Kungsleden as an investment

We are a property owner with a long-term perspective, who creates value for our owners by taking care of our properties, optimizing our property portfolio based on our strategy, as well as understands and meets our customers’ premises requirements. Many years of experience and professional employees makes this possible.

Kungsleden is listed on Nasdaq Stockholm Large Cap. Since 2013, our business concept has been long-term ownership, active management, improving and developing commercial properties in selected growth regions like Stockholm, Gothenburg, Malmö and Västerås to deliver an attractive total return.

Already in 2015, we reached our long-term goals for 2017, which demonstrates that our strategy is effective and our organisation knows where it is headed.

Five reasons to own shares in Kungsleden

We have a clear strategy for generating growth with quality. The persistent urbanisation trend verifies the soundness of our decision to concentrate the property portfolio to metropolitan regions and selected growth areas (clusters) and grow the portfolio in these areas. The service sector is growing, at the expense of the industrial sector. This increases the demand for office premises at available locations.

Our central concept is pursuit of a well-defined cluster strategy. We collect properties at selected areas where there is healthy growth and momentum. They are highly accessible, near hubs and thoroughfares, with a good mix of office, retail and residential premises. Besides creating managerial synergies, it allows us to improve our offering to tenants via increased knowledge of the area, the ability to bring in more of the services that tenants are interested in and, with our local presence, form closer ties with existing tenants and prospective customers. We also become an influential voice in the community, able to help shape urban development plans along with how the area is profiled.

We are well prepared to, over time, achieve our goal of becoming Sweden’s most profitable property company. We have an experienced, scrupulous Board and team of senior executive who complement each other well. Our organisation is strong, with highly skilled, motivated employees who are goal-oriented and aligned with our strategy and business model. This helps ensure that we have a stable cash flow over time. In 2015, our entire organisation focused on our twelve most important business processes in a project called Kungsleden’s Flow. Efforts here are aimed at achieving world-class operational efficiency. Since autumn 2015, the business processes have been implemented throughout the organisation.

We have a portfolio of project properties currently in the early stages of development. Over time, they will generate value for the company. These are existing properties that are being adapted based on intended use, zoning and rights of tenant ownership. This, along with several exciting sustainability projects (where we are, for example, implementing new technology to lower energy costs and improve indoor environment) is raising the quality of our properties, which will also increase their value over time.

Our transformation has been exhilarating. Comprehensive efforts have transformed us from a transaction-driven company to our present status as a long-term property owner and manager. We already see the effects of our change in strategy, having achieved our goals for 2017 far ahead of schedule. Now our journey continues to become Sweden’s largest, and most profitable, property company.

Long term goals 2020 and outcome

    Goals 2020 Outcome 2016

Property value

At least 50% of the property value in Stockholm (SCB definition).

>50%

 44%

Property category office

 Offices to be at least 70% of the property value. Additionally, we will own and manage hotel, retail, industry/warehouse and public properties as a complement.

>70%

 60%
Geographic distribution Concentration to 20 growth markets with specific focus on the major metropolitan areas Stockholm, Gothenburg, Öresund and Västerås.

20 growth markets

 

34 growth markets
Focus on more clusters  Continued to focus on larger and more efficient property units through more and larger clusters. Currently  11 and over time 15-20 clusters.  >15 clusters  11 clusters
Total return At least equal to or larger than IPD Industry Index.

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 11.7%