Profit after tax for the year increased to SEK 1,738m (1,530), corresponding to earnings per share of SEK 10.51 (9.26). During the year, net operating income improved and the surplus ratio rose to a record-high 71 per cent, the highest level in Fabege’s history. Transaction gains and value growth in both the property management portfolio and the project portfolio continued to contribute to Fabege’s total profit.
“The rate of business activity was high throughout the year, not only on the transaction side but also in property management and project operations. We noted record levels of net lettings, which enabled us to increase the pace of development of our project portfolio, with a number of major ongoing projects that extend a couple of years into the future. While the projects continue to generate value, we also noted strong value growth in our modern and well-located property management portfolio during the year.”
In Stockholm, growth remains favourable and the supply of new offices is low, thus additionally enhancing market value.
“We capitalised on the opportunities arising in the strong market by selling 14 properties at a value of nearly SEK 4bn. As a result of these transactions, we strengthened the balance sheet in preparation for forthcoming value-generating projects. On the whole, I am delighted that all of our areas of operation – property management, property development and transaction – contributed to the strong earnings for the year,” says Christian Hermelin, CEO of Fabege.
Fabege AB (publ)