Guess SBB needs money, fast

The founder, major share owner, former social democratic political expert at the Ministry of Social Affairs and CEO Ilija Batljan has opened up to sell the company or alternatively parts of its property portfolio.

Whether it is the debate article written by the Left Party's party leader and their economic-political spokesman in which they write that the state should be given the right of first refusal to the properties where public activities take place remains to be seen.

In the news feature broadcasted today, the CEO mistakenly said quote "if the left party wants to buy the properties" unquote. The blooper where he said the Left party instead of what he really meant, the municipalities, led me to believe that he is very keen to convert assets into money, by any means necessary.

Imagine the irony if the Left Party, which states in its party program that the goal is the abolition of property rights, bought up Sweden's largest private real estate company.

Available parking spaces might become a future problem

For full transparency, I am politically very far from the Green Party and its politics.

I am fully aware that the world must reduce its need for fossil-free energy and therefore I am a supporter of nuclear power and other planable fossil-free energies. In my opinion, one of the ways to get there is to increase the construction of nuclear power plants and shut down coal power plants. Especially in Sweden, which is not located on a fault zone.

I guess the Green Party and its supporters will be happy to hear that the Swedes have "parked" the car. What they choose NOT to see is that as car ownership decreases, so will tax revenues. Tax revenues that are vital if Sweden is to be a country with extensive welfare and a major donor of aid.

This time it's the car, next time it will be something else. Some politicians completely lack the ability to see the big picture.

Available parking spaces

As residents of Stockholm's city, we have recently noticed that the number of available parking spaces on Stockholm's streets has increased.

Before we had the opportunity to rent a parking space in our courtyard, we parked our car on the street every night.

Although we have not owned a car for many years, almost 30 years of living in the city with a car has left its mark. Unconsciously, both my husband and I note the number of available parking spaces on our street.

Today there was an article in one of Sweden's business newspapers where it was stated that Swedes have reduced their car driving due to the high electricity, fuel and interest costs.

New Times

Our dividend growth will not increase at the same rate as in previous years as we no longer contribute any external savings, but all acquisitions come solely from reinvesting dividends. The previous monthly savings of $1,200 is currently going towards the increased interest costs of our mortgage.

As long as the dividends exceed both capital tax and interest costs, we will not sell off our holdings to pay off the mortgage. In Sweden, we can make deductions for interest costs, which means that we can get a 30% reduction in our income tax. This year we will get back $4,260 which relates to last year's income year. Due to all the interest rate increases during the current year, we will receive a significantly larger tax refund next year.

Rumor has it that the policy interest rate will drop in 2024.

A future sale

The Russell 3000 is one of the broadest indices that is tracked by investors, containing 6 times as many stocks as the S&P 500.

I hope that NewtekOne, Inc. Common Stock (NEWT) admission to The Russell 3000 will generate interest among growth investors as dividend investors have abandoned them since they switched business focus and thus cut their dividend. At best, hedge funds buy into the stock.

Despite the fact that NEWT is a well-managed and a well performing company, we intend to sell our entire holding as soon as NEWT has reached the target price set by us.

I hope it lasts

A pattern in my forecast vs outcome chart is beginning to emerge.

January and April did not reach the forecast, but both months ended up barely 6% below.

February missed the target by just over 12% and everything points to May ending up around the same end result.

March managed to crush the forecast by just over 6% and with all the special and supplemental dividends announced, I think June will copy March's bottom line.

If the pattern holds then hopefully my total deficit of $465 will have narrowed by the end of June 2023.

Politicians, morality and tax money part 5

For full transparency, I am politically very far from the Swedish Social Democrats and socialism.

The Left party which was a "silent partner" of the ruling government which in 2016 allowed Samhallsbyggnadsbolaget i Norden (SBB) to buy several government buildings with borrowed money has now expressed its opinion regarding the SBB deal.

The Left Party believes that SBB, which owns around 750 properties for public activities, should not end up with owners harmful to security policy. Therefore, they will request an extra debate in the Parliament and submit a committee initiative with the aim of returning these properties to public property.

In retrospect and the SBB stock in free fall, they claim that SBB's business idea was unhealthy for all parties involved from the beginning.

It would have been better if they had prevented the deal in 2016 so that the former social democrat Ilija Batljan could not buy all these properties with borrowed money and thereby prevented a large number of gullible small savers from losing their money instead.

His last days in junior high school

With 4 weeks left until summer break, YMD has exactly 15 "real" school days left. That is, school days that include lessons.

Of the 5 school days that do not include lessons, they consist of a school trip with 1 overnight stay. He has another 2 days off in connection with Sweden's national day when the school is closed on both June 5 and 6. And finally the speech-day itself, which is held in a nearby church and is 2 hours long.

Yesterday, Junior admitted he is worried about his grades in Spanish and English. The other subjects he has, quote "total control on" unquote. I'm not as sure as he is... but both he and I will know on June 16th.

I can not wait

My hunger for the next month is insatiable. In addition to it being one of my best dividend months, we will also receive both a lot of special and supplemental dividends.

My hope is that the outcome will exceed the forecast for both the chart where I have taken into account adjustments and the chart where no adjustments have been made.

I may have misinterpreted the situation

One of our holdings, OFS Credit Company, Inc. Common Stock (OCCI), uses the Dividend ReInvestment Plan (DRIP).

If we add all the dividends we have received from OCCI to the value of our holding today, we are in the black. Because of this, we have almost decided to sell off our total holding.

I understand the genius of paying dividends without affecting the company's treasury. This can strengthen the company in that they can build up the company through acquisitions or otherwise. It can also weaken the company by making bonus payments and more as the treasury is bigger than it really should be.

I believe that the company reduces the value of the company at the expense of us shareholders by increasing the number of shares indefinitely.

Less work, longer days

In our store, it is noticeable that the Swede has had increased living costs. Previously, there were a smaller number of people who openly complained about the costs. Nowadays there are considerably more.

For example, they increasingly buy the cheaper option, unlike in the past when everyone always wanted the best.

During the years 1990-1994, Sweden underwent a major banking, financial and property crisis. Even though I was 22 years old, I didn't really understand the scale of that crisis. So even though this recession is milder, I understand more and therefore this one feels worse.

Thank goodness for tax refunds

Last Friday, Nordea paid out our tax refund for the foreign withholding tax. In total, we received $302.

So far this year, we have paid $799 in Swedish capital tax while we have received a refund of $1,794, just on our endowment insurance with Nordea. The tax on endowment insurance is the only tax that is incredibly beneficial in Sweden.

The SBB share vs the plastic bag

For full transparency, I am politically very far from the Swedish Social Democrats and socialism.

In Sweden, we have an extra tax on plastic bags. It was decided by the former social democratic government which was supported by the opposition.

The goal of this excise tax was to reduce Swedes' use of plastic. Unfortunately, it did not lead to a reduction in the large islands of plastic floating around in our world's oceans, as the Swede is good at reusing the plastic bag to put garbage in.

Instead, the environmental stations in Sweden that incinerate our garbage had to add oil for the incineration to work.

The fact that the excise tax of ¢30 is also covered by 25% VAT means that a plastic bag you buy in the grocery store costs ¢80.

I read a funny tweet from an expat Swede who hasn't been to Sweden in years. He wondered if a share in SBB costs about the same as a garbage bag these days?!

Unfortunately, a plastic bag is more expensive today as the share price for SBB is currently ¢64. Less than 18 months ago, the stock price was $7.54.

Politicians should not conduct business, they should only be a governing body.

One of the reasons for disdain for politicians

For full transparency, I am politically very far from the Swedish Social Democrats and socialism.

During the last 90 years (1932-2023), the Swedish Social Democrats have been in government for 78 years. To not admit that you are a large part of the blame for the state Sweden is in right now because you are in opposition because you lost the election last fall is incomprehensible.

I read an editorial written by an editor-in-chief of a social democratic journal blaming the current government for inaction. He believes that the banking law that was adopted in 1999, where the aim was to make Riksbanken more independent from politics, did more harm than good. The result of the Banking Act was that the only tool Riksbanken was left with was the policy rate.

The editor-in-chief also claims that politics, which according to him has a larger toolbox, has abdicated its responsibility. What the editor-in-chief misses in his editorial is that it was a social democratic government that adopted the new banking law in 1999. And that the Social Democrats have been in power until and including autumn 2022 with the exception of the years 2006-2014 since 1999.

In his leader, he demonstrates that he has reasoning skills and is, to say the least, normally gifted.To then omit that the former social democratic government and the then governor of Riksbanken had zero interest during the boom is dishonorable and reprehensible.

It makes me sad

For full transparency, I live in an apartment that is heated by district heating and we have lived as if the interest rate were 5%.

I have an acquaintance who a year ago was happy about the people who had variable electricity prices on their electricity contracts who would be affected by the upcoming electricity price increases. The woman in question herself had another six months left on her contract and was convinced that the market would have calmed down until it was time for her to renew her electricity contract.

This person whose political sympathies are far to the left was thus happy that there were people who would suffer from rampant electricity costs and increased interest costs. I questioned how she could rejoice in the misfortune of others she replied quote "Finally, the people who always have the cheapest interest and electricity costs are affected" unquote.

Of all the people I have met who have openly expressed schadenfreude at the misfortune of others, they have all belonged to the left side of the political map. I personally suffer with everyone who has difficulty coping with everyday life now with ongoing inflation and higher interest costs than they might have anticipated.

Politicians, morality and tax money part 4

For full transparency, I am politically very far from the Swedish Social Democrats and socialism.

As late as February 2022, the founder, major owner and CEO Ilija Batljan promised quote "increased dividends in SBB for 100 years" unquote. Exactly one year later, SBB proposes to start offering its shareholders DRIP as an alternative to money in dividends.

Which is actually a stroke of genius as the majority of the 214,000 small savers who invested in SBB do not have much control over what DRIP entails. The winner in this arrangement is the company that does not have to pay out money. Since shares today are only zeros and ones, they don't even need to print the actual share they intended to distribute.

Given how marinated in socialism this country is, it doesn't surprise me that so many small savers are invested in a company founded and run by a former social democrat who preyed on the taxpayers.

If I were unempathetic, I would consider that they had to blame themselves for trusting a politician, especially a social democrat who considers himself friendly to the little people. But for the sake of all these small savers, I really hope the company survives this.

Politicians, morality and tax money part 3

For full transparency, I am politically very far from the Swedish Social Democrats and socialism.

Sweden was governed from 2014 to 2019 by a Social Democratic government with the support of the Green Party.

SBB was founded in 2016 and after only 3 years the founder Ilija Batljan was a billionaire, at most he was worth 10 billion.

As a taxpayer, I feel cheated by the former social democratic government that sold off the taxpayers' real estate holdings to a former colleague.

If SBB were to crash, there is a great risk that government buildings will be bought out by foreign interests. Politicians should not do business!!!

Politicians, morality and tax money part 2

For full transparency, I am politically very far from the Swedish Social Democrats and socialism.

In addition to the founder fighting for his company, I'm guessing that several advisors and analysts are fighting for their credibility right now as well.

The voices that warned against insane risk-taking, hubris and unclear boundaries between politics and business have been drowned in the praise of the company from financial institutions, banks and advisers. As recently as last spring, Ilija Batljan was named entrepreneur of the year by the audit firm Ernst & Young.

The critics believed that the company took far too many risks during the years when Sweden had zero interest by buying real estate with borrowed money. Other critical voices have been raised about the company's business orientation, which is to buy municipalities and county council property holdings and then rent them back to the former owners. Even the municipalities' own organizations have admitted that the deals have been to the detriment of taxpayers.

Politicians, morality and tax money part 1

For full transparency, I am politically very far from the Swedish Social Democrats and socialism.

Samhallsbyggnadsbolaget i Norden (SBB), which is listed on the Stockholm Stock Exchange, is currently fighting for its survival.

The company was founded by the former social democrat Ilija Batljan with a background as a social democratic municipal councilor in Nynashamn, a political expert at the Ministry of Social Affairs and as a county councilor in opposition in Stockholm city.

Contrary to what the founder, CEO and major owner Ilija Batljan thought, the company had its credit rating lowered by Standard & Poor's (S&P) at the beginning of May this year.

In this case, it had several consequences. The planned new issue was postponed, the price plummeted and the interest on some of the existing loans that the company has skyrocketed.

For once (😉), I hope I'm wrong

Mr. Dewlar and I are not on the same page when discussing the bottom line for 2023 dividends.

My better half, the optimist, believes in all seriousness that we will touch 2018's results. Which I, the pessimist, strongly doubt.

If my favorite object of hatred, NEWT, had not changed its business approach and dividend rate, I would have agreed with my husband, but now I am extremely doubtful. My guess is that we will land somewhere between 2020 and 2022, though closer to 2022 than 2020.

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Sometimes you're lucky

That MAIN doubles its dividend next month was almost like a very early Christmas present.

In the diagram of our holdings, it is very clear that we are very heavily invested in MAIN.

Our second largest holding, TSLX, also makes an extra dividend in June.

It will be very exciting to see what the difference between forecast and outcome looks like at the end of June.

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It will be a good month

The group of companies that deliver in June is getting bigger and bigger. The latest company to come forward is Owl Rock Capital Corporation Common Stock (ORCC).

ORCC makes a supplemental dividend of ¢6 with a payment date of June 15, 2023.

Since I "must" set all dividends for the entire year for my forecast, I use a "straight line dividend" based on the latest information I have available for all concerned companies. This means that in addition to the previously mentioned four factors, I have another fifth factor that affects the difference between my forecast and the actual outcome. The clearer these external variables become, the more satisfied I am with my forecast.

That makes me appreciate all the extra dividends a little extra as they soften the fall between forecast and outcome.

I'm keeping an eye on the price

Every time Google Alert includes an announcement about increased or a special or supplemental dividend, I feel great joy.

Of course, I am happy about the payment itself, but since we are reinvesting the entire amount, it is no money that currently increases our disposable income. This means that the greatest satisfaction that dividends give right now is seeing the values increase in my Google Sheet. My main focus right now is for the outcome to be greater than the forecast.

Additional extra money in June

In addition to the previously announced special and supplemental distributions, NMFC and TSLX also confirm that they are distributing extra money for June.

New Mountain Finance Corporation Common Stock (NMFC) pays a ¢3 supplemental dividend in June.

Sixth Street Specialty Lending, Inc. Common Stock (TSLX) pays a ¢4 supplemental dividend in June.

All the extra dividends we receive have a single task, to mitigate the deficit that arises due to the exchange fees, brokerage, exchange rate differences and DRIP's. At the beginning of May the deficit was $465, I assume it will have increased by the end of the month, albeit just barely.

If I ignore the 4 variables that affect the actual payout, the special and supplemental dividends announced so far will bring us close to $800 in June. I sincerely hope that the deficit will become a surplus by the end of June 2023.

I didn't like what I saw in the mirror

For full transparency, I am politically very far from the Green Party and detest their double standards.

When their Swedish party leader attended COP26 in Glasgow 2021, he had to fly because quote "doesn't fit my calendar and commitments in any other way" unquote.

It made me despair when I realized that I am actually living exactly the way all the reprehensible Green Party members want us to live. I would be their perfect poster boy.

We drive the car minimally, less than 1000 miles per year. Hardly use municipal transport but mostly walk. Rarely buy new clothes, when I do I buy high quality that lasts a long time. Haven't flown once in the last three and a half years.

Luckily, the whole family has private healthcare and junior goes to private school. Two things that the Green party hates like the plague. Hopefully that disqualifies me as an aspirant as a member of the Green Party.

My big little boy

Next month is school graduation for the offspring. By then, he has completed the ninth grade, which means that from the next school year onwards, his schooling is voluntary.

I have tried to get his teenage brain to understand that from that moment on the teachers will demand more of him because he is there of "free will". We will support and help him make the transition from compulsory education to voluntary education.

As a parent, you always want to help a little too much, which usually leads to hindering them instead of helping them.

Born free, nickeled and dimes to death... but still not safe

With the whole picture of how much tax we pay in Sweden fresh in the mind from yesterday, the irritation is even worse when you are met every day with news about the escalating gang violence.

Even though I am fully aware that it is the previous government's failure and that I have to give the current government a year to try to curb all the violence, it feels incredibly frustrating to pay one of the world's highest taxes without the state being able to manage one of its core activities, to keep its citizens safe and secure.

The previous government's complete unwillingness to crack down on and lock up criminals for so many years leaves the current government facing a monstrous task.

If I had a time machine

There is not much I regret and would try to change, but if I had a time machine and could travel back in time, there are a few stop I would make.

One thing I regret is not starting to buy stocks sooner. My husband had already started when I met him but it took many years before I transitioned from designer bags and shoes to stocks.

Even if I could travel back to my 20-year-old self, I doubt I'd be able to convince my younger self to forgo a pair of designer bags in favor of buying stocks. Even today, I have a weakness for bags and shoes.

The value of his stock purchases have performed better than my designer bags.

This time of year I always get a little extra grumpy

Our companies have different financial year-ends, which means that there are different dates for when the income declaration must be received by the Tax Agency. Today I completed and submitted the income tax returns for the last two of our companies.

Our private income tax returns have already been submitted. In addition to doing my husband's and son's returns, I also help my parents and my uncle with theirs.

In addition to this income tax, we also pay additional taxes, such as special excise duties plus all goods and services are subject to 25% value added tax. On these additional taxes, such as energy tax, fuel tax, alcohol tax, tobacco tax and more, we also pay value added tax of 25%. Which means in practice that we pay tax on tax.

Upcoming special and supplemental dividends for June

Fidus Investment Corporation Common Stock (FDUS) continues to deliver. Next month, in addition to the regular dividend of ¢41, we will receive an additional ¢29, a special dividend of ¢10 and ¢19 in supplemental dividends.

Gladstone Investment Corporation Business Development Company (GAIN) distributes a special dividend of ¢12 which, together with the ordinary dividend of ¢8, makes the dividend for June a total of ¢20.

Main Street Capital Corporation Common Stock (MAIN) is doubling its dividend next month. During June, in addition to the regular dividend of ¢22.5, they also distribute a special dividend of ¢22.5, or a total of ¢45.

As I stated earlier, I will use any special and supplemental dividends as an air cushion to mitigate the damage that exchange fees, brokerage, currency differences and DRIP's do to my spreadsheet. In the end, I hope that today's deficit between forecast and outcome will instead be a surplus.

Life cannot be planned

My husband and I have reached the age when ailments and diseases begin to affect us and our friends to an increasing degree. For my parents it is worse, next week alone they are going to two funerals.

Less than a year ago, my parents purchased a summer house on an island in the archipelago outside Stockholm, the same island where they spent their entire youth with their friends. All but my parents have during all these years had a summer house on the said island. This would be the first summer my parents would spend in their newly renovated summer house. My parents were really looking forward to spending the summer with their youth friends on the island.

Last week my dad's best friend from back then died. I'm guessing that my parents will spend a lot more time in Stockholm than in the archipelago than they have planned for the summer.

Give me a break

Despite reinvesting every single dividend we've received to date, we're still just under $900 short of full-year dividends compared to the unadjusted 2023 forecast.

The only reason for this shortfall is NewtekOne, Inc. Common Stock (NEWT) changed business focus which forced them to reduce their dividend. Given the state of the world, we are considering selling off our entire holding in OFS Credit Company, Inc. Common Stock (OCCI), which would further impair our upcoming 2023 dividends.

Add to that the fact that inflation and interest rate hikes have significantly affected sales in our store, makes things a bit onerous at the moment.

We have received all the dividends for April

Overall, the total dividend for the first four months of the year is about 3% short of the adjusted forecast for the same period, or $465 to be exact.

All the exchange fees, brokerage fees and exchange rate differences we paid on our dividend transactions for this period make the $465 deficit feel like a win.

A prerequisite for the result to last until the end of the year is that all the special and supplemental dividends we received in March return in July, October and December.

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The rain doesn't stop them

My little man is still at the theme park even though it has been raining all day. I topped up his card properly before he left this morning to avoid extra toppings during the day.

My phone lights up more than a Christmas tree with all the notifications I get from the bank due to all the card purchases he makes. If he continues like this I will have to top up the card before he gets home otherwise the offspring will have no money for the bus fare home.

According to other (mainly girl) moms, Junior is relatively low maintenance compared to his classmates so it doesn't matter if he spends a little money as long as he's having fun.Which we will find out when he gets home.

A sneak peek at April

We will receive 3 more dividends to be entered in April in the spreadsheet. The companies we are waiting for are OFS Credit Company, Inc. Common Stock (OCCI), PennyMac Mortgage Investment Trust Common Shares of Beneficial Interest (PMT) and Two Harbors Investment Corp (TWO).

The final result for April will most likely miss the target by just under 6% compared to the forecast. At the moment, there is just under 30% missing from the forecast. Hopefully I will know for sure tomorrow, Friday of this week at the very latest.

March is so far the only month this year that has performed well compared to my forecast. According to my calculation, May 2023 will be the second worst month of the year. Since we are not adding any savings but only reinvesting our dividends, our portfolios have lost momentum.

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Here we go again

Today, the offspring is going with 2 of his friends to Stockholm's only amusement park, admittedly during the day, but I am still worried that they will encounter criminals.

Unfortunately, I have had confirmation that my concerns for YMD's safety are clearly not unfounded. There have been so many robberies and robberies with strong elements of mistreatment of young people in Sweden that generation Z has unfortunately been nicknamed "generation prey".

The older junior gets the more time he will spend with his friends outside the home which means this is just the beginning...

It never seems to end

The saying that "no news is good news" is certainly true for Alecta. Unfortunately, additional information has emerged about the company.

Alecta has been forced to write down the value of its holding in one of the real estate companies it has invested in by 6% of the invested value, which corresponds to roughly $0.26 billion. This write-down, along with previous losses in First Republic Bank (FRC.PRH), Signature Bank Common Stock (SBNY) and SVB Financial Group Common Stock (SIVB) amounts to just over $2 billion.

Alecta manages pension money for 2.6 million Swedes, plus they are listed as the first choice for all civil servants. How big the damage will be for all pension savers in reality remains to be seen.