Business concept
Kungsleden will own, manage and improve properties in Sweden’s growth regions, and generate high and stable returns for the long term.
Strategy
Kungsleden will create value by satisfying customer needs for premises, managing and improving properties and optimising the company’s property portfolio.
Satisfying customer needs for premises
- Providing properties where customers can operate and progress.
- Creating strong customer relationships through responsiveness, flexible actions and short decision-paths.
Manage and improve properties
- Actively manage and improve properties to increase stable cash flows, and thus the value, of the property portfolio.
- Attract good tenants and endeavour to secure long lease contracts, high occupancy levels and a balanced cost level.
Optimising the property portfolio
- With good knowledge of the market and strong relationships with participants on the market, identify and exploit purchase and sales opportunities to increase risk-adjusted returns.
A platform for creating value for shareholders, customers, employees and wider society is a strong corporate culture where people enjoy their work, develop and deliver.
Financial targets
The overall financial target is to maximise cash flow growth within financial limits to secure a strong balance sheet for the short and long term.
The equity ratio should be over 30 per cent, and the guideline loan to value ratio is 60 per cent on new property purchases.
With focus on value creation, the company will be managed towards a targeted group-wide profit from property management for 2015, with phase targets in 2013 and 2014.
For the long term, Kungsleden will generate a return on equity exceeding the return the stock market requires of the company’s share. The return on equity target of 15 per cent applied to date is hard to attain in current market conditions. In the short to medium term, in current circumstances, the estimated required return on Kungsleden is not less than 10–12 per cent.
Was this information helpful?