• Operating activities generated strong cash flows: - Rental income increased to SEK 2,214m (2,066) and – Net operating income grew to SEK 1,438m (1,312) The stable cash flows are expected to increase • The result was hit by unrealised changes in value, which do not affect cash flow: – Properties SEK -1,545m (+893) – Fixed income derivatives SEK -485m (+37) – Deferred tax SEK +826m (-247) • The after-tax result was SEK -511m (1,812) and earnings per share were SEK -3.07 (9.98) • Equity per share was SEK 60 (67) • The Board proposes a dividend of SEK 2.00 per share (4.00)
“Operationally, 2008 was a good year. Our rental income improved and our net operating income increased by almost 10 per cent. But earnings were hit by writedowns on properties and our derivatives portfolio,” Christian Hermelin, Fabege’s CEO, says.
“2009 has got off to a good start in lettings. We have already concluded agreements representing an annual contracted rent of SEK 120m, and we expect the poistive trend to continue in the near future. We already know that we will have stable rental revenues in 2009, and with the interest expenses we have today we have every potential to achieve a significant improvement in earnings from property management activities this year,” Christian Hermelin adds.
“Our attractive offering – good buildings in good locations – puts us in a strong position to weather an economic downturn. Our focus will now be on caring for and developing our strong relationships with our customers,” Christian Hermelin says.
Fabege AB (publ)
Enclosed: Year End report 2008