INVESTING IN WALLENSTAM
Stable return at a low risk
Wallenstam's property holdings are distributed among 54 percent residential properties, 41 percent commercial properties and 5 percent public use properties, in terms of floor space. The company stands for long-term value creation and has a flexible business model, for exmeple regarding form of tenure in new construction projects. The financial position is strong, with a high equity/assets ratio and low loan-to-value ratio. Historically, the share has displayed a good performance, delivering a stable return. The dividend has been at a maintained or higher level since 1992.
Offer the desired product in selected growth markets
We are building and managing residential properties in attractive locations in Gothenburg, Stockholm and Uppsala. Our commercial holdings are concentrated in Gothenburg inner city. Our concentration strategy has delivered stable value growth and high occupancy rates regardless of the market climate.
Create growth through cost-efficient new construction and efficient management
We plan future investments in new construction of about SEK 3 billion per year, and we show average value growth, thanks to cost-efficient new construction, in completed projects of 30–40 percent per invested krona. Combined with efficient management and successful letting operations this contributes to value creation, through our own work, benefiting both the company and shareholders.
From our long experience of property management, housing construction and of the conditions and requirements of commercial and private tenants, we have good know-how about urban development to ensure a vibrant city. Combined with innovation and environmental investments and social commitments in the places we operate in, we are working to contribute to a better society.
We have a huge investment portfolio and in recent years we've created our own value growth through construction. We do this in an environment with extremely low growth and exceptionally low interest rate levels.
Share price trend 2000-2017, SEK
Dividend Yield, %
PARAMETERS THAT AFFECT THE DEVELOPMENT OF THE COMPANY IN THE SHORT AND LONG TERMS
- Attractive properties and good management result in satisfied tenants, stable occupancy rates and rental income and good business opportunities for the company.
- Access to land in the right locations is essential for safeguarding construction of new homes and requires daily strategic and practical work.
- Secure financing because access to capital is a vital resource for the operations, and is crucial if we are to develop and expand to the desired extent.
- Good corporate culture and competence in order to attract and engage the right personnel are important factors for continued successful development.
- The market situation and market conditions, which change over time, affect property values. Properties in attractive locations where demand is high over time generate good returns and excellent value growth.