Our business model

Fabege’s dynamic business model is designed to create value regardless of the economic climate. The emphasis of the business model varies over time in response to changing market conditions, and the organisation is therefore structured to be flexible and adaptable.

Property management – always close to the customer

Property management is Fabege’s largest line of business. The company manages its properties on the basis of an efficient management organisation, organisationally divided into management areas, each with a major responsibility for ensuring high involvement and close proximity to the customer. Management is located close to customers in order to achieve a high occupancy rate and to ensure that the customer remains loyal. Satisfied customers contribute to increases in net operating income.

Development – creates value

Development of properties offering growth potential is a key feature of the business model aimed at value creation. In addition to developing acquired properties, the portfolio also contains certain existing development and project properties whose potential the company endeavours to develop as market conditions permit. The project volume is adapted to market demand. New builds and comprehensive project development are always performed in accordance with the GreenBuilding principles.

Sales – concentration of the portfolio

Fabege aims to divest properties that are located outside the company’s concentrated property management units, as well as properties offering limited growth prospects. The location, condition and vacancy rate of the property are key factors determining growth potential. Accordingly, a fully let property with modern and efficient premises, which is considered to offer limited potential for rent increases and value growth, could be a sales candidate.

Acquisitions – generate growth

Fabege aims to acquire properties offering potential surpassing that of the existing investment properties in the portfolio. As a major player in a limited number of selected sub-markets, Fabege has accumulated in-depth experience and knowledge of the markets, development plans, other players and properties. The company continuously monitors and analyses developments to be able to capitalise on opportunities to develop the property portfolio.

Business model contributes to earnings, per 31 December 2011