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Sensitivity analysis

Pandox is exposed to a number of risks and its valuation is dependent on a number of factors. Below we highlight some important factors and their effect on Pandox.

Sensitivity to key valuation parameters
(As of 31 December, 2021)

Investment properties effect on fair valueChange %Effect on value MSEK
Yield+/-0.5pp-4,395/ 5,284
Change in currency exchange rates+/- 1%+/- 374
Net operating income 1)+/- 1%+/- 395 (535)
  
Investment properties effect on revenuesChange %Change in revenues MSEK
RevPAR (assuming 50/50 split between occupancy and rate) 1)+/- 1%+/- 5 (26)
  
Operating properties effect on revenuesChange %Change in revenues MSEK
RevPAR (assuming 50/50 split between occupancy and rate) 1)+/- 1%+/- 7 (22)
  
Financial sensitivity effect on pre-tax earningsChange %Change in pre-tax earnings MSEK
Interest expenses with current fixed interest hedging of our portfolio, change in interest rates 2)+/- 1% +6/-171
Interest expenses with a change in the average interest rate level 2)+/- 1% -215/+31
Remeasurement of interest-rate derivatives following shift in yield-curves+/- 1% -/+ 988

1) The value refers to level end of 2021 based on 32 fully variable agreements and 16 agreements (of total 96) with variable rent in addition to the minimum level. In lease agreements with a minimum level, variable rent is generated only when accumulated rent exceeds the minimum level. The value in parentheses refers to 2019, which was unaffected by the Covid-19 pandemic and is an approximation for a normal financial year.

2) The earnings effect is asymmetrical due to limited possibilities for Pandox to benefit in full from negative interest rates.