Business model,
Concept and Strategy

SLP is a Swedish real estate company that acquires, develops and manages logistics properties with a focus on sustainability. SLP’s head office is located in Malmö and the property portfolio is mainly concentrated in southern Sweden and the Stockholm area. The company’s property portfolio includes both large modern logistics facilities and a number of smaller properties that are optimal for city logistics.

Business concept

SLP will acquire, develop and manage logistics properties with a focus on sustainability.

Goals

Generate an average annual growth in net asset value (NAV) per share of at least 15% and an average annual growth in earnings per share of at least 15%.

Financial risk limits

Overall, SLP’s financial risk is limited by a sound capital structure and stable positive cash flow, which over time ensures the company’s short and long-term capital supply. In order to achieve a sound capital structure and a stable cash flow, the following financial risk limits are in place:

  • Maintain an interest coverage ratio of a multiple of at least 2.5
  • Maintain a loan-to-value ratio of no more than 60%
  • Maintain an equity/assets ratio of at least 35%

Sustainability targets

  • New construction to be environmentally certified according to Miljöbyggnad Silver or corresponding certification model and level.
  • All electricity in our properties to be renewable electricity.
  • By end of 2025, half of the lettable area to be environmentally certified according to Miljöbyggnad iDrift Silver or corresponding certification model and level.
  • All business relationships should comply with our Code of Conduct.
  • Solar panels and charging infrastructure for electric vehicles to be installed in five properties per year.

Strategy

SLP works, with its own staff, on the basis of five strategic areas: acquisition, development, management, financing and sustainability. The work within the five strategy areas is described in more detail below.

  • Acquisitions By acquiring properties and building rights, the company’s property portfolio is growing. The properties acquired are usually characterised by strategic logistical locations and with the potential of being developed.
  • Development The properties are developed through new construction, tenant adaptation and optimisation of the properties’ net operating income. Net operating income is optimised by letting vacant space, renegotiating and renewing terms and leases and improving energy efficiency.
  • Management SLP’s management is characterised by an active customer dialogue, short decision paths and a long-term perspective.
  • Financing The company ensures long-term cost-effective financing and optimises the relationship between equity and debt.
  • Sustainability SLP has a high ambition regarding sustainability and responsible work based on environmental and social aspects.

Business concept

Acquisition

By acquiring properties and building rights, the company expands its property portfolio. SLP focuses on properties with strategic communication locations and good expansion and development opportunities. It is also important that the properties are flexible and attractive, also for future needs.

Acquisitions are focused on developed properties and land. The owners’ and the organization’s extensive network of contacts and experience in the sector enable fast and flexible acquisition processes and favourable deals that do not take place in the open market.

Development

SLP’s development is characterised by environmentally certified new construction, tenant adaptations in close cooperation with the tenant and optimisation of the properties’ operating net. Net operating income is optimised by letting vacant space, renegotiating and extending leases and improving energy efficiency.

Tenant adaptation and energy optimisation projects are managed by SLP project managers in consultation with the company’s own property managers. The company’s new construction is also managed by SLP’s own project managers. It is important for SLP to be able to use its own staff to improve its properties and create solutions that are good for the customer, for SLP and for the environment.

Management

SLP’s management is characterised by a long-term perspective for both the property and the tenant. SLP wants to have an active customer dialogue with a focus on value creation for both parties. This is achieved through professionalism and short decision-making paths as well as through innovation and a solution-oriented approach.

SLP’s property managers are in daily contact with their customers. In order to provide the best possible service to tenants, caretakers and operating technicians are procured by partners and this is done locally in the places where the company’s properties are located. SLP’s tenants should always feel confident that SLP is close at hand and responsive to their needs, so that tenants can focus on their core business.

We acquired our first properties in March 2019 with the ambition to expand rapidly. So far, we have exceeded the targets, and our portfolio totalled over 625,000 square meters of lettable area distributed over 70 properties at the end of 2021.”