Fabege (FABG) Q3 2025 earnings summary

Executive summary

• Portfolio focused on Stockholm with 99 properties valued at SEK 78.5bn and a lettable area of 1.3 million sqm, generating a rental value of SEK 4.2bn.

• Q3 2025 saw stable financials with rental income of SEK 864m (847), net lettings positive at SEK 9m (-11), and profit from property management at SEK 393m (353).

• Earnings after tax for Q3 2025 reached SEK 99m (14), or SEK 0.32 per share (0.04), with a surplus ratio of 78% (77).

• Market activity is showing cautious recovery, especially in Stockholm, with increased enquiries and viewings.

• Positive net letting and improved renegotiations, particularly in the inner city and Arenastaden.

Financial highlights

• Rental income for Jan–Sep 2025 was SEK 2,581m (2,577), with net operating income SEK 1,906m (1,924) and profit from property management SEK 1,050m (1,012).

• Surplus ratio at 74% (75) for Jan–Sep, equity/assets ratio at 45% (46), and loan-to-value ratio stable at 43%.

• Earnings per share improved to SEK -0.53 (-2.12) for Jan–Sep.

• Unrealised property value changes for Jan–Sep were SEK -988m (-1,236).

• Net interest items for Jan–Sep were SEK -718m (-727), with an average interest rate of 2.83% (2.98).

Outlook and guidance

• Market is gradually improving, with expectations of stable or slightly increasing office employment in Stockholm for 2026–2027.

• Focus on increasing occupancy from 87% and reducing vacancies, with a target vacancy rate of 5% by 2030.

• Management remains focused on cost control, high-quality property management, and completing existing projects.

• Indexation expected to have limited impact, with a 1% increase from January for most contracts.

• Growth targets include increasing management profit and achieving the best total return in the property portfolio.