Fabege doubles earnings
Fabege's profit after tax for the full year 2016 amounted to 7,107 million (3,232), an increase of nearly 120 per cent.The healthy earnings are largely due to excellent market conditions, with rising rent levels and property values combined with persistently low interest expenses.
Rental income increased to SEK 2,105m (1,998), primarily as a result of completed project properties beginning to generate revenue. Fabege also carried out a number of renegotiations during the year and raised rents by 23 per cent in relation to prior leases, which were normally signed approximately three years previously. Net lettings totalled SEK 127m (74). Major new lettings were agreed in 2016 with Migrationsverket, which is bringing its operations together under one roof in Sundbyberg; 3, whose new offices will constitute a landmark in the newly formed Söderstaden district, and Ambea, which is relocating to Arenastaden and will be neighbours with Siemens and H&M.
“Market conditions remain positive. I am confident that both rent levels and property values will continue upward, albeit at a slower pace than we have seen over the past year. Completed projects will help boost cash flow in 2017. We have considerable potential in our development rights and are well positioned to capitalise on the business opportunities that lie ahead,” commented Fabege’s CEO Christian Hermelin.
Fabege’s profit after tax corresponds to SEK 42.97 per share (19.54). Net asset value growth, EPRA NAV, increased to SEK 163 per share.
Fabege AB (publ)
This information is information that Fabege AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 12:02 CET on 2 February 2016
For further information, please contact:
Christian Hermelin, CEO, phone 46 (0)8 555 148 25, 46 (0)73 387 18 25
Åsa Bergström, Deputy CEO and CFO, phone 46 (0)8 555 148 29, 46 (0)70 666 13 80
Fabege are a property company focusing on city district development and commercial properties. We develop attractive and sustainable districts with modern offices, housing and a broad range of services - together with strategic partners. Both our perspective and approach to ownership are long term and our passion is creating the right conditions for all those living, working and visiting our areas. We have a presence in a limited number of high-growth submarkets in the Stockholm region. Fabege’s shares are listed on Nasdaq Stockholm, in the Large Cap segment. For more information, www.fabege.com