Business concept and objective

Catena shall own, effectively manage and actively develop commercial real estate in prime locations that offer the potential to generate a steadily growing cash flow and good growth.

Catena’s overriding objective is to provide shareholders a favorable, long-term total return by being one of the leading players involved in commercial real estate in a number of strategic locations.

Catena has defined three financial targets to be achieved over a business cycle:

• A return on shareholders’ equity that exceeds the interest on a five-year government bond by at least 5 percentage points. 1)
• An interest coverage ratio that is not less than 1.75.
• An equity/assets ratio of a minimum 25% and maximum 35%.

Long term, Catena’s dividend will represent 75 per cent of income from property management after tax.

 

1) Risk-free interest is defined as interest on a five-year Swedish Government bond.