Fabege robust in unsettled times

There is considerable concern about how the spread of COVID-19 is affecting businesses in general, and thereby Fabege’s operations and financial strength. Fabege is currently in a robust position. Over the past few years we have built up a strong balance sheet and a financially robust position that is capable of withstanding the challenging times we now appear to be facing.

Fabege’s equity/assets ratio is well above 50 per cent. Our loan-to-value ratio following vacation of Trängkåren 7 amounts to 34 per cent. At the same time, we have sufficient available credit facilities to enable us to manage all outstanding maturities on the capital market in 2020, and we have no outstanding refinancing of bank loans for the remainder of the current financial year. We believe we have a strong financial position, which also gives us the capacity to harness potential opportunities that may arise in current market conditions.

Fabege’s principal tenants include large and medium-sized companies in the Stockholm market. Our exposure to those sectors that have been affected the most to date by the lockdown of society only comprises a limited portion of total rental flow. We will not be immune to potential future payment difficulties. We are managing the few enquiries we have received so far about rental relief on a case-by-case basis, and the impact we are seeing on our rental flow is minimal for the time being.

No-one can yet say how long the current situation will continue, or what the knock-on effects may be. We feel secure in the knowledge that we have a strong balance sheet, numerous robust tenants and an effective organisation that is well prepared. We are also pleased that we enjoy long-standing, constructive relationships with banks and other business partners.

For the past two weeks we have been working systematically to prepare for managing the impact on operating activities, both in property management and in our projects. By working from home and in shifts, we are reducing the risk of spreading the infection both within Fabege and to the wider community.

The Board of Directors’ and CEO´s proposal to the AGM for the dividend to be distributed in two payments, in April and October, remains in place.

Fabege AB (publ)

For further information, please contact:
Stefan Dahlbo, President and CEO of Fabege, +46 (0)8-555 148 10, stefan.dahlbo.fabege.se
Åsa Bergström, Vice President and CFO,  +46 (0)8-555 148 29, 46, asa.bergstrom@fabege.se

Fabege is the 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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