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market focus
In Arendal, next to the port of Gothenburg, a warehouse and logistics property of 27,000 sq.m. has been built during 2006. The entire property is let by an
international logistics company.
Decentralised and Small Scale Organisation
Castellum’s operations are run in a smallscale
organization comprising six subsidiaries
which own and manage the properties under
their own brands, see below. By having local
roots the subsidiaries get close relations with
the customers and good knowledge of the
market situation and rental development
within each market area. Property management
is mainly carried out by own personnel.
Castellum has skilled and committed employees
in every position. The group should be
an attractive workplace with good development
possibilities. The Castellum group had
as at December 31, 2006, 199 employees and
each subsidiary has around 30 employees.
Castellum views a sustainable development
with economic growth, social development
and environmental concern a pre-requisite
for successful business operations.
Customers
Good and long-term customer relations and
hence satisfied customers is a pre-requisite
for creating long-term growth in Castellum.
This is achieved by providing efficient and
Eklandia:
Central and eastern
Gothenburg and
Hisingen
30 epra news - april 2007 - www.epra.com
By Håkan Hellström
Harry Sjögren:
Southern Gothenburg,
Mölndal, Borås and
Kungsbacka
well situated premises meeting the customers’
needs regarding both appropriate premises
as well as service.
During the year, 737 new lease contracts
were signed with a total annual value of SEK
287m, while contracts terminated amounted
to SEK 167m. Therefore, net leasing for the
year was SEK 120m. Of the new signed contracts
approximately 75% came from own
networks, recommendations or existing customers
expanding, while around 15% came
from web pages and advertisements, and
the remaining 10% came through agents.
Castellum has a good risk exposure in the
lease portfolio, consisting of approx. 3,900
commercial contracts spreading over many
sectors and durations. The economic occupancy
rate for 2006 was 87.1%
Stable Capital Structure
Castellum’s strategy is to have a stable capital
structure, meaning an equity/asset ratio of
35-45% and an interest coverage ratio of at
least 200%. As of December 31, 2006 the
equity/assets ratio was 42% and the interest
coverage ratio for 2006 was 343%.
Briggen:
Malmö, Lund and
Helsingborg
Brostaden:
Greater Stockholm
Castellum’s dividend policy is that at least
60% of income from property management
after full tax deduction will be distributed,
however investment plans, consolidation
needs, liquidity and financial position in
general will be taken into account. The Board
proposes the Annual General Meeting 2007 a
dividend of SEK 2.85 per share, which is an
increase of 9% compared to previous year.
The dividend ratio is 73%.
Castellum Shares
Castellum works for a stable and positive
price trend with high liquidity in the company’s
shares. The company’s strategy and
actions are made with a long term perspective
in mind.
The Castellum share is listed on OMX – The
Nordic List Large cap and had at December
31, 2006 approximately 7,700 shareholders,
of which 47% are Swedish and 53% foreign.
The Castellum share price at the same time
was SEK 91.25, which is equivalent to a
market capitalization of SEK 15 billion. Since
IPO on 23 May, 1997 the total yield of the
Castellum share has been on average 24.8%
per year. $
Aspholmen:
Örebro, Uppsala
and Västerås
Corallen:
Värnamo, Jönköping,
Växjö and Linköping