BALDER AS AN INVESTMENT
Investing in Balder is an investment in one of the largest privately owned property groups in the Nordic region. Balder is a long-term and stable property owner with a well-diversified property portfolio containing residential, commercial properties and new production projects in capitals and other large cities in six countries.
There are several reasons to invest in Balder. Our professionalism and width combined with local knowledge are some of them.
Historically successful investments
Since the beginning, Balder has invested in residentials, commercial properties and projects in capital cities and other large cities with positive developments. Investments are being made in particular in areas where the company is already active, with an emphasis on Stockholm, Gothenburg, Helsinki and Copenhagen.
Well-diversified property portfolio
The carrying amount distributed by property category, looking at the company's total property portfolio consists of approximately 60 per cent residential and 40 per cent commercial properties. The largest share of the market value is found in the Helsinki region, the Gothenburg region and the Stockholm region.
Strong balance sheet and low financial risk-taking
Balder has an investment grade rating from S&P of BBB with Negative outlook, which among other things reflects the company's large and broad property portfolio, stable occupancy rate and rental income. Furthermore, we have a well-diversified loan maturity structure with a modest share of secured debt and a portfolio well suited for both bond financing and secured bank loans. A balance sheet that fulfils the criteria for an investment grade rating and continuous access to bond financing is well in line with the company's risk profile.
Long-term, engaged owners
The principal owners of Fastighets AB Balder are Erik Selin Fastigheter AB, Arvid Svensson Invest AB and a number of institutional investors. These are listed in Balder's list of shareholders. Balder’s goal is to generate the best long-term total yield for its shareholders. The assessment is still that this is best achieved by reinvesting the profits in the business in order to create further growth.
Growth since the stock exchange launch
Balder’s most important goal is to increase the profit from property management per share over time. Over the past five years, the profit from property management has increased by an average of 17% per year and the net asset value by an average of 20% per year. During the same period, the share has been traded at an average of 102% of the net asset value and 16 times the profit from property management.
Balder has had green financing for several years in the form of green loans and green bonds. All properties that are built by new in-house production shall be certified according to the Miljöbyggnad Silver rating or equivalent. Balder also has an ESG risk rating from Sustainalytics of 12.3, which puts the company comfortably within the low-risk framework. Balder’s objective is to increase the proportion of activities within the business that can be aligned and classified as compliant with the EU taxonomy.