Interim-report January – June 2018

Fabege delivers on a high level, supported by a strong Stockholm market

  • Rental income increased to SEK 1,237m (1,108). In an identical portfolio, income rose by approximately 10 per cent.
  • Net operating income increased to SEK 908m (705). In an identical portfolio, net operating income rose by approximately 11 per cent.
  • The surplus ratio was 73 per cent (72).
  • Profit from property management increased with 27 per cent to SEK 572m (449).
  • Realised and unrealised changes in value amounted to SEK 5,366m (1,989).
  • Net lettings during the period totalled SEK 123m (86).
  • After-tax profit for the period amounted to SEK 5,175m (2,001), corresponding to SEK 15.64 per share (6.05).
       

- ” Our project operations are currently extremely profitable. Over the past five years, project operations have created an average return on invested capital of over fifty per cent. It therefore feels appropriate to announce that our objective remains to achieve a return on invested capital of at least fifty per cent over a business cycle. We are also raising our investment ambitions, aiming to invest at least SEK 2.5bn per year over the next few years.”, commented Christian Hermelin, CEO
  

Market outlook
- ” The trend of rising rent levels and declining yield requirements persisted on Stockholm’s office market during the first half of the year. Combined with the continued high pace of investment in profitable project development, this has generated value growth of around 9 per cent since the start of the year. We are able to note that our focus on Stockholm and projects, and with our committed employees, we are entirely in tune with the times. The biggest threat is from the economy, but with the economic forecasts we’re seeing today, I believe Fabege will continue to give a strong performance. And even in a weaker economic climate, many of our positive conditions will persist. There is no lack of business opportunities, and with our high ambitions and well located project portfolio, we’re ready to take advantage of them.”, says Christian Hermelin, CEO.

Fabege AB (publ)
  

Presentation of the report:
Today at 09:30 am CET, Christian Hermelin CEO, and Åsa Bergström CFO, present the report on Operaterrassen Stockholm. The presentation can be followed via webcast. An English conference call will also be held at 11:00 am CET. Follow it via webcast or phono: SE: +46 8 566 426 97 UK: +44 20 300 898 02 US: +1 855 831 59 45  

More information is available from:
Christian Hermelin, CEO, +46 8 555 148 25, +46 733 87 18 25
Åsa Bergström, CFO, +46 8 555 148 29, +46 706 66 13 80
   

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 08:00 CET on 24 April 2018. 

Fabege is 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 

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About Us

We 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.