Credit rating agency Moody’s considers Kungsleden´s new financial goals – where the long-term LTV ratio is not to exceed 45 per cent – as “credit positive”, as it indicates the company’s intention to maintain a low LTV ratio over time.
Moody’s also noted that Kungsleden delivered a favorable result for 2020 and that the company has shown good resilience despite the pandemic.
To raise the company’s credit rating, Moody’s want to see a continuation of the positive trend in the LTV ratio and a further increase in the share of borrowing excluding dedicated real estate collateral. At year-end, 47 per cent of the loan portfolio comprised unsecured loans and the share of unencumbered assets accounted for 33 per cent of total assets.
“In the next five years, the focus is firmly fixed on sustainable growth while establishing an even stronger financial position. One of the targets is that our property portfolio will grow from SEK 41 billion to SEK 55 billion and profit from property management will increase by more than 30 per cent through continued successful property development, rent growth and strategic acquisitions. Our long-term LTV ratio is not to exceed 45 per cent and the aim is to further improve our investment grade rating,” says Biljana Pehrsson, CEO of Kungsleden.
Moody’s issuer comment on the new financial goals is available on Kungsleden’s website.
For more information, please contact:
Biljana Pehrsson, CEO Kungsleden | +46 8 503 052 04 | email@example.com
Anna Trane, Head of Corporate Communications, Kungsleden | +46 708 84 74 69 | firstname.lastname@example.org
About Kungsleden. We are people that create places and experiences for people. By developing and managing attractive and sustainable places, we offer people a better and more inspiring work experience. We are a long-term property owner focused on commercial properties in Sweden’s growth regions. As of 31 December 2020, we owned 211 properties with total value of SEK 40,718 million. Kungsleden (KLED) is listed on the Nasdaq Stockholm Large Cap. Read more at www.kungsleden.se