SBB recorded a good start to the year with stronger earnings than expected, solid operating cash flow and with the average interest rate now down at 1.52%. Whereas the large divestment to Nyfosa fell through, implying the short-term deleveraging story will not materialise, we still believe that SBB is well positioned in the current uncertain market environment with its focus on public properties and residential assets where the downside risk to earnings is limited.
