Risk management

To achieve Kungsleden’s required return of 10–12 per cent on equity, some risk-taking is necessary. To achieve good risk control, various tools are utilised to identify, evaluate and limit risks continuously.

An integrated component of our business model

Risk and risk minimisation are an integrated component of Kungsleden’s business model, which addresses continuously developing the composition and quality of its property portfolio with the aim of improving its risk-adjusted returns. At any time, Kungsleden will endeavour to have the lowest overall risk possible.

Risk assessment

Risk assessment is a regular yearly process within Kungsleden. Risk assessments are conducted in the form of internal valuations and also include action-plans to reduce risks.

Aggregate risk overview

Risks and opportunities can be divided into two segments; changes in cash flow and values. In addition, there are specific risks in the finance and tax segments.

Detailed information

For more detailed information about our risks and opportunities we refer to our most recent financial reports.

Sensitivity analysis

SENSITIVITY ANALYSIS CHANGES IN VALUE ON PROPERTY
 
–10%
–5%
0%
5%
10%
Change in value before tax, SEK m
–2,747
–1,374
1,374
2,747
Equity ratio, %
27.6
30.5
33.1
33.6
37.9
LTV (loan-to-value), %
70.6
66.9
63.5
60.5
57.8

The table shows Kungsleden’s earnings and financial position if the property value were to change +/− 5–10  per cent.