Interim report January – March 2007

• Profit after tax totalled SEK 356m (180) and diluted earnings per share was SEK 3.72 (1.79)
• Rental income totalled SEK 517m (636)
• Occupancy rate was 90 per cent (87)

“The rental market is strong in our principal markets of the inner city of Stockholm, Solna and Hammarby Sjöstad. During the quarter occupancy rate rose by one percentage point in comparison with the previous quarter, to 90 per cent,” says Christian Hermelin, President and CEO of Fabege.

“Aggregate new lettings during the period totalled SEK 62m as an annualised value, while terminations totalled SEK 28m. The proportion of vacant premises in the City sub-market is falling at a faster rate than previously and the high level of demand, particularly for smaller and medium-sized premises, signifies a positive trend in rents,” Hermelin continues.

“The surplus ratio increased to 59 per cent (53), principally as a result of lower expenses but also increasing income for comparable stock,” Hermelin concludes.

Fabege AB (publ)

Annex: Interim report January – March 2007