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.
Updated financial targets 2021
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:
- Equity ratio should be at least 40 percent
- Interest-coverage ratio shall not be less than a multiple of 2
- Average debt maturity should be at least 2.5 years
- Net loan-to-value ratio shall not exceed 50 percent
Target fulfilment 2020, overarching targets
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.
Comment 2020
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.
Comment 2020
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.
Outcome 2020
(multiple)
The equity ratio should be at least 30 percent.
Comment 2020
The equity ratio indicates long-term payment capacity and, at the end of the year, it amounted to 37.2 (35.6).
Outcome 2020 (%)
