End-year report 2018

Net operating income and profit from property management at a high

  • Rental income increased to SEK 2,517m (2,280). In an identical portfolio, income rose byapproximately 10 per cent.
  • Net operating income increased to SEK 1,875m (1,680). In identical portfolio, the operating surplus increased by 13 per cent.
  • The surplus ratio was 74 per cent (74).
  • Profit from property management increased with 26 per cent to SEK 1,246m (992).
  • Realised and unrealised changes in value amounted to SEK 7,838m (6,095)
  • Net lettings during the year totalled SEK 159m (244).
  • After-tax profit for the year amounted to SEK 7,699m (5,632), corresponding to SEK 23.28 per share (17.03).
  • The Board proposes a dividend of SEK 2.65 per share (2.25).

” Conditions on the Stockholm office market remain good, with low vacancies, high demand and rising rents as a result, indicating that we will see continued rental growth. Net operating income is at the highest level in Fabege’s history. The same applies to profit from property management, which rose by just over 25 per cent compared with the previous year. It is pleasing to see that project investments in recent years are now contributing to increasingly strong cash flows. Continued positive renegotiations and completed projects will also generate increased rental income in our portfolio over the next few years," commented Christian Hermelin, CEO

Market outlook
” The Stockholm market is robust and Fabege is well equipped to harness the opportunities that exist and to cope with any challenges that lie ahead. Although an economic slowdown is fast approaching, we can see that Stockholm will continue to grow for the foreseeable future. This offers us favourable conditions for sustained growth. Our attractive development rights in prime locations allow us the opportunity for continued successful, value-generating project development. With Flemingsberg in our portfolio, we will be able to offer our customers attractive locations both to the north and to the south of Stockholm – something that I’m convinced will be more in demand in future”, says Christian Hermelin, CEO

Fabege AB (publ)

Presentation of the report
Today at 14:00 CET Christian Hermelin, CEO and Åsa Bergström, CFO present the report on Operaterrassen Stockholm (in Swedish.) The presentation can be followed via webcast. An English conference call will also be held at 15:30 CET. Follow it via webcast or phone:
UK: +44 33330090 34
US: +1 64672249 03
Sve +46 8 50 55 83 53

More information is available from:
Christian Hermelin, CEO, +46 8 555 148 25 or +733 87 18 25
Åsa Bergström, CFO, +46 8 555 148 29 or +46706 66 13 80

This information is information that Fabege AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 12:00 CET on 5 February 2019.

This information is also such information that Fabege AB is obliged to publish in accordance with the Swedish Securities Market Act. The information was submitted for publication on 5 February 2019, at 12:00 CET.

Fabege is a property company focusing on city district development and commercial properties. We develop attractive and sustainable districts with modern offices, housing and a broad range of services - together with strategic partners. Both our perspective and approach to ownership are long term and our passion is creating the right conditions for all those living, working and visiting our areas. We have a presence in a limited number of high-growth submarkets in the Stockholm region. Fabege’s shares are listed on Nasdaq Stockholm, in the Large Cap segment. For more information, www.fabege.com

5 Feb 2019 12:00 PM