Sweden's SBB reports $194 million profit before tax in Q1 2025
GDANSK: Swedish landlord
SBB
swung to a pre-tax profit in the first quarter of 2025 after eleven consecutive quarterly losses, it said on Tuesday, while separately announcing a deal that would make
Norway
's
Aker Property Group
its largest shareholder.
The debt-laden real estate group, which owns properties such as hospitals and care homes in
Sweden
, reported a January-March profit before tax of 1.9 billion Swedish crowns ($194 million), compared with a revised loss of 1.18 billion a year earlier.
SBB was one of many European real estate firms that had to cut debt and restructure their finances amid a period of high interest rates and economic weakness, particularly in Sweden, although market conditions started to stabilise last year.
Its net operating income fell to 510 million crowns in the first quarter from 736 million a year earlier. However, lower costs helped the metric rise 4.3% in comparable portfolios.
"SBB is now allocating resources and focusing on its occupancy ratio and rental level to ensure that there is every opportunity for income to improve going forward," CEO Leiv Synnes said in a statement.
In a separate press release, SBB said it had secured the right to buy another 39.8 million shares in its associate company Public Property Invest (PPI) from Aker Property Group (APG), part of Norway's Aker.
That would make APG its largest shareholder by share capital, with a 9.08% stake. The deal follows PPI's issuance of new shares in exchange for an industrial infrastructure portfolio worth 2.33 billion Norwegian crowns ($223.73 million) from TRG Real Estate, which is controlled by Aker Chair Kjell Inge Rokke.
TRG has agreed to transfer a portion of the PPI shares to SBB in exchange for 164.6 million new B-shares in the Swedish group. It would then transfer both the right to receive its remaining PPI shares and the SBB shares to APG, Aker said in a statement.
SBB remains the largest shareholder in PPI, while APG would become its second biggest shareholder.
"Rokke obviously sees great potential in this, as the non-cash issues are made in companies ... that are valued at net asset value discounts," Carlsquare analyst Bertil Nilsson said.
Shares in SBB rose 20% in early trading in Stockholm. They have lost about 90% of their value since peaking in 2021. PPI's shares gained 5.9% in Oslo.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Print
21 minutes ago
- The Print
Goyal to meet Swiss, Swedish business leaders; to discuss trade, investments
The visit is commencing from Bern in Switzerland, where the minister will engage with global CEOs and industry figures to explore avenues for enhanced bilateral trade and investment, the commerce and industry ministry said. Goyal is visiting Switzerland and Sweden from June 9 to 13. New Delhi, Jun 9 (PTI) Commerce and Industry Minister Piyush Goyal will meet Swiss and Swedish business leaders this week and discuss ways to boost trade and investments, an official statement said on Sunday. He will hold discussions with companies from sectors, including pharma and life sciences, precision engineering, amid high-tech manufacturing. Goyal will also discuss potential opportunities arising from the India-EFTA Trade and Economic Partnership Agreement. In Sweden, he will co-chair the Indo-Swedish Joint Commission for Economic, Industrial and Scientific Cooperation (JCEISC) with Benjamin Dousa, Minister for Foreign Trade of Sweden. Companies like Ericsson, Volvo Group, IKEA, Sandvik, Alfa Laval, and SAAB are among those with a significant presence or interest in enhancing ties with India, it said. PTI RR DR This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
India Gazette
an hour ago
- India Gazette
Piyush Goyal to visit Switzerland and Sweden to advance trade ties with key European Nations
New Delhi [India], June 9 (ANI): The Minister of Commerce and Industry, Piyush Goyal, will embark on an official visit to Switzerland and Sweden from June 9 to 13. This visit underscores India's steadfast commitment to deepening strategic and economic partnerships with key European nations, advancing robust trade and investment ties, and supporting a shared vision for resilient global growth. The visit marks a key milestone in enhancing India's engagement with two of Europe's most innovative economies. Minister Goyal's meetings are designed to facilitate high-impact interactions with senior government officials, industry leaders, and business associations in both countries. The visit will commence in Switzerland, where the Minister will engage with global CEOs and influential industry figures to explore avenues for enhanced bilateral trade and investment. The itinerary includes focused sectoral meetings with prominent Swiss industry leaders in areas such as Pharma and Life Sciences, and Precision Engineering/Machine Tools/High-tech Manufacturing. The Minister will also connect with the ICAI Zurich Chapter and interact with Indian media. A significant highlight will be meeting with Federal Councillor Guy Parmelin, fostering strong trade and diplomatic ties. A significant component of the high-level visit to Switzerland will include a series of one-on-one meetings with leading Swiss companies. Indian industry representatives will also participate in these crucial engagements, fostering direct dialogue and exploring specific collaboration opportunities. The day will also feature participation in the Swissmem Industry Day and a Business Round Table with the Swiss Mechanical and Electrical (MEM) Industry, where deliberations will focus on the potential and opportunities arising from the India-EFTA Trade and Economic Partnership Agreement (TEPA). In Sweden, the Minister will co-chair the 21st Session of the Indo-Swedish Joint Commission for Economic, Industrial and Scientific Cooperation (JCEISC) with HE Benjamin Dousa, Minister for International Development Cooperation and Foreign Trade During his visit Hon'ble Minister is also scheduled to hold bilateral meetings with Benjamin Dousa, Minister for Foreign Trade, and Hakan Jevrell, State Secretary to the Minister of Development Cooperation and Foreign Trade. These deliberations are aimed at reinforcing the existing robust economic relationship and identifying new growth opportunities, aligning with India's long-term economic objectives and global partnerships. Key engagements will involve an India-Sweden Business Leaders' Round Table and one-on-one meetings with leading Swedish companies. These discussions will cover a wide range of industries where Sweden excels, including advanced manufacturing, innovation, green technologies, and sustainable solutions. Companies like Ericsson, Volvo Group, IKEA, Sandvik, Alfa Laval, and SAAB are among those with a significant presence or interest in enhancing ties with India. Minister Goyal will also engage with the Indian diaspora and address media interactions, further strengthening the people-to-people connections and communicating the vision for the India-Sweden partnership. This visit reflects the deepening alignment of strategic priorities between India and its European partners, aiming to translate high-level commitments into sustainable economic partnerships that foster innovation, resilience, and shared growth. (ANI)
India Gazette
an hour ago
- India Gazette
Despite global uncertainties, Indian chemical companies optimistic due to specialty chemicals and China+1 strategy: Report
New Delhi [India] June 9 (ANI): Despite global uncertainties and ongoing challenges, the long-term outlook for Indian chemical companies remains optimistic, driven by opportunities in speciality chemicals, import substitution, and growing exports under the China+1 strategy adopted by global customers, according to a recent report by BP Equities. The report highlighted that the chemical sector experienced a subdued pricing environment in May, continuing to grapple with multiple headwinds such as weak global demand and pressure across major end-user industries. While the anticipated recovery in the second half of FY25 did not fully materialise, the sector saw some relief in the fourth quarter (Q4FY25) with early signs of volume recovery and margin improvement, aided by operating leverage. 'Despite continued pressure on pricing, operating margin delivery has improved sequentially in Q4 FY25, primarily driven by cost rationalisation measures and increased utilisation levels,' the report noted. The agrochemicals sub-segment continued to face delays in recovery, which were attributed to elevated channel inventory and Chinese overcapacity that led to dumping, coupled with a higher interest rate environment. However, the Contract Development and Manufacturing Organisation (CDMO) segment for pharmaceuticals demonstrated strong growth momentum, supported by a robust order book and stable demand. The report pointed out that although green shoots are emerging in a few sub-segments, a meaningful sector-wide recovery will hinge on global demand normalisation, price stabilisation, and a reduction in competitive pressures from Chinese exports. On the international front, the European chemical industry is struggling with subdued competitiveness due to weak demand and uncompetitive energy prices. This has particularly impacted commodity products and petrochemicals, where China holds a significant advantage. The European Union (EU27) chemical sector continues to face challenges stemming from declining business confidence and sluggish demand. Despite these global headwinds, Indian chemical firms have delivered a relatively resilient performance in Q4FY25. 'While macro factors such as tariff issues, supply Chain, and Chinese overcapacity are beyond management's control, Indian chemical companies have performed well in Q4FY25 amid global uncertainties,' the report stated. Looking ahead, companies have revised their capex guidance for FY26 in response to the market environment. This adjustment will help them focus on scaling up recently commissioned projects and improving the quality of their earnings. (ANI)
