Fabege (FABG) Investor Update summary

Leadership transition and background

• New CEO Bent Oustad introduced, bringing extensive experience from Norwegian Property and ABG Sundal Collier, with a strong background in real estate asset management and corporate finance.

• Oustad emphasizes a hands-on, detail-oriented approach and familiarity with the Swedish and Stockholm property markets.

• CFO Åsa Bergström expresses confidence in the transition, noting Oustad's prior board experience with the company.

Strategic focus and operational priorities

• Reducing vacancy is the top operational priority, with over SEK 500 million in annual rent currently vacant and a vacancy rate of 13-14%.

• Emphasis on clustering properties in core areas to maximize synergies and operational control, particularly in Arenastaden, Haga Norra, and Hagastaden.

• Plans to be more active and opportunistic in transactions and portfolio management compared to recent years.

• Strong balance sheet seen as essential for seizing market opportunities and maintaining flexibility through cycles.

Portfolio composition and market outlook

• Portfolio is well-diversified but could benefit from further concentration in central Stockholm for better area control.

• Some building rights will be developed internally, especially where the company controls both residential and commercial assets; others may be divested.

• Optimism about the Stockholm office market, with expectations for improvement compared to the previous year.

• AI and other megatrends are expected to impact office demand, but leasing remains the primary focus; conversions to other asset types are limited.