Risk management is an integral part of our business strategy, and encompasses the identification, assessment and management of risks that could affect our ability to achieve our stated objectives. We continually work to monitor and analyse both financial and operating risks in order to limit their potential negative consequences. The priority areas for our risk management include property value, financing, leasing, projects and sustainability.
For description and management of risks, see the Annual and Sustainability Report 2024, pages 40-43.
Sensitivity analysis
The effects on result before tax on a full-year basis, excluding changes in value, in the event of changes in a number of factors are reported in the table below. The increase and decrease in rent levels, vacancy rate, maintenance and operating expenses, depreciation, property tax, and interest rates, show the earnings effects that would have occurred, calculated using current information at the end of the financial year. The reported effects on profit should only be seen as an indication and do not include any effect resulting from compensatory measures that could be taken by the senior executives.
Change in pre-tax profit, excluding changes in value
| Change +/- |
Impact on profit, |
||
| Rent level | SEK 100/sq m | +/- 39 | |
| Vacancy rate1) | 1 percentage point | -/+ 25 | |
| Maintenance, operating expensese and depreciation | 10 per cent | -/+ 21 | |
| Property tax2) | 1 percentage point | -/+ 28 | |
| Interest rate |
1 percentage point | -/+ 22 | |
1) Vacant floor space is estimated at SEK 6,400 per square metre.
2) Taking into account the fact that the costs are in part passed on to the tenants within the framework of the lease agreements.
