Financial targets

Catena’s overriding objective is to show strong cash flow, enabling stable development and dividends for shareholders. To realise this, the operations apply a number of measurable financial targets that are communicated externally. These focus primarily on profitability and financial stability. 

Catena includes a number of different functions with different conditions. They are followed up by means of a number of customized internal operational targets, relevant to the operations concerned, linked to the company’s strategies for clients and markets, property development, sustainability and financing. 

Objectives

The average debt maturity should be at least two years. 

Comment 2019
A long average debt maturity with a varied distribution entails lower financing risk and increased opportunities for better and
renewed terms. Catena balances the risk associated with shorter debt maturity to the extra cost related to longer debt maturity. At the end of the year, debt maturity was 1.3 years (1.4). To match our long-term target, we seek to increase our debt maturity in 2020.

Outcome 2019 (year)

The interest-coverage ratio shall not be less than a multiple of 1.75. 

Comment 2019
The interest-coverage ratio indicates the capacity to cover interest expenses. For this reason, it is important to ensure there is a margin to be able to withstand higher interest expenses and/or higher vacancy rates, for example. At the end of the year, the interestcoverage ratio was 4.1  (3.4), a satisfactory level.

Outcome 2019
(multiple)

The equity ratio should be at least 30 percent.

Comment 2019
The equity ratio indicates long-term payment capacity and, at the end of the year, it amounted to 35.6 (33.4). While Catena values a strong equity ratio, at the same time, it weights this carefully to meet shareholders’ return requirements.

Outcome 2019 (%)