Finansierings- och investeringsstrategier inom fastighetsbranschen En studie om börsnoterade fastighetsbolag

Abstract

This study is based on a literature study as well as a detailed examination of the companies’ annual reports over the past ten years. The literature study contributed to an insight and understanding of the real estate industry as well as theories on financing and investment strategies. The information relevant to the study also led to the production of a theoretical framework. The examination of the companies’ annual reports resulted in an insight into the companies’ strategic decisions over the past ten years. The material from the annual reports constituted the empirical framework. By relating the empirical material to the theoretical, the strategies could be evaluated to finally land in conclusions. The study showed that both Balder and Castellum during the period financed their assets with a larger share of liabilities. Castellum showed a trend of an increased share of equity during the period, while Balder’s capital structure did not undergo any major changes. The two companies demonstrated a continuously increasing capital market financing during the period. Furthermore, it was found that the two companies’ loan-to-value ratio decreased in line with factors such as an increase in the value of the portfolios’ assets. Balder’s return on equity exceeds Castellum’s on an annual basis and when it came to return on total capital, Balder was at the forefront until 2016. After that, the return on total capital was similar between the two companies. It was found that the interest coverage ratio during the period was at a high level, which also increased annually. Furthermore, it was established that the companies’ investment strategies di↵ered in that Balders was more focused on growth in the form of large new acquisitions, while Castellum’s strategy was more spread between new acquisitions and investments in existing properties. The companies’ property portfolio is summarized in that Balder has been more diversified than Castellum in portfolio. Castellum has focused on commercial properties, while Balder has also focused on residential properties. Note: The report is written in Swedish.