Strategic Financial Objectives
Long-term financial objectives
SRV’s strategy and all of its operations are guided by the 2021–2024 strategic financial objectives that were approved in February 2021:
- Operative operating profit: 6 per cent by the end of the period.
- Gearing excluding the impact of IFRS 16: 40–60 per cent by the end of the period.
- As the company gradually reduces its indebtedness, SRV expects that it will pay dividends in accordance with its dividend policy no earlier than for the 1 January–31 December 2023 financial year. The longer-term objective is to distribute dividend of 30-50 per cent of the annual result, taking into account the capital needs of business operations.
The updated definition of operative operating profit is used in these financial objectives.
The achievement of the set strategic objectives is based on operational efficiency and stable cash flow. In addition, the company must bolster its position in the private-sector business premises market and step up its developer-contracted housing production alongside projects for investors. The company seeks to divest itself of shopping centres that are in the management phase at an appropriate time on the basis of the development phase of the centres and the market situation.
Reaching the profitability targets requires not only boosting the efficiency of the company’s own operations, but also the more prudent selection of new projects with regard to risk level, profitability and capital commitment. The company anticipates that it will achieve its strategic earnings level by the end of 2024.