Hufvudstaden

Hufvudstaden

HHufvudstaden is one of Sweden’s leading real estate companies. The company’s business concept is to use its own properties in central Stockholm and central Gothenburg to offer successful companies high-quality office and retailing premises in attractive marketplaces. 

Hufvudstaden’s properties are situated in prime locations in Stockholm and Gothenburg. The company owns commercial office and retail  properties in the central business districts, including Hamngatan, Norrmalmstorg, Kungsgatan and Bibliotekstan in Stockholm and Inom Vallgraven and Östra Nordstan in Gothenburg. This makes Hufvudstaden one of the most specialized and geographically concentrated real estate companies in Sweden. Rentable space totals 386,600 sqm, with an annual rental value of SEK 2.4 billion. The real estate portfolio was market valued at SEK 46.7 bn. at the end of 2023. 

Business areas

The operation is divided into three business areas. The Stockholm business area consists of 22 properties with total rentable space of  210,900 sqm. This area has constituted the core of the real estate portfolio since the company was founded in 1915. The portfolio is entirely commercial and consists of office and retail properties. The business area also includes Cecil Coworking, which offers flexible workplaces in an attractive location with first class service. The NK business area consists of three properties with total rentable space of 91,300 sqm. This business area includes the NK properties in Stockholm and Gothenburg and owns the NK trademark. It also includes the parking operations of the subsidiary Parkaden AB. NK Retail, which is a wholly owned subsidiary of AB Nordiska Kompaniet, operates a total of approximately 33 fashion, beauty and accessories departments at NK Stockholm and NK Gothenburg. NK’s online store represents a digital complement to the department stores. The Gothenburg business area has four properties with total rentable space of 88,600 sqm. Hufvudstaden is one of the largest owners in the Nordstans shopping center, one of Sweden’s largest shopping centers with attractive retail, parking and modern offices in the best commercial location. 

Hufvudstaden works actively to develop the high quality and efficiency of its real estate portfolio in respect of existing commercial premises and also by developing and creating new development rights. Through a methodology that focuses on sustainability and longterm thinking, the premises gain a higher technical standard and more flexible floor plans, thus contributing to an improved net operating income and higher returns. The intention is to create favorable value growth and to adapt offices and stores together with customers in accordance with their conditions and needs. The company focuses on providing a high level of service, which requires close collaboration with tenants. All properties are located within walking distance of Hufvudstaden’s offices and the company’s own operational engineers are responsible for management and maintenance of the properties. Hufvudstaden also has a business development unit whose purpose is to initiate and pursue commercial projects involving offices, retail and digital development in order to ultimately increase the company’s profitability.

Sustainability

Hufvudstaden works actively and on a long-term basis to achieve economic, environmental and social sustainability. This is done by minimizing the climate impact, future-proofing the business and collaborating with customers and suppliers. Hufvudstaden’s sustainability plan has been formulated to comply with the UN Sustainable Development Goals (SDGs). The established sustainability targets include such actions as reduced energy consumption, climate-neutral property management and environmental certification of properties.  

Financial objectives

Hufvudstaden’s financial objective is to achieve good dividend growth over time and provide a dividend that accounts for more than half of the net profit from current operations. Over time, the equity/assets ratio should be at least 40%.