SBB operates in markets with stable and strong underlying driving forces (economic development and population growth). SBB’s property portfolio is characterized by a high occupancy rate and long lease contracts. Rental income consists of secure, long-term flows, primarily from Nordic central governments/ municipalities/county councils and from Swedish rent-regulated residentials. Of the company’s income, 98 percent derives from community service properties in the Nordics and Swedish rent-regulated residentials – social infrastructure. Cash flows are uniquely stable with three of the Nordic central governments being among only ten sovereigns around the world to hold an AAA rating from the three leading credit rating agencies. As a whole, the property portfolio provides exposure to the Nordics’ strong demographic trend, with a sharp increase in population compared with the rest of the EU.
The business model builds on property management with secure cash flows from social infrastructure, which are supplemented with three income-generating value-add strategies: Project and property development; Renovations, remodelling and extensions; and Property transactions.
Through its business model, SBB generates long-term, sustainable shareholder value through a high risk-adjusted annual return.