Logistea updates its vision framework, objectives, strategy and dividend policy to support significant growth and value creation in warehouses, logistics and light industrial properties

0

LogisteaThe vision of is to be the natural long-term partner of companies that require sustainable and modern premises for warehouses, logistics and light industry. The vision is realized through the business concept of the company to acquire, develop and manage properties and land.

LogisteaThe real estate portfolio of has grown in two years from 189 MSEK in real estate value to approximately 2.6 BSEK at the end of 2021. At the end of the year, the real estate portfolio amounted to approximately 345,000 square meters of lettable area, of which approximately 301,100 square meters. meters consist of investment properties. In addition, the building rights portfolio amounts to approximately 237,500 square meters. The company has major growth plans and aims to become a leading player. The Board of Directors today decided on the following strategy, objectives and dividend policy:

Strategy

  • Acquire properties and land in attractive locations Sweden and over time also in other Nordic countries suitable for warehouses, logistics and light industry.
  • Continuous development of the existing real estate portfolio and extension and construction of properties on own land.
  • Prioritize a differentiated clientele with financially stable tenants and emphyteutic leases.
  • Efficient conduct of operational resources where environmental impact and social sustainability are affirmed in business decisions.

Operational objectives

  • Property value exceeding BSEK 15 at the end of 2024.
  • Complete at least 25,000 square meters of new rental space each year.
  • 50% of transactions in the real estate portfolio will be digitized by the end of 2026.
  • 50% of the loan portfolio is made up of green financing at the end of 2026.

Financial objectives and risk limits

  • Property management earnings per common share must increase by at least 10% per year on average over a five-year period.
  • The net asset value per ordinary share will increase by at least 12% per annum on average over a period of five years.
  • The loan to value ratio will amount to a maximum of 60 percent in the long term.
  • The interest coverage ratio must be greater than 1.8 times.

Sustainability goals
Logistea supports the United Nations Global Compact and Agenda 2030. The company believes it has the greatest opportunity to contribute in: number 7 (sustainable energy for all), 8 (decent working conditions and economic growth), 9 (sustainable industry, innovations and infrastructure), 11 (sustainable cities and communities), 12 (sustainable consumption and production) and 13 (fight against climate change). During the fourth quarter of 2021, the company established a green financial framework. The framework sets the following targets for all new construction and, where possible, also for existing properties or in the event of additional property acquisitions:

  • BREEAM (Very good or higher) or equivalent certification standard, or
  • Energy certificates (EPC) A or B, or
  • Energy consumption less than 20% of national accessible building regulations, or
  • Reduce energy consumption by at least 30% during major renovations.

Dividend policy
The board’s objective is to propose each year to the annual general meeting to decide on dividends corresponding to at least 30% of the company’s profits. The Board of Directors intends to prioritize growth over dividends over the next few years, which could result in low or no dividends for common shares.

President of the council, patrick tillmancomments on the company’s updated framework:
“In 2021, the company implemented a significant change in its operations by refining operations in real estate and divesting the fashion business. The change created the best possible conditions for both operations while optimizing value shareholder. Logistea currently has a strong platform, with a solid ownership base, strong financial capability and an industry-savvy management team with significant transaction experience. The company’s updated strategic framework and objectives provide clear direction and enable continued short- and long-term value creation.”

CEO, Nicholas Zuckermancomments on the company’s updated framework:
“The demand for premises for warehouses, logistics and light industry is strong and is supported in the long term by the ongoing digitization and the increased share of e-commerce. We currently see several interesting business opportunities in terms of acquisitions and new productions. Logisteathe growth objective of 15 billion Swedish crowns in real estate value at the end of 2024 is a clear sign that the company will be an active leader and market leader in this market segment in the future.”

Logistea will publish its 2021 year-end report on February 18, 2022 at 07:30 CET.

Share.

Comments are closed.