Fabege (FABG) Q1 2025 earnings summary

Executive summary

• Portfolio of 99 properties in Stockholm valued at SEK 77.8bn, with a lettable area of 1.3m sqm and rental value of SEK 4.2bn.

• Achieved positive net leasing of SEK 6m after several quarters of negative figures, despite a cautious market environment.

• Focus on office properties in Stockholm, a region with strong economic growth, high employment, and innovation.

• Management emphasizes the importance of offices and sees opportunities in current market changes.

• Management highlights a continued strong financial position with a loan-to-value ratio of 43% and equity ratio of 46%.

Financial highlights

• Rental income for Jan–Mar 2025 was SEK 865m, nearly flat compared to SEK 867m last year.

• Operating surplus declined to SEK 600m, with a like-for-like decrease of 5.5%.

• Profit from property management was SEK 285m, down from SEK 329m year-over-year.

• Earnings per share improved to SEK -0.48 from SEK -2.22 year-over-year.

• Unrealized property value changes were SEK -656m, a smaller loss than SEK -1,381m last year.

Outlook and guidance

• Management targets growth in management profit and best total return in the property portfolio.

• Plans to increase occupancy rate to 95% and invest in new projects for long-term growth.

• Market remains cautious with increased uncertainty due to political turbulence.

• Office occupancy expected to rise with economic recovery; Stockholm office supply not expected to grow significantly in coming years.

• Focus on increasing occupancy, cost control, and value-creating transactions.