SSM Holding AB (publ), Sweden’s leading developer of smart, affordable homes, has adopted new financial targets based on the company’s business plan for 2020–2024. The new targets and levels reflect the company’s strategic focus on developing increased share of rental projects.
After having adopted a new five-year business plan for the years 2020 to 2024, SSM’s Board of Directors has resolved on new long-term financial targets for the company. The previous interest coverage ratio of at least 2x has been removed as a target at the same time as the current financial targets for operating margin and debt/equity ratio have been adjusted to reflect the company’s business mix in the coming years.
The new financial targets and the company’s dividend policy are as follows:
Operating margin >10%
Average over a five-year period, i.e. estimated time for turnover of the project portfolio.
Individual years may impact the business mix of cooperative apartment and rental projects.
Debt/equity ratio >40%
Reconciliation takes place on December 31 each year.
Return on equity >15%
Average return over a five-year period, i.e. the estimated time for turnover of the project portfolio.
Individual years may impact the business mix of cooperative apartment and rental projects.
Dividend policy >30% of the year’s profits after tax
Target remains unchanged according to earlier decision, no dividends will be paid until the company has repaid its existing bond loans in full.
This information is information that SSM Holding AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the contact person set out below, at February 19, 2020 at 20:30 CET.
For more information, please contact:
Ann-Charlotte Johansson
EVP Communications & IR
Phone: +46 761 65 17 71
Email: [email protected]
Twitter: @anncharlotteSSM
About SSM Holding AB (publ)
SSM produces functionally smart and affordable homes with attractive common areas, close to public transport and the city center for the company’s target group – the urbanites of tomorrow. The company envisions a housing market that is accessible to as many people as possible. SSM is the leading property developer in its niche within the Greater Stockholm area and at end of December 2019, the company has approximately 4,500 building permits in its portfolio. SSM has been listed on Nasdaq Stockholm’s mainlist since April 6, 2017. www.ssmlivinggroup.com