Fabege (FABG) Q4 2007 earnings summary

Executive summary

• 2007 profit before tax rose to SEK 2,066m from SEK 1,863m despite a smaller property portfolio; earnings after tax fell to SEK 1,812m from SEK 2,266m.

• Portfolio concentration in Stockholm’s inner city, Solna and Hammarby Sjöstad reached 90% of property value; financial occupancy improved to 92% and the surplus ratio to 64%.

• Record net lettings of SEK 142m and 150,000 sqm supported performance; project investment decisions reached SEK 2.4bn.

Financial highlights

• Rental income was SEK 2,066m versus SEK 2,343m; comparable-property rental income increased 7.6% YoY.

• Net operating income was SEK 1,312m versus SEK 1,401m; comparable-property NOI increased 8.2% YoY.

• Operating profit was SEK 2,591m versus SEK 2,264m; profit after financial items was SEK 2,066m versus SEK 1,863m.

• Net income was SEK 1,812m versus SEK 2,266m; diluted EPS was SEK 9.98 versus SEK 11.74.

• Realised and unrealised property value gains totalled SEK 1,339m, including SEK 446m realised and SEK 893m unrealised.

Outlook and guidance

• Early 2008 Stockholm rental and property markets remained strong; the portfolio’s growth locations and project pipeline were cited as positioning for continued opportunities.

• 2008 priorities were to continue reducing vacancies, raising the surplus ratio, concentrating holdings and increasing project activity.

• The Board proposed a SEK 4.00 per-share dividend, subject to AGM approval and the final number of outstanding shares.