Real estate companies need to manage the more difficult financing conditions in the sector, according to Erik Thedéen, Director General of Finansinspektionen (FI)

This is exactly what SBB has been doing throughout 2022. They are continually striving to improve their balance sheet and transparency.

Here is a list of some of the things they have accomplished this year:

• They have reduced its exposure to floating interest rates from 35 percent at the end of the second quarter of 2022 to 25 percent as at today's date

• SBB has sold properties, equity-linked instruments and financial assets all year

• They disbursed their loans and borrowed money from numerous sources.

• They are communicating more frequently and with greater transparency.

• They also want to reduce their joint venture holdings in order to improve their balance sheets and transparency

• SBB has sold properties, equity-linked instruments and financial assets totalling 9.5 billion SEK in Q1 and Q2 this year. This can be compared to the book value of the same assets of 9.3 billion SEK

• They have in Q3 already sold assets for 3.3 billion SEK

• Last week they signed a letter of intent to divest a property portfolio at an agreed property value of approximately 9 billion SEK. Total agreed property value for the portfolio before the deduction for deferred tax is in line with the book value as of the second quarter of 2022

• The average length of their leases is 11 years, and 41% of them expire in 2032 or later

• Available liquidity according to Q2 17.2 billion SEK

• 12 months rolling rental income is 7.3 billion SEK

Read the article here: https://fi.se/en/published/presentations/2022/adjustments-needed-on-the-commercial-real-estate-market/