Why invest in Kungsleden?
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Kungsleden will own, manage and improve properties in the growth regions of Greater Stockholm, the Mälaren Valley, south-western Sweden and growth locations in northern Sweden. The distinguishing feature of these regions is that growth is above the national average, an important prerequisite for value creation.
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By focusing on three property types, industrial/warehouse, office and retail, Kungsleden will increase its knowledge of customer needs and market conditions in these segments. This will lead to stronger customer relations, improved management and enhancement, and thus increase the value of the property portfolio.
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Increasing stable cash flows over time through active management and improving properties is central to Kungsleden. Work on increasing cash flow is ongoing, which increases the value of the property portfolio.
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Ongoing portfolio enhancement and risk limitation through the purchase and sale of properties creates an attractive combination of good returns for low risk.
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The negative tax effects on equity and liquidity may be less than the worst-case scenario that Kungsleden has estimated for relevant tax proceedings.
Total yield
New strategy 2013
Kungsleden presented its new strategy, which involved setting clear revenue and cost savings targets, at the beginning of 2013. Focusing the company continued in 2012, a process that makes it easier to see how Kungsleden creates value for the long term.
The target is that cash flow should be restored to the level prior to the sale of Hemsö within 18-24 months, while profit from property management should be restored within three years. Progressively, as clarity is obtained on tax proceedings, underlying value creation will become clearer.
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