New financial targets for property developer SSM
SSM Holding AB (publ), the leading property developer in the Stockholm region in its niche with close to 5,300 building permits in planning phase or in production, has adopted new financial targets and a new dividend policy. The new targets aim to ensure continued strong and profitable growth with long-term value creation. They are also part of the company’s preparations for a future stock exchange listing on Nasdaq Stockholm.
The Board of Directors of SSM Holding AB (publ) has adopted new financial targets and a new dividend policy with effect from 2017 until further notice. The dividend policy applies to the 2017 financial year, with the first possible dividend in connection with the Annual General Meeting 2018. The new targets, which are shown below, are in line with the company’s focus on long-term value creation and continued strong and profitable growth.
- Operating margin: >20 percent (previously >10 percent)
- Return on equity: >25 percent (new target)
- Interest coverage ratio: >2 x (new target)
- Debt/equity ratio: >30 percent (current target)
- Dividend policy: >30 percent of the year’s profits from 2017 onwards with the first possible dividend in connection with the AGM in 2018 (previously 20 percent)
“There is powerful momentum within SSM and with a sales rate of 96 percent at the end of 2016 together with a high share of satisfied customers, it is clear that our business concept is in line with market demand. SSM has a history of strong growth coupled with high returns. Our new financial targets confirm our continued focus on profitable growth and strong returns over time,” says Mattias Roos, CEO of SSM.
Today, SSM stands for an increasingly large share of new construction in the Stockholm region and at the end of 2016, the company had approximately 5,300 building permits in the planning phase or production. SSM’s intention is to gradually increase the company’s construction on an annual basis to reach a level of 1,800 housing starts per year by 2021.There is a strong demand for SSM’s apartments which creates good conditions for SSM to realize its expansion plans.
SSM will publish its year-end report on February 20, 2017 at 07:30 CET.
SSM Holding AB (publ) is required to publish this information in accordance with the EU Market Abuse Regulation. The information was submitted for publication by the contact persons mentioned below on February 7, 2016 at 07.30 CET.
For more information, please contact:
Mattias Roos, CEO
Ann-Charlotte Johansson, Director of Communications & IR
Phone: + 46 761 65 17 71
About SSM Holding (publ)
SSM is a residential property development company operating in the Stockholm region. Our vision is a housing market with room for as many people as possible. What sets us apart is that we build for a specific target group – the urbanites of tomorrow – and our ambition is to develop the most popular apartments in urban areas. SSM therefore builds apartments offering good value for money for one or two person households with high functionality per square meter, close to public transport, just outside the city center. Read more at: www.ssmlivinggroup.com