Atrium Ljungberg changes its dividend policy and strengthens its execution power of the project portfolio
Atrium Ljungberg will conduct its business with low financial risk-taking in order to enable the implementation of profitable and value-creating urban development projects. In the light of increased investment pace in urban development projects, the Board of Directors believes that a lower dividend payout ratio will be appropriate and has therefore decided on a new dividend policy.
The company has a project portfolio corresponding to an investment volume of approximately SEK 40 billion in already owned land or obtained land allocations. The investments, with implementation over the next 10–15 years, are primarily planned in four areas in Stockholm where the company already has a large property portfolio: Hagastaden, Slakthusområdet, Slussen/Södermalm and Sickla, all adjacent to existing or future metro stations. Atrium Ljungberg has previously sold properties that have been considered to be fully developed or located in non-strategic locations and then reallocated the capital to the acquisition of properties and/or implementation of profitable and value-creating projects. The work with this type of property portfolio transition and capital efficiency will continue. In addition, Atrium Ljungberg regularly assesses complementary measures to strengthen the capital structure and enable project investments with low financial risk-taking and thus contribute to creating value for the company, its shareholders and society.
In recent years, the company has had a dividend policy meaning that at least 50% of the profit before changes in value, after nominal tax, should be distributed unless investments or the company’s financial position in general justify deviating from this. Over the past 10 years, the dividend payout ratio has amounted to 48–59% of the profit from property management, where the company has been in the upper range in recent years. In the light of increased investment pace in urban development projects, the Board of Directors considers that a lower dividend payout ratio will be appropriate and therefore has decided on a new dividend policy.
The new wording reads: “The company’s dividend policy means that approximately one-third of the profit from property management is distributed, unless investments or the company’s financial position in general justify deviating from this. In addition, the Board of Directors may propose that profits of non-recurring nature may be transferred to the owners.” The new dividend policy will be applied to the proposed dividend for the financial year 2023.
Nacka, 12/12/2023
Atrium Ljungberg AB (publ)
This information is information that Atrium Ljungberg AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 14.30 CET on 12 December 2023.
For additional information, please contact:
Ulrika Danielsson, CFO Atrium Ljungberg, tel. +46 (0) 70-647 12 61, ulrika.danielsson@al.se
Atrium Ljungberg is one of Sweden’s biggest listed property companies. We own, develop and manage properties in growth markets in Stockholm, Uppsala, Gothenburg and Malmö. Our focus is on developing attractive urban environments for offices and retail, supplemented with residentials, culture, service and education. The total letting area is approximately 1 million m2, distributed across around seventy properties and valued at SEK 58 billion. Our retail hubs draw almost 30 million visitors on an annual basis and our areas include more than 30,000 workers and students as well as 1,000 residents. Our project portfolio will enable us to invest the equivalent of approximately SEK 40 billion in the future. Atrium Ljungberg is listed as ATRLJ-B.ST on the Nasdaq Stockholm Large Cap list. Find out more at www.al.se