In This Article:
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Revenue Growth (Like-for-Like): 7% increase in the first half of the year.
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Net Operating Income Growth (Like-for-Like): 9% increase in the first half of the year.
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Debt Reduction: Reduced by close to SEK8 billion for the period and SEK43 billion over the last two years.
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Property Value Decrease: 1.4% decrease in the quarter.
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Rental Income Increase (Q2): 7.2% increase compared to the same quarter last year.
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Net Operating Income Increase (Q2): 8.9% increase compared to the same quarter last year.
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Property Value Decrease (Q2): SEK846 million unrealized decrease.
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Average Interest Rate: Decreased by six basis points over the last year.
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Debt Maturity Profile: 66% of debt maturing after 2027 with low interest rates.
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Debt Reduction (Last Eight Quarters): SEK42.5 billion reduction.
Release Date: August 28, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Samhallsbyggnadsbolaget i Norden AB (FRA:JSIA) reported a strong 7% growth in like-for-like revenues and a 9% increase in net operating income for Q2 2024.
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The company successfully reduced its debt by close to SEK8 billion during the quarter and SEK43 billion over the last two years.
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Samhallsbyggnadsbolaget i Norden AB secured a strong investment-grade rating for its education segment, allowing it to borrow SEK9 billion in the capital markets.
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The company has a strategic plan to divest up to 49% of Sveafastigheter, which is expected to cover capital needs for 2024 and 2025.
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The company anticipates a positive trend in property yields due to stronger capital market sentiment and expects rental income to increase by 10% more than inflation in the coming years.
Negative Points
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There was a 1.4% decrease in property values during the quarter, with a total decrease of nearly SEK3.6 billion due to both realized and unrealized changes.
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Administrative and restructuring expenses increased compared to last year, mainly due to advisory costs and legal fees.
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The company experienced a slight decrease in occupancy rates, particularly in Finland, although it expects to recover to normal levels.
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Samhallsbyggnadsbolaget i Norden AB faces challenges in securing funding for its community properties segment, which still requires work to attract equity and debt at attractive levels.
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The company has no plans for additional dividends in the foreseeable future and will maintain a cautious stance on new investments and acquisitions.
Q & A Highlights
Q: Can you provide an update on the liquidity needed to meet Q1 2025 bond maturities? A: We are considering including a liquidity graph again in our reports. A key piece of the puzzle is the successful IPO or strategic partnership for Sveafastigheter. If that doesn't materialize as expected, we have other plans, including asset sales.