Business concept, goals and strategy

Nyrenoverad modern bostad Victoria Park Stockholm Förtätningsprojekt i Stockholm Medarbetare i Eskilstuna 

Victoria Park’s mission is to acquire, develop and manage residential properties in growth centres across Sweden.

Residential portfolio with social responsibility

  • We aquire residential properties with high development potential.
  • We develop existing property portfolio with a focus on;
    • Standard-enhancing and value increasing investments through renovation,
    • Densification projects in unutilized surrounding areas,
    • Socially responsible property management.

Market environment remains favourable

  • High demand for residential portfolios.
  • Low interest rates and good access to capital.
  • Substantial housing shortages in growth districts.
  • Limited new production of rental units.

Goals

Overall

  • Generate a growth in net asset value, excluding dividends on ordinary shares, that over time averages at least 15 percent per year.
  • Generate a growth in profit from property management that over time averages at least 12 percent per year.
  • Own assets with a market value of at least SEK 20 Bn by the end of 2020.

Financial objectives

  • Maintain an equity ratio of at least 30 percent.
  • Maintain a long-term loan-to-value ratio of 65 percent at the most.
  • Maintain an interest coverage ratio of at least 2.0.

Strategy

  • Prioritise investments in growth districts, with a geographic focus on southern and central Sweden.
  • Develop the existing property portfolio – focusing on measures that increase standards and create value as well as densification projects.
  • Create and improve values through long-term and sustainable property management with a social dimension.
  • Have a local social involvement by establishing cooperation with authorities, municipalities and non-governmental organisations to support local development.

Dividend policy

  • Dividends to ordinary shareholders shall be proposed each year at 25 percent of the pre-tax profit, with exceptions for changes in value considering Victoria Park's potential acquisitions and financial position.
  • The dividend to holders of preference shares is intended to be paid in accordance with the provisions of the Articles of Association, which means an annual dividend of SEK 20.00 per preference share, paid in quarterly payments of SEK 5.00.