financial policy
Objectives
- minimize impact of financial crisis
- maintain buffer to financial covenants
- enable stable growth with low risk
| policy | 2019 Q3 | |
|---|---|---|
|
investment grade rating min BBB, strive for BBB+ |
✓ |
BBB |
|
below 60 percent loan-to-value if property prices decrease 25 percent |
✓ | 54 |
| interest coverage ratio above 1.5 if interest rates increase five percentage points | ✓ | 1.9 |
|
loan-to-value below 50 percent and below 40 percent from year 2020 |
✓ | 40 |
| secured loan-to-value below 25 percent | ✓ | 16 |
| interest coverage ratio excluding realized value growth exceeds 1.8 and 2.0 from year 2020 | ✓ | 1.8 |
| liquidity reserve exceeds EUR 300 million | ✓ | 375 |
| cash sources divided by cash uses exceed 100 percent | ✓ | 196 |
| interest rate hedge maturities within a year less than 40 percent of debt | ✓ | 12.7 |
dividend policy
commitment to sustainable financial resilience
Akelius endeavours for continuous dividends on its preference shares and ordinary shares.
This is enabled by high financial resilience based on a prudent financing structure and a diversified portfolio of residential properties with the ability to generate increasing rental income.
net dividend policy
The net dividend policy aims at being able to distribute dividends while maintaining equity needed for financial stability.
No dividends will be paid in a financial crisis unless at least an equal amount of equity is raised.
Dividends attributable to ordinary shares of class A are mainly reinvested in the company to support organic growth.
decided dividends and share issues
Reinvestment of dividends through share issues has been beneficial for the common shareholders.
It has supported the company in its organic growth.
Dividend on preference shares is SEK 5 per quarter.
historical dividends and share issues
| MSEK | |||||
| dividend | 2019 | 2018 | 2017 | 2016 | 2015 |
| preference shares | 377 | 377 | 377 | 377 | 377 |
| class D shares | - | - | - | - | - |
| class A shares | - | 8,584 | 8,060 | 5,045 | 98 |
| total | 377 | 8,961 | 8,437 | 5,422 | 475 |
| share issue | 2019 | 2018 | 2017 | 2016 | 2015 |
| preference shares | - | - | - | - | 1,974 |
| class D shares | 4,120 | - | - | - | - |
| class A shares | - | 8,584 | 10,057 | 4,036 | - |
| total | 4,120 | 8,584 | 10,057 | 4,036 | 1,974 |
| cash flow | 2019 | 2018 | 2017 | 2016 | 2015 |
| preference shares | -377 | -377 | -377 | -377 | 1,597 |
| class D shares | 4,120 | - | - | - | - |
| class A shares | - | - | 1,997 | -1,009 | -98 |
| total | 3,743 | -377 | 1,620 | -1,386 | 1,499 |