Fabege (FABG) Q2 2026 earnings summary

Executive summary

• Rental income increased by 5.9% year-over-year to SEK 1,794m for Jan–Jun 2026, with a surplus ratio of 74% in Q2 and occupancy improving to 87%.

• Property value at quarter-end was SEK 79 billion, with major lease terminations impacting net letting, though new large leases in Solna Business Park and the acquisition of Gadden 1 in Sveaplan for SEK 202m contributed positively.

• High tenant satisfaction, with 95% of tenants recommending the landlord and an average lease duration of 5.5 years.

• Construction contract signed for Haga Norra Block 4 (132 residential units, SEK 360 million investment), with move-in during 1H 2028.

Financial highlights

• Rental income for Jan–Jun 2026 was SEK 1,794m, net operating income SEK 1,310m, and profit from property management SEK 773m, up 18% year-over-year.

• Net interest expense rose to 2.89%, with average interest cost at 2.88%; net interest expense increased to SEK –495m.

• Profit for the period was SEK 512m, compared to a loss of SEK –267m year-over-year; earnings per share were SEK 1.63.

• Unrealized value changes totaled SEK –139m for H1, but Q2 saw a positive SEK 120m.

• EPRA NRV per share was SEK 144–145; total return on properties 1.5%.

Outlook and guidance

• Management expects continued value creation from ongoing projects, a focus on reducing vacancies, and leveraging the landbank for both commercial and residential opportunities.

• Market recovery is spreading but remains selective, with positive leasing momentum in core areas and increased demand from start-ups and AI companies.

• The company targets a surplus ratio of 75% and an occupancy rate of 95% by 2030.