133
Accrued expenses and prepaid income	1,378	415	394
Total current liabilities	10,388	7,245	6,906
TOTAL EQUITY AND LIABILITIES	57,865	51,354	51,593

Additional information

General information

Samhällsbyggnadsbolaget i Norden AB (publ) (SBB), corp. ID no. 556981-7660, with its subsidiaries conducts operations in property management and property development. The Parent Company is a limited liability company registered in Sweden and based in Stockholm.

Accounting principles

This interim report was prepared in accordance with IAS 34 Interim Reporting. In addition, the Swedish Annual Accounts Act and "RFR1 Supplementary Accounting Rules for Groups" have been applied. The Parent Company applies the same accounting principles as the Group with the exceptions and additions stated in the recommendation RFR 2 Accounting for Legal Entities issued by the Swedish Corporate Reporting Board. For the Group and the Parent Company, the same accounting principles and calculation bases have been applied as in the latest annual report unless otherwise stated.

Segment reporting

For reporting and follow-up, SBB has been divided into three segments: As of the third quarter of 2023, the segmentation has been restructured and now comprises Community, Residentials and Education. The division is based on the differences in the nature of the segments and on the reporting the management obtains to follow up and analyze the business, as well as on the data obtained on which to base strategic decisions. The comparison figures have been reclassified in accordance with the new segmentation.

Risks and uncertainties

A property company is exposed to various risks and opportunities in its operations. To limit the exposure to various risks, SBB has set out and adheres to internal regulations and policies. These are detailed on pages 68-69 in SBB's 2023 Annual Report.

The bondholder who made claims against SBB under the EMTN programmes for 2020 and 2021 has now initiated formal legal action. The bondholder's holdings correspond to a nominal amount of about EUR 46m distributed across both EMTN programmes. In their claim, the bondholder maintains that the bond holding has fallen due as SBB, in the bondholder's opinion, has violated the terms regarding interest coverage ratio in the EMTN programmes. The court case against SBB is expected to commence on 13 January 2025, with a ruling expected to be announced in March 2025.

SBB has for some time now engaged experienced legal and financial advisers. SBB continues to make the assessment that the company has not violated the terms regarding the interest coverage ratio in the EMTN programmes, whereby SBB takes the view that the company is likely to prevail in the legal case now initiated by the bondholder. However, a legal case always includes an element of uncertainty as a court may make a different assessment of a case in point. SBB makes the overall assessment that this will not have a significant impact on the preparation of this year-end report.

The Board of Directors and the CEO provide their assurance that the interim report provides a fair overview operations, position and results of the Parent Company and the Group and describes significant risks and uncertainties that affect the Parent Company and the companies included in the Group.

Stockholm, 28 August 2024

Lennart Sten Hans Runesten Chairman of the Board Board Member

Sven-Olof Johansson Ilija Batljan Board Member Board Member

Lars Rodert Lennart Schuss Board Member Board Member

Leiv Synnes CEO

This interim report has not been subject to review by the company's auditors.

This information is such that Samhällsbyggnadsbolaget i Norden AB (publ) is obliged to publish in accordance with the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted by the below contact persons for publication on 28 August 2024 at 8:00 a.m. CET.

Leiv Synnes, CEO, [email protected]

Helena Lindahl, IR, [email protected]

Definitions

Financial definitions

Actual net asset value (EPRA NTA), SEK

Recognized equity attributable to the ordinary share, excluding equity related to Class D shares, non-controlling interests and the hybrid bond, adding back reported deferred tax liabilities, goodwill and interest rate derivatives and the addition of a stamp duty for properties in Finland and the deduction of estimated deferred tax of 5.15 percent, with the exception of residentials with an estimated deduction of 0 percent. The key ratio provides an adjusted and complementary measure of the size of equity calculated in a manner consistent with listed property companies.

Number of ordinary shares outstanding

The number of ordinary shares outstanding at the end of the period.

Return on equity, %

Net profit for the period in relation to average equity for the period. The key ratio shows SBB's return on equity during the period.

Solvency ratio, %

Interest-bearing net debt in relation to total assets. The key ratio is used to illustrate SBB's financial risk.

Non-pledged quota, multiple

Non-pledged assets in relation to net unsecured debt. The key ratio is used to illustrate SBB's financial risk.

Non-pledged property value, SEK

Reported market value less market value of pledged properties.

EPRA

European Public Real Estate Association is an organization for listed property companies and investors in Europe. EPRA sets standards regarding financial reporting.

EPRA Earnings, SEK

Profit/loss for the period after dividends to holders of Class D shares and interest on hybrid bonds adjusted for unrealized value changes on properties and profit/loss on the disposal of properties, tax on profit in connection with disposals, goodwill impairment, changes in the value of financial instruments including costs for early redemption of loans, value changes in properties, less tax related to associated companies and joint ventures, profit/loss attributable to minority interests less tax attributable to the adjustments.

The key figure provides information on profit from property management calculated in a uniform manner for listed property companies.

Profit from property management, excl. translation gains/losses, SEK

Profit before financial items, value changes, property and goodwill, incl. interest income, interest expenses, expenses for loans redeemed prematurely, and ground rent, as well as Profit from property management in associated companies/joint ventures.

The key ratio provides a measurement of the operations' profit generation regardless of changes in value and translation gains/losses.

Average number of ordinary shares

The number of ordinary shares outstanding weighted over the period.

Average interest, %

Weighted average contracted interest, including interest rate derivatives, for interest-bearing liabilities at the end of the period excluding unutilized credit facilities.

The key ratio is used to illustrate SBB's financial risk.

Average fixed interest term, years

Average remaining duration until an interest-adjustment point for interest-bearing liabilities.

The key ratio is used to illustrate SBB's financial risk.

Adjusted equity/assets ratio, %

Reported equity including owner loans and convertibles, with reversal of reported deferred tax liability as a percentage of total assets. The key ratio is used to illustrate SBB's financial stability.

Debt maturity, years

Remaining maturity of interest-bearing liabilities. The key ratio is used to illustrate SBB's financial risk.

Cash flow from operating activities, SEK

Cash flow from operating activities before changes in working capital according to the cash flow statement.

Long-term net asset value (EPRA NRV), SEK

Recognized equity attributable to ordinary shares, excluding equity related to Class D shares, non-controlling interests and the hybrid bond, with the reversal of a recognized deferred tax liability, goodwill attributable to deferred tax, interest rate derivatives and the addition of stamp duty for properties in Finland.

The key ratio provides an adjusted and complementary measure of the size of equity calculated in a manner consistent with listed property companies.

Net debt, SEK

Liabilities to credit institutions, bond loans and commercial papers less cash and cash investments.

Profit before financial items, SEK

Profit before financial items, value changes in properties and goodwill, including profit/loss from associated companies/joint ventures, excluding value changes after tax.

Earnings per Class A and B ordinary share, SEK

Net profit for the period after dividend to holders of Class D shares and earnings attributable to minority interests and interest on hybrid bonds in relation to the average number of Class A and B ordinary shares for the period.

Interest-bearing liabilities

Liabilities to credit institutions, bond loans and commercial papers. The key ratio is used to illustrate SBB's financial risk.

Interest-coverage ratio, multiple

Profit before financial items (past 12 months) plus profit from property management from joint ventures and associated companies, with tax deducted, in relation to net interest income, excluding costs for premature redemptions of loans, translation differences and leasing costs. The key ratio is used to illustrate SBB's financial risk.

Equity/assets ratio, %

Reported equity as a percentage of total assets. The key ratio is used to illustrate SBB's financial stability.

Secured loan-to-value ratio, %

Secured liabilities as a percentage of the total assets. The key ratio is used to illustrate SBB's financial stability.

Property-related definitions

Number of properties

Number of properties at the end of the period.

Number m2

Total area in the property portfolio at the end of the period.

GFA

Gross floor area.

Yield (NIY), %

Net operating income (rolling 12-month) in relation to the sum of the properties fair value at the end of the period excl. the value for building rights and project properties.

The key ratio is used to illustrate the level of return on the net operating income in relation to the value of the properties.

Net operating income, SEK

Rental income less property costs.

Economic letting ratio, %

Rental income as a percentage of rental value The key ratio is used to facilitate the assessment of rental income in relation to the total value of potential lettable area.

EPRA Vacancy rate, %

The rental value of vacant leases divided by the rental value of the entire portfolio.

The key ratio is calculated in accordance with the EPRA definition, which enables comparison with other companies.

Average contract length of social infrastructure properties (WAULT), years

Remaining contract value in relation to annual rent for social infrastructure properties.

The key ratio aims to illustrate SBB's rental risk.

Rental income, SEK

Charges for the period with deductions for rental losses.

Rental value, SEK

Contracted rent plus the assessed rent on vacant space.

Market value of properties, SEK

Fair value of the properties at the end of the period.

Surplus ratio, %

Net operating income as a percentage of rental income for the period. The key ratio shows how much of the rental income remains after direct property costs.

Calculation of alternative performance measures

Return on equity

Amounts in SEKm	1 Jan 2024 30 Jun 2024	1 Jan 2023 30 Jun 2023	1 Apr 2024 30 Jun 2024	1 Apr 2023 30 Jun 2023	1 Jan 2023 31 Dec 2023
Profit for the period	-3,429	-13,796	-2,271	-9,897	-21,590
OB equity	37,131	63,337	34,379	67,703	63,337
CB equity	30,038	54,719	30,038	54,719	37,131
Average equity	33,585	59,028	32,209	61,211	50,234
Return on equity	-10%	-23%	-7%	-16%	-43%

Loan-to-value ratio

Amounts in SEKm	1 Jan 2024 30 Jun 2024	1 Jan 2023 30 Jun 2023	1 Jan 2023 31 Dec 2023
Interest-bearing liabilities	55,388	81,588	62,093
Cash and cash equivalents and cash investments	-5,953	-1,885	-4,060
Interest-bearing net debt	49,435	79,703	58,033
Balance sheet total	91,583	152,844	108,107
Loan-to-value ratio	54%	52%	54%

Yield

Amounts in SEKm	1 Jan 2024 30 Jun 2024	1 Jan 2023 30 Jun 2023	1 Jan 2023 31 Dec 2023
Net operating income according to earnings capacity (full year)	2,222	5,370	3,081
Investment properties	54,417	130,799	73,205
Building rights and projects in progress	-9,126	-11,816	-8,603
Property value excluding building rights	45,291	118,983	64,602
Yield	4.9%	4.5%	4.8%

Net operating income in accordance with earnings capacity

Amounts in SEKm	1 Jan 2024 30 Jun 2024	1 Jan 2023 30 Jun 2023	1 Jan 2023 31 Dec 2023
Net operating income, continuing operations	1,455	1,568	3,209
Net operating income, discontinued operations	-	962	1,766
Recalculation of net operating income to full-year basis	1,455	2,530	-
Adjustment to normalized net operating income	-689	310	-1,893
Net operating income in accordance with earnings capacity	2,222	5,370	3,081

Non-pledged quota

Amounts in SEKm	1 Jan 2024 30 Jun 2024	1 Jan 2023 30 Jun 2023	1 Jan 2023 31 Dec 2023
Intangible assets	2,372	5,205	2,692
Non-pledged property value	22,749	69,116	31,609
Land lease agreements	547	842	393
Equipment, machinery and installations	97	106	106
Deferred tax assets	966	1,762	1,074
Financial fixed assets, excluding derivatives and pledged shares	25,754	9,947	25,247
Cash investments	207	206	214
Accounts receivable and other receivables	743	1,423	447
Derivatives	650	1,507	684
Non-pledged assets	54,084	90,113	62,466
Unsecured loans	38,618	51,935	42,771
Cash and cash equivalents	-5,747	-1,679	-3,845
Net unsecured senior debt	32,871	50,256	38,926
Non-pledged quota	1.65	1.79	1.60

Economic letting ratio

	1 Jan 2024	1 Jan 2023	1 Jan 2023
Amounts in SEKm	30 Jun 2024	30 Jun 2023	31 Dec 2023
Rental income in accordance with earnings capacity	3,100	6,866	4,278
Rental value in accordance with earnings capacity	3,342	7,132	4,543
Economic letting ratio	92.8%	96.3%	94.2%

EPRA earnings

Amounts in SEKm	1 Jan 2024 30 Jun 2024	1 Jan 2023 30 Jun 2023	1 Apr 2024 30 Jun 2024	1 Apr 2023 30 Jun 2023	1 Jan 2023 31 Dec 2023
Profit for the period	-3,429	-13,796	-2,271	-9,897	-21,590
Unrealized changes in value, properties, continuing operations	2,777	7,894	845	5,515	11,763
Unrealized changes in value, properties, discontinued operations	-	-	-	-	2,931
Profit/loss on property sales, continuing operations	802	390	750	437	1,556
Tax on profit/loss on sales of properties	-	-	-	-	-
Impairment of goodwill, continuing operations	-	-	-	-	-
Impairment of goodwill, discontinued operations	-	-	-	-	2,365
Changes in the value of financial instruments	-764	2,061	19	746	2,544
Tax in respect of EPRA adjustments	-1,182	-1,054	-200	-828	-5,754
Adjustments in respect of associated companies/joint ventures	1,752	3,305	685	2,787	5,777
Adjustments in respect of joint ventures	-6	-23	-6	-23	20
EPRA earnings	-50	-1,224	-178	-1,264	-387
Average number of Class A and B ordinary shares		1,454,615,648 1,454,143,768 1,454,615,648 1,454,145,660 1,454,345,401
Average number of Class A and B ordinary shares after dilution		1,454,615,648 1,454,143,768 1,454,145,660 1,454,412,988 1,454,345,401
EPRA earnings per Class A and B ordinary share	-0.03	-0.84	-0.12	-0.87	-0.27
EPRA Earnings per Class A and B ordinary share after dilution	-0.03	-0.84	-0.12	-0.87	-0.27
Company-specific adjustments
Profit attributable to Class D shares	-149	-194	-52	-97	-388
Profit attributable to hybrid bond	-251	-278	-125	-142	-548
EPRA Earnings (Company specific)	-449	-1,696	-356	-1,503	-1,322
EPRA Earnings (Company specific) per Class A and B ordinary share	-0.31	-1.17	-0.24	-1.03	-0.91
EPRA Earnings (Company specific) per Class A and B ordinary share after dilution	-0.31	-1.17	-0.24	-1.03	-0.91

Profit from property management, excl. translation gains/losses

Amounts in SEKm	1 Jan 2024 30 Jun 2024	1 Jan 2023 30 Jun 2023	1 Apr 2024 30 Jun 2024	1 Apr 2023 30 Jun 2023	1 Jan 2023 31 Dec 2023
Continuing operations
Profit before financial items, value changes in properties and goodwill	899	1,323	385	730	2,241
Interest income and similar items	201	140	42	88	266
Interest expenses and similar items	-730	-724	-309	-351	-1,406
Expenses for redeemed loans in advance	798	-112	2	4	36
Leasing expenses	-9	-5	-4	-	-10
Profit from property management from associated companies/joint ventures	272	494	26	248	169
Profit from property management, continuing operations	1,430	1,116	142	717	1,296
Discontinued operations
Profit before financial items, value changes in properties and goodwill	-	796	-	369	1,564
Interest income and similar items	-	-	-	-	5
Interest expenses and similar items	-	-313	-	-160	-582
Site fees	-	-3	-	-2	-6
Profit from property management, excl. translation gains/losses	1,430	1,596	142	925	2,277

Adjusted equity/assets ratio

	1 Jan 2024	1 Jan 2023	1 Jan 2023
Amounts in SEKm	30 Jun 2024	30 Jun 2023	31 Dec 2023
Equity	30,038	54,719	37,131
Deferred tax excl. deferred tax attr. to goodwill	868	6,021	2,407
Total	30,906	60,740	39,537
Balance sheet total	91,583	152,844	108,107
Adjusted equity/assets ratio	34%	40%	37%

Profit before financial items

	1 Jan 2024	1 Jan 2023	1 Apr 2024	1 Apr 2023	1 Jan 2023
Amounts in SEKm	30 Jun 2024	30 Jun 2023	30 Jun 2024	30 Jun 2023	31 Dec 2023
Continuing operations
Profit before financial items, value changes in properties and goodwill	899	1,323	385	730	2,241
Profit from associated companies/joint ventures, excl. changes in value after tax	-234	-356	-1,110	-505	-240
Profit before financial items	664	967	-725	225	2,001

Earnings per Class A and B ordinary share (continuing operations)

Amounts in SEKm	1 Jan 2024 30 Jun 2024	1 Jan 2023 30 Jun 2023	1 Apr 2024 30 Jun 2024	1 Apr 2023 30 Jun 2023	1 Jan 2023 31 Dec 2023
Continuing operations
Profit for the period	-3,429	-13,064	-2,271	-9,040	-18,827
Profit attributable to Class D shares	-149	-194	-52	-97	-388
Profit attributable to hybrid bond	-251	-278	-125	-142	-548
Profit attributable to minority interest	-106	-526	2	1,153	-464
Profit attributable to Class A and B ordinary shares	-3,934	-14,062	-2,447	-8,126	-20,226
Average number of Class A and B ordinary shares			1,454,615,648 1,454,143,768 1,454,615,648 1,454,145,660 1,454,345,401
Earnings per Class A and B ordinary share	-2.70	-9.67	-1.68	-5.59	-13.91
Average number of Class A and B ordinary shares after dilution			1,454,615,648 1,454,143,768 1,454,615,648 1,454,145,660 1,454,345,401
Earnings per Class A and B ordinary share after dilution	-2.70	-9.67	-1.68	-5.59	-13.91

Earnings per Class A and B ordinary share (discontinued operations)

	1 Jan 2024	1 Jan 2023	1 Apr 2024	1 Apr 2023	1 Jan 2023
Amounts in SEKm	30 Jun 2024	30 Jun 2023	30 Jun 2024	30 Jun 2023	31 Dec 2023
Discontinued operations
Profit for the period	-	-733	-	-859	-2,763
Profit attributable to Class D shares	-	-	-	-	-
Profit attributable to hybrid bond	-	-	-	-	-
Profit attributable to minority interest	-	-	-	-	-
Profit attributable to Class A and B ordinary shares	-	-733	-	-859	-2,763
Average number of Class A and B ordinary shares				1,454,615,648 1,454,143,768 1,454,615,648 1,454,145,660 1,454,345,401
Earnings per Class A and B ordinary share	-	-0.50	-	-0.59	-1.90
Average number of Class A and B ordinary shares after dilution				1,454,615,648 1,454,143,768 1,454,615,648 1,454,145,660 1,454,345,401
Earnings per Class A and B ordinary share after dilution	-	-0.50	-	-0.59	-1.90

Earnings per Class A and B ordinary share (continuing and discontinued operations)

Amounts in SEKm	1 Jan 2024 30 Jun 2024	1 Jan 2023 30 Jun 2023	1 Apr 2024 30 Jun 2024	1 Apr 2023 30 Jun 2023	1 Jan 2023 31 Dec 2023
Profit for the period	-3,429	-13,796	-2,271	-9,897	-21,590
Profit attributable to Class D shares	-149	-194	-52	-97	-388
Profit attributable to hybrid bond	-251	-278	-125	-142	-548
Profit attributable to minority interest	-106	-526	2	1,153	-464
Profit attributable to Class A and B ordinary shares	-3,934	-14,794	-2,447	-8,984	-22,989
Average number of Class A and B ordinary shares		1,454,615,648 1,454,143,768 1,454,615,648 1,454,145,660 1,454,345,401
Earnings per Class A and B ordinary share	-2.70	-10.17	-1.68	-6.18	-15.81
Average number of Class A and B ordinary shares after dilution		1,454,615,648 1,454,143,768 1,454,615,648 1,454,145,660 1,454,345,401
Earnings per Class A and B ordinary share after dilution	-2.70	-10.17	-1.68	-6.18	-15.81

Interest-bearing liabilities

	1 Jan 2024	1 Jan 2023	1 Jan 2023
Amounts in SEKm	30 Jun 2024	30 Jun 2023	31 Dec 2023
Liabilities to credit institutions	16,421	27,230	18,976
Bond loans	38,967	54,038	43,117
Commercial papers	-	320	-
Interest-bearing liabilities	55,388	81,588	62,093

Interest-bearing net debt

Amounts in SEKm	1 Jan 2024 30 Jun 2024	1 Jan 2023 30 Jun 2023	1 Jan 2023 31 Dec 2023
Interest-bearing liabilities	55,388	81,588	62,093
Cash and cash equivalents and cash investments	-5,953	-1,885	-4,060
Interest-bearing net debt	49,435	79,703	58,033

Interest coverage ratio (continuing and discontinued operations)

Amounts in SEKm	1 Jul 2023 30 Jun 2024	1 Jul 2022 30 Jun 2023	1 Jan 2023 31 Dec 2023
Profit before financial items, value changes properties and goodwill (rolling 12-months), continuing operations	1 895	N/A	2 241
Profit before financial items, value changes properties and goodwill (rolling 12-months), discontinued operations	-42	N/A	134
Profit from joint ventures and associated companies, excluding value changes after tax, continuing operations	768	N/A	1 564
Total profit before financial items, value changes properties and goodwill (rolling 12-month)	2 621	4 956	3 939
Interest income and similar income items (rolling 12 months), continuing operations	360	N/A	266
Interest income and similar income items (rolling 12 months), discontinued operations	4	N/A	5
Interest income and similar items (rolling 12 months), continuing operations	-1 413	N/A	-1 406
Interest expenses and similar items (rolling 12-months), discontinued operations	-268	N/A	-582
Total net interest	-1 317	-1 736	-1 717
Interest-coverage ratio (multiple)	2,0	2,9	2,3

Interest coverage ratio (continuing operations)

Amounts in SEKm	1 Jul 2023 30 Jun 2024	1 Jul 2022 30 Jun 2023	1 Jan 2023 31 Dec 2023
Continuing operations
Profit before financial items, value changes properties and goodwill (rolling 12-month)	1 895	4 233	2 241
Profit from joint ventures and associated companies, excluding value changes after tax	-42	724	134
Total profit before financial items, value changes properties and goodwill (rolling 12-month)	1 853	4 956	2 375
Continuing operations
Interest income and similar income items (rolling 12 months)	360	222	266
Interest expenses and similar items (rolling 12-month)	-1 413	-1 958	-1 406
Total net interest	-1 053	-1 736	-1 140
Interest-coverage ratio (multiple)	1,8	2,9	2,1

Equity/assets ratio

	1 Jan 2024	1 Jan 2023	1 Jan 2023
Amounts in SEKm	30 Jun 2024	30 Jun 2023	31 Dec 2023
Equity	30,038	54,719	37,131
Balance sheet total	91,583	152,844	108,107
Equity/assets ratio	33%	36%	34%

Equity ratio

Amounts in SEKm	30 Jun 2024	30 Jun 2023	31 Dec 2023
Current net asset value (EPRA NTA)
Equity excluding non-controlling interests
Equity	30,038	54,719	37,131
Hybrid bonds	-14,469	-17,716	-16,777
Non-controlling interest	-168	-12,103	-2,445
Equity excluding non-controlling interests and hybrid bond	15,400	24,900	17,910
Reversal of derivatives	-344	142	870
Goodwill attributable to deferred tax	-275	-1,316	-319
Other goodwill	-2,097	-3,889	-2,373
Stamp duty	225	234	220
Reversal of deferred tax	1,143	7,337	2,726
Deduction of deferred tax	-651	-2,165	-491
Total equity ratio	13,401	25,243	18,543
Number of shares A + B + D		1,603,823,774 1,648,092,439 1,648,481,553
Total equity ratio per share	8.36	15.32	11.25
Current equity ratio per Class D share 1)	8.36	15.32	11.25
Number of Class D shares	149,208,126	193,865,905	193,865,905
Total equity ratio for Class D shares	1,247	2,969	2,181
Total equity ratio	13,401	25,243	18,543
Actual net asset value (EPRA NTA)	12,154	22,274	16,363
Actual net asset value (EPRA NTA), SEK/share	8.36	15.32	11.25
Actual net asset value (EPRA NTA), SEK/share (diluted)	8.36	15.31	11.25
Long-term net asset value (EPRA NRV)
Total equity ratio	13,401	25,243	18,543
Reversal of other goodwill	2,097	3,889	2,373
Reversal of deduction for deferred taxes	651	2,165	491
Total equity ratio after reversal of other goodwill and deductions for deferred tax	16,149	31,297	21,407
Number of shares A + B + D		1,603,823,774 1,648,092,439 1,648,481,553
Total equity ratio after reversal of other goodwill and deductions for deferred tax per share (A+B+D)	10.07	18.99	12.99
Long-term equity ratio per class D share 1)	10.07	18.99	12.99
Number of Class D shares	149,208,126	193,865,905	193,865,905
Total equity ratio for Class D shares	1,502	3,681	2,518
Total equity ratio	16,149	31,297	21,407
Long-term net asset value (EPRA NRV)	14,647	27,616	18,890
Long-term net asset value (EPRA NRV), SEK/share	10.07	18.99	12.99
Long-term net asset value (EPRA NRV), SEK/share (diluted)	10.07	18.98	12.99
Number of Class A and B ordinary shares		1,454,615,648 1,454,226,534 1,454,615,648
Number of Class A and B ordinary shares after dilution		1,454,615,648 1,454,636,101 1,454,615,648
Number of Class D shares	149,208,126	193,865,905	193,865,905

¹⁾ In accordance with the Articles of Association, Class A, B and D shares convey equal entitlement to equity in connection with a possible liquidation. This entitlement is, however, limited to SEK 31 for Class D shares.

Secured loan-to-value ratio

Amounts in SEKm	30 Jun 2024	30-06-2023	31 Dec 2023
Liabilities to credit institutions	16,421	27,230	18,976
Other secured loans	349	2,423	345
Total secured liabilities	16,770	29,653	19,322
Balance sheet total	91,583	152,844	108,107
Secured loan-to-value ratio	18%	19%	18%

Surplus ratio

Amounts in SEKm	1 Jan 2024 30 Jun 2024	1 Jan 2023 30 Jun 2023	1 Apr 2024 30 Jun 2024	1 Apr 2023 30 Jun 2023	1 Jan 2023 31 Dec 2023
Net operating income, continuing operations	1,455	1,568	720	826	3,209
Net operating income, discontinued operations	-	962	-	498	1,766
Net operating income, total operations	1,455	2,530	720	1,323	4,974
Rental income, continuing operations	2,121	2,317	1,012	1,164	4,581
Rental income, discontinued operations	-	1,155	-	583	2,086
Rental income, total operations	2,121	3,472	1,012	1,747	6,667
Surplus ratio	69%	73%	71%	76%	75%

Appendix 1 Current earnings capacity from property management

The current earning capacity for the Group for 12 months is presented below and takes into account the Group's property portfolio at 30 June 2024. The current earning capacity is not a forecast, but only to be viewed as a hypothetical snapshot and is presented only to illustrate income and expenses on an annual basis, given the property portfolio, financial costs, capital structure and organization at a set point in time. The Group's earning capacity does not include the impact on earnings of unrealized and realized changes in the value of the properties being consolidated.

The following information forms the basis for the calculation of the earning capacity:

• Contracted rental income on an annual basis (including supplements and rental discounts) and other property-related revenues on the basis of current lease contracts as of 30 June 2024.

Operating and maintenance costs are based on a budget.
The property tax is calculated from the properties current tax assessment value as of 30 June 2024.
Costs for administration are based on the current organization.
Financial expenses and income are based on contracted interest rates and include interest on external loans.
The earnings that joint ventures/associated companies contribute to earnings capacity are based on published information, including reports, prospectuses, etc.

Group's earning capacity

Amounts in SEKm	Community	Residentials	Education	Total
Rental income	1,735	1,328	36	3,100
Operating costs	-309	-360	-5	-674
Maintenance	-75	-69	-2	-146
Property tax	-36	-21	0	-58
Net operating income	1,314	879	29	2,222
Administration				-421
Profit before net financial items plus profit from joint ventures and associated companies				1,801
per Class A and B ordinary share				1.24
Profit from associated companies/joint ventures				553
Financial income				81
Financial costs1)				-1,045
Operating profit/loss				1,390
per Class A and B ordinary share				0.96
Dividend hybrid bonds				-486
Dividend Class D shares				-299
Profit attributable to minority interests				0
Profit attributable to ordinary shareholders				604
per Class A and B ordinary share				0.42

¹⁾ Adjusted for non-long-term surplus liquidity held by the Group at the end of the period with an estimated average interest rate of 2.10 percent, which is the weighted average in the debt portfolio as of 30 June 2024.

Contributing to earnings capacity

	Joint ventures and associated companies
	Nordiqus AB	Public Property Invest AS	SBB Residential Property AB	SBB Infra structure AB	SBB Social Facilities AB	Origa Care	Preservium Property	Publicus	Solon Eiendom	Other joint venture companies
SBB's holdings of ordinary shares	49.84%	36.26%	100.0%1)	100.0%	100.0%	34.7%	34.7%	31.2%	25.0%	50.0%
Profit from property management	1,028	270	-	-130	38	34	37	17	-	9
Profit from property management attributable to SBB's share of capital	512	98	-	-130	38	12	13	5	-	4

AI Terminal

Samhällsbyggnadsbo. i Norden

2963_ir_2024-08-28_9321b76c-f9e4-46f4-8670-b9bfc87ecb7d.pdf

Summary of period

First six months of the year

The period in brief, continuing operations

Significant events during the second quarter

Significant events following the end of the quarter

SBB key ratios

CEO Leiv Synnes

Net operating income in comparable portfolios increased by 8.9 percent

Average interest rate of 2.10 percent

Nordiqus raises funding with investment grade rating

Well-positioned and well-financed core holdings

Sveafastigheter issues bonds prior to shareholder distribution

Joint ventures with Castlelake

Continuing efforts to achieve a reasonable level of financial risk

High transition costs

Delivering on the strategic plan

Samhällsbyggnadsbolaget i Norden

Property exposure

Property exposure

Holdings

Consolidated holdings

Property value, by country Property value per category

Joint ventures and associated companies

Significant holdings attributable to the business area

Public Property Invest AS

SBB Infrastructure AB and SBB Social Facilities AB

Consolidated holdings

Property value per region 37% University towns 36% Stockholm/Mälardalen 19% Gothenburg/Malmö 28,032 9% Other SEKm 37% 36% 19% 9%

Events during the quarter

Joint ventures and associated companies

Significant holdings attributable to the business area

SBB Residential Property AB

Consolidated holdings

Joint ventures and associated companies

Events during the quarter

4.8 percent.

Consolidated income statement

Consolidated statement of comprehensive income

Comments on the consolidated income statement

Rent growth of 7.2 percent in comparable portfolios

Occupancy rate of 92.8 percent

Net operating income rose 8.9 percent in comparable portfolios

Profit before value changes and goodwill

Value changes

Profit/loss from joint ventures and associated companies

Net financial items

Profit after tax

Discontinued operations

Segment reporting

Period January-June, 2024

Period January-June, 2023

Second quarter, 2024

Second quarter, 2023

Full-year, 2023

Consolidated balance sheet

Comments

Goodwill

Investment properties

Sensitivity analysis

Property portfolio change

Amounts in SEKm

Joint ventures and associated companies

Cash and cash equivalents and cash investments

Consolidated balance sheet

Comments

Equity

Deferred tax

Interest-bearing liabilities

Consolidated changes in equity

Comments

Hybrid bonds

Reserves

Repurchase of Class D shares

Non-controlling interest

Equity/assets ratio

Consolidated cash flow statement, condensed

Property portfolio