Castellum's strategy

The company

Asset and development portfolio

• Castellum will develop and manage an asset portfolio that supports targets set for growth in income from property management, thus creating shareholder value over time.
• Castellum’s portfolio shift is continuously toward greater quality and density through new construction, extensions and reconstructions, acquisitions and sales in the Nordic growth markets.
• The portfolio will constitute a property exposure alternative for Castellum’s shareholders. The portfolio turnover should be actively managed, with a net investment volume of approximately 5% per year.
• Castellum will be a leading player in urban development, and the preferred choice of both municipalities and tenants when they are looking for a partner to develop new projects.

Goals and results

Strategic objective:
At least 5% of the property value in net investments per year, equivalent to approximately SEK 7.5 billion. 

Results 2021:
MSEK 42,718 (4,267) in net investment, corresponding to 41% of the property value, where MSEK 47,258 (—) pertained to business combinations, MSEK 8,889 (2,646) pertained to property acquisitions, MSEK 3,799 (2,512) to new construction, extensions and reconstructions, and MSEK 17,228 (891) to sales.

Financing

•  Castellum must maintain a low level of financial risk; the chosen key ratios for risk are loan-to-value ratio and interest coverage ratio.
• Castellum’s financing strategy will support the business operations and manage the Group’s financial risks while working for an open and transparent climate. The strategy will be reflected in the financial policy in order to ensure risk management through close monitoring.
• Castellum’s financial strategy can be summarised by five cornerstones: diversification, liquidity, strength, transparency and flexibility.
• Castellum’s goal is for the company’s share over the long term to yield a competitive return in relation to risk, and to have a high level of liquidity.

Goals and results 

Strategic objective:
• Loan-to-value ratio – not to permanently exceed 50%.
•  Interest coverage ratio – at least 200%.
•  Dividend – at least 50% of pre-tax income from property management in dividend pay-outs.

Results 2021:
• The loan-to-value ratio amounted to 39% (41) as of 31 December 2021.
• The interest coverage ratio for 2021 was 517% (530).
• SEK 7.60 per share (6.90) in proposed dividends for 2021, equivalent to a payout ratio of 61% (56).

Employees

• Castellum is to be an attractive employer with committed, motivated employees and managers, all of whom work towards the same goal, thereby meeting high expectations.
• The company works actively to attract, recruit, develop and retain the right employees and managers.
• Castellum is building a goal-oriented organisation in which its employees constantly challenge themselves and their colleagues to strengthen both the organisation and individuals.
• The organisation continually strives to become better, clearer and more open as regards expectations, and sees constructive monitoring as a natural part of management and employeeship.

Goals and results 

Strategic objective:
High satisfaction index, eNPS (employee Net Promoter Score) and proportion of "promoters".

Results 2021:
43 (34) in eNPS (Employee Net Promoter Score) and 56% of employees are “promoters” of Castellum as an employer.