Fabege (FABG) Q1 2025 earnings summary

Executive summary

• Portfolio consists of 99 properties in Stockholm, valued at SEK 77.8bn to nearly SEK 80bn.

• Rental income stable at SEK 865m for Q1, with surplus ratio at 69%.

• Net loss after tax improved to SEK -151m from SEK -699m year-over-year, with EPS at SEK -0.48.

• Office occupancy and collaborative spaces are increasingly important post-pandemic.

• Market turbulence and economic uncertainty persist, but confidence in Stockholm's long-term growth remains.

Financial highlights

• Q1 rental income was SEK 865m, slightly below last year; like-for-like income decreased by SEK 20m (-2.7%).

• Surplus ratio at 69% (down from 71%); profit from property management SEK 285m, down from SEK 329m.

• Unrealized property value changes were -SEK 565m to -SEK 656m; realized changes from property sales were -SEK 37m.

• Tax expense/income was SEK 141m, with SEK 128m from deferred tax reversal on property sale.

• Net interest expense SEK -242m; average interest rate at quarter-end was 2.91%.

Outlook and guidance

• If economic conditions normalize, management expects 2–3 years of favorable development.

• Target to increase occupancy rates to 95% by 2030, with gradual improvement expected.

• No speculative project starts planned; new developments will be timed to market demand.

• Focus on completing existing projects and achieving best total return in the property portfolio.

• Market changes seen as opportunities for efficiency and repositioning.