Fabege (FABG) Q3 2025 earnings summary

Executive summary

• Portfolio focused on Stockholm with 99 properties valued at SEK 78.5 billion and 1.3 million sqm lettable area.

• Q3 2025 saw gradual market improvement, with rental income of SEK 864 million (up from SEK 847 million year-over-year), net leasing of SEK 9 million (compared to -11 million last year), and a surplus ratio of 78%.

• Result after tax for Q3 was SEK 99 million, a significant increase from SEK 14 million in Q3 2024.

• Management notes a cautious market recovery, with increased inquiries and viewings, especially in central Stockholm.

• Key project milestones include major tenant move-ins and ongoing renovations at key properties.

Financial highlights

• Rental income for Jan–Sep 2025 was SEK 2,581 million, slightly up from SEK 2,577 million year-over-year.

• Net operating income for Jan–Sep 2025 was SEK 1,050 million, up from SEK 1,012 million.

• Surplus from property management was SEK 1,906 million, with a surplus ratio of 74%.

• Value changes in properties were negative at SEK -988 million (compared to -1,236 million), corresponding to -1.3%.

• Earnings per share for Jan–Sep 2025 was SEK -0.53 (improved from -2.12 year-over-year).

Outlook and guidance

• Ongoing projects and investments are expected to support long-term growth, with a focus on increasing occupancy to 95% and delivering the best total return in the property portfolio.

• Management expects continued selective demand for prime locations and flexibility, with stable or slightly increasing office employment in Stockholm for 2026–2027.

• Market conditions in Stockholm remain favorable, with strong employment and innovation clusters.

• Market activity is cautiously increasing, but macroeconomic and geopolitical uncertainties persist.