In the third quarter of 2024, SBB, one of the leading real estate companies in Sweden, reported a significant decrease in rental income to 805 million SEK, marking a 32.6% decline compared to the previous year. This decline was mirrored in the operating net, which dropped to 589 million SEK, down by 36.5% from the previous year. The overall financial performance of SBB was also impacted, with a decrease in profit before financial items, property valuation changes, and goodwill to 401 million SEK.
The total property valuation changes amounted to -913 million SEK, reflecting a challenging market environment. Additionally, derivative valuation changes also contributed to a negative impact of -160 million SEK. The dissolution of goodwill related to deferred tax stood at -31 million SEK, while goodwill impairment was recorded at -1,076 million SEK.
As a result, SBB reported a pre-tax loss of -1,917 million SEK, highlighting the financial struggles faced by the company. The net loss after tax was even more substantial, amounting to -2,005 million SEK. This translated to a negative earnings per share of -1.36 SEK, signaling a tough period for investors.
On the bright side, SBB’s management remains optimistic about the future, especially following the successful listing of Sveafastigheter on Nasdaq First North. This strategic move aligns with SBB’s goal of enhancing focus on core operations and optimizing financing. With Sveafastigheter now positioned as Sweden’s largest pure-play residential real estate company on the stock market, there is a renewed emphasis on improving operating net from a long-term perspective.
Looking at the current state of affairs, SBB’s EPRA NTA stood at 8.81 SEK per share, down from 11.99 SEK in the previous year. Similarly, the long-term EPRA NRV was reported at 9.87 SEK per share, a decrease from 14.45 SEK. These figures underscore the challenges faced by SBB in a competitive market environment.
Despite the setbacks, SBB’s management is committed to navigating through these turbulent times and steering the company towards sustainable growth. With a clear vision and strategic direction, SBB aims to overcome the current challenges and emerge stronger in the coming quarters. As the real estate market continues to evolve, SBB remains focused on delivering value to its shareholders and stakeholders, driving innovation and excellence in the industry.