Continued strong demand new city district development project has been initiated
- Rental income increased to SEK 1,864m (1,688). In an identical portfolio, income rose by approximately 10 per cent.
- Net operating income increased to SEK 1,389m (1 230). In an identical portfolio, net operating income rose by approximately 12 per cent.
- The surplus ratio was 75 per cent (73).
- Profit from property management increased with 25 per cent to SEK 895m (713).
- Realised and unrealised changes in value amounted to SEK 6,213m (4,452).
- Net lettings during the period totalled SEK 152m (190).
- After-tax profit for the period amounted to SEK 6,265m (4,202), corresponding to SEK 18.94 per share (12.70).
- “During the period we renegotiated a volume of SEK 219m, with an average increase of 30 per cent. It is clear evidence of the strong trend on Stockholm’s office market. This should be considered in light of the fact that in renegotiations, we offer existing customers a discount on prevailing market rents. August saw the launch of our forthcoming project in Flemingsberg, which will involve significant sums being invested in a few years. Proximity to the best rail connections in southern Stockholm, the substantial area of available land and Huddinge Municipality’s dynamic approach are key factors that mean we are looking forward with great confidence to working together alongside other parties to develop the area,” commented Christian Hermelin, CEO
- ” Rising rental income, efficient property management and lower interest expenses led to a 25 per cent rise in profit from property management. Persistent value growth, primarily via projects and increased rent levels, also contributed to the strong performance. Although a slow down in the economy is getting closer, Stockholm is experiencing persistent growth. This offers us favourable conditions for continuing with our growth We see plenty of good opportunities to continue with the development of attractive offices in all our districts”, says Christian Hermelin, CEO.
Fabege AB (publ)
Presentation of the report:
Today at 09:00 am CET, Christian Hermelin CEO, and Åsa Bergström CFO, present the report on Operaterrassen Stockholm. The presentation can be followed via webcast. An English conference call will also be held at 11:00 am CET. Follow it via webcast or phono: UK: +44 2030089802 SE: +46 856642664 US: +1 8557532235
More information is available from:
Christian Hermelin, CEO, +46 8 555 148 25, +46 733 87 18 25
Åsa Bergström, CFO, +46 8 555 148 29, +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 08:00 CET on 18 October 2018.
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