To achieve Kungsleden’s required return 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 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.
For more detailed information about our risks and opportunities we refer to our most recent financial reports.
Sensitivity analysis, prperty valuation and loan-to-value ratio as per 31 December 2018
|Value parameter||Assumption||Value impact, SEK m||Impact on LTV ratio|
|Required yield||+/-0,1 percentage points||-529/+549||+0,7%/-0,7%|
|Economic occupancy rate||+/-1%||+526/-526||-0,7%/+0,7%|
The sensitivity analysis illustrates how a change in a selected value parameter impacts property value and LTV ratio.