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.
The Board of Catena decided to update four of Catena’s financial targets in the Finance policy April 9 2021. The new, updated objectives includes:
Three overarching financial targets focused on financial stability bring long-term stability to Catena’s business model.
The average debt maturity should be at least two years.
A long debt maturity with a varied distribution entails lower financing risk and opportunities for better terms. At the end of the year, debt maturity was 2.2 years (1.3).
Outcome 2020 (year)
The interest-coverage ratio shall not be less than a multiple of 1.75.
The interest-coverage ratio indicates the capacity to cover interest expenses. 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 4.0 (4.1), a satisfactory level.
The equity ratio should be at least 30 percent.
The equity ratio indicates long-term payment capacity and, at the end of the year, it amounted to 37.2 (35.6).
Outcome 2020 (%)