Fabege (FABG) investor relations material

Executive summary

• Rental income increased to SEK 892 million, up 3.1% year-over-year, driven by new project completions and strong tenant demand.

• Net letting was SEK 24 million, with the vacancy rate stable at 14%.

• Surplus ratio reached a record 72% for Q1.

• Signed a major lease with Stockholms Sjukhem for an elderly care facility in Haga Norra; Permobil consolidated operations in Arenastaden.

• Residential development contributed SEK 172 million in income and SEK 40 million in profit, with a 23% margin.

Financial highlights

• Rental income was SEK 892 million (up from SEK 865 million), and net operating income rose to SEK 639 million.

• Profit from property management increased nearly 30% to SEK 370 million.

• Surplus ratio improved to 72% from 69% year-over-year.

• Value changes in properties were negative at SEK –259 million, mainly due to high vacancy in Solna.

• Earnings per share improved to SEK 0.40 from SEK –0.48.

Outlook and guidance

• Investment for 2026 expected to be slightly below SEK 2 billion, with increases dependent on new board-approved projects.

• Focus remains on decreasing vacancies and securing value creation in ongoing and future projects.

• Targeting SEK 2.5 billion annual investment volume and SEK 50 million net lettings per year over the business cycle.

• Management remains optimistic about reversing recent property value writedowns, especially in Solna.

• Expecting to hand over approximately 60 new apartments in Q2 2026.