Sagax is a property company whose business concept is to invest in commercial properties, primarily in the urban logistic and light industry segment.
The company's overall goal is to, over the long term, generate the highest possible risk-adjusted return for the Company's shareholders.
To reach this goal, Sagax has set the following operational targets:
- Sagax shall have a clear focus on long-term growth of the company's income from property management. Long-term lease agreements and long fixed-interest periods create the conditions for efficient use of the group's equity and ensure a stable return from the property holdings.
- Sagax shall strive to manage the company with high efficiency and low operational risk.
- Sagax shall continue to expand through complementary property acquisitions and investments in existing property holdings.
On December 31, 2018, the property portfolio comprised 51 properties with a lettable area of 2,850,000 square meters. The average remaining lease term was 6.0 years. At the end of the period, the total rental value and contractual annual rent amounted to SEK 2,510 M and SEK 2,378 M, respectively. This corresponds to an economic leasing rate of 95%.
Forecast for 2019
Profit from property management for 2019, meaning profit before revaluations and tax, based on the current property portfolio as well as announced acquisitions and divestments, is expected to amount to SEK 1,900 M.