SBB Norden - comment
The call shows that SBB slowly continues to rehabilitate its balance sheet. The problems at the Holding Company remain, but SBB has some time before the next large maturity in August 2026. One solution the company has been pointing to is a partial sale of the community assets. However, management values these assets at SEK40bn => equity value of SEK10bn, while the Resi assets were IPO’d at a 24% discount to book value. The community assets should attract a higher price than that(higher quality tenants), but avoiding some discount is unlikely and would still impact equity value.
Left pocket to right pocket: The PPI deal doesn’t provide any cash to SBB. SBB will be pleased to use its equity as a currency (without applying a discount), but it doesn’t change much for the company. PPI is acquiring NOK1.525bn (€130m) in assets and NOK800m in cash (€70m). The vendor is a company related to Aker (the majority owner of PPI). PPI will issue 84.6m shares to the vendor @18.69 = NOK1.58bn, and SBB will issue 164.6m shares at SEK4.25 = NOK745. The new equity issued by SBB equates to an additional 9% for Aker, costing SEK65m.
https://corporate.sbbnorden.se/en/wp-content/uploads/sites/2/2025/05/eng-sbb-q1-2025-250513.pdf