Fabege (FABG) Q3 2009 earnings summary

Executive summary

• Property-management earnings rose 43% to SEK 624m for Jan-Sep, supported by lower financing costs and improved operating efficiency.

• Q3 property-management earnings increased almost 90% YoY; the quarterly surplus ratio reached 70%.

• Jan-Sep profit after tax was SEK 202m versus SEK 251m; EPS was SEK 1.23 versus SEK 1.50.

Financial highlights

• Jan-Sep rental income was SEK 1,647m versus SEK 1,674m, reflecting property disposals; comparable-property rental income grew 3%.

• Net operating income was SEK 1,109m versus SEK 1,084m; comparable-property NOI increased just over 6%.

• Profit before tax was SEK 409m versus SEK 62m; realised property gains were SEK 18m and unrealised property losses SEK 345m.

• Q3 rental income was SEK 551m versus SEK 549m; Q3 profit after tax was SEK 71m versus a SEK 272m loss.

Outlook and guidance

• Management saw signs of economic recovery and improved transaction-market liquidity; Stockholm conditions remained stable.

• Major projects in progress could raise annual rent to SEK 180m when fully let, from SEK 127m at 30 September.

• Arenastaden's development plan took effect in October, enabling the project to proceed alongside Swedbank Arena.