financial policy

Objectives

  • minimize impact of financial crisis
  • maintain buffer to financial covenants
  • enable stable growth with low risk
policy   2019 Q2

investment grade rating min BBB, strive for BBB+

BBB

below 60 percent loan-to-value if property prices decrease 25 percent

53
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 15
interest coverage ratio excluding realized value growth exceeds 1.8 and 2.0 from year 2020 1.8
liquidity reserve exceeds EUR 300 million  756
cash sources divided by cash uses exceed 100 percent 195
interest rate hedge maturities within a year less than 40 percent of debt 7.8

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

historical dividends and share issues