Overall goals
Fabege’s overall goals are to use our size, strength and focus to create and realise values and provide our shareholders with the best overall return among property companies listed on the Stockholm Exchange.
Total return
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Financial goals
The company’s key financial criteria adopted by the Board are profitability, as measured by return on equity, equity/assets ratio and interest coverage ratio. Fabege aims to be one of the most profitable listed property companies long-term. The target is to maintain an equity/assets ratio of at least 30 per cent and an interest coverage ratio of at least 2.0 including realised changes in value.
Return on equity
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Equity/assets ratio
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Interest coverage ratio
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Efficiency goals
Fabege aims to retain a high level of cost-efficiency and to be the leading player in comparison with other Swedish property companies. To improve its operational efficiency and achieve its financial goals, the company continuously implements various forms of process improvements. The goal is to create an atmosphere where ideas and initiatives to develop processes and procedures are harnessed and converted into action. In 2010, several process development projects were implemented in various parts of the organisation. This work will continue in 2011.
Another long-term goal is to improve the surplus ratio to 70 per cent. In 2010, Fabege’s surplus ratio was 67 per cent (67).
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Surplus ratio
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Environmental and energy goals
Since 2002, an overriding environmental and efficiency objective has been to reduce the company’s year-on-year energy consumption by an average of 5 per cent. A future objective is to reduce energy consumption by 20 per cent from the 2009 level by 2014, which corresponds to an annual average reduction of 4 per cent. In 2010, the reduction was 3 per cent.
Customer mix goals
Fabege has about 1,500 leases in its commercial portfolio. To minimise its risks, Fabege aims to achieve a balanced mix of stable customers from various market segments. The company’s 15 largest tenants in terms of value account for approximately 31 per cent of the total contracted lease value, and, in most cases, its leases have a duration that significantly exceeds the average in the company's proprietary portfolio.
Customer-relation goals
During the year, a new method to improve and intensify Fabege’s customer relations was implemented. Based on last year’s customer survey, a structured process was initiated with the aim of creating improved insight into the customers’ perception of Fabege. Part of the process involves accompanying the customer into the long-term management relationship with Fabege, from the leasing process and customisation of premises to tenant needs, to assuming occupancy in the finished premises. The objective is to identify any development potential within Fabege in order to off er the customer an even better product and service, thus building stronger customer relations.
Employee satisfaction goals
Fabege aims to be an attractive employer – where co-workers have a sense of commitment, participation, and are able to develop and grow. The boundaries and objectives for each employee’s area of responsibility should be clearly defined and established. Our employees’ activities are based on the company’s core values, SPEAK.
The goal for 2009 was to achieve the same high scores in our employee survey as in 2007. The results showed a general improvement in the overall score 3.9 (3.7), against an average of 3.3 for the industry as a whole. During 2010, no employee survey was planned, the next survey is scheduled for 2011, when we will aim to further improve our excellent scores.