Fabege's profit after tax for the full year 2016 amounted to 7,107 million (3,232), an increase of nearly 120 per cent.The healthy earnings are largely due to excellent market conditions, with rising rent levels and property values combined with persistently low interest expenses.
Rental income increased to SEK 2,105m (1,998), primarily as a result of completed project properties beginning to generate revenue. Fabege also carried out a number of renegotiations during the year and raised rents by 23 per cent in relation to prior leases, which were normally signed approximately three years previously. Net lettings totalled SEK 127m (74). Major new lettings were agreed in 2016 with Migrationsverket, which is bringing its operations together under one roof in Sundbyberg; 3, whose new offices will constitute a landmark in the newly formed Söderstaden district, and Ambea, which is relocating to Arenastaden and will be neighbours with Siemens and H&M.
“Market conditions remain positive. I am confident that both rent levels and property values will continue upward, albeit at a slower pace than we have seen over the past year. Completed projects will help boost cash flow in 2017. We have considerable potential in our development rights and are well positioned to capitalise on the business opportunities that lie ahead,” commented Fabege’s CEO Christian Hermelin.
Fabege’s profit after tax corresponds to SEK 42.97 per share (19.54). Net asset value growth, EPRA NAV, increased to SEK 163 per share.
Fabege AB (publ)
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 12:02 CET on 2 February 2016