Continued strong position for Wihlborgs

The spread of COVID-19 has had a profound effect on the global economy thus raising questions on how the situation affects Wihlborgs. Over an extended period, Wihlborgs has built a strong financial position, which means we are well-equipped to meet challenges ahead.

Photo by Alexander Olivera.

Wihlborgs has a broad lettings portfolio and only a minor portion of its tenants are in segments that have been hardest hit in the short term. The hotel and restaurant categories account for a total of 1.7 percent and 1.1 percent respectively of our total contractual rental income. Retail accounts for a further 3 percent.

At the end of the year, our equity/assets ratio amounted to 38.4 percent and our loan-to-value ratio to 51.9 percent. Wihlborgs has unutilised credit facilities in place with banks, which will enable us to redeem all of our bonds maturing this year, EUR 160 million in total.

Ahead of the Annual General Meeting on 28 April, Wihlborgs’ Board proposed distribution of a dividend of EUR 0.41 per share, corresponding to EUR 62 million. The proposal stands.

“We have strong cash flow and a strong financial position. Exposure is low to the most vulnerable sectors and we will work with long-term solutions aimed at providing these customers with the prerequisites to cope with these difficult conditions”, says Ulrika Hallengren, CEO of Wihlborgs.

“We are continuing our investments and have prepared our operations to manage an extremely turbulent period. At the same time, we are retaining focus to ensure we are ready when the time is ripe for new investments.”