I am very pleased that we have once again received confirmation of what a good company Fabege is, and we are nothing without our employees. We have a fantastic corporate culture and strive to develop in line with the world around us.
We are a value-driven company, and our corporate culture permeates everything we do. However, this has not come about automatically; we have worked in a dedicated way with our fundamental values for a long time.
We want to contribute to a sustainable Stockholm and to reduce our carbon footprint, including by being part of the transition to fossil-free energy use. The agreement with Stockholm Exergi brings us closer to our goal of being climate-neutral by 2030 and supplements our successful energy efficiency efforts” .
The year 2022 was characterised by an uncertain world with sharply rising inflation and increased interest rates. We are delivering stable earnings with increased rental income and positive net lettings. We see that activity is good in the rental market in Stockholm for office premises in our areas, however, we noted a slightly more cautious development towards the end of the year.
Huvudsta has been a solitary development right in our portfolio. Following the sale, we have a portfolio of 610 000 sqm of residential development rights. The majority of these development rights are in our priority areas of Arenastaden and Flemingsberg, and the work to develop these continues to be run by our company Birger Bostad.
All four quarters of 2022 had positive net lettings and for the full year it was SEK 86 million.
“We are pleased that the vacancy resulting from Evry’s move to Arenastaden will now be filled by new tenants who generate vibrancy and activity in the area. We are working in a targeted way to bring the total occupancy rate in the property portfolio back up to 95 per cent. We have strengthened our sales organisation during the year and the lease agreements in Solna Business Park show that we are on the right track.
Hållbarhetshuset is a pilot project that is attracting a great deal of interest, as the whole industry wants to reduce the carbon footprint of its projects. We look forward to sharing the lessons we’ve learned with the industry and continuing to reuse on a large scale in the future.
There’s a lot of interest in constructing buildings from buildings, and we look forward to sharing our experiences. There should be no competition on climate issues – instead, everyone should help to drive the industry forward and contribute to achieving the climate goals.
The business is going well, and we show a positive net letting of SEK 25m for the quarter. The increased yield requirements, due to the market situation, were positively counteracted by indexation, which is the main explanation for the unrealized value growth of SEK 253m.
We have lofty and ambitious goals that drive the sustainability work forward at Fabege. To achieve these goals, we as an industry must work together and find new innovative solutions. Measuring and monitoring the performance and success of our work to learn from what others are doing well is an important part of the way forward. The GRESB result is proof that we are doing our job properly.
The loan from NIB supplements our existing sources of financing and contributes to a long fixed-term maturity. We’re delighted that the Nationalarenan 3 project, which we’re very proud of, meets the stringent sustainability requirements set by NIB.
We are very pleased that, together with the companies and employees in the area, we have taken another step towards achieving our long-term goal of halving emissions from commuting to and from Arenastaden by 2030.
The first half of the year has been marked by turbulence and unrest in the world around us. Despite this, we see a continued strong rental market, good net lettings and no slowdown in the number of enquiries and viewings of our premises. Overall, the first half of the year has been very good for the business.
Niclas has a long and solid experience of similar operations from, among others, Nordea and Scania. We look forward to welcoming Niclas to Fabege starting at the end of August.
Sustainable financing is an important part of Fabege’s sustainability work, and we are happy to take further steps towards sustainable financing through the new framework, in line with the stricter requirements of the EU taxonomy.
We have worked hard and in a targeted way with CGI to design the optimal solution for its needs, and the result is two offices rather than one. It has been an exciting and very enjoyable assignment that has now resulted in us adding another strong brand to our areas.
I am pleased with the increase in profit from property management and that the positive trend from last year has continued in early 2022.
We have a strong balance sheet, a stable customer base and a modern property portfolio in prime locations with plenty of development and project opportunities. So, despite the current uncertainties and many challenges in the world, I am optimistic about 2022.
We strongly believe in future growth in southern Stockholm and with this acquisition we are obtaining a good property with future potential and stable tenants that generate strong cash flow, in a location that fits well with our development strategy in the south of the city, stretching from Hammarby Sjöstad to Flemingsberg.
With the development of Sveaplan, we will create a place full of life and movement in an area that is currently dominated by a traffic solution. We look forward to working together with Tham & Videgård and the City of Stockholm to realise this vision of an environment in which people want to work, be and meet in a beautiful building that Stockholmers can like and feel proud of.
The year 2021 can be summarised as a good year, both for us at Fabege and for our customers. We have seen an active rental market with many inquiries, negotiations and signed leases. The property market has been robust with falling yield requirements and strong interest in the properties that have come up for sale. I am pleased that we have seen increased rental income, stronger net operating income and good value growth in our property portfolio.
Henrik has many years of excellent experience in similar business roles. His unassuming and business-oriented personality will be a great fit at Fabege and really benefit us.
We are passionate about continuously raising the bar in terms of sustainability, and have a goal to produce even more renewable electricity locally. High on our wish list right now are greater opportunities to share electricity between our properties and more information about the climate footprint from the entire production chain for solar panels, to make it easier to make wise choices at every stage.
I am looking forward with confidence to 2022. We have a strong financial position. We are characterised by stability with a portfolio of modern properties in attractive locations, stable customers, dedicated employees and good growth opportunities through our development rights and projects. The acquisition of SHH Bostad has strengthened us within urban development when we now also include residential and local authority properties in the portfolio.
Our goal is twofold: to create an attractive hub for businesses south of the city, and to develop safe residential environments with a vibrant social scene close to public and regional transport. These two acquisitions are key to the continued development of the town centre
There is great demand for good office space in and around Arenastaden, and we are now creating a high quality office product in a very nice environment close to Solna station. This is very timely and we look forward to welcoming tenants to this wonderful office building.
The time from decision to desired moving in date is often linked to the size of the customer. As we are aware that this building will also attract small and medium-sized companies, we think it is advantageous to start the procurement and construction for Block 1 now, in order to shorten the delivery time to customers.
We are very proud to receive this award. The Pep Park in Huvudsta contributes to social sustainability, as its careful design aims to allow more people to discover the enjoyment of being active. By making a well-conceived addition to an existing, well-functioning park with high cultural-historical values, new features have been added that encourage outdoor activity.
By using an unusual aesthetic expression, the park aims to appeal to people who don’t usually go to playgrounds or outdoor gyms. The boundary between play and exercise is blurred in the park, and this can help attract people who don’t quite feel at home at playgrounds or outdoor gyms. The park encourages people of all ages to exercise together, so the whole family can use it.
With the “100 metres Pep”, more children, young people and adults in Solna have the opportunity to play, move about and get everyday exercise. It is great that the park is now getting international recognition, and I am particularly proud of the award for accessibility.
It has been a strong quarter on several fronts, a very strong net letting of SEK 130, of which 74 during the third quarter, increased net operating income and continued positive revaluations in the property portfolio. We completed one of the largest office lettings of the year in Sweden, with Alfa Laval’s decision to move its operations to Flemingsberg, and in early October we completed a strategic acquisition of SHH Bostad, consolidating our position as an urban developer in Greater Stockholm.
We are forging ahead with a strong balance sheet, generating opportunities to create additional shareholder value. With our stable customer base, modern property portfolio in prime locations and a strong market behind us, we are confident about the fourth quarter 2021 and the next few years.
The acquisition strengthens Fabege’s position as an urban developer in the Greater Stockholm area. Thanks to SHH’s expertise in residential and local authority properties, we can be involved in the value creation for longer and run several different types of projects under our own management, which is a natural next step in our urban development strategy.
We want to make a difference in the neighbourhoods where we operate, for example by helping children and young people get a good education, enjoy meaningful leisure time and, in the longer term, find a route into the labour market.
We’re delighted at the confidence Alfa Laval has shown in us by choosing Flemingsberg as the site of their future development and operations. One more piece of the puzzle is now in place for our shared vision with Huddinge Municipality.
We are very pleased to add these three people and their experience to the letting team. We will now be in an even better position to be an active partner for both existing and potential customers when they want to change and develop their offices, and to market many of the exciting projects in our portfolio.
I am pleased with the quarter in several respects, particularly the increased activity in the rental market, which is reflected in our strong net lettings of SEK 56m and in the renegotiations which increased 12 percent. I am optimistic about Q3 and I believe we’ll have a quarter with continued positive net lettings, although Q3 is traditionally a weaker quarter.
Fabege has a strong balance sheet, stable customer base and a modern property portfolio in prime locations with plenty of opportunities for development projects that we’re ready to harness.
The financial world has a great opportunity to steer developments in a more climate-friendly direction, and as borrowers we have significant potential to contribute to this. Since Fabege achieved 100 per cent green financing last year, we are now taking the next step and extending our sustainability responsibility in financing via a taxonomy-linked loan. We’re delighted to be able to do this together with Handelsbanken, with its responsible approach to sustainability work
We are very pleased with the great interest in Franzéngatan 6 in Västra Kungsholmen and the fact that we have now signed two key contracts in the Glädjen district. Discussions continue about letting a floor higher up in the building.
We want to give both children and adults of all ages an experience with focus on playing and learning as well as an opportunity to get acquainted with the sustainability goals in a concrete and fun way. We are very pleased that a private operator shows the way both when it comes to developing a district with a high level of ambition and when it comes to setting a sustainable agenda.
We are thus well aware that we need to work hard and remain focused regarding those areas in which we have the greatest opportunities to contribute towards sustainable development, and achieving the global goals forms a major part of our daily work. But everyone has to contribute to achieving these goals, and with the new park we hope to raise awareness and knowledge about the important work that needs to be done.
The Agenda 2030 for sustainable development, and its 17 goals, are to be implemented primarily by countries and so far the focus has been on actions taken by governments, but what can individuals do to help? This was the question when we developed The Good Life Goals. Visitors can get inspiration in the park and find out in a creative way what they can do.
Fabege has a strong balance sheet, a stable customer base, a good property portfolio in great locations and many development opportunities. During the quarter, we utilised our strength to repurchase almost 3 million shares. All with the ambition of creating additional shareholder value.
We are very pleased to have Johan Zachrisson joining our team. His extensive experience with development projects, rentals and transactions will contribute to our future development and we look forward to welcoming him.
Fabege is a company that has always impressed with its thoughtful strategy, high business tempo and stable delivery. Furthermore, a nice crew with sound values. Both the mission and becoming a part of Fabege feels very good, and I look forward to getting started.
Along with our current development of Arenastaden, Haga Norra and Solna Business Park, the land acquisition is a natural addition that contributes to new value-creating opportunities in Solna in a long-term perspective. The geographical location and Solna’s many advantages mean that we are keen to increase our portfolio in the area.
We have just completed Scandinavia’s first zero-energy hotel – and now we are raising the bar further with one of Sweden’s most interesting new construction projects. We are aware that we and the industry as a whole have a huge task ahead of us, but at the same time we regard the transition towards a sustainable and profitable business sector with a long-term perspective as being a major opportunity.