Samhällsbyggnadsbolaget i Norden AB (publ) (“SBB” or “the Company”) announces that it has updated two of its financial targets with an objective to further strengthen its financial muscles. Updated financial targets are:
- to maintain a net LTV below 60% (from 65 %),
and
- to maintain an interest coverage ratio (ICR) of at least 1.8 times (from 1.5).
“-Our rental income is improving and is currently exceeding 1.5 billion SEK on yearly basis. SBB reported an adjusted equity ratio of 36 % at the end of Q3 2017 and we are now confident to sharpen our financial targets. The new targets also aim to meet the criteria for an investment grade rating from leading rating agencies targeted for the end of 2018”, says Ilija Batljan, CEO of the Company.
After the change, SBB has the following financial targets:
- to generate growth in net asset value per ordinary share, excluding dividends on ordinary shares, averaging at least 12% per annum over a five year period,
- to generate income from the sale of building rights averaging MSEK 250 to 400 per annum,
- to maintain a net LTV below 60%,
- to maintain a secured net LTV below 55%, from the second half of 2018 onwards,
- to maintain an equity ratio of at least 30%
- to maintain an interest coverage ratio of at least 1.8 times
- to as long-term target distribute dividends corresponding to 40% of earnings available for distribution (including dividends on preference shares)
- to meet the conditions for an investment grade rating from leading rating agencies by the end of 2018
For more information, please contact:
Ilija Batljan, CEO and Founder of Samhällsbyggnadsbolaget i Norden AB, 070 518 39 67, [email protected]