Financial targets - Fabege

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Financial targets

In the financial targets of Fabege we are listing; return on equity, loan-to-value ratio, equity/assets ratio, interest coverage ratio and debt ratio.

Targets

Results 2018

 

Return on equity    
Fabege aims to consistently be one of the most prominent listed property companies in terms of return on equity.

The return on equity was 24.5 per cent, with contributions from Property Management and Property Development.

24.5%

Loan-to-value ratio    
The loan-to-value ratio must never exceed 50 per cent.

The loan-to-value ratio dropped to 39 per cent as a result of rising property values and value-generating investments.

39%

Equity/assets ratio    
The equity/assets ratio shall be at least 35 per cent.

The equity/assets ratio increased to 51 per cent in 2018 as a result of the strengthening of the balance sheet through strong earnings from operations and rising property values.

51%

Interest coverage ratio    
The interest coverage ratio is to be at least 2.2.

The interest coverage ratio at 3.7 was well above the target, an effect of strong net operating income combined with low market interest rates.

3.7 

Debt ratio    
The long term debt ratio will amount to a maximum of 13.

The debt ratio calculated as interest-bearing liabilities divided by net operating income less central administration amounted to 14.6.

14.6

Surplus ratio    
The aim was to increase the surplus ratio to 75 per cent by 2020. The target will not be achieved by 2020 because of the new property taxation. We have therefore revised the target for it to be achieved by 2022.

The surplus ratio has improved steadily, owing to growing revenue, an increasingly modern portfolio and continued efforts to boost cost efficiency. 2018 it was 74 per cent.

74%

Return on projects    
Fabege aims to annually invest at least SEK 2.5bn in the company’s own project portfolio. New projects are to generate a return on invested capital of at least 50 per cent through value growth.

In 2018, investments in projects and development properties slightly exceeded SEK 2.4bn, generating a yield of 98 per cent. This mainly derived from value growth in major ongoing projects.

98%

Published 17 September 2018