SLP’s main goal is to create value for the company’s shareholders. Value creation is measured as average growth in Net Asset Value (“NAV”). Because the operations are capital intensive, access to capital is key to realizing the company’s goals. The company ensures long-term and cost-efficient financing, and an optimized debt/equity ratio.
The company’s financial strategy, mandates and risk are governed by the Group’s Finance Policy, which is determined annually by SLP’s Board of Directors.
Financial risk limitations
- Interest coverage ratio of a multiple of at least 2.5
- Loan-to-value ratio of no more than 60%
- Equity/assets ratio of at least 35%
SLP carries out value-increasing investments and optimizations that increase net operating income. This in turn increases market value, which enables increased borrowing. This releases capital that can then be reinvested in acquisitions of properties with a potential of development.