SBB takes the next step in completing the SEK 7 billion portfolio divestment and redeeming preference shares

Following approval from the Swedish Companies Registration Office, Samhällsbyggnadsbolaget i Norden AB (publ) (“SBB”) can complete the previously announced sale of SBB Residential Property AB and residential properties within SBB Development to KlaraBo Sverige AB (“KlaraBo”). The sale comprises properties with a value of approximately SEK 7 billion and enables the redemption of preference shares, carrying an annual dividend of 13 percent, all before the end of the third quarter. SBB thereby eliminates an expensive source of financing and strengthens earnings attributable to ordinary shareholders.
 
Completion of the merger will further strengthen SBB’s core holdings and create a significantly larger company with properties valued at more than SEK 48 billion. A larger and financially stronger Sveafastigheter will provide better conditions for long-term growth, higher profitability and increased risk-adjusted returns. Sveafastigheter is expected to achieve stronger earnings capacity, increased dividend capacity per share and the ability to make recurring cash dividends in the future. The transaction increases SBB’s earnings attributable to ordinary shareholders by 20 percent to SEK 1,034 million, primarily as a result of lower financing costs following the redemption of the preference shares and realized synergies.
 
According to the preliminary timetable, the portfolio transaction is expected to be completed on 23 September 2026 and the merger to be registered with the Swedish Companies Registration Office on 30 September 2026, enabling SBB to redeem the preference shares before the end of September.
 
“Through the transaction, we are eliminating an expensive financing structure under which the relevant SBB properties were previously financed through preference shares, carrying an annual dividend of 13 percent. Together with a larger Sveafastigheter, these measures strengthen SBB’s earnings capacity, financial profile and focus on balanced risk diversification across real estate segments through significant holdings in social infrastructure and residential properties,” says Andreas Morfiadakis, CEO.

Contacts
For further information, please contact:
Sebastian Westberg, Treasury Director & IR ir@sbbnorden.se, press@sbbnorden.se

About Us
Samhällsbyggnadsbolaget i Norden AB (publ) (SBB) invests in social infrastructure in the Nordic region. SBB develops and owns companies with the aim of creating leading companies within their respective business areas. The company holds significant ownership interests in a number of listed and unlisted companies, and conducts its operations through both direct and indirect management of assets within community service properties and residential real estate. SBB works continuously to develop and realize value over time, taking into account both financial returns and social benefit. The Company’s series B shares (ticker SBB B) and D shares (ticker SBB D) are listed on Nasdaq Stockholm. Further information about SBB is available at www.sbbnorden.se.