In This Article:
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Rental Income: SEK865 million for Q1 2025, slightly below the same period last year.
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Like-for-Like Income Decrease: SEK20 million, equivalent to -2.7%.
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Surplus Ratio: 69%, adjusted for nonrecurring items at 70%.
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Profit from Property Management: SEK285 million, compared to SEK329 million in the previous year.
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Unrealized Changes in Value: -SEK565 million.
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Realized Changes in Value: -SEK37 million.
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Property Value: SEK77.8 billion.
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Equity per Share: SEK122.
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EPRA NRV: SEK146 per share.
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Equity Asset Ratio: 46%.
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Loan-to-Value Ratio: 43%.
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Interest Coverage Rate: 2.5% on a rolling 12-month basis.
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Average Interest Rate: 2.91% at the end of the quarter.
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Net Letting: Positive SEK6 million for Q1 2025.
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Occupancy Rate: 87% in the management portfolio.
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Investment in Projects: SEK447 million for the quarter.
Release Date: April 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Fabege AB (FBGGF) maintains a strong focus on the Stockholm area, which is considered the engine of the Swedish economy.
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The company continues to believe in the future of office spaces, with increasing office occupancy and the role of offices as dynamic meeting places.
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Fabege AB (FBGGF) reported a positive net letting of SEK6 million for the first quarter of 2025.
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The company has a strong balance sheet with an unchanged equity asset ratio of 46% and a loan-to-value ratio of 43%.
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Fabege AB (FBGGF) has good access to financing, with successful bond issuances and undrawn revolving credit facilities totaling SEK6 billion.
Negative Points
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Rental income for the first quarter decreased by SEK20 million on a like-for-like basis, equivalent to a 2.7% decline.
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The surplus ratio was slightly impacted by nonrecurring items, resulting in a decrease to 69%.
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The company experienced negative changes in property values, with unrealized changes amounting to minus SEK565 million.
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The occupancy rate in the management portfolio decreased to 87%, reflecting challenges in the rental market.
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The Stockholm office rental market has been weak, with increasing vacancy rates in all submarkets.
Q & A Highlights
Q: Can you provide an overview of Fabege AB's financial performance for Q1 2025? A: Asa Bergstrom, CFO, reported that rental income for Q1 2025 was SEK865 million, slightly below the same period last year. On a like-for-like basis, income decreased by SEK20 million, mainly due to relocations from previous negative net letting. The surplus ratio was 69%, adjusted to 70% for nonrecurring items. The profit from property management was SEK285 million, down from SEK329 million the previous year.