(Bloomberg) -- Swedish landlord SBB has put aside funds to enable it to pay outstanding dividends next month, a year after they postponed payouts to protect the balance sheet.

“We are planning to pay it in June, and have allocated existing liquidity for the occasion,” Chief Executive Officer Leiv Synnes said via phone following the company’s first-quarter earnings report. He added that the final decision will be made by the board of Samhallsbyggnadsbolaget i Norden AB, as the company is formally known.  

In February 2022, then-CEO Ilija Batljan vowed to increase the dividend for “the next 100 years.” One year later, the company halted payouts to protect its credit rating as rising borrowing costs upended a debt-heavy business model that relied on cheap bond market financing. Since then, SBB has set out to shore up its finances by selling assets and even putting the whole company up for sale. 

Now the company will be able to pay the dividends of 1.44 Swedish kronor (13c) per A and B share, originally planned to be distributed monthly, and 2 kronor per D-share that were to be paid out quarterly, resolved by shareholders in April last year, prior to the halt.

It’s “pleasing” to finally be able to come through on that responsibility, Synnes said. “At the same time, in the situation SBB currently finds itself we have a need for more equity capital, and we’re working on obtaining that by emitting shares in subsidiaries.” 

SBB shares increased as much as 6.7% in early trading, but have since reversed gains to trade down 2.2% in Stockholm. 

--With assistance from Libby Cherry.

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