SAMHÄLLSBYGGNADSBOLAGET I NORDEN AB (PUBL): INTERIM REPORT JANUARY - MARCH 2023 IN BRIEF:

• Rental income amounted to SEK 1,725m (1,831).
• The operating surplus amounted to SEK 1,206m (1,256).
• Cash flow from operating activities before changes in working capital was SEK 284m (744).
• Profit from property management, adjusted for changes in value and tax from joint ventures/associated companies increased by 115 percent to SEK 1,326m (618).
• Profit before tax amounted to SEK -3,959m (3,472), of which:
• Profit from property management is included in the amount of SEK 187m (1,326). The profit from property management includes items affecting comparability of SEK -146m (-16).
• Changes in the values of properties are included in the amount of SEK -2,332m (2,362).
• Profit from associated companies/joint ventures is included in the amount of SEK -369m (434). Impairment of SEK -160m was recognized in the shareholding in JM.

• Changes in the values of financial instruments are included in the amount of SEK -1,199m (-341).

• Profit for the period was SEK -3,898m (2,939) after deducting deferred tax of SEK 229m (-401) and current tax of SEK -169m (-132), corresponding to earnings per Class A and B ordinary share of SEK -3.90 (1.86) before dilution.

• The value of the property portfolio amounted to SEK 134.4bn (135.6).
• Long-term net asset value (EPRA NRV) was SEK 38,780m (45,579), corresponding to SEK 26.67 (31.34) per share.

" Profit from property management excluding items affecting comparability amounted to SEK 816m during the first quarter. We deliver a net operating income increase like for like of 13.4 percent. This corresponds to SEK 600-700 million in higher earnings on an annual basis. The net operating income will continue to develop strongly as the rent increase from the rent regulated residentials, after the annual negotiation is completed, takes effect from Q2 onwards. Added to this are projects completed during the year with an increased net operating income of a further SEK 200m. The combined increase in the net operating income is expected to land at SEK 800-900m. This can be compared to the fact that an increase in STIBOR by, for example, 100 basis points from the current 3.5 percent to 4.5 percent would increase our total interest costs by SEK 200m. Given the company's current interest rate hedges and the market's current pricing, it will take almost four years before the company's average interest rate would exceed 3 percent. The demand for our community service properties and rent regulated residentials has never been higher than now. The economic occupancy rate continued to increase and amounted to 95.5 percent (94.3).

This report clearly shows that we managed to reduce indebtedness below 60 percent according to S&P:s LTV measure and that our interest coverage ratio remains at a good level exceeding 3 times and will be further strengthened. Our focus on a stronger rating and lower indebtedness continues. During the next six months, we will reduce our debt through proceeds from the sale of properties and a planned rights issue."

Ilija Batljan, CEO and Founder

Attachment: Interim Report January - March 2023