Magnolia Bostad presents new goals and new dividend policy

Magnolia Bostad presents new goals and new dividend policy that today have been adopted by the Board. The company’s business goals and financial goal are based in the company’s business plan which includes rental accommodations, tenant-owned apartments, community service properties and hotels, both for sale and for self-management.

With the background of Magnolia Bostad's investment in the development of properties for self-management, the board has reviewed the company's goals and dividend policy so that they better reflect future business.

Business goals

• Before the end of 2025, Magnolia Bostad will have at least 4,000 completed residential units for self-management or alternatively have investment properties with a market value of at least SEK 8 bn. This refers to Magnolia Bostad's own ownership and the company's ownership interest in JVs.
   

• Magnolia Bostad must start production of at least 3,000 residential units per year, seen as an average over a business cycle.

Financial goal:

• The equity/assets ratio must be at least 30%.

These new targets replace earlier communicated business goals and financial goals.

Dividend policy

The long-term dividend must correspond to up to 30 percent of the result. In the next few years, Magnolia Bostad will prioritize investments in the building rights portfolio and in investment properties, which will mean no or low dividends during this period.

For more information, please contact:

Johan Tengelin, CEO
johan.tengelin@magnoliabostad.se

Fredrik Westin, CFO
Fredrik.westin@magnoliabostad.se

Marita Björk, IR and financial media Manager
+46 72 720 00 06, marita.bjork@magnoliabostad.se

The information contained in this press release is information that Magnolia Bostad is required to publish pursuant to EU Market Abuse Regulation (EU) No 596/2014. The above-mentioned contact persons were responsible for the submission of the information on 23 February 2021 at 22.30 CET.

Magnolia Bostad AB, CIN 556797–7078, is a leading urban developer that develops new residential properties primarily rental apartments but also tenant-owned apartments, community service properties and hotels, in attractive locations in Sweden's growth areas and major cities. Housing is being developed both for sale and for self-management. Our work is based on a holistic approach where the operations are conducted in a way that promotes long-term, sustainable urban development. Magnolia Bostad's shares (MAG) are listed on Nasdaq Stockholm. More information is available at www.magnoliabostad.com/en