Fabege (FABG) Q3 2024 earnings summary

Executive summary

• Rental income for Jan–Sep 2024 was SEK 2,577m, up from SEK 2,539m year-over-year, with a 5% like-for-like increase.

• Net profit after tax for Q3 2024 was SEK 14m, a turnaround from a loss of SEK 992m in Q3 2023; for Jan–Sep, net loss after tax improved to -668 MSEK from -3,527 MSEK.

• Gross profit for Jan–Sep was SEK 1,907m, slightly down from SEK 1,923m last year; operating surplus rose to 1,924 MSEK with a stable surplus ratio of 75%.

• Net lettings for Jan–Sep were negative at SEK -85m, with Q3 at SEK -11m, reflecting lower leasing activity and increased vacancies.

• Property portfolio value was 78.2 BSEK at period end, focused on Stockholm's prime submarkets.

Financial highlights

• Net revenue for Jan–Sep 2024 was 2,807 MSEK, with Q3 revenue at 935 MSEK.

• Operating profit (förvaltningsresultat) for Jan–Sep was 1,012 MSEK, and Q3 was 353 MSEK.

• Net profit per share for Jan–Sep was SEK -2.12, compared to SEK -11.21 last year.

• Like-for-like rental growth was 5% for the period, down from 12% last year.

• Property value change for Jan–Sep was SEK -1,232m, or -1.6%.

Outlook and guidance

• Priorities for 2024 include increasing occupancy, cost control, enabling future projects, refinancing bond maturities, and maintaining sustainability leadership.

• Management expects continued market uncertainty and cautious sentiment, with a focus on a surplus ratio of 75% and net lettings of at least 80 MSEK per year.

• Riksbanken's interest rate cuts and improved capital market conditions are expected to support financing and lower interest costs.