Four reasons for investing in Logistea

Four reasons for investing in Logistea

Strong financial position

Financially strong owners, solid finances and stable revenue streams are the foundation for Logistea’s ambitious growth strategy and long-term sustainable value creation. Following the rights issue completed during the year and the redemption of bond loans, our loan-to-value ratio had decreased to just under 45.5 per cent at year-end. The interest coverage ratio, which stood at 1.9 at year-end, is expected to increase considerably in the quarters ahead as a result of stable revenues, index adjustments and lower net financial items.

Attractive asset class

Logistea operates in an increasingly attractive segment of the real estate market, with higher returns than other categories of real estate. Demand for warehousing, logistics and light industry properties in good locations is driven by several factors. Many companies are planning to move manufacturing and warehousing closer to the domestic market. With increasing digitalisation and the ever-growing share of e-commerce in the market, retailers need to devel-op more efficient warehouse and logistics management. Logistea acquires and manages properties and land for development in attractive locations. Our properties are mainly located near important logistics hubs at Borås, Gothenburg, Jönköping, Linköping, Örebro and Öresund in central and west Sweden.

Well-diversified customer base with long leases

Logistea strives for long-term customer relationships. Our tenants are finan-cially stable companies in a wide range of business areas in various sectors, which is expected to lessen the risk of rental losses and vacancies and provide a steady cash flow over time. Logistea seeks to engage in long-term contracts with the aim of creating mutually beneficial relationships and at year-end the average remaining lease term was 7.9 years. The agreements consist mainly of triple net leases with full CPI adjustment.

Real estate and transaction experience

Logistea has an efficient and right-sized organisation. We have collective expertise with long experience in real estate management, transaction management and development. We strive for a professional, inclusive and open corporate culture and are committed to ensuring that the industry develops in a positive direction, while contributing to a sustainable society.