Active Management
SBB has an internal management organization. SBB’s management focuses on active work with value-creating development and continuous maintenance of the existing portfolio. A high surplus ratio is one of the company’s sustainability goals, and the company performs management operations with a focus on net operating income. This is partly done through energy- saving investments.
In addition to working with traditional active property management with income from sovereigns with the highest credit rating and Swedish rent regulated residentials, SBB conducts three more value-generating activities: Project and property development, Renovations and Property transactions.
Project and property development
For SBB, project and property development entails developing building rights and the development of properties to be managed by the company itself and where the contractor assumes complete responsibility for the implementation of the project. Project and property development within SBB is to generate an average annual income of SEK 1,000 – 1,400m over a business cycle. In line with the UN’s global sustainability goals, as part of SBB’s sustainability initiative, Vision 2030, SBB’s project and property development centres on locations close to transport hubs, where land that has already been exploited is refined rather than taking up important green areas. SBB is driven by modern housing enabling people to live without needing a car of their own, with it being necessary for transport options, local services, healthcare, schools and residential care to be available in the vicinity. Most of SBB’s development properties are located close to designated priority transport hubs, such as commuter rail stations and key regional rail hubs. In addition, most of the development projects include housing, as well as schools, elderly care units and other community services.
To contribute to urban development and to secure production resources, in several cases SBB has entered into joint ventures with the buyer of the building rights for the development of the building rights and in some cases joint ventures to jointly develop building rights.
Renovations
Renovations means the standard-upgrading renovation of rent regulated residentials (with a goal of 600 renovated apartments per year) and the renovation of the company’s community service properties. In addition to renovations of apartments, SBB has a larger volume of remodelling projects and tenant adaptations involving the company’s community service properties.
Property transactions
SBB’s principal focus is always on generating value from the existing portfolio while also building significant shareholder value. SBB continuously assesses the portfolio to identify potential and focus resources on the properties offering the greatest potential. SBB continuously works to sell properties assessed as fully developed or not assessed to be core holdings. Selling such properties entails capital being recovered and resources being freed up to facilitate additional attractive acquisitions whereby the quality of the portfolio is gradually raised. In this value-generating area, the company is also able to seize upon opportunities to make investments with a shorter investment horizon where these are deemed to generate shareholder benefit and include investments in equities and/or debt instruments.