In This Article:
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Rental Income: Almost SEK2.6 billion, slightly higher than the previous year.
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Like-for-Like Portfolio Income Increase: 5% for the first nine months.
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Surplus Ratio: 77% for the third quarter, 75% for the entire period.
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Birger Bostad Gross Profit/Loss: Minus SEK17 million, with a profit of plus SEK3 million excluding administration costs.
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Central Administration Costs: Minus SEK80 million.
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Average Interest Rate: 3.16% at the end of the quarter.
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Profit from Property Management: Just over SEK1 billion, approximately SEK100 million lower than the previous year.
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Impairment of Development Properties: Minus SEK1.2 billion, with a positive change in value of SEK224 million in the third quarter.
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Equity per Share: SEK121 per share.
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EPRA NRV: SEK147 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 Ratio: 2.5.
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Undrawn Revolving Credit Facilities: SEK8.5 billion.
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Net Letting: Minus SEK11 million for the quarter, SEK85 million for the first nine months.
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Occupancy Rate: Slightly lower than 90%.
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Property Value: SEK78.2 billion, with an additional SEK0.7 billion for development properties.
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GRESB Sustainability Benchmark Rating: 95 out of 100 for property management, 98 out of 100 for project development.
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Energy Consumption: 71-kilowatt hours per square meter, with a goal to reduce to 70-kilowatt hours per square meter.
Release Date: October 22, 2024
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) reported a positive valuation change in the third quarter after seven quarters of negative value changes.
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Rental income increased by 5% on a like-for-like basis for the first nine months of 2024.
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The surplus ratio for the third quarter was strong at 77%, indicating efficient cost management.
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Interest expenses decreased in the third quarter due to falling market interest rates and effective management of interest rate derivatives.
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The company achieved an excellent sustainability ranking, with a GRESB rating of 95 out of 100 for property management operations.
Negative Points
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Net letting was negative for the quarter, with a decrease of SEK11 million, indicating challenges in securing new tenants.
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The occupancy rate is expected to decrease in the near future due to tenant departures, such as Telia.
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The company faces challenges in the office market, with longer decision times for new contracts due to economic uncertainty.
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Convendum, a significant tenant, filed for Chapter 11, raising concerns about potential rent adjustments or vacancies.
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The overall property value decreased by SEK1.2 billion for the entire period, despite a positive change in the third quarter.