Peab’s management steers the business based on the Board’s guidelines that are founded on three financial goals – Return on equity, the Equity/assets ratio and Dividends.
The goals are concrete, clear and simplify communication with financial markets. We use our goals to measure how well we can meet the market long-term, regardless of business and development cycles. Due to changes in the financial situation our goal achievement may vary.
Return on equity will be a minimum of 20 percent
The return on equity amounted to 17.9 percent (19.6) in 2019. Return on equity has been close to the goal of 20 percent in recent years due to
higher earnings in operations. In 2019 return on equity was slightly lower partly due to a higher equity/assets ratio.
Equity/assets ratio will be a minimum of 25 percent
In recent years the equity/assets ratio has been better than the goal and in 2019 it amounted to 31.7 percent (30.4). Excluding additional IFRS 16, Leases the equity/assets ratio amounted to 32.3 percent.
Dividends will be a minimum of 50 percent of profit after tax
In February 2020, Peab’s Board proposed an ordinary dividend of SEK 4.20 per share as well as extra distribution of all the shares in Annehem Fastigheter holding Peab’s wholly owned, fully developed commercial properties. As a result of the spread of the coronavirus and its effects on external circumstances and financial markets Peab’s Board decided to withdraw the proposals to the Annual General Meeting. The Board’s ambition is to regularly evaluate dividend capacity and depending on developments be able to make a decision on both the ordinary dividend and the right time to distribute Annehem Fastigheter. For 2018 the dividend amounted to SEK 4.20 per share, which corresponded to 59 percent of profit for the year.
* Not recalculated taking IFRS 15 into account