Fabege (FABG) Q2 2025 earnings summary

Executive summary

• Portfolio focused on Stockholm with 99 properties valued at SEK 78.3bn and 1.3m sqm lettable area.

• Net profit for Jan–Jun 2025 was SEK -267m, an improvement from SEK -682m year-over-year.

• Result per share was SEK -0.85 for Jan–Jun 2025, up from SEK -2.17 last year.

• Rental income for Q2 2025 was SEK 852m, down from SEK 864m year-over-year, mainly due to property sales and relocations, partially offset by new project completions.

• Market conditions remain weak but show signs of increased activity and stable demand for premium, sustainable office spaces.

Financial highlights

• Rental income for Jan–Jun 2025 was SEK 1,717m, slightly down from SEK 1,731m year-over-year, with like-for-like income down 3.3%.

• Net operating income for Jan–Jun was SEK 1,233m (1,269), with a margin of 72% (73%).

• Unrealized property value change was SEK -671m, a smaller loss than SEK -1,461m last year.

• Total property return was 0.7%, up from -0.2% year-over-year.

• Profit from property management for Jan–Jun was SEK 657m (659).

Outlook and guidance

• Growth strategy focuses on completing current projects, increasing occupancy to 95%, and investing in new projects.

• Aims for best total return in the property portfolio and growth in management results.

• Expects stable yields and interest rates below 3% for the remainder of 2025.

• Market activity is increasing, especially for premium, sustainable offices, with cautious optimism for gradual improvement in H2 2025 and 2026.

• GDP growth in Sweden is forecast at 1.5–2.0% for 2025–2026, with further Riksbank rate cuts possible.