Capital structure
Capital components
- Equity
- Subscribed by the named investors, who become the legal owners of the equity interests in the SPV. Ownership interests and rights are documented in the company's articles of association, register of shareholders, and subscription materials.
- Basis for distributions
- Available cash and returns of capital are distributed to investors in accordance with the rights attached to their equity interests and the company's contractual arrangements. Management fees are disclosed separately as expenses.
- Danish mortgage credit financing
- Usually the principal source of financing, obtained from an established Danish mortgage credit institution with moderate LTV and a long maturity.
- Bank liquidity
- Any supplementary operating credit facility is used solely for operational purposes, not to finance distributions.
- Liquidity reserve
- A mandatory reserve for each SPV to cover ongoing operations, planned maintenance, and unforeseen circumstances.
Leverage principles
Leverage is set conservatively for each SPV at acquisition. The company does not use speculative mezzanine financing or short-term refinancing structures. The refinancing strategy is prepared at least twelve months before existing financing matures.
Loan-to-value is determined based on a conservative valuation, not projected appreciation. Interest coverage is assessed against stress scenarios, and the capital structure may be adjusted if assumptions change.
Distributions
Available cash is distributed quarterly after scheduled debt service, maintenance reserves, and operating expenses. The amount of distributions is determined at a general meeting and must not compromise the SPV's ability to meet its ongoing obligations.
Distributions and returns of capital are made to investors in accordance with the rights attached to their equity interests, the articles of association, and the shareholders' agreement. Nordic Estates administers the calculations and execution on behalf of the company. The management fee is disclosed separately in the management agreement and reporting.
For investor inquiries, due diligence materials, or discussions about this document.
Contact investor relationsinfo@nordicestates.dk
