Financial targets

In the financial targets of Fabege we are listing; return on equity, loan-to-value ratio, equity/assets ratio, interest coverage ratio and debt ratio.

Targets

Results 2017

Return on equity

 
Fabege aims to consistently be one of the most prominent listed property companies in terms of return on equity. The return on equity was 22 per cent, with contributions from Property Management and Property Development.

Loan-to-value ratio

 
In 2017, the Board decided to reduce the target from max. 55 per cent to max. 50 per cent.
The loan-to-value ratio dropped to 43 per cent as a result of rising property values and value-generating investments.

Equity/assets ratio

 
The equity/assets ratio shall be at least 35 per cent.
The equity/assets ratio increased to 47 per cent in 2017 as a result of the strengthening of the balance sheet through strong earnings from operations and rising property values.

Interest coverage ratio

 
In 2017, the Board decided to raise the target from a minimum of 2.0, to 2.2.
The interest coverage ratio is well above the target of 2.2, an effect of strong net operating income combined with low market interest rates.

Debt ratio

 
In 2017, the Board took the decision to introduce debt ratio as a new financial target. The long term debt ratio will amount to a maximum of 13.
The debt ratio, calculated as interest-bearing liabilities divided by net operating income less central administration, amounted to 15.5.