Fabege’s properties are concentrated to the Stockholm region and divided into a number of priority sub-markets: Stockholm’s inner city, Solna, Hammarby Sjöstad and Other markets. 92 per cent of the portfolio is located within a radius of 5 km of the centre of Stockholm. The inner city sub-market accounts for 56 per cent of the total market value and 52 per cent of the rental value.
On 31 December 2009, the total lettable area in Fabege’s portfolio was 1.4m sqm. The portfolio mainly comprises commercial premises, mostly offices, which account for 938,000 sqm of space and 66 per cent of the total lettable area. In addition to offices, the portfolio also includes retail, industrial/warehouse and residential space and a small amount of hotel and garage space.
Breakdown by lettable area, per 31 December 2010
|
Office, sqm |
Retail, sqm |
Industrial/wareh., sqm |
Hotel, sqm |
Residential, sqm |
Garage, sqm |
Other, sqm |
Total, sqm |
| Stockholm inner city |
382,322 |
27,446 |
26,412 |
7,674 |
10,548 |
43,687 |
3,405 |
501,493 |
| Solna |
337,252 |
30,972 |
34,151 |
9,570 |
1,574 |
47,519 |
472 |
461,509 |
| Hammarby Sjöstad |
79,086 |
12,014 |
32,445 |
0 |
691 |
7,688 |
209 |
132,132 |
| Other markets |
24,237 |
2,026 |
15,864 |
0 |
0 |
525 |
448 |
43,100 |
| Total |
822,897 |
72,458 |
108,871 |
17,244 |
12,813 |
99,419 |
4,534 |
1,138,234 |
Property portfolio
|
per 31 December 2010 |
1 January-31 December 2010 |
|
Number of properties |
Lettable area, 000' sqm |
Market value, SEKm |
Direkt avkastning, % |
Rental value, SEKm |
Financial occupancy rate, % |
Rental income, SEKm |
Property expenses, SEKm |
Net operating income, SEKm |
| Property holdings |
| Investment properties |
69 |
917 |
21,453 |
5.9 |
1,759 |
91 |
1,569 |
-404 |
1,165 |
| Development properties |
9 |
149 |
3,325 |
5.7 |
233 |
76 |
193 |
-59 |
134 |
| Land and project properties |
25 |
72 |
2,191 |
6.2 |
69 |
44 |
34 |
-23 |
11 |
| Summa |
103 |
1,138 |
26,969 |
5.9 |
2,061 |
88 |
1,796 |
-486 |
1,310 |
| Stockholm inner city |
42 |
502 |
16,215 |
5.5 |
1,167 |
90 |
1,069 |
-281 |
788 |
| Solna |
34 |
461 |
8,333 |
6.3 |
685 |
86 |
556 |
-138 |
418 |
| Hammarby Sjöstad |
12 |
132 |
1,987 |
6.6 |
175 |
82 |
140 |
-54 |
86 |
| Other markets |
15 |
43 |
434 |
7.1 |
34 |
61 |
31 |
-13 |
18 |
| Total |
103 |
1,138 |
26,969 |
5.9 |
2,061 |
88 |
1,796 |
-486 |
1,310 |
| Expenses för lettings, project development and property administration |
-98 |
| Total net operating income after expenses for lettings, project development and property administration |
1,212 |
Changes in the portfolio
In 2010, Fabege divested 54 properties. Most of the sales were aimed at slimlining the property portfolio to focus on prioritised sub-markets, a concentration of the portfolio that has now essentially been completed. In addition, some of the investment properties in prioritised areas were sold in accordance with the business model’s objective of divesting fully developed properties at the right time in order to realise accrued value. No properties were acquired during 2010.
Property portfolio changes
|
Fair value, SEKm |
Number |
| Property portfolio, 1 Jan 2010 |
29,193 |
148 |
| + Acquisitions |
- |
- |
| + Property settlements |
- |
9 |
| + New builds, extensions and conversions |
940 |
- |
| – Sales |
-4,007 |
-54 |
| +/– Unrealised changes in value |
843 |
- |
|
Property portfolio, 31 Dec 2010 |
26,969 |
103 |
Project development
Total investments in existing properties and projects in 2010 were SEK 907m (1,082). Th e investments referred to new builds, extensions and conversions. During the first quarter of the year, the projects in the Päronet 8 property at Solna strand (let to the Swedish Tax Agency) and in the Tygeln 3 property in Arenastaden (let to Adidas) were completed, and subsequently transferred to the investment-property portfolio.
Major ongoing projects
The project in the Bocken 39 property on Lästmakargatan 14 is proceeding as planned. During the fourth quarter, a property division was undertaken, under which the residential project was transferred to the Bocken 51 property (divested in January 2011) and part of the property with existing rental rights was partitioned off to form a separate property, Bocken 52.
The project at Farao 20, Arenastaden, is also developing according to plan. Egmont moved in at year-end and Nordisk Film assumed occupancy in February. The property is fully let and will be transferred to Property Management during the first quarter of 2011.
Projects in progress >50 SEKm, per 31 December 2010
|
Property name |
Property type |
Area |
Completed |
Lettable area, sqm |
Occupancy rate, % floor area |
Estimated rental value |
Book value,
31 Dec |
Estimated investment |
Of which accured
per 31 dec |
| Bocken 39 |
Office/Residential |
Östermalm |
Q4-2011 |
19,800 |
74 |
69 |
980 |
147 |
84 |
| Farao 20 |
Office |
Arenastaden |
Q1-2011 |
8,400 |
100 |
16 |
203 |
110 |
99 |
| Fräsaren 10 |
Office |
Solna |
Q1-2011 |
11,470 |
88 |
21 |
240 |
155 |
117 |
| Klamparen 10 |
Office |
Kungsholmen |
Q4-2011 |
22,530 |
46 |
60 |
533 |
160 |
6 |
| Uarda 5 (fd Uarda 2) |
Office |
Arenastaden |
Q3-2012 |
44,500 |
97 |
103 |
390 |
1,050 |
218 |
| Summa |
|
|
|
106,700 |
81 |
269 |
2,346 |
1,622 |
524 |
| Other Projects and Land properties |
|
|
|
|
875 |
|
|
| Other Development properties |
|
|
|
|
2,295 |
|
|
| Total projects, Land and Development properties |
|
|
|
5,516 |
|
|
Customers
Fabege has many large, stable companies as customers. The customer portfolio is well diversified with a large number of tenants from a wide range of industries, respresenting a mix of private businesses and public sector organisations.
On 31 December 2010, the contracted rent was SEK 1,811m (2,167), of which 94 per cent referred to office premises.
On the same date, the 15 largest tenants by value represented a total contract value of SEK 565m, or 31 per cent of the total contracted rental value.
Fabege's 15 largest tenants by value, per 31 December 2010
| Nasdaq OMX |
Peab Sverige |
Lantbrukarnas Ekonomi |
| Bonnier Dagstidningar |
EDB Business Partner |
Migrationsverket |
| ICA |
Praktikertjänst |
Cybergymnasiet Nacka |
| COOP |
Skatteverket |
Finansinspektionen |
| Carnegie Investment Bank |
Svenska Spel |
Max Matthiessen |
Leases
On 31 December 2010, the portfolio included 1,458 signed leases at a contract value of SEK 1,811m. On the same date, the average remaining contract term was 3.5 years (3.6). In 2010, new leases were signed for 98,000 sqm (145,000) of space with a total annual rental value of SEK 211m (299).
Fabege also renegotiated and extended existing leases with a total annual rental value of SEK 113m (75). The shorter average contract term is primarily due to sales of properties with long leases.
Average remaining lease term by sub-market, per 31 December 2010
|
Area |
Number of properties |
Number of leases |
Lease term |
| Stockholm inner city |
42 |
700 |
3.3 |
| Solna |
34 |
389 |
4.0 |
| Hammarby Sjöstad |
12 |
307 |
2.4 |
| Other markets |
15 |
62 |
3.5 |
| Total/average |
103 |
1,458 |
3.5 |
Maturity structure of commercial leases, per 31 December 2010
| Year |
Number of leases |
Area, sqm |
Contracted annual rent |
Share, % |
| 2011 |
438 |
177,258 |
289,572 |
17 |
| 2012 |
419 |
146,021 |
280,963 |
16 |
| 2013 |
317 |
184,170 |
424,958 |
25 |
| 2014 |
129 |
105,498 |
257,881 |
15 |
| >2015 |
155 |
215,585 |
478,499 |
27 |
| Total |
1,458 |
828,532 |
1,731,874 |
100 |
Vacancies
The financial occupancy rate was 88 per cent (90). The decline was primarily due to vacancies in prospective project properties (The Swedish National Courts Administration in Klamparen 10, and the Swedish Educational Broadcasting Company in Apotekaren 22), and to the divestment of properties with a high occupancy rate.
Property-related key figures
|
2010 |
2009 |
2008 |
| Number of properties |
103 |
148 |
157 |
| Lettable area, ‘000 sqm |
1,138 |
1,429 |
1,454 |
| Financial occupancy rate, % |
88 |
90 |
93 |
| Rental value, SEKm |
2,061 |
2,194 |
2,214 |
| Surplus ratio, % |
67 |
67 |
65 |