Fabege (FABG) Q4 2025 earnings summary

Executive summary

• Modern property portfolio focused on Stockholm, with 84% of rental value from office and education segments; market value of SEK 78.5 billion, and major projects completed and ongoing in key locations.

• Rental income for 2025 was SEK 3,480m, up from SEK 3,438m, with Q4 at SEK 899m; profit from property management for Q4 was SEK 371m, full-year SEK 1,421m.

• Net lettings for the year totaled SEK 36m, with increased leasing activity and ongoing refurbishments to secure future value creation.

• Board proposes a dividend of SEK 2.20 per share, to be paid quarterly.

• Sustainability achievements include energy consumption well below targets and significant CO2 reductions.

Financial highlights

• Full-year rental income reached SEK 3,480m, with surplus ratio stable at 74% and loan-to-value at 43%.

• Profit from property management up 5.5% to SEK 1.4bn; value changes for the year were SEK -1,700m.

• Earnings before tax for the year were SEK -508m, with earnings per share at SEK -1.11.

• Net interest expense improved; average interest rate declined to 2.82%.

• EPRA NRV per share was SEK 145; equity/assets ratio at 45%.

Outlook and guidance

• Net letting target for 2026 is SEK 50m in the management portfolio.

• NOI margin target of 75% expected in 2026, contingent on improved letting performance.

• Indexation for 2026 is expected at 1.5%, with 2% onwards.

• CapEx for 2026 projected at around SEK 2bn, with a downward trend.

• Main short-term priorities include decreasing vacancies, securing value creation in ongoing projects, and remaining active in financing markets.