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Publicerad: 25 januari 2019, 21:08
Hemfosa plans to expand its portfolio from just over SEK 35 billion to SEK 50 billion in the coming five years. In order to reach the targeted size, the company will both acquire properties, e.g. in Finland, and increase the number of development projects, Hemfosa revealed on its capital markets day on Thursday.
Hemfosa plans to expand its portfolio from just over SEK 35 billion to SEK 50 billion in the coming five years. In order to reach the targeted size, the company will both acquire properties, e.g. in Finland, and increase the number of development projects, Hemfosa revealed on its capital markets day on Thursday. It was the first capital markets day since to spinoff of Nyfosa.
Approximately SEK 10-11 billion of the planned SEK 15 billion growth is estimated to stem from acquisitions while the remaining SEK 4-5 billion will come from development, indicating that the company plans to increase its rate of organic growth compared to the current growth rate.
“Hemfosa has a number of ongoing development projects and I’m very impressed by the current projects portfolio, but we want to increase the rate a bit further. We will both undertake our own projects and enter collaborations with developers, for example”, said Hemfosa CEO Caroline Arehult during the capital markets presentation.
Furthermore, the company aims to raise dividends to 40 per cent of its distributable profit, defined as property management income excluding income from joint ventures, after tax. In addition, the ambition is to increase the distributable profit by an average of 10 per cent annually.
“Should we succeed, of which we are confident, the distributable profit will have doubled in seven years”, said CFO Peter Andersson.
The aggregated property value of Hemfosa amounted to SEK 35.6 billion at the end of Q3 2018, of which 69 per cent is located in Sweden, 26 per cent in Norway and merely 5 per cent in Finland. A company focusing on community service properties such as schools, elderly care facilities and justice system property, Hemfosa aims to strengthen its market leading position in Sweden and Norway. In Finland, however, the company wants to gear up, partly by way of acquisitions.
“We believe that the growth potential in all of our segments are good. While many of our competitors are only willing to buy elderly care homes, in the Helsinki region, we are scouting the market for potential deals in growth regions without any geographical limitations”, said Anna Alsborger, head of transactions at Hemfosa.
She adds that while Finnish municipalities have not been too keen on selling properties in the same way as their Swedish counterparts, things might be changing. At the end of last year, two transactions took place, where e.g. the City of Helsinki sold an office building.
“Regarding that deal, the City of Helsinki, announced the new property strategy and expressed a greater willingness to make sell-and-lease back deals. We believe that when Helsinki is paving the way, other municipalities will follow suit.”
According to Hemfosa, population is growing in all three countries, especially among those younger than 18 and older than 70. This creates new challenges for municipalities as the working population decreases relatively and according to Hemfosa, 69 per cent of Swedish municipalities have considered divesting property in order to free up capital. The total value of community service properties in Sweden is estimated to be about SEK 1,000 billion, of which 20 per cent are privately held.
Oskar von Bahr