Fabege (FABG) Q4 2024 earnings summary

Executive summary

• Property value stable at SEK 78.9bn as of year-end 2024, with growth in rental income and operating surplus in the identical portfolio.

• Revenue increased to SEK 3,438m (3,366), with a 4.5% rise in like-for-like rental income year-over-year.

• Net letting was negative at SEK -108m for the year, and the economic occupancy rate fell to 88%.

• Financial position remains stable, with additional rental value of SEK 307m expected from projects completing in 2025.

• Result after tax improved to SEK -213m (-5,518m), mainly due to lower negative property revaluations.

Financial highlights

• Rental income for Q4 2024 was SEK 861m, up from SEK 827m in Q4 2023; gross profit SEK 645m (605).

• Surplus ratio for the year at 74% (75% in 2023); value changes in property portfolio SEK 18m in Q4 (Q4 2023: -1,218m).

• Full-year net sales SEK 3,671m (3,930m), with property expenses SEK -885m (-853m).

• EPRA NRV per share was SEK 148 (150); equity per share was SEK 122 (125).

• Loan-to-value ratio was 43% (42), and interest coverage ratio was 2.5x.

Outlook and guidance

• Additional rental value of SEK 307m expected from projects completing in 2025.

• Focus on completing existing projects, increasing occupancy to 95%, and investing in new projects for sustainable growth.

• Management expects a brighter 2025, with a target for net letting of at least SEK 80m and 95% occupancy.

• Market conditions are stabilizing, with falling inflation and interest rates expected to support recovery.