Operational risks

Operational risks refer to risks connected with routine administration of Castellum’s property portfolio, which directly impacts income from property management. These can be categorised as rental income, dissatisfied customers/tenants, property costs and tax.













13. Rental income
Rental income is impacted by a number of factors, both external and internal. External factors may include falling market rents, loss of indexation and bankruptcy (see section on macroeconomic risks). Poor property management can result in dissatisfied tenants, unnecessary vacancies and customer loss owing to a poorly adapted customer offering.


  • Properties in growth areas and a contract portfolio with a large number of agreements, not dependent on a single tenant or business sector, and a maturity structure spread over time.
  • Proximity and attentiveness to customers
  • Experienced and competent property management and leasing staff who prevent notices of termination through active renegotiations before contract expiry.
  • Competitor analysis; measure customer satisfaction and follow up on net lettings.
  • Strive for leases with an index clause with deflation protection and minimum adjustment.


For Castellum, reduced income can be derived from lower rental value, which is the potential rent that can be obtained from vacant premises, or alternately lower rental income, which is the actual rent received. Rental income is thus dependent on both the market rent of the property and on how Castellum handles vacancies. Reduced rental income ultimately leads to poorer cash flow and thus to a decline in the value of the asset portfolio. Because of the pandemic, numerous companies have begun reviewing their office spaces. Will these companies need as much office space going forward? Many companies may let their staff work from home to a greater extent even after the pandemic. The needs for creating attractive meeting places that replace traditional office premises are increasing.








14. Dissatisfied tenants/customers
Several tenants or customers are dissatisfied and leave the Group. The opportunity to attract new tenants disappears, with large vacancies and decline in value as a result.


  • Be close and attentive to customers.
  • Experienced and competent property management and leasing staff.
  • Annual measurement, Customer Satisfaction Index.


Castellum has a strong and clear customer focus, and it is important that the Group lives up to its tenants’ expectations. This is why a Customer Satisfaction Index measurement is conducted annually.








15. Property costs
Risks concerning property costs relate primarily to cost increases beyond what Castellum can be compensated for through contractual rents, indexation and supplementary charges for costs incurred. It can also refer to unforeseen costs and extensive renovation needs.


  • High percentage of cost re-invoicing.
  • Compensation via minimum indexation.
  • Continuous optimisation of operations and efficiency enhancement.
  • Demarcation list landlord/tenant.
  • Preventing customer losses via background checks and “in-house” debt recovery.
  • Long-term maintenance planning, in order to optimise maintenance costs over time.


The price of electricity is determined by supply and demand in an open, deregulated and partly international market. Other media costs are partly controlled by local monopolies, which creates uncertainty in future costs. The basis for calculating site leasehold fees may change in future renegotiations, and political decisions can change both tax rate and tax assessment value used for calculating property tax. Indirect costs for employees – such as payroll taxes and other obligations – could also be affected by political decisions.








16. Tax
Castellum failing to comply with existing regulations or to adapt to changing regulations regarding income tax and VAT. Additionally, tax is an important parameter in a calculation context.


  • Strict internal control processes and external quality assurance of income tax returns, for example.
  • Open claims regarding doubtful items.
  • Routine training of employees.
  • Closely following trends in legislation, praxis and court orders.


Incorrect tax governance can lead to the wrong tax being paid, tax penalties and in some cases to remarks in the auditor’s report.
Incorrect fiscal management in calculations can lead to overestimation of yield – which means insufficient actual yield – or underestimation of yield with the risk of a profitable investment not being made.






Reduced focus on risk area since previous year





Unchanged focus on risk area since previous year





Increased focus on risk area since previous year