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 55%
  • Maintain an equity/assets ratio of at least 40%

    Strategy and business model

    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 The company grows its property portfolio by acquiring properties and building rights. SLP focuses on properties in strategic locations with good communications and good potential for expansion and development.
    • Development SLP’s property development is characterized by environmentally certified new production, adaptions for tenants in close collaboration with the tenants and optimization of the properties’ net operating income. Net operating income is optimized by letting vacant premises, re-negotiating and extending rental agreements and thorugh increased energy efficiency. 
    • Management SLP’s management is characterised by a long-term perspective of the property as well as the tenant. SLP wants to maintain an active dialogue with its customers with a focus on creating value for both parties. This is achieved through professionalism and short decision paths as well as thorugh innovative thinking and a solution-oriented approach. 
    • Financing The company ensures long-term cost-effective financing and optimises the relationship between equity and debt. At an overarching level, SLP’s financial risk is limited by means of a sound capital structure and a stable and positive cashflow, which, over time, secures the company’s short and long-term capital supply
    • Sustainability SLP has an ambitious approach to sustainability and environmental and social responsibility. We view sustainability as an integral part of our business model and daily work. SLP’s sustainability work is based on the Group’s business concept, Codes of conduct and other governing documents. as well as our sistainability policy and framework with related goals.