Rental growth and value increases produce strong earnings
After-tax profit for the quarter amounted to SEK 1,665m (705). Rental income increased to SEK 519m (502) as a result of completed project properties generating revenue. In an identical portfolio, income rose by 4 per cent. Investments, rising market rents and lower yield requirements on the market contributed to strong value growth in the property portfolio.
Increased rental income and lower interest expenses led to a 16 per cent increase in profit from property management. Persistently declining yield requirements on the property market and value-adding projects paved the way for continued strong value growth in the property portfolio.
“Stockholm’s healthy growth and companies’ shift in focus in favour of quality are benefitting the rental trend in our areas. At the start of the year, we also noted that positive market conditions, with high demand on the rental market, low market interest rates and rising rent levels are persisting, paving the way for strong earnings for 2016. Our ambition is for 2016 to be Fabege’s most exciting year yet,” comments Fabege’s CEO, Christian Hermelin.
Fabege AB (publ)
For further information, please contact:
Christian Hermelin, CEO, Fabege, tel +46 (0)8-555 148 25, +46 (0)733-87 18 25
Åsa Bergström, Executive Vice President and CFO, tel +46 (0)8-555 148 29, +46 (0)706-66 13 80
This information is of the type that Fabege AB (publ) is required to disclose according to the Securities Market Act and/or the Financial Instruments Trading Act. The information was released for publication on the date specified above.
Fabege AB (publ) is one of Sweden’s leading property companies focusing on letting and managing office premises as well as property development. Fabege owns properties with a total carrying amount of SEK 40.5bn. The property portfolio, which is concentrated in the Stockholm region, has a rental value on an annualised basis amounting to SEK 2.2bn and a lettable area of 1.1 million sqm. Fabege’s shares are listed on Nasdaq OMX Stockholm, in the Large Cap segment.