Genova’s overall objective is to create value for the company’s shareholders. Value creation is measured over a business cycle as growth in both long-term net asset value and income from property management per ordinary share. The goals were set by Genova’s Board in January 2021.
Long-term net asset value
Achieve an average annual growth of at least 20% in long-term net asset value per ordinary share (including any value distributions to ordinary shareholders) over a business cycle.
Income from property management
Achieve an average annual growth of at least 20% in income from property management per ordinary share over a business cycle.
The goal is that the growth in net asset value and income from property management shall be created while maintaining a continued stable and strong financial position and with balanced financial risk-taking, meaning that:
Over time, the equity/assets ratio shall be at least 35%.
Over time, the loan-to-value ratio shall not exceed 65%.
Over time, the interest-coverage ratio shall be higher than 2.0.
Rental income from residential and community service properties is to account for at least 70% of Genova’s total rental income by the end of 2023.
Ongoing construction of own-produced residential units should amount to at least 1,500 units per year from 2022.