Fabege (FABG) Q4 2024 earnings summary

Executive summary

• Property values remained stable at SEK 78.9 billion at year-end 2024, with growth in rental income and operating surplus on a like-for-like basis, despite negative net letting of SEK -108 million and a lower occupancy rate.

• The portfolio is focused on Stockholm, comprising 100 properties and over 1 million square meters.

• Ongoing and upcoming projects are expected to increase rental value by more than SEK 300 million in 2025.

• Management remains optimistic for improvement in 2025, targeting at least SEK 80 million in net letting and a long-term occupancy goal of 95%.

• The Board proposes a dividend of SEK 2.00 per share, to be paid quarterly.

Financial highlights

• Rental income for 2024 was SEK 3,438 million, up from SEK 3,336 million, with a 4.5% like-for-like increase.

• Operating surplus and surplus ratio reached 74% for the period.

• Profit from property management was SEK 1,345 million, about SEK 100 million lower than the previous year.

• Unrealized changes in property value totaled minus SEK 1.2 billion for the year.

• Earnings per share for the year were SEK -0.68, compared to SEK -17.54 last year.

Outlook and guidance

• Management targets at least SEK 80 million in net letting for 2025, with a long-term occupancy goal of 95%.

• Market conditions are expected to improve in the second half of 2025, supported by anticipated interest rate cuts.

• Focus remains on increasing occupancy, reducing vacancies, and leveraging the building rights portfolio.

• Investment volume target is SEK 2.5 billion per year over a business cycle.