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.

• H1 2025 revenue was SEK 1,717m, down from SEK 1,731m year-over-year; Q2 revenue was SEK 852m, down from SEK 864m.

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

• Result per share was SEK -0.85, up from SEK -2.17 in the same period last year.

• Market conditions remain challenging, with stable demand for prime offices but higher vacancies in peripheral and older properties.

Financial highlights

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

• Net operating income margin was 72% for H1, down from 73% year-over-year; surplus ratio was 74% in Q2.

• Unrealized property value change was SEK -650m for H1, a smaller loss than SEK -1,461m last year.

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

• Net interest expense for H1 was SEK -482m; average interest rate at period end was 2.89%.

Outlook and guidance

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

• Management expects gradual economic recovery in Sweden through 2025–2026, with GDP growth of 1.5–2.0% per year.

• Riksbank rate cuts and increased market activity for sustainable, certified buildings are seen as positive.

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