Capital allocation and structure

The primary objective of HusCompagniet’s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximize shareholder value. HusCompagniet manages its capital structure and makes adjustments to it in light of changes in economic conditions. To maintain or adjust the capital structure, HusCompagniet may adjust the dividend payments to shareholders, acquire its own shares or issue new shares.

HusCompagniet has a target leverage of <2.0x net debt to EBITDA considering the Group’s cash flow profile.

Dividend policy

The Board of Directors has adopted a dividend policy with a target initial pay-out ratio of at least 50% of reported profit for the year. The first dividend payment is expected to be paid out in the second quarter of 2021 on the basis of the results of the financial year ended 31 December 2020. The dividend policy is subject to change at the discretion of the Board of Directors, and there can be no assurance that the Group’s performance will facilitate adherence to the dividend policy and that in any given year a dividend will be proposed or declared.