Fabege (FABG) Q3 2008 earnings summary

Executive summary

• Jan–Sep rental income SEK 1,674m vs SEK 1,534m; comparable-property rental income rose 5.5% and net operating income 6.8%.

• Jan–Sep profit after tax SEK 251m vs SEK 1,178m and diluted EPS SEK 1.50 vs SEK 6.39; results included unrealised property-value changes of SEK -460m vs SEK 610m.

• Q3 profit after tax was SEK -272m vs SEK 313m, including unrealised property-value changes of SEK -453m vs SEK 216m.

Financial highlights

• Jan–Sep net operating income was SEK 1,084m vs SEK 968m; surplus ratio was 65% vs 63%.

• Profit after financial items was SEK 62m vs SEK 1,390m; net interest expense increased to SEK 603m from SEK 444m.

• Realised property-value gains were SEK 143m vs SEK 207m; fixed-income derivative value changes were SEK -45m vs SEK 38m.

Outlook and guidance

• Stable rental income was expected going forward; management expected falling market rates to feed through rapidly into lower interest expense.

• Borrowing capacity was sufficient for the adopted investment programme, with access to finance remaining stable despite market turbulence.

• Largest projects in progress could raise annual rent to SEK 220m when fully let, from SEK 77m at 30 September.