SBB Norden - comment
The sale of a Norwegian hospital brings more liquidity for SBB but less than the headline suggests. The SEK2.9bn figure in the press release falls to SEK955m when all costs are included. We expect most of the difference is due to bank debt attached to the property, but a development plot, with a 35% stake held by a local developer, is part of the deal. The bank debt will be repaid but not re-lent. Banks in Norway will be under much less pressure to re-lend to SBB. The hospital sale was completed at a 10% discount to book value telling us that valuations are still falling. The headline yield of 4% is likely to be distorted by including the development plot value.