Business Concept, Objectives and Strategy

Buisness Concept
Castellum’s business concept is to develop and add value to its real estate portfolio, focusing on the best possible earnings and asset growth, by offering customised commercial properties, through a strong and clear presence in five Swedish growth regions.

Objective
Castellum’s operations are focused on cash flow growth, which along with a stable capital structure provide the preconditions for good growth in the company, while at the same time offering shareholders a competitive dividend.
   The objective is an annual growth in cash flow, i.e. income from property management per share, of at least 10%. In order to achieve this objective, net investments of at least 5% of the property value will be made yearly, which at the moment is equivalent to approx. SEKm 1,700. All investments will contribute to the objective of growth in income from property management within 1-2 years and have a potential asset growth of at least 10%. Sales of properties will take place when justified from a business standpoint and when an alternative investment with a higher yield can be found.

Strategy

Real Estate Portfolio
Castellum’s real estate portfolio is located in five Swedish growth regions where rational property management and a strong presence in the market provide for good business opportunities.  

The real estate portfolio consists of commercial properties with general and flexible premises. The real estate portfolio shall be continuously enhanced and developed in order to improve cash flow.

Capital structure
Castellum will have a stable capital structure, meaning a loan to value ratio not permanently exceeding 55% and an interest coverage ratio of at least 200%.  

Repurchase or transfer of own shares shall be available as a method to use for adjusting the company’s capital structure to the company’s capital need and as payment or funding of real estate investments. Own shares may not be traded for the sole purpose of capital gain.

Dividend
At least 50% of income from property management before tax will be distributed, however investment plans, consolidation needs, liquidity and financial position in general will be taken into account.

The stock and credit markets
Castellum will work for a competitive total return in the company’s share in relation to the risk and for a high liquidity.   

However, all actions will be made from a long term perspective and the company will have a frequent, open and fair reporting to shareholders, the capital and credit markets as well as media, yet without disclosing any individual business relation.  

In the long term Castellum will be one of the largest listed real estate companies in Sweden.