Atrium Ljungberg changes its dividend policy and strengthens its execution power of the project portfolio
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.