Fabege (FABG) Q4 2009 earnings summary

Executive summary

• FY 2009 profit after tax rebounded to SEK 425m from a SEK 511m loss; property management profit rose, while lower rental income reflected net property sales.

• Stable rents, lower interest expenses and improved transaction-market conditions supported a positive 2010 outlook.

Financial highlights

• FY rental income was SEK 2,194m (SEK 2,214m); net operating income was SEK 1,465m (SEK 1,438m).

• FY profit from property management was SEK 838m (SEK 568m); net interest expense eased to SEK 560m from SEK 804m.

• FY profit after tax was SEK 425m (loss of SEK 511m); EPS was SEK 2.59 (loss of SEK 3.07). Q4 profit after tax was SEK 223m (loss of SEK 762m).

• FY unrealised property-value changes were negative SEK 310m, versus negative SEK 1,545m in 2008; realised changes were positive SEK 57m (SEK 143m).

Outlook and guidance

• 2010 outlook called for a strong property-management contribution to earnings, with additional significant profits expected from transactions and property improvements.

• Stable rental revenues, low interest expenses, good capital access and a stronger transaction market supported expectations for continued strong operating and earnings performance in 2010.