* Rental income increased to SEK 1,125 million (1,021) * The profit after tax fell to SEK 523 million (865) and earnings per share after dilution were SEK 3.10 (4.60) * The profit from ongoing property management increased to SEK 220 million (212) * The surplus ratio increased to 65 per cent (61%) * The occupancy rate increased to 93 per cent (91%)
“Our property management business continued to perform well in the second quarter. Thanks to the strong rental market, the surplus ratio improved by five percentage points year-on-year, to 68 per cent. We also raised our occupancy rate and increased net lettings, which reached SEK 23 million,” Christian Hermelin, Fabege’s CEO, says.
“For the period January-June 2008 our interest expense increased by SEK 90 million compared with the same period last year. During the same period net operating income increased by SEK 104 million, and thus more than offset the higher interest expense,” Christian Hermelin says.
“Our project activities also made a strong contribution to second quarter earnings. The Stockholm market remains stable, and we expect further value-added gains from our existing project portfolio and a continued strong performance in our ongoing property management in the second half of the year,” Christian Hermelin adds.
Fabege AB (publ)
Enclosed: Interim Report January-June 2008
For further information, please contact:
Christian Hermelin, CEO, phone +46 (0)8-555 148 25, +46 (0)733-87 18 25
Åsa Bergström, CFO, phone +46 (0)8-555 148 29, +46 (0)70-666 13 80
Mats Berg, Director of Communications and Investor Relations, phone +46 (0)8-555 148 20, +46 (0)733-87 18 20
Fabege AB (publ) discloses the information in this press release according to the Swedish Securities Markets Act and/or the Swedish Financial Trading Act. The information was submitted for publication at 08:30 on 10 July 2008.