Swedish landlord SBB posts smaller Q2 loss as property prices stop falling

Samhallsbyggnadsbolaget I Norden AB

20/08/2025 09:50

Aug 20 (Reuters) - Swedish real estate group SBB SBBb.ST reported a narrower loss before tax for the second quarter of 2025 on Wednesday, signalling a more positive turn for the troubled landlord as a decline in property prices eases.

WHY IT MATTERS

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. Market conditions started to stabilise last year, and it ended a streak of 11 consecutive losses in the first quarter of the year.

KEY QUOTES

"The trend has been reversed – we have good reason to be optimist about our valuations and SBB's long-term prospects," CEO Leiv Synnes said in a statement.

"There is a sense that fewer companies are looking to sell properties to adjust their capital structure and that more companies want to buy properties to increase their yield. This is partly due to the fact that the downward slide in property prices has stopped and financing costs are decreasing," he added.

BY THE NUMBERS

The debt-laden real estate group, which owns properties such as hospitals and care homes in Sweden, reported an April-June loss before tax of 917 million Swedish crowns ($95.5 million), compared with a loss of 3.5 billion crowns a year earlier.

SBB said it increased its property exposure by 902 million crowns in the first half of the year.

MARKET REACTION

Shares in SBB briefly jumped 5% before paring gains to trade about 3% higher in Stockholm. They have lost about 90% of their value since peaking in 2021.

"SBB's report shows that the company has achieved greater stability in its cash flow and will probably be able to manage its loan repayments over the next twelve months," analyst Bertil Nilsson from Carlsquare said in an emailed comment.

($1 = 9.5983 Swedish crowns)

(Reporting by Elviira Luoma)

((Elviira.luoma@thomsonreuters.com))