Neobo Fastigheter AB (publ) has been listed on Nasdaq First North Premier Growth Market since February 10, 2023. During the autumn, the Board and Management have conducted a review of the company’s financial targets and dividend policy and studied the prospects for a list change to Nasdaq Stockholm’s main list.
Given the current market conditions and the company’s investment needs, the Board is of the opinion that the company and its shareholders would benefit and the best total yield is achieved by reinvesting profits in the business, for which reason the dividend policy will be removed. Value-generating investments will take place in the form of apartment renovations and sustainable investments that will help increase returns from the properties. Additionally, the Board has resolved to remove the equity/assets ratio target given that there are restrictions in the loan-to-value ratio.
After these changes, Neobo’s financial targets and risk limitations are as follows:
- Return on equity over time shall exceed 10 percent
- Loan-to-value ratio shall not exceed 65 percent of the properties’ market value
- Interest coverage ratio is to exceed a multiple of 1.5
Furthermore, the Board has tasked Management to prepare Neobo for a list change to Nasdaq Stockholm’s main list in 2024. A listing on Nasdaq Stockholm is a seal of quality while also increasing opportunities to broaden the investor base and enable the repurchase of shares.
“During the year, we have laid the foundation to increase the return from our property portfolio by raising rental income, reducing the vacancy rate and implementing value-generating sustainability investments. Today’s decision offers us an excellent opportunity to accelerate this work and take the next step in our exciting journey,” says Ylva Sarby Westman, CEO of Neobo.