Kungsleden is a long-term property owner that creates value for owners by optimising and developing property portfolios and understanding and meeting the needs of customers and their premises. In these ways and so many others, we create attractive and sustainable premises that enrich the working day.
21 years on the stock exchange 1999-2020
Kungsleden's shares are listed on Nasdaq Stockholm's Large Cap list. The share was first listed on the Stockholm Stock Exchange's O list on April 14, 1999, when Kungsleden properties were valued at SEK 5 billion. As of January 2, 2017, Kungsleden was designated as a Large Cap company and in mid 2020 the property value was SEK 39.4 billion.
Five reasons to invest in Kungsleden
Financial stability. Kungsleden enjoys a strong financial position with good earning capacity, low loan-to-value ratio, high solvency and a high interest coverage ratio. In June Moody's gave Kungsleden the credit rating BAA3 with "Stable outlook".
Long-term focus on growth regions. We are long-term owners of a portfolio focussed on office properties located in markets with high demand and good access to communications. Approximately 90% of our properties are located in Stockholm, Gothenburg, Malmö and Västerås. A large proportion are gathered in selected locations, so-called clusters, which gives us the capacity to further adapt and improve our offering based on tenants' needs and to actively influence the development of an entire area.
Value-creating investments. Our property portfolio provides good opportunities for value-creating investments. Through development projects and complementary acquisitions, our quality and our earnings capacity are gradually increased. The investment program plans for an annual volume of approximately SEK 1 billion.
Sustainable business. Sustainability is integrated into all parts of our business operations and contributes to attracting both tenants and new employees and to reducing energy use costs.
We have received high marks in environmental certifications, which helped in providing optimal conditions for green financing at good terms. Kungsleden was named "Green star" in 2018 and the fifth best real estate company in Europe in the international sustainability comparison GRESB. We also won the "World in property award" 2018 for our extensive sustainability work.
Good returns. Our policy is for dividends to increase in line with management performance. For the past five years, the total dividend has increased by 16.2 per cent annually with direct share yield at 3.4 per cent. The total share return has been 18.4 per cent on average over the past five years.
Financial goals and target achievements
The minimum equity/assets ratioover time is 35%, and it should not fall below 30%
|Kungsleden should manage operations with the objective of maintaining an LTV ratio of around 50%. Temporary fluctuations around this guidance are permitted.||
|Interest coverage ratio||The interest coverage ratio should be a multiple of more than 2, 5||
|Return on equity||Over time, Kungsleden should generate higher return on equity than comparable listed real estate companies||14%|
|Share dividend||The Board of Directors of Kungsleden has proposed reintroducing the dividend to shareholders of SEK 2.60 per share||