Risks and Risk Management

Nyfosa is exposed to various risks, which could potentially impact the company’s future operations, earnings and financial position. The organization is aware of the risks and through preventive actions the company endeavors to limit and manage risks wherever possible.

Nyfosa divides relevant risks and uncertainties for the company into six categories.

With a structured and market-centric organization, Nyfosa works continuously to identify, monitor, prevent and address a rapidly changing external environment. The flexible and opportunistic business model means that the operations can rapidly adapt to new conditions.

Nyfosa works in a structured manner to manage, develop and add value to the existing property portfolio in close collaboration with tenants with the aim to increase the properties’ earnings capacity and value. By focusing proactively on the properties, it is possible to meet the tenants’ changing needs by finding smart solutions and sustainable investments. The identified risks and opportunities are probable in both the short and long term. The company’s properties are managed from a long-term perspective to ensure as long a period of utilization as possible. Subsequently, climate-related risks and opportunities will in the long term have an impact on the company’s assets.

Nyfosa will primarily obtain financing through the bank market. Good relationships with creditors are important and establish a long-term approach and a reduced refinancing risk. The company will continuously endeavor to maintain as effective and profitable a capital structure as possible considering the given risk limits. In addition, most of the interest-rate risk is to be systematically hedged to reduce interest-rate exposure.

A market-centric organization and transaction-oriented employees guarantees what is necessary for Nyfosa’s transaction-based business model. The approach is focused on strengthening cash flows and yield, regardless of market.

Nyfosa’s property management creates value by adding value to a property portfolio, both big and small. The starting point is to optimize every property, satisfy the needs of the tenants and reduce the operation’s climate impact. Nine regional offices in Sweden and two in Finland manage the portfolio. There are also local offices in a number of places, which work under the regional offices. Properties are primarily managed by the company’s in-house personnel in key roles such as tenant relationships, technical management and leasing.

Nyfosa’s transaction-based business model and geographically diversified portfolio require a flexible and market-centric organization. Using a model of close cooperation with external service providers, the business can be adapted, while maintaining high quality, in pace with changes in the property portfolio. For the employees, it is a security to be able to adapt the operations in the event of rapid changes using a high-quality external network of knowledge.