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Investing.com -- Shares in Samhällsbyggnadsbolaget i Norden AB (SBB) rose more than 6% on Wednesday after the property group reported a return to profit in the first half of 2025, posting earnings of SEK 861 million compared with a loss of SEK 3.20 billion a year earlier.
The Nordic company said rental income fell to SEK 1.68 billion from SEK 2.11 billion in the first half of 2024.
In comparable portfolios, rental income increased 1.3%. Net operating income was SEK 1.16 billion, down from SEK 1.44 billion, but rose 3.7% in comparable portfolios.
Property values experienced an unrealized decline of SEK 143 million, which is a smaller decrease compared to the SEK 2.78 billion decrease recorded in the same period last year.
Cash flow from operating activities before changes in working capital saw an improvement, rising to SEK 502 million from a deficit of SEK 13 million in the previous period.
Investments in existing properties totaled SEK 649 million, while acquisitions fell sharply to SEK 205 million from SEK 3.97 billion.
The company continued to adjust its portfolio through sales. In April, SBB and K2A sold the Ångpannan 12 property in Västerås, which included a development project with the Swedish Prison and Probation Service, to Intea for SEK 620 million.
SBB’s share generated SEK 345 million in cash. In May, SBB divested properties in Sollentuna and Nacka to a North American pension fund for SEK 1.11 billion.
SBB also carried out capital measures during the quarter. In May, the group issued 164.6 million Class B shares at SEK 4.25 per share to the TRG Group, later transferred to APG Invest AS, known as Aker.
Following further share exchanges, Aker held 8.85% of the capital and 29.11% of the votes in SBB as of July 10.
The company reported an occupancy ratio of 93.9% at the end of June, compared with 93.6% at the start of the year.
The loan-to-value ratio declined to 59% from 61% at year-end 2024. The average interest rate across the consolidated debt portfolio was 2.5%. Liquidity was SEK 3.99 billion, down from SEK 6.09 billion at the end of last year.
Chief executive Leiv Synnes said SBB increased its property exposure by SEK 902 million in the first half and emphasized that comparable net operating income has risen 26% since the beginning of 2022.