Financier Fredrik Lundberg became CEO of the real estate and investment company Lundbergs in 1981, succeeding his father Lars Erik Lundberg. Lundbergs was listed on the stock exchange two years later, in 1983.
According to calculations by Dagens industri, the stock's total return since its IPO has been 15 680 percent, or 12.4 percent per year. The total return of the Stockholm Stock Exchange during the same period was 13 900 percent, or 12.1 percent per year.
"There have been many deals over the years that have turned out well. But in recent years, I am very satisfied with the investment in Industrivärden, which has worked out extremely well," Fredrik Lundberg said in an interview with Dagens industri.
Lundbergs began buying shares in Industrivärden in 2002 and has gradually increased its holding to 22 percent of the capital and just over 26 percent of the votes.
In the group's portfolio companies, Handelsbanken and construction company Skanska are proposing extra dividends ahead of their annual general meetings. Fredrik Lundberg defends the dividend proposals, pointing out that the companies have strong balance sheets.
Fredrik Lundberg has been cautious with property investments in recent years and has instead increasingly allocated dividends to the portfolio companies.
– I think that quality factors are underestimated, and therefore I believe we will see a greater difference in valuation between different properties and also in their profit development. In central Stockholm, for example, there is currently strong demand for offices. For those who own quality properties, things are moving in the right direction now, I would say, the financier commented on the real estate market.
Fredrik Lundberg is known as a cautious leader who advocates low leverage on properties; Hufvudstaden has 25 percent leverage and Lundbergs Fastigheter 21 percent.
Lundbergs proposed in the year-end report a dividend of 4.90 kronor per share. Fredrik Lundberg's guideline is to increase the dividend by an average of 7 percent per year over time.
L E Lundbergforetagen AB (publ) is a Sweden-based investment company. The Company is engaged in the management and development of a number of companies, by means of active and long-term ownership. Its investment portfolio includes the wholly owned unlisted real estate company, Fastighets AB L E Lundberg, and the publicly traded subsidiaries, Holmen and Hufvudstaden. The Company also has major shareholdings in Handelsbanken, Husqvarna, Industrivarden, Indutrade and Sandvik, as well as held shares in Skanska. Additionally, the Company operates a wholly owned subsidiary, L E Lundberg Kapitalforvaltning AB, which is engaged in securities trading.
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