Fabege

Quarterly Report • Apr 25, 2024

Q1 2024

Summary, SEKm
------------------	--

	2024	2023	2023
	Jan-Mar	Jan-Mar	Jan-Dec
Net sales	1,008	1016	3930
Gross profit	620	620	2528
Profit/loss from property management	329	351	1458
Profit/loss before tax	-836	-1977	-7380
Profit/loss after tax	-699	-1584	-5518
Net lettings	-36	-12	165
Surplus ratio, %	71	72	75
Loan-to-value ratio, %	43	40	42
EPRA NRV, SEK per share	146	166	150

Jan–Mar 20241

• Rental income increased to SEK 867m (829). In an identical property portfolio, income rose by 10 per cent compared to the previous year (8).
• Net operating income increased to SEK 619m (598). On a like-for-like basis, net operating income rose by 9 per cent (8).
• The surplus ratio was 71 per cent (72).
• Revenue from residential development amounted to SEK 141m (187) and gross earnings totalled SEK 1m (22).

1 The comparison figures for income and expense items relate to values for the Jan–Mar 2023 period and for balance sheet items on 31 December 2023

• Net interest items amounted to SEK –240m (–221).
• Profit from property management declined to SEK 329m (351).
• Realised and unrealised changes in the value of properties amounted to SEK –1,378m (–2,110) and for fixed-income derivatives SEK 213m (–217).
• Profit/loss before tax for the period totalled SEK –836m (–1,977).
• Earnings after tax for the period amounted to SEK –699m (–1,584), corresponding to earnings per share of SEK –2.22(–5.04).
• Net lettings totalled SEK –36m (–12).
• Leases totalling SEK 25m (34) were renegotiated, with an average decline in rental value of 0.9 per cent (–4). Leases worth SEK 84m (179) were also extended with unchanged terms.
• The equity/assets ratio was 47 per cent (47).
• The loan-to-value ratio stood at 43 per cent (42).

See page 26 for key performance indicator definitions

Message from the CEO

OPERATIONAL TARGETS

• Net lettings of at least SEK 80m per year.
• Surplus ratio of 75 per cent.
• Investment volume of approximately SEK 2,500m per year.

NET LETTINGS

Target: SEK 80m per year

SURPLUS RATIO

Target: 75%

Rental income and net operating income increased compared to last year. We have a continued focus on letting and renegotiations, on cost control, letting and on our sustainability work, not least in relation to energy efficiency improvements, reuse and social initiatives. The funding market is functioning well again and we are getting closer to the first interest rate cut. However, the global geopolitical turbulence has not decreased, rather it has worsened during the first three months of the year. There are many question marks in relation to the economic situation. There is no shortage of challenges, but Fabege stands strong, recycling and social initiatives.

Despite a smaller portfolio, through the divestment of two properties in the autumn, rental income rose, largely due to the index increase. I am happy, in these uncertain times, to be able to state that we have stable customers that are willing to pay for modern and flexible premises. But at the same time, we must be realists and say that with almost 20 per cent indexation of rents in the past two years, we cannot expect large general upsides in rents in the next few years. Therefore, we now see that many leases are being extended on unchanged terms. Of course, there are some leases which are both above and below the market rent in the portfolio. The rental market remains fundamentally strong. However, vacancies are increasing slightly in Stockholm as a whole. The tendency for negotiations to take longer, and that there is a reluctance to take decisions, is persisting. It has not increased but we do not expect any improvement in the short term either.

For the first time in many years, we see a decrease in the number of office workers in Stockholm. Many companies and public authorities are thinking about how their future offices will be designed. I do not believe that they have any doubt about the important role of the office, but they are thinking about how it should be used and how it should look. Naturally, the economic development also affects these discussions. Five years ago many were planning for expansion, but the years of the pandemic and financial turbulence have changed the conditions. We see tenants

that are downsizing to adapt their premises to a more flexible way of working. We see tenants that have not expanded the way they had hoped and are therefore returning floor space. We see tenants that have been late in the journey to reduce the number of square metres per employee and are doing so now. This has been a trend throughout the 2000s. Many are going from offices with "own rooms" to activity-based offices. But we also see tenants that are continuing to grow and expand their premises. They all have a shared view that the office plays an important role for the development of the organisation, that the content of the office is prioritised, that the location is important and that Fabege, with our expertise, can serve as a valuable advisor. The expression "location, location, location" is more true today than ever before. Proximity to good communications is crucial and flexibility is high on the agenda.

It is positive that the occupancy rate in our projects increased to 86 per cent. For example, we have continued to rent out space in the Påsen project at Textiltorget in Hammarby Sjöstad, where occupation is expected to commence in the first half of 2025. The majority of our projects will be completed in the coming 16 months which means that in early 2026 we will have approximately SEK 380m in increased rental income.

Net lettings can fluctuate between quarters and in the first quarter of 2024 they came in at minus SEK 36m. The reason was that two public authorities chose, after many years, to leave a property in Stockholm's inner city. The first quarter is generally one of the weakest quarters with few completed transactions.

In early 2024, we began construction of the next residential phase in Haga Norra, where Birger Bostad has started constructing 288 apartments, of which 78 are rental apartments. We see continued interest for housing in good locations and will start sales during the autumn. Occupation is expected to take place from the second half of 2025.

We chose to independently value most of our portfolio this quarter as well. The

INVESTMENT VOLUME

Target: SEK 2.5bn per year over a business cycle

FINANCIAL TARGETS

Fabege's Board of Directors has adopted the following financial targets:

• Loan-to-value ratio of max. 50 per cent.
• Interest coverage ratio of at least 2.2x.
• Debt ratio of max. 13.0x.
• Equity/assets ratio of 35 per cent min.

Outcome 31/03/2024

• Loan-to-value ratio of 43 per cent
• Interest coverage ratio of 2.4x
• Debt ratio of 13.8x
• Equity/assets ratio of 47 per cent

average yield requirement increased by 0.08 percentage points to 4.51 per cent and the write-downs of property values amounted to SEK 1,381m. The increased yield requirements were a result of the higher interest rate level. We have now written down the property values for six consecutive quarters. Have we now reached the bottom? I don't have a definite answer to this question, but I can say that I am comfortable with our valuation and that the interest rate forecast now looks brighter than a year ago. The transaction market is also showing signs of improvement. Though it is still cautious, our valuations are confirmed by the deals that have been completed.

The deceased entrepreneur Jan Stenbeck is said to have coined the term "fat cats". That a company should never be satisfied and comfortable with its current market position. I agree with this and those of you who listened to my speech at our Annual General Meeting three weeks ago, know that our priorities in 2024 are.

The late industrialist and entrepreneur Jan Stenbeck is said to have coined the term 'fat cats'. That a company should never be satisfied and comfortable with its current market position. I agree with that and those of you who heard my speech at our AGM three weeks ago know that our priorities for 2024 are:

1. To increase the occupancy rate in the investment property portfolio. The occupancy rate shall be up to 95 per cent. We have to work very hard throughout the entire organisation to achieve this. All of our employees are ambassadors for Fabege and are important in strengthening our brand and indirectly help our letting work. After the reporting period, we have made a major letting of 4,300 sqm in Solna Business Park which is positive.

2. Cost control. Like all companies, we have to distinguish between good and bad costs in everything we do. The daily "grind" is important. A small example of a good cost is a digital solution we call "smart water". Where using AI, we can analyse water flows at our customers in order to rapidly detect water leaks, prevent damage and expensive repairs, and to reduce consumption costs.

We also have to dare to think in new ways and differently in order to bring down construction costs. Today it is too difficult to get an adequate return on a project investment because construction costs are too high, among other things. Despite the

fall in raw material prices, we have not seen the input goods in our projects go down in price to the same extent. This is partly due to our weak currency. This is not a problem specific to Fabege but is an issue facing the whole industry.

3. Enable future projects. We are continuing the work on our planning processes and on developing the areas we are working in. It is difficult to start letting work today without an approved local development plan. We also have to continue marketing and working actively on the attractiveness of all of our areas. In the short term, this may be about providing services. In the longer term, it may be about providing more housing.

4. To refinance our bond maturities and secure access to capital. The bond market has recovered and today offers competitive terms. However, the banks are still important for us in our strategy of continuing to have several sources of financing. I feel very confident today about our financial structure and situation.

5. To continue to be at the forefront in terms of sustainability. Being at the forefront in sustainability is part of our DNA. Many view it as a cost, but we see it as a natural long-term investment. A point of focus during the year will be on working to achieve our circularity target. This means that at least 20 per cent of the construction materials used in a project must be reused or recycled materials. Our work was recognised in April, when we were included in Nasdaq's new sustainability index OMX Sweden Small Cap 30 ESG Responsible Index.

We are also continuing our important work on helping to improve safety and wellbeing in the places we operate in. This occurs through a focus on meaningful leisure time, education and access to practical training and work. We are working actively along with municipalities and other companies and actors to create favourable conditions for a positive development. We work actively with municipalities and other companies and stakeholders to create favourable conditions for positive development.

We must be humble as we look ahead, but we must also see the opportunities in our markets in Stockholm.

Stefan Dahlbo CEO Fabege

Earnings Jan–Mar 20241

Earnings after tax for the period amounted to SEK –699m (–1,584), corresponding to earnings per share of SEK –2.22 (–5.04). Profit before tax for the period amounted to SEK –836m (–1,977). Net operating income was in line with the previous year, while interest costs increased slightly. Lower negative changes in the value of the property portfolio and derivatives portfolio meant that pre-tax earnings increased

FIRST QUARTER 2024 IN BRIEF

• New lettings totalled SEK 52m (48).
• Net lettings amounted to SEK –36m (–12).
• Rental income totalled SEK 867m (829).
• The surplus ratio was 71 per cent (72).
• Revenue from residential development amounted to SEK 141m (187) and gross earnings totalled SEK 1m (22).
• Net interest items amounted to SEK –240m (–221).
• Profit from property management amounted to SEK 329m (351).
• Unrealised changes in the value of the property portfolio amounted to SEK –1,381m (–2,110).
• Unrealised changes in value in the derivatives portfolio totalled SEK 213m (–217).
• Earnings after tax for the quarter amounted to SEK –699m (–1,584).

RENTAL INCOME AND NET OPERATING INCOME

Rental income increased to SEK 867m (829) and net operating income amounted to SEK 619m (598). On a like-for-like basis, income rose by approximately 10 per cent (8). The increase in income was mainly due to the increase in the index that took effect at the beginning of the year and a positive net inflow from relocations. Income included non-recurring items of SEK 12m. The increase in property expenses was mainly attributable to higher heating and administration costs. Net operating income on a like-for-like basis rose by approximately 9 per cent (8). The surplus ratio was 71 per cent (72).

PROFIT FROM RESIDENTIAL DEVELOPMENT

Revenue from residential development totalled SEK 141m (187). Residential development costs amounted to SEK –140m (–165), of which administrative costs accounted for SEK –6m (–5) and impairment of development rights SEK 0m (-81). Gross earnings therefore totalled SEK 1m (22). Income is recognised in connection with phased occupancy or upon completion. During the period, one project was completed and finalised.

CENTRAL ADMINISTRATION

Central administration costs amounted to SEK –29m (–26).

NET FINANCIAL ITEMS

Net interest items amounted to SEK –240m (–221). The average interest rate at 31 March 2024 was 3.29 per cent (3.13 at the beginning of the year). Ground rent amounted to SEK –11m (–12).

SHARE IN PROFIT/LOSS OF ASSOCIATED COMPANIES

The share in the profit/loss of associated companies totalled SEK –11m (–10) and mainly related to contributions to Arenabolaget.

CHANGES IN THE VALUE OF PROPERTIES

The property portfolio is valued using a well-established process. The entire property portfolio is independently valued at least once a year. Due to the market situation, a larger proportion has been independently valued in the last six quarters. Approximately 70 per cent of the portfolio was externally (independently) valued in the first quarter of 2024, while the remaining properties were valued internally based on the most recent external valuations. The total market value at the end of the period was SEK 77.4bn (78.1). Unrealised changes in value totalled SEK –1,381m (–2,110). The average yield requirement rose by 0.08 percentage points to 4.51 per cent (4.43), which was due to higher interest rates. Realised value changes of SEK 3 million related to additional results from the transaction with Nrep 2023.

TAX

The tax expense for the period amounted to SEK 137m (393) and related to deferred tax. Tax was calculated at a rate of 20.6 per cent on taxable earnings. The interest deduction limitations are not expected to have a material effect on taxes paid over the next few years.

SEGMENT REPORTING

The Property Management segment generated net operating income of SEK 598m (570), representing a surplus ratio of 75 per cent (74). The occupancy rate was 90 per cent (90). Profit from property management amounted to SEK 360m (342). Unrealised changes in the value of properties amounted to SEK –1,151m (– 1,609).

The Property Development segment generated net operating income of SEK

CHANGES IN PROPERTY VALUES, JAN–MAR 2024

Changes in property values, SEKm

0
-1,381
645
0
78,093

AVERAGE YIELD REQUIREMENT, 31/03/2024

Area	Average yield requirement
Stockholm city	4.11%
Solna	4.70%
Hammarby Sjöstad	4.77%
Flemingsberg	5.26%
Other markets	5.40%
Average yield	4.51%

28m (30), resulting in a surplus ratio of 46 per cent (55). Profit from property management amounted to SEK 3m (8). Unrealised changes in the value of properties amounted to SEK –243m (–269). In the Projects segment, unrealised changes in value of SEK 28m (–224) were recognised. Project gains were offset by impairment due to increased yield requirements when assessing the final value of the project properties.

The Residential segment generated gross earnings relating to residential development of SEK 4m (24). Profit from property management amounted to SEK 2m (15). Unrealised changes in value totalled SEK –15m (–8). Further information about breakdown by segment is provided in the segment report and under Note 3 on pages 10 and 24.

GOODWILL

Recognised goodwill of SEK 205m is entirely attributable to the acquisition of Birger Bostad AB.

PROPERTIES

Recognised property value relates to Fabege's investment property portfolio, including project and land properties. At 31 March 2024, the total property value amounted to SEK 77.4bn (78.1).

DEVELOPMENT PROPERTIES

This refers to ongoing in-house projects and development properties for future construction within Birger Bostad. The value at the end of the quarter totalled SEK 395m (795), SEK 87m (466) of which relates to ongoing construction and SEK 308m (329) to development properties for future development.

FINANCIAL POSITION AND NET ASSET VALUE

Equity at the end of the period amounted to SEK 38,545m (39,244) and the equity/assets ratio was 47 per cent (48). Equity per share attributable to Parent Company shareholders totalled SEK 123 (137). EPRA NRV amounted to SEK 146 per share (166).

CASH FLOW

Cash flow from operating activities before changes in working capital amounted to SEK 317m (341). Changes in working capital had an impact on cash flow of SEK −129m (112). Investing activities had an impact of SEK –651m (−778) on cash flow, while cash flow from financing activities amounted to SEK 409m (320). In investing activities, cash flow is driven by property transactions and projects. Cash and cash equivalents declined by a total of SEK −54m (−5) during the period.

NEW RESIDENTIAL PROPERTY IN HAGA NORRA

Fabege's wholly owned subsidiary Birger Bostad has started the construction of 285 residential properties in Haga Norra.

In the new residential project with a total of 210 tenant-owned apartments and 78 rental apartments, NCC has been appointed as the contractor. It will become a continuous neighbourhood with a shared communal outdoor area and garage.

The project will reuse bricks and use climate-enhanced concrete. The apartments will be Nordic Eco-labelled.

Sales will start in the third quarter with estimated occupancy from the second half of 2025.

Financing

Fabege employs long-term credit facilities subject to fixed terms and conditions. The company's creditors mainly comprise the major Nordic banks and investors on the capital market. The capital market has improved significantly since autumn 2023.

BREAKDOWN OF SOURCES OF FINANCING

*RCF= Revolving Credit Facilities

Moody's Rating

negative outlook Revised in November 2023

FINANCING

Fabege strives to achieve a balance between different forms of financing on both the capital and banking markets, longterm relationships with major financial backers having high priority. Fabege's bank facilities are complemented by an MTN programme of SEK 18bn, a commercial paper programme of SEK 5bn and the possibility of borrowing a maximum of SEK 6bn via SFF's secured MTN programme. During the first months of the year, shortterm interest rates remained stable with the expectation that the Riksbank will cut the policy rate later this year, while long-term interest rates increased slightly. At the same time, the capital market has continued to perform well, with stable investor demand resulting in lower credit margins. During the first quarter of the year, Fabege issued its first bond in public format for several years and believes that the market continues to be receptive to investing in Fabegbe. Interest-bearing liabilities increased slightly during the quarter, while interest costs remained relatively stable. At the end of the quarter, the total loan volume amounted to SEK 33.6bn, of which SEK 12.1bn is via the capital market and SEK 21.5bn is via the banking market. Overall, financing via the banking market increased by almost SEK 0.5bn, and via the capital market it decreased by just over SEK 0.1bn.

Committed lines of credit and undrawn credit facilities, including the backup facility for the commercial paper programme, amounted to SEK 6.0bn at the end of the quarter, a decrease of SEK 1.0 billion as commitments were converted to loans.

At 31 March 2024, the fixed-term maturity was 4.0 years and the fixed-rate period was 1.9 years. Including the estimated maturity of the callable swaps in the derivatives portfolio, the adjusted maturity is 2.8 years. The derivatives portfolio consisted of traditional interest rate swaps totalling SEK 16.3bn and callable swaps totalling SEK 6.0bn. The traditional swaps mature in 2032 and carry fixed annual interest of between −0.15 and 1.30 per cent.

Net financial items included other financial expenses of SEK 10m, which mainly related to accrued opening charges for credit agreements and costs relating to bond and commercial paper programmes. During the period, interest totalling SEK 23m (7) relating to project properties was capitalised.

Fabege firmly believes in the ability of the financial market to contribute to a more sustainable society, and is keen to play an active role in its transition towards greater accountability. 99 per cent of the loan portfolio is classified as being green.

FINANCING, 31/03/2024

	2024-03-31	2023-12-31
Interest-bearing liabilities, SEKm	33,579	32,982
of which outstanding MTN, SEKm	9,348	9,570
of which outstanding SFF, SEKm	738	764
of which outstanding commercial paper, SEKm	2,045	1,655
Undrawn facilities, SEKm ¹	5,960	6,960
Fixed-term maturity, years	4.0	4.1
Fixed-rate period, years ²	1.9	2.1
Fixed-rate period, percentage of portfolio, %	56	60
Derivatives, market value, SEKm	899	686
Average interest expenses, incl. committed credit facilities, %	3.29	3.13
Average interest expenses, excl. committed credit facilities, %	3.20	3.04
Unpledged assets, %	37	41
Loan-to-value ratio, %	43	42

¹Included credit facilities for commercial paper

2 The fixed interest rate period adjusted by the estimated maturity of callable swaps amounted to 2.8 years (3.1)

SUPPLY OF CAPITAL

Equity, 51%

Interest-bearing liabilities, 34%

BREAKDOWN OF COLLATERAL Other liabilities, 15%

BREAKDOWN OF COLLATERAL

Pledged assets 63% Unpledged assets 37%

INTEREST MATURITY STRUCTURE, 31/03/2024

	Amount, SEKm	Average interest rate,%	Percentage, %
< 1 year	17,754	5.15	53
1-2 years	2,000	0.96	6
2-3 years	4,150	0.97	12
3-4 years	2,914	1.28	9
4-5 years	2,962	1.37	9
5-6 years	2,000	0.44	6
6-7 years	400	0.60	1
7-8 years	900	0.72	3
8-9 years	500	0.81	1
9-10 years	0	0.00	0
11 years	0	0.00	0
Total	33,579	3.20	100

*The average interest rate for the period <1 year includes the margin for the variable portion of the debt portfolio. This also includes the variable portion of the interest rate swaps, which, however, do not include any credit margin as they are traded without a margin.

LOAN MATURITY STRUCTURE, 31/03/2024

	Credit agreements, SEKm	Drawn, SEKm
Commercial paper programme	2,045	2,045
< 1 year	5,548	5,538
1-2 years	8,693	5,193
2-3 years	11,400	8,950
3-4 years	415	415
4-5 years	3,706	3,706
5-10 years	4,070	4,070
10-15 years	3,663	3,663
15-20 years	0	0
Total	39,539	33,579

GREEN FINANCING, 31/03/2024

		Outstanding loans and
	Credit facilities	bonds
Green MTN bonds, SEKm	9,348	9,348
Green bonds via SFF, SEKm	738	738
Green commercial paper, SEKm	2,045	2,045
Green loans, other, SEKm	27,408	21,448
Total green financing, SEKm	39,539	33,579
Green financing, %	99	99
Total green available borrowing facility, SEKm	45,927
of which unrestricted green available borrowing facility, SEKm	15,351

GREEN FINANCING

Fabege's green financing framework was updated in June 2022. The framework has been designed to give Fabege broad opportunities for green financing and is based on third party-certified properties and ambitious energy consumption targets. It is based on the green bond principles, adapted to the EU taxonomy and linked to Fabege's ambition to contribute to the goals of Agenda 2030. In addition to stringent energy efficiency requirements, this includes climate analyses that assess risks associated with climate change such as flooding, strong winds, intense heat and other extreme weather events. CICERO has issued a second opinion, with ratings of 'medium green' for the green terms and conditions, and 'excellent' for governance. Green financing offers Fabege better terms and access to more financing alternatives.

Find out more about Fabege's green financing at

www.fabege.se/en/investors/financing/green-financing/, where you will also find the investor reports.

Operations Jan−Mar 20241

The Stockholm market generally continues to show stable rent levels, although we are seeing slightly lower activity levels in the rental market and continued long lead times to completion. Net leasing amounted to SEK –36m (−12), while the occupancy rate decreased to 90 per cent (91). Projects proceeded according to plan.

REAKDOWN OF MARKET VALUE, 31/03/2024, SEKBN

37% 48% 10% 4% 1%

PROPERTY PORTFOLIO AND PROPERTY MANAGEMENT

Fabege's property management and urban and property development activities are concentrated on a few selected submarkets in and around Stockholm: Stockholm inner city, Solna, Hammarby Sjöstad and Flemingsberg. As of 31 March 2024, Fabege owned 100 properties with a total rental value of SEK 4.0bn, lettable floor space of 1.2m sqm and a book value of SEK 77.4bn, of which development and project properties accounted for SEK 14.5bn.

OCCUPANCY RATE

The investment property portfolio's financial occupancy rate was 90 per cent (91) at the end of the period. The biggest vacancies relate mainly to three properties in Solna Business Park. The financial occupancy rate for development properties is not measured as most of these properties are vacant, or have been partially let on short-term leases pending demolition or redevelopment. These cover an area of 234,000 sqm, of which 148,000 sqm are being let for a current annual rent of SEK 262m. Significant ongoing projects make up a lettable area of approximately 146,000 sqm, with a rental value of SEK 392m.

The project portfolio's occupancy rate at the end of the period was 86 per cent (84).

NET LETTINGS

During the period, 30 (8) new leases were signed with a combined rental value of SEK 52m (48), of which 95 per cent (100) of the space was covered by green leases. Lease terminations amounted to SEK –88m (–60). Net lettings amounted to SEK –36m (–12). Leases totalling SEK 25m (34) were renegotiated, with an average decline in rental value of –0.9 per cent (–4). In addition, leases worth SEK 84m (179) were extended on unchanged terms. The retention rate during the period was 56 per cent (76)

CHANGES IN THE PROPERTY PORTFOLIO

No changes occurred in the property portfolio during the period.

PROJECTS AND INVESTMENTS

The purpose of Fabege's project investments in the investment property portfolio is to reduce vacancy rates and increase rents in the property portfolio, thereby improving cash flows and values. Investments in existing properties and projects during the period totalled SEK 645m (699) for existing properties and projects, of which SEK 455m (416) related to investments in project and development properties. Capital invested in the investment property portfolio amounted to SEK 190m (283), a significant proportion of which related to tenant customisations.

COMPLETED PROJECTS

No projects were completed during the period.

MAJOR ONGOING PROJECTS

The new construction of premises for the Royal Opera and Royal Dramatic Theatre at the Regulatorn 4 property in Flemingsberg has had its final survey done and is now being completed ahead of the tenants moving in on 1 June. The investment is estimated at SEK 465m. The property is being certified to BREEAM-SE standard, Very Good.

New construction of the office building at the Ackordet 1 property, Haga Norra, is proceeding with internal work on installations and adjustments for tenants. The investment amounts to an estimated total of just over SEK 1.4bn. The occupancy rate is 66 per cent. The property is being certified to BREEAM-SE standard, Outstanding.

The investment in the garage property in Haga Norra, which includes land for future residential blocks, is continuing. The investment is estimated at SEK 460m, with completion scheduled for 2024.

In Flemingsberg, the project at Separatorn 1 relating to the construction of offices and laboratories for Alfa Laval is continuing. The project encompasses a lettable area of roughly 23,400 sqm excluding parking, of which Alfa Laval is leasing approximately 91 per cent. Work is

TOTAL INVESTMENTS, JAN–MAR 2024

Total investments, SEKm
Investments in investment properties	190
Investments in development properties	40
Investments in project properties	415
Total investments	645

PROPERTY ACQUISITIONS, JAN–MAR 2024

			Lettable
Property	Area	Category	area, sqm
Q1
No acquisitions
Total

PROPERTY SALES, JAN–MAR 2024

Property	Area	Category	Lettable area, sqm
Q1
No sales
Total

currently ongoing on completing the frame and interior design. The investment is estimated at SEK 1,060m, excluding land acquisition. The property is being certified to BREEAM-SE standard, Excellent. Alfa Laval will take up occupancy on 30 April 2025.

Redevelopment of Nöten 4, Solna Strand, is underway with basic building investments and customisations for Saab, which has signed a lease for the entire property. The estimated investment amounts to almost SEK 1.2bn including the customisations for Saab. The property has been certified to BREEAM In-Use standard, Outstanding.

The conversion and extension of the Påsen 1 property in Hammarby Sjöstad is proceeding with interior works and tenant adjustments. The estimated investment has increased to a total of SEK 486m including investments for tenant adjustments. At the same time, the rental value of the signed lease agreements has increased. The property is being certified to BREEAM Bespoke standard, Excellent.

BIRGER BOSTAD

Birger Bostad's project portfolio comprises 19 projects, of which 5 (including 4 phases in Haga Norra) are currently in ongoing production. The estimated investment volume in ongoing projects amounts to approximately SEK 1.1 billion, including land acquisition, of which SEK 111 million relates to an apartment block project in Upplands Väsby and just over SEK 1 billion relates to the development of the next residential neighbourhood in Haga Norra. The project in Haga Norra comprises a total of 288 apartments, including 78 rental apartments with possible occupancy in the second half of 2025. Design work is underway and construction of the frame has begun. The property will be transferred from Fabege's management portfolio to the development portfolio, via property formation, during the second quarter.

During the period, 1 project in Staffanstorp was completed and finalised. A further 3 homes have been sold since the start of the year, leaving 11 homes unsold in completed and ongoing projects, excluding Haga Norra. Sales of the apartments in Haga Norra will begin in the second half of the year.

RESIDENTIAL DEVELOPMENT IN JOINT VENTURES

The residential project in cooperation with Brabo in Haga Norra has been completed. All 418 apartments have been sold, with the last two apartments being handed over during the second quarter.

ONGOING PROJECTS > SEK 50M, 31/03/2024

								Estimated
				Lettable	Occupancy rate, %		Book value,	investment,	of which
Property listing	Category	Area	Completed	area, sqm	space¹	Rental value²	SEKm	SEKm	spent, SEKm
Regulatorn 4	Workshops etc	Flemingsberg	Q2-2024	11,900	100%	26	463	485	428
Ackordet 1	Offices	Haga Norra	Q3-2024	27,000	66%	101	1,424	1,441	976
Påsen 1	Offices	Hammarby Sjöstad	Q1-2025	11,500	47%	41	673	486	289
Regulatorn 3 (part of) Offices		Flemingsberg	Q1-2025	5,800	83%	10	649	193	135
Separatorn 1	Offices	Flemingsberg	Q2-2025	23,400	91%	59	685	1,060	708
Nöten 4 ᵌ	Offices	Solna Strand	Q3-2025	66,000	100%	155	1,893	1,196	304
Total				145,600	86%	392	5,787	4,861	2,840
Other land and project properties							2,145
Other development properties							6,578
Total project, land and development properties						14,510

¹ Operational occupancy rate at 31 March 2024 exclusive Semaforen 1.

² Rental value including additions. The annual rent for the largest projects in progress could increase to SEK 392m (fully let) from SEK 8m in annualised current rent at 31 Mars 2024.

DEVELOPMENT RIGHTS, 31/03/2024

Commercial building rights				Residential building rights
Area	Gross floor area, sqm Legal approval, % Book value, SEK/sqm			Area	Gross floor area, sqmLegal binding, %	Book value, SEK/sqm
Inner city	32,400	13	8,300	Inner city	3,600	0	0
Solna	306,900	38	6,700	Solna	184,100	41	8,400
Hammarby Sjöstad	49,000	75	5,400	Hammarby Sjöstad	24,600	18	14,900
Flemingsberg	268,900	6	4,800	Flemingsberg	264,500	0	5,200
Birger Bostad	-	-	-	Birger Bostad	106,400	80	7,200
Other	20,000	100	1,500	Other	-	-	-
Total	677,200	29	5,800	Total	583,200	28	6,900

The gross floor areas and carrying amounts relate to the additional GFA covered by development rights. Development will in some cases require the demolition of existing spaces, which will impact project calculations. The volumes are not maximised. The ongoing planning work aims to increase the volume of future development rights. All agreed land allocations have been included. The carrying amount also includes future, unpaid purchase prices for agreed land allocations.

PROPERTY PORTFOLIO, 31/03/2024

1

		Lettable area, '000	Market	Rental	Financial
Property holdings	No. of properties	sqm	value SEKm	value²	occupancy rate %
Management properties¹	61	947	62,847	3,560	90
Development properties¹	19	234	7,227	468	-
Land and project properties¹	20	64	7,283	5	-
Total	100	1,245	77,357	4,033	-
Of which, Inner city	26	312	28,843	1,573	92
Of which, Solna	51	687	36,678	1,866	90
Of which, Hammarby Sjöstad	10	139	7,864	449	87
Of which, Flemingsberg	9	68	3,010	78	-
Of which, Other	4	39	962	67	82
Total	100	1,245	77,357	4,033	90

¹See definitions. ²In the rental value, time limited deductions of about SEK 129m (in rolling annual rental value at 30 Mar 2024) have not been deducted.

CONDENSED SEGMENT REPORTING	2024	2024	2024	2024	2024	2023	2023	2023	2023	2023
Click or tap here to enter text.	Jan-Mar	Jan-Mar	Jan-Mar	g	Jan-Mar Jan-Mar	Jan-Mar	Jan-Mar	Jan-Mar	Jan-Mar g	Jan-Mar
SEKm	Management	Development	Projects	Bostad	Total	Management	Development	Projects	Bostad	Total
Rental income	801	61	2	3	867	770	53	3	3	829
Contract sales, residential	-	-	-	141	141	-	-	-	187	187
Other income	-	-	-	-	-	-	-	-	-	-
Total net sales	801	61	2	144	1,008	770	53	3	190	1,016
Property expenses	-203	-33	-12	-	-248	-200	-23	-7	-1	-231
Contract costs. residential development	-	-	-	-140	-140	-	-	-	-165	-165
Gross profit	598	28	-10	4	620	570	30	-4	24	620
Of which net operating income property management	598	28	-10	3	619	570	30	-	2	598
Sur plus ratio, prorety management	75%	46%	-500%	100%	71%	74%	57%	-133%	67%	72%
Of which gross profit residential development	-	-	-	1	1	-	-	-	22	22
Central administration	-23	-3	-3	-	-29	-22	-2	-2	-	-26
Net interest income/expense	-193	-22	-23	-2	-240	-184	-20	-8	-9	-221
Ground rent	-11	-	-	-	-11	-12	-	-	-	-12
Share in profits of associated companies	-11	-	-	-	-11	-10	-	-	-	-10
Profit from property management	360	3	-36	2	329	342	8	-14	15	351
Realised changes in value properties	3	-	-	-	3	-	-	-	-	0
Unrealised changes in value properties	-1,151	-243	28	-15	-1,381	-1,609	-269	-224	-8	-2,110
Profit before tax per segment	-788	-240	-8	-13	-1,049	-1,267	-261	-238	7	-1,759
Changes in value interest rate derivatives & shares					213					-218
Profit before tax	-788	-240	-8	-13	-836					-1,977
Market value properties	62,619	7,227	7,283	228	77,357	70,423	7,707	6,609	255	84,994
Project & developmentproperties	-	-	-	395	395	-	-	-	795	795
Occupancy rate, %	90	-	-	-	-	90	-	-	-	-

Fabege's sustainability work

Our ambition is not limited to developing sustainable city districts, properties and premises. We aim to contribute to a sustainable Stockholm. Our sustainability strategy is an integral part of our business concept, business model and corporate culture.

Goals for 2030

• Carbon neutral property management.
• Cutting the climate impact of project development per GFA by half

71 kWh/sqm

Average enegyuse 2023

TOP RANKING IN GRESB 2023

Fabege scored 93 points out of 100 in GRESB's annual evaluation of the property sector. The average number of points was 75. A total of 2,084 companies were evaluated.

SCIENCE BASED TARGETS

Our ambitious climate target has been approved by SBTi since 2020.

Goals & strategy

URBAN DEVELOPMENT

Our approach is rooted in a holistic perspective to strengthen our neighbourhoods as experience-based meeting places, where the primary focus is on comfort, convenience, health and safety. By influencing everything from energy systems to sustainable travel, we can also help reduce our carbon footprint.

Examples of areas of work:

• Work-life balance
• District identity and attractiveness
• Outdoor environments meeting places, green spaces
• Multifunctionality
• Bridging physical and social barriers
• Adaptation to climate change
• Energy system solution
• Public transport, accessibility and navigability
• Security measures
• Participation and dialogue

REDUCED CARBON FOOTPRINT IN PROJECTS

The targets and roadmap that we have established in support of the Paris Agreement via the Science Based Targets initiative form the backbone of Fabege's work on climate issues. New construction and major refurbishments completed after 2030 will have a 50 per cent lower carbon footprint compared with Fabege's 2019 baseline. During the quarter, we worked in accordance with the first intermediate goal as part of our 2030 commitment:

• Planning permission before 2025, 20 per cent lower carbon footprint
• Circularity index 20 per cent for significant renovations

Fabege has a long-term, target-based and integrated approach to creating more sustainable properties. Our ultimate longterm goal is for Fabege's property management to be carbon neutral by 2030, as measured in kg

CO2e/sqm. By this we mean that we will have control over all the emissions associated with our operations, and we will minimise emissions to the greatest possible extent using the tools available. We will compensate for emissions over which we have no control via carbon offsetting, for example investments in additive technology that reduces the amount of carbon dioxide in the atmosphere.

ENERGY EFFICIENCY TARGETS

Fabege's average energy consumption in 2023 totalled 71 kWh/sqm (specific energy). The target is average energy use of 70 kWh/sqm in 2024.

During the quarter, energy decreased by 0.3 per cent in the management portfolio compared to the first quarter of 2023.

ENVIRONMENTAL CERTIFICATION OF PROPERTIES

All project properties and investment properties have been certified to BREEAM-SE/BREEAM In-Use since 2019. New construction is certified according to BREEAM-SE, ambition level Excellent, and the management of

properties is certified according to BREEAM In-Use, ambition level Very Good. All residential new builds are certified according to the Nordic Ecolabel.

During the quarter, work continued on driving sustainable improvements in construction, management and operations, in connection with the certifications. During the quarter, we initiated recertification of 24 properties in the management portfolio according to BREEAM In-Use.

THE EU TAXONOMY

Fabege is subject to the EU's Non-Financial Reporting Directive. Reporting on the extent to which the Group's activities are covered by, and compliant with, the EU taxonomy can be found in Note 4 EU taxonomy, page 24.

The full tables in accordance with EU taxonomy objective 1, including DNSH criteria and minimum safeguards, are presented in the 2023 Annual Report.

EXAMPLES OF SOCIAL SUSTAINABILITY INITIATIVES

• BID (business improvement district) started in Flemingsberg
• Läxhjälp homework club in Flemingsberg
• Active in Flemingsberg Science
• TalangAkademin in Huddinge
• Support for the Stockholm City Mission
• Street Gallery, Solna Business Park
• Support for local sports clubs
• Pep Parks in Solna
• Vinnova 'Social sustainability in the physical environment' project
• Nature and the environment guide, containing teaching materials for grades 4, 5 & 6

CERTIFIED PROPERTIES*

System	Quantity	Sqm, GLA	Target
BREEAM In-Use	47	712,522	66%
BREEAM-SE	14	358,245	32%
BREEAM Bespoke	1	7,423	1%
Miljöbyggnad	1	5,593	1%
Total certified properties	63	1,083,783	100%

* The properties that have not yet started certification refer to land and development properties for future project development.

SUSTAINABILITY PERFORMANCE MEASURES

	2024, kv1	2023	2022	Target
Energy performance, KWh/sqm Atemp	25	73	77	Max. 70 kWh/sqm*
Proportion of renewable energy, %	94	94	95	100
Environmental certification, number of properties	63	63	59	-
Environmental certification, % of total area	82	84	81	100
Green leases, % of newly signed space	95	100	96	100
Green leases, % of total space	91	89	80	100
Green financing, %	99	100	99	100
Satisfied employees, confidence rating, %	n/a	88	87	2024 >88
GRESB, points	n/a	94	93	>90

*Atemp is the total internal area for each floor, loft and basement that is heated to more than 10°C. Areas occupied by internal walls, openings for stairs, shafts and the like are included. The area for garages, within the building, in a residential building or a commercial building other than a garage, is not

SOCIAL SUSTAINABILITY INITIATIVES

Fabege collaborates with customers, municipalities, authorities, other property owners and associations to create safe and attractive areas. We are continuing to focus on social sustainability in urban planning and projects as we develop the physical environment in our city districts. Fabege's actions are centred on networks and dialogue, as well as education, leisure time, health and work.

ABOUT THE SUSTAINABILITY REPORT

The following is a quarterly follow-up of Fabege's work on sustainability issues. The starting point is Fabege's annual Sustainability Report. The quarterly report has not been prepared in accordance with the GRI guidelines and therefore does not address certain issues.

CSRD/ESRS

We have started preparing for sustainability reporting under the new Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS). During the autumn, a dual materiality analysis and a gap analysis were carried out as a basis for further work. In 2026, Fabege, which is already covered by the Non-Financial Reporting Directive, will report for the 2025 financial year.

An overall picture of the company's sustainability work is published once a year in the Sustainability Report; find out more at https://www.fabege.se/en/sustainability.

Other financial information

SENSITIVITY ANALYSIS – PROPERTY VALUES

Change in value, %	Impact on earnings after tax, SEKm	Equity/assets ratio, %	Loan-to-value ratio, %
+1	603	46.9%	43.2%
0	0	46.6%	43.4%
-1	-603	46.3%	43.6%

Earnings and key performance indicators are affected by realised and unrealised changes in the value of properties. The table shows the effect of a 1 percentage point change in value after the deduction of deferred tax.

SENSITIVITY ANALYSIS – CASH FLOW AND EARNINGS

	Change	Effect, SEKm
Rental income, total	1%	34.7
Rent level, commercial income	1%	32.0
Financial occupancy rate	1 percentage point	35.7
Property expenses	1%	-8.7
Interest expenses, LTM¹	1 percentage point	139.0
Interest expenses, longer term perspec 1 percentage point		335.8

The sensitivity analysis shows the effects on the Group's cash flow and earnings on an annualised basis after taking into account the full effect of each parameter.

RENTAL INCOME – TREND FOR THE NEXT FOUR QUARTERS

The graph above shows the trend in contracted rental income, including announced occupancies and departures and renegotiations, but excluding letting targets. The decrease from Q4 2023 onwards is due to sold, vacated properties. The graph is not a forecast, but instead aims to show the rental trend for the existing lease portfolio on the balance sheet date.

HUMAN RESOURCES

At the end of the period, 227 people (230) were employed by the Group.

PARENT COMPANY

Revenue during the period amounted to SEK 81m (124) and earnings before appropriations and tax totalled SEK 41m (–363). Net investments in property, equipment and shares totalled SEK 1m (1).

EVENTS OCCURRING AFTER THE BALANCE SHEET DATE

No significant events occurred after the balance sheet date.

LEASE MATURITY STRUCTURE

	Annual rent,
Maturity, year	No. of leases	SEKm	Percentage, %
2024¹	453	418	13%
2025	359	559	17%
2026	286	596	18%
2027	175	520	16%
2028	65	198	6%
2029+	95	886	27%
Commercial	1,433	3,176	95%
Housing leases	199	22	1%
Indoor and outdoor parking	639	135	4%
Total	2,271	3,333	100%

¹Of which just over SEK 253m has already been renegotiated.

LARGEST CUSTOMERS

	Share, %	Year of expiry
Skandinaviska Enskilda Banken AB	6.7%	Q3-2037
Ica Fastigheter AB	3.9%	Q4-2030
Convendum Stockholm City AB	3.7%	Q2-2034
Telia Sverige AB	3.7%	Q1-2031
Tietoevry Tech Services AB	2.3%	Q1-2029
Carnegie Investment Bank AB	2.1%	Q3-2027
Bilia AB	1.7%	Q1-2041
Svea Bank AB	1.7%	Q4-2027
Statens Skolverk	1.5%	Q3-2030
Telenor Sverige AB	1.3%	Q3-2028
Total	29%

¹Percentage of contracted rent.

RENTAL VALUE PER CATEGORY

OPPORTUNITIES AND RISKS

Risks and uncertainties relating to cash flow from operations relate primarily to changes in rents, vacancies and interest rates. The effect of the changes on consolidated profit, including a sensitivity analysis, and a more detailed description of risks and opportunities, are presented in the section on Risks and opportunities in the 2023 Annual Report (pages 50–60).

Properties are recognised at fair value and changes in value are recognised in profit or loss. The effects of changes in value on consolidated profit, the equity/assets ratio and the loan-tovalue ratio are also presented in the section on Risks and opportunities and the sensitivity analysis in the 2023 Annual Report. Financial risk, defined as the risk of insufficient access to long-term funding via loans, and Fabege's management of this risk, are also described in the Risks and opportunities section of the 2023 Annual Report (pages 50–60).

Fabege's aims for the capital structure are to have an equity/assets ratio of at least 35 per cent and an interest coverage ratio of at least 2.2x. The target for the loan-to-value ratio is a maximum of

50 per cent. The long-term debt ratio will amount to a maximum of 13x.

No material changes in the company's assessment of risks have arisen, aside from the above, since the publication of the 2023 Annual Report.

SEASONAL VARIATIONS

Expenses for the running and maintenance of properties are subject to seasonal variations. For example, cold and snowy winters give rise to higher costs for heating and snow clearance, while hot summers result in higher cooling costs. Activity in the rental market is seasonal. Normally, more business transactions are completed in the second and fourth quarters, which means that net lettings in these quarters are often higher.

MARKET OUTLOOK

We note that activity on the rental market in Stockholm has been more cautious, but with continued stable rent levels. Lettings continue to be agreed at good levels, but the indexlinked increases from the start of the year are expected to limit the potential in future renegotiations.

Access to capital market financing has improved, with significantly lower margins. Market interest rates have peaked and are expected to fall in 2024. Roughly 60 per cent of Fabege's loan portfolio is at fixed rates, which will mitigate the effect of higher market rates for the next few years. Rising interest rates have impacted yield requirements in property valuations. Higher yield requirements have been partially met by higher inflation assumptions. Although there have been few completed transactions on the transaction market, those that have been completed confirm that long-term investors remain willing to pay good prices for quality in Stockholm.

Fabege enjoys a consistently strong financial position. We have created new investment opportunities in our areas via the acquisitions completed in recent years. With the acquisition of Birger Bostad in the autumn of 2021, we took a step towards more comprehensive urban development that extends to residential units as well. Fabege's hallmark is stability – we have a portfolio of modern properties in attractive locations, stable customers and committed employees. We are well-placed to take on the challenges and opportunities open to us on the market over the coming year.

ACCOUNTING POLICIES

Fabege prepares its consolidated financial statements according to IFRS Accounting Standards. This Interim Report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act.

Disclosures in accordance with IAS 34.16A Interim Financial Reporting are submitted both in the notes and in other sections of the Interim Report.

The Group has applied the same accounting policies and valuation methods as in the most recent annual report.

New or revised IFRS standards or other IFRIC interpretations that came into effect after 1 January 2024 have not had any material impact on the consolidated financial statements. The Parent Company prepares its financial statements in accordance with RFR 2 Accounting for Legal Entities and the Swedish Annual Accounts Act, and has applied the same accounting policies and valuation methods as in the last annual report.

Stockholm, 25 April 2024 Stefan Dahlbo

This Interim Report has not been examined by the company's auditors.

Share information

Fabege's shares are listed on NASDAQ Stockholm, where they are included in the Large Cap segment.

OWNERS*

Fabege had a total of 44,086 known shareholders on 31 March 2024, including 59.7 per cent Swedish ownership. The 12 largest shareholders control 51.9 per cent of the capital.

DIVIDEND 2023

The Annual General Meeting decided on a dividend of SEK 1.80 per share to be paid quarterly at SEK 0.45 per share.

DIVIDEND POLICY

Fabege aims to pay a dividend to its shareholders comprising the part of the company's profit that is not required for the consolidation or development of the business. Under current market conditions, this means that the dividend is expected to amount to, on an enduring basis, at least 50 per cent of the profit from ongoing property management and the gains realised on the sale of properties after tax.

ACQUISITION AND TRANSFER OF TREASURY SHARES*

The 2024 AGM passed a resolution authorising the Board, for the period until the next AGM, to acquire and transfer shares in the company. Share buybacks are subject to a limit of 10 per cent of the total number of shares outstanding at any time. The company held 16,206,048 treasury shares on 31 March 2024. Repurchases were made at an average price of SEK 120.23 per share. The holding represents 4.9 per cent of the total number of registered shares. There were no repurchases during the period.

GREEN EQUITY DESIGNATION

Fabege shares are green according to the Nasdaq Green Equity Designation. The criteria are that at least 50 per cent of turnover and 50 per cent of investments must be considered to be green, and less than 5 per cent of turnover linked to fossil fuels.

LARGEST SHAREHOLDERS, 31/03/2024*

	Number of shares*	Proportion of capital, %	Proportion of votes, %
Backahill AB	52,108,718	15.75	16.56
John Fredriksen	37,757,551	11.42	12.00
Nordea Funds	12,838,131	3.88	4.08
Länsförsäkringar Funds	10,690,913	3.23	3.40
Vanguard	10,630,978	3.21	3.38
BlackRock	9,984,296	3.02	3.17
E.N.A City Aktiebolag	7,144,796	2.16	2.27
Folksam	7,118,583	2.15	2.26
Third Swedish National Pension Fund	7,025,429	2.12	2.23
Norges Bank	6,283,523	1.90	2.00
APG Asset Management	5,179,041	1.57	1.65
AFA Insurance	4,902,453	1.48	1.56
Total 12 largest shareholders	171,664,412	51.89	54.56
Total no. ofshares outstanding	314,577,096	95.10	100
Treasury shares	16,206,048	4.90	-
Total no. of registered shares	330,783,144	100	100

REVENUE AND TRADING, JAN–MAR 2024*

Highest price, SEK	108.6
Lowest price, SEK	83.5
VWAP, SEK	93.8
Average daily turnover, SEK	63,103,074
Number of traded shares	42,380,546
Average number of transactions	1,560
Number of transactions	98,265
Average value per transaction, SEK	40,457
Daily turnover relative to market capitalisation, %	0.20

SHARE DISTRIBUTION*

	2024-03-31	2023-03-31
Number of owners	44,086	45,120
Number of foregin owners	992	995
Foregin ownership, %	40.3	35.8
Fund ownership, %	28.3	33.7
Transparency ownership, %	15.9	15.9

COUNTRY DISTRIBUTION, 31/03/2024*

• Sweden 59.7%
• Norway 14.%
• USA 9.4%
• Finland 4%
• Other countries 12.9%

Financial data

Group Condensed statement of comprehensive income

SEKm	2024 Jan-Mar	2023 Jan-Mar	2023 Jan-Dec	Rolling 12 m Apr-Mar
Rental income¹	867	829	3,366	3,404
Sales residential projects	141	187	553	508
Other income ²	-	-	11	11
Net Sales	1,008	1,016	3,930	3,923
Property expenses	-248	-231	-853	-871
Residential projects expenses	-140	-165	-549	-524
Gross profit	620	620	2,528	2,528
of wich gross profit property managment	619	598	2,524	2,544
Surplus ratio, %	71%	72%	75%	75%
of wich gross profit property projects	1	22	4	-16
Central administration	-29	-26	-97	-99
Net interest expense	-240	-221	-962	-982
Ground rent	-11	-12	-45	-44
Share in profit of associated companies	-11	-10	34	34
Profit/loss from property management	329	351	1,458	1,437
Realised changes in value of properties	3	0	0	3
Unrealised changes in value of properties	-1,381	-2,110	-7,831	-7,102
Unrealised changes in value, fixed-income derivatives	213	-217	-1,003	-573
Changes in value of shares	-	-1	-4	-3
Profit/loss before tax	-836	-1,977	-7,380	-6,238
Current tax	-	0	-1	-1
Deferred tax	137	393	1,863	1,607
Profit/loss for period/year	-699	-1,584	-5,518	-4,632
Items that will not be restated in profit or loss	-	-	-	-
Revaluation of defined-benefit pensions	-	0	3	-
Comprehensive income for the period/year	-699	-1,584	-5,515	-4,632
Of which attributable to non-controlling interests	0	0	0	0
Total comprehensive income attributable to Parent Company shareholders	-699	-1,584	-5,515	-4,632
Earnings per share, SEK	-2:22	-5:04	-17:54	-14:73
No. of shares outstanding at period end, thousands	314,577	314,577	314,577	314,577
Average no. of shares, thousands	314,577	314,577	314,577	314,577

¹ On-charging, service and other income amounts to SEK 28 (24) for the period Jan-Mar 2024.

² Refers to elctricity support

³ Earnings per share are the same before and after dilution.

Condensed statement of financial position

	2024	2023	2023
SEKm	Mar 31	Mar 31	31 Dec
Assets
Goodwill	205	205	205
Properties	77,358	84,994	78,093
Right-of-use asset	949	1,243	949
Other property, plant and equipment	30	25	30
Derivatives	1,029	1,472	925
Non-current financial assets	1,343	490	1,319
Development properties	395	795	519
Current assets	1,247	1,333	997
Short-term investments	98	96	98
Cash and cash equivalents	31	82	85
Total assets	82,685	90,735	83,220
Equity and liabilities
Shareholders' equity	38,545	43,175	39,244
Deferred tax	8,168	9,802	8,305
Other provisions	154	157	158
Interest-bearing liabilities¹	33,579	33,976	32,982
Lease liability	949	1,243	949
Derivatives	130	0	240
Non-interest-bearing liabilities	1,160	2,382	1,342
Total equity and liabilities	82,685	90,735	83,220

¹Of which current, SEK 5,538m (7,169).

Group Condensed statement of changes in equity

				Total equity
		Other	Retained earnings	attributable to Parent	Non	Total
		contributed	incl. profit/loss for	Company	controlling	shareholders'
SEKm	Share capital	capital	the year	shareholders	interests	equity
Shareholders' equity, 1 January 2023, according to adopted Statement of financial pos	5,097	3,017	37,400	45,514	0	45,514
Profit/loss for the period			-5,518	-5,518		-5,518
Other comprehensive income			3	3		3
Total other comprehensive income for the period			-5,515	-5,515	0	-5,515
TRANSACTIONS WITH SHAREHOLDERS
Share buybacks			-	-		-
Approved but unpaid dividend			-189	-189		-189
Cash dividend			-566	-566		-566
Total transactions with shareholders			-755	-755	0	-755
Shareholders' equity, 31 December 2023, according to adopted Statement of
financial position	5,097	3,017	31,130	39,244	0	39,244
Profit/loss for the period			-699	-699		-699
Other comprehensive income			0	0		0
Total other comprehensive income for the period			-699	-699	0	-699
TRANSACTIONS WITH SHAREHOLDERS
Share buybacks			-	-		-
Approved but unpaid dividend						0
Cash dividend						0
Total transactions with shareholders			0	0	0	0
Shareholders' equity, 31 Mar 2024	5,097	3,017	30,431	38,545	0	38,545

Statement of cash flows

	2024	2023	2023
SEKm	Jan-Mar	Jan-Mar	Jan-Dec
Operations
Net operating income	620	620	2,528
Central administration	-29	-26	-97
Reversal of depreciation and impairment	3
Other non-cash items	3	2	11
Interest received	4	6	24
Financial costs paid	-284	-261	-1,150
Income tax paid	0	0	0
Cash flow before changes in working capital	317	341	1,316
Change in working capital
	124	98	373
Change in current receivables	-251	-290	44
Change in current liabilities	-2	304	-163
Total change in working capital	-129	112	254
Cash flow from operating activities	188	453	1,570
Investing activities
Business acquisition, net cash outflow	-	0	-
Investments in new-builds, extensions and conversions	-620	-673	-2,978
Acquisition of properties		-57	-78
Divestment of properties		-	2,977
Other non-current financial assets	-31	-48	-253
Cash flow from investing activities	-651	-778	-332
Financing activities
Dividend to shareholders	-189	-315	-881
Treasury share buybacks	-	-	-
Borrowings	6,509	7,765	22,275
Repayment of debt	-5,911	-7,130	-22,634
Cash flow from financing activities	409	320	-1,240
Cash flow for the period	-54	-5	-2
Cash and cash equivalents at beginning of period	85	87	87
Cash and cash equivalents at end of period	31	82	85

Group Key performance indicators

	2024	2023	2023
Financial¹	Jan-Mar	Jan-Mar	Jan-Dec
Return on equity, %	-7.2	-14.3	-13.0
Interest coverage ratio, multiple	2.4	2.6	2.5
Equity/assets ratio, %	47	48	47
Loan-to-value ratio, properties, %	43	40	42
Debt ratio, multiple	13.8	15.4	13.5
Debt/equity ratio, multiple	0.9	0.8	0.8
Share-based¹
Earnings per share, SEK²	-2:22	-5:04	-17:54
Equity per share, SEK	123	137	125
Cash flow from operating activities per share, SEK	0:60	1:44	4:99
Average no. of shares, thousands	314,577	314,577	314,577
No. of shares outstanding at end of period, thousands	314,577	314,577	314,577
Property-related
No. of properties	100	102	100
Carrying amount, properties, SEKm	77,357	84,994	78,093
Lettable area, sqm	1,245,000	1,303,000 1,246,000
Projekt & developmentproperties, SEKm	395	795	519
Financial occupancy rate, %	90	90	91
Total return on properties, %	-1.0	-1.7	-6.2
Surplus ratio, %	71	72	75

¹Unless otherwise stated, the key performance indicator is not defined under IFRS. See definitions.

²Definition according to IFRS.

EPRA key performance indicators

	2024	2023	2023
	Jan-Mar	Jan-Mar	jan-dec
EPRA Earnings (income from property mgmt after tax), SEKm	300	318	1,314
EPRA Earnings (EPS), SEK/share	0:95	1:01	4:18
EPRA NRV (long-term net asset value), SEKm	45,814	52,301	47,052
EPRA NRV, SEK/share	146	166	150
EPRA NTA (net asset value), SEKm	42,874	48,722	44,177
EPRA NTA, SEK/share	136	155	140
EPRA NDV (net asset value), SEKm	38,340	43,725	39,228
EPRA NDV, SEK/share	122	139	125
EPRA Vacancy rate, %	10	10	9
EPRA Rental growth identical portfolio	9	8	11

Deferred tax

	2024	2023	2023
Deferred tax attributable to:	Mar 31	Mar 31	31 Dec
- tax loss carryforwards, SEKm	-307	-486	-410
- difference between carrying amount and tax value of properties, SEKm	8,312	10,005	8,596
- derivatives, SEKm	185	303	141
- other, SEKm	-22	-20	-22
Net debt, deferred tax, SEKm	8,168	9,802	8,305

Quarterly Group overview

Condensed income statement

	2024		2023				2022
SEKm	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2
Rental income	867	827	854	855	829	781	771	717
Sales property projects	141	67	177	122	187	163	104	22
Other income	-	-	11	-	-	-	-	-
Net sales	1,008	894	1,042	977	1,016	944	875	739
Property expenses	-248	-203	-206	-213	-231	-207	-186	-190
Costs property projects	-140	-86	-182	-116	-165	-252	-98	-10
Gross profit	620	605	654	648	620	485	591	539
of which gross profit property management	619	624	659	642	598	574	585	527
Surplus ratio	71%	76%	76%	75%	72%	74%	76%	74%
of which gross profit property projects	1	-19	-5	6	22	-89	6	12
Central administration	-29	-16	-26	-29	-26	-25	-22	-30
Net interest expense	-240	-237	-265	-239	-221	-189	-159	-137
Ground rent	-11	-10	-12	-12	-12	-12	-11	-10
Share in profit of associated companies	-11	3	59	-17	-10	-24	9	-15
Profit/loss from property management	329	345	410	351	351	235	408	347
Realised changes in value of properties	3	0	0	0	0	0	0	0
Unrealised changes in value of properties	-1381	-2,415	-1,591	-1,715	-2,110	-3,665	253	1,020
Unrealised changes in value, fixed-income derivatives	213	-888	-15	117	-217	-61	277	657
Changes in value, equities	0	-3	-1	1	-1	-3	1	-1
Profit/loss before tax	-836	-2,961	-1,197	-1,246	-1,977	-3,494	939	2,023
Current tax	0	-1	0	0	0	-3	0	0
Deferred tax	137	971	205	294	393	768	-211	-428
Profit/loss for the period	-699	-1,991	-992	-952	-1,584	-2,729	728	1,595

Condensed financial position

	2024	2023					2022
SEKm	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2
Assets
Goodwill	205	205	205	205	205	205	205	205
Properties	77,358	78,093	82,700	83,520	84,994	86,348	89,373	88,480
Right-of-use asset, leasehold	949	949	1,243	1,243	1,243	1,243	1,090	1,091
Other property, plant and equipment	30	30	28	25	25	25	18	19
Derivatives	1,029	925	1,574	1,589	1,472	1,689	1,750	1,473
Non-current financial assets	1,343	1,319	531	514	490	456	450	757
Development properties	395	519	563	716	795	892	957	845
Current assets	1,247	997	1,107	1,122	1,333	1,042	1,250	1,157
Short-term investments	98	98	97	96	96	96	95	95
Cash and cash equivalents	31	85	58	76	82	87	114	185
Total assets	82,685	83,220	88,106	89,106	90,735	92,083	95,302	94,307
Equity and liabilities
Shareholders' equity	38,545	39,244	41,232	42,224	43,175	45,514	48,232	47,765
Deferred tax	8,168	8,305	9,303	9,508	9,802	10,195	10,957	10,748
Other provisions	154	158	155	156	157	157	167	179
Interest-bearing liabilities	33,579	32,982	34,563	33,846	33,976	33,341	32,882	32,046
Lease liability	949	949	1,243	1,243	1,243	1,243	1,091	1,091
Derivatives	130	240	0	0	-	-	-	-
Non-interest-bearing liabilities	1,160	1,342	1,610	2,129	2,382	1,633	1,974	2,478
Total equity and liabilities	82,685	83,220	88,106	89,106	90,735	92,083	95,302	94,307

Key performance indicators

	2024		2023			2022
	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2
Financial¹
Return on equity, %	-7.2	-19.8	-9.5	-8.9	-14.3	-23.3	6.1	13.6
Interest coverage ratio, multiple²	2.4	2.4	2.3	2.5	2.6	2.8	3.5	3.6
Equity/assets ratio, %	47	47	47	47	48	49	51	51
Loan-to-value ratio, properties, %	43	42	41	40	40	38	36	36
Debt ratio, multiple	13.8	13.5	14.5	14.6	15.4	15.6	15.4	15.1
Debt/equity raio, multiple	0.9	0.8	0.8	0.8	0.8	0.7	0.7	0.7
Share-based¹
Earnings per share for the period, SEK²	-2:22	-6:33	-3:15	-3:03	-5:04	-8:68	2:30	5:01
Equity per share, SEK	123	125	131	134	137	145	153	151
Cash flow from operating activities per share, SEK	0:60	1:15	0:60	1:80	1:44	1:49	0:97	1:90
No. of shares outstanding at the end of the period, thousands	314,577	314,577	314,577	314,577	314,577	314,577	314,577	317,352
Average no. of shares, thousands	314,577	314,577	314,577	314,577	314,577	317,221	318,102	318,175
Property-related
Financial occupancy rate, %	90	91	91	91	90	89	90	89
Total return on properties, %	-1.0	-2.2	-1.1	-1.3	-1.7	-3.4	0.9	5.1
Surplus ratio, %	71	76	76	76	72	73	74	73

¹Unless otherwise stated, the key performance indicator is not defined under IFRS. Please refer to definitions. ²Definition according to IFRS.

Group Reconciliation of key performance indicators

The reconciliation of the financial key performance indicators that Fabege reports is presented below.

	2024	2023	2023
Equity/assets ratio	Mar 31	Mar 31	31 Dec
Shareholders' equity, SEKm	38,545	43,175	39,244
Total assets, SEKm	82,685	90,735	83,220
Equity/assets ratio	47%	48%	47%
	2024	2023	2023
Loan-to-value ratio, properties	Mar 31	Mar 31	31 Dec
Interest-bearing liabilities, SEKm	33,579	33,976	32,982
Carrying amount, properties, SEKm	77,358	84,994	78,093
	395	795	519
Loan-to-value ratio, properties	43%	40%	42%
	2024	2023	2023
Debt ratio	Mar 31	Mar 31	31 Dec
Gross profit	2,528	2,234	2,528
Reversal of impairment	6	81	6
Central administration, SEKm	-99	-103	-97
Total, SEKm	2,435	2,212	2,437
Interest-bearing liabilities, SEKm	33,579	33,976	32,982
Debt ratio, multiple	13.8	15.4	13.5
	2024	2023	2023
Interest coverage ratio, multiple	Mar 31	Mar 31	31 Dec
Gross profit	620	620	2,528
Reversal of impairment	-	-	6
Ground rent, SEKm	-11	-12	-45
Central administration, SEKm	-29	-26	-97
Total, SEKm	580	582	2,392
Net interest expense, SEKm	-240	-221	-962
Interest coverage ratio, multiple	2.4	2.6	2.5
	2024	2023	2023
Return on equity	Jan-Mar	Jan-Mar	Jan-Dec
Profit/loss for the period, SEKm	-699	-1,584	-5,517
Average equity, SEKm	38,895	44,345	42,379
Return on equity	-7.2%	-14.3%	-13.0%
	2024	2023	2023
Total return on properties	Jan-Mar	Jan-Mar	Jan-Dec
Net operating income, SEKm	619	598	2,524
Unrealised and realised changes in the value of properties, SEKm	-1,381	-2,110	-7,831
Market value including investments for the period, SEKm	78,735	87,104	85,924
Total return on properties	-1.0%	-1.7%	-6.2%
	2024	2023	2023
Debt/equity ratio	Jan-Mar	Jan-Mar	Jan-Dec
Interest-bearing liabilities, SEKm	33,579	33,976	32,982
Shareholders' equity, SEKm	38,545	43,175	39,244
Debt/equity ratio	0.9	0.8	0.8
	2024	2023	2023
Equity per share	Jan-Mar	Jan-Mar	Jan-Dec
Shareholders' equity, SEKm	38,545	43,175	39,244
No. of shares outstanding at end of period, million	315	315	315
Equity, SEK per share	123	137	125
	2024	2023	2023
Cash flow per share	Jan-Mar	Jan-Mar	Jan-Dec
Cash flow from operating activities, SEKm	188	453	1,570
Avergae number of shares, million	315	315	315
Cash flow, SEK per share	0.6	1.44	5.0

Group Reconciliation of EPRA key performance indicators

The reconciliation of the EPRA key performance indicators that Fabege reports is presented below.

	2024				2023		2023 Jan-Dec
		Jan-Mar		Jan-Mar
EPRA NRV, EPRA NTA & EPRA NDV	NRV	NTA	NDV	NRV	NTA	NDV	NRV	NTA	NDV
Shareholders' equity, SEKm	38,545	38,545	38,545	43,175	43,175	43,175	39,244	45,514	39,244
Reversal of approved but unpaid dividend, SEKm				755	755	755	189	314	189
Reversal of fixed-income derivatives according to balance sheet, SEK	-899	-899	-899	-1,472	-1,472	-1,472	-686	-1,689	-686
Reversal of deferred tax according to balance sheet, SEKm	8,168	8,168	8,168	9,802	9,082	9,802	8,305	10,195	8,305
Reversal of goodwill according to balance sheet, SEKm		-205	-205		-205	-205		-205	-205
Deduction of actual deferred tax, SEKm	-	-2,735	-2,735	-	-3,374	-3,374	-	-3,500	-2,670
Deduction of fixed-income derivatives according to balance sheet, SEK	-		899	-	-	1,472	-	-	686
Deduction of deferred tax according to balance sheet after
adjustment of estimated actual deferred tax, SEKm	-	-	-5,433	-	-	-6,428	-	-	-5,634
NAV, SEKm	45,814	42,874	38,340	52,260	48,681	43,725	47,052	50,629	39,229
Number of shares outstanding, millions	314.6	314.6	314.6	314.6	314.6	314.6	314.6	314.6	314.6
NAV, SEK per share	146	136	122	166	155	139	150	161	125
			2024			2023			2023
EPRA EPS			Jan-Mar			Jan-Mar			Jan-Dec
Profit/loss from property management, SEKm			329			351			1458
Deduction for tax depreciation, SEKm			-190			-192			-758
Total, SEKm			139			159			700
Nominal tax (20.6%), SEKm			29	33			144
EPRA earnings in total (profit/loss from property management
less nominal tax), SEKm			300			318			1,314
Number of shares, millions			314.6			314.6			314.6
EPRA EPS, SEK per share			0:95			1:01			4:18
			2024			2023			2023
EPRA Vacancy rate			Jan-Mar			Jan-Mar			Jan-Dec
Estimated market value of vacant property rents, SEKm			343			363			317,980
Annual rental value, entire portfolio, SEKm			3,549			3,528			3,406,109
EPRA Vacancy rate, %			10%			10%			9%
			2024			2023			2023
EPRA rental growth identical portfolio			Jan-Mar			Jan-Mar			Jan-Dec
Change, %			9%			8%			11%
Change,SEKm			74,262			58,415			320,936
Rental income identical portfolio current period, SEKm			866,254			816,044			3,202,463
Rental income identical portfolio previous period, SEKm			791,992			757,629			2,881,527

Parent Company

Condensed Profit and loss account

	2024	2023	2023
SEKm	Jan-Mar	Jan-Mar	Jan-Dec
Income	81	124	443
Expenses	-218	-211	-449
Net financial items	-35	-58	512
Share in profit of associated companies	-	0	0
Changes in value, fixed-income derivatives	213	-217	-1,003
Changes in value, equities	-	-1	-8
Appropriation	-	0	196
Profit/loss before tax	41	-363	-309
Current tax	-	0	-
Deferred tax	-10	73	169
Profit/loss for the period	31	-290	-140

Condensed Balance sheet

	2024	2023	2023
SEKm	Mar 31	Mar 31	31 Dec
Investments in Group companies	13,400	13,400	13,400
Other non-current assets	48,602	46,912	47,244
of which, receivables from Group companies	47,519	45,390	46,299
Current assets	409	88	472
Cash and cash equivalents	1	2	1
Total assets	62,412	60,402	61,117
Shareholders' equity	11,540	11,359	11,509
Provisions	268	345	220
Non-current liabilities	44,965	45,137	42,591
of which, liabilities to Group companies	17,383	14,069	16,702
Current liabilities	5,639	3,561	6,797
Total equity and liabilities	62,412	60,402	61,117

Notes

NOTE 1 DERIVATIVES

Derivatives are measured at fair value as Level 2 assets. The derivatives portfolio is measured at the present value of future cash flows. Changes in value are recognised in profit or loss. Changes in value are recognised for accounting purposes and have no impact on cash flow. At maturity, the market value of derivative instruments is always zero. The valuation assumptions have not changed significantly compared with the most recent annual report.

NOTE 2 CONTINGENT LIABILITIES

On the balance sheet date, contingent liabilities comprised guarantees and commitments in favour of associated companies and subsidiaries of SEK 485m (514) and other 0 (0).

NOTE 3 SEGMENT REPORTING – CLASSIFICATIONS AND RECLASSIFICATIONS DURING THE PERIOD

In accordance with IFRS 8, segments are presented from the management's point of view, broken down by segment. Fabege's operations are classified as follows:

• Property Management properties under ongoing, long-term management
• Property Development properties awaiting a redevelopment or extension that will have a significant impact on ongoing property management and net operating income
• Projects Land and development properties, and properties undergoing new construction/complete redevelopment.
• Residential Birger Bostad work with residential development. The business constitute a separate segment.

Rental income and property expenses, as well as realised and unrealised changes in the value of properties, are directly attributable to properties in the respective segments (direct income and expenses). If a property changes type during the year, the earnings attributable to that property are allocated to the respective segments based on the period of time for which the property belonged to each segment. Central administration costs and net financial items have been allocated to segments on a standardised basis according to each segment's share of the total property value (indirect income and expenses). Property assets are directly attributed to the respective segments and recognised on the balance sheet date. All revenue and expenses attributable to Birger Bostad's operations are recognised in the Residential segment.

No reclassifications were made during the period.

NOTE 4 EU TAXONOMY

Percentage of activities eligible for the taxonomy

Key ratios	Total, SEKm	Activities eligible for the taxonomy, %	Activities not eligible for the taxonomy, %
Revenue	867	100	59
Operating expenditure	43	100	39
Capital expenditure	645	100	16

Fabege owns and manages properties, with a primary focus on commercial properties in the Stockholm area. The vast majority of the property portfolio falls within the scope of the taxonomy and the economic activities applied are

CCM 7.1 Construction of new buildings

CCM 7.7 Acquisition and ownership of buildings

The proportion of Fabege's operations that are environmentally sustainable according to the EU Taxonomy Regulation is reported based on three financial indicators: turnover, operating expenditure and capital expenditure.

Recognition of turnover:

All turnover related to the properties included in the economic activities above are recognised. This refers to rental income, including the standard supplements. No material income that should be excluded has been identified.

Recognition of operating expenditure:

Operating expenditure includes property management costs, regular repairs, maintenance and expensed tenant customisations. Birger Bostad's production costs for residential development are recorded as operating expenses but are not included here, as they do not fall within the definition of operating expenses according to the taxonomy.

Recognition of capital expenditure:

Relates to capital expenditure for acquisitions and capitalised investment expenditure related to the properties included in the economic activities.

Percentage of activities aligned with the taxonomy

Fabege contributes significantly to objective 1, i.e. climate change mitigation, including the Do No Significant Harm criteria. The existing properties assessed as being aligned with objective 1 have an EPC-A level energy performance certificate or are in the top 15 per cent in terms of primary energy use in Sweden (in accordance with the definition applied by the Swedish Property Federation for existing buildings). The properties have undergone a climate resilience analysis.

According to Fabege's assessment, 59 per cent of its turnover, 39 per cent of its operating expenditure and 16 per cent of its capital expenditure are aligned with the taxonomy, based on fulfilment of objective 1 (CCM), including the DNSH criteria. The outcome is based on rolling 12-month outcomes up to and including Q1 2024 for primary energy figures. The reason for the percentage of capital expenditure that is green being reported as low is that Fabege has chosen to make a conservative assessment of ongoing new construction projects and interpret that they are covered by all DNSH requirements in 7.1. These are reported as non-compliant with the taxonomy, as interpretations of the DNSH requirements and documentation of this to demonstrate compliance are not yet fully in place. Fabege believes that, in the long run, at least part of the capital expenditure will be classified as being aligned with the taxonomy.

Fabege also meets the taxonomy's requirements for Minimum Safeguards related to human rights, anti-corruption, transparency regarding tax burdens and fair competition.

The full tables are only presented annually and can be found in Fabege's Annual and Sustainability Report for 2023 on pages 83– 86.

This is Fabege

Fabege is one of Sweden's leading property companies. We develop attractive and sustainable city districts, with a primary focus on commercial properties within a limited number of well-located submarkets in the Stockholm region.

We are one of the largest property owners in Stockholm and have a clear strategy for our property holdings, with a portfolio grouped into clusters. The Group also includes Birger Bostad, which is a property development company focused on residential and public-services property. The large number of residential development rights that we hold means that together we have a great opportunity to create mixed-use developments in our city districts. The concentration of our properties in well-contained clusters ensures greater customer proximity and, when coupled with Fabege's thorough knowledge of the market, creates a solid foundation for efficient property management and high occupancy rates. As of 31 March 2024, Fabege owned 100 properties with a total rental value of SEK 4.0bn, lettable floor space of 1.2m sqm and a book value of SEK 77.4bn, of which development and project properties accounted for SEK 14.5bn.

Business concept

Fabege develops sustainable city districts, with a primary focus on commercial properties within a limited number of welllocated submarkets in the Stockholm region.

Value is created via property management, property development, project development and transactions. We are keen to be a supportive partner that puts people front and centre and enables companies, locations and our city to develop.

BUSINESS MODEL

Fabege is active in three business areas: Property Management, Property Development and Transactions.

STRATEGY FOR GROWTH

Fabege's strategy is to create value by managing, improving and developing its property portfolio and through transactions, acquiring and divesting properties with the aim of increasing the property portfolio's potential. Fabege's properties are located in the most liquid market in Sweden. Attractive locations lead to a low vacancy rate in the investment property portfolio. Modern properties permit flexible solutions and attract customers. With its concentrated portfolio and high-profile local presence, investments to enhance the appeal of an area benefit many of Fabege's customers.

VALUE DRIVERS

Fabege's operations are affected by a number of external factors, such as the pricing of and demand for premises, the transaction market's required rate of return, and changes in market interest rates, which set the conditions for the company's success.

THE STOCKHOLM MARKET

Stockholm is one of the five metropolitan areas in Western Europe with the highest rate of population growth. The

population of Stockholm County is forecast to continue to grow over the next 20 years. However, since the second half of 2023, growth in the number of people employed in office activities has slowed down slightly.

Changing demand

New technology and new working methods are fuelling demand for flexible and space-efficient premises in prime locations. Peripheral services and effective communication links in the form of public transport are in increasing demand, as are environmentally-certified offices and green leases.

Economic trends

The property market is impacted by trends in both the Swedish and the global economy. Demand for premises is closely linked to GDP growth and companies' need for premises. Changes in market interest rates affect required rates of return.

Sustainable urban development

Sustainability issues are becoming increasingly important in terms of both individual properties and entire areas. Interest in environmental considerations relating to the choice of materials and energy-saving measures is on the rise. Demand is increasing for premises in areas with a good mix of offices, retail, service and residential units, and good transport links and environmental engagement.

Business model

PROPERTY MANAGEMENT

The essence of Fabege's operations is finding the right premises for customers' specific requirements and ensuring customer satisfaction. This is accomplished through long-term efforts, based on close dialogue with the customer, which builds mutual trust and loyalty.

PROPERTY DEVELOPMENT

High-quality property development is the second key cornerstone of our business. Fabege has long-standing experience in the management of extensive property development projects, and endeavours to attract longterm tenants for properties that have not yet been fully developed and can be redesigned based on customers' specific requirements.

TRANSACTIONS

Property transactions are an integral part of Fabege's business model and make a significant contribution to the company's earnings. The company continuously analyses its property portfolio in order to utilise opportunities to generate capital growth through acquisitions and divestments.

Definitions

Fabege presents certain financial performance measures in the Interim Report that are not defined in IFRS. The company believes that these measures provide valuable supplementary information for investors and the company's management, as they enable an assessment and benchmarking of the company's reporting. Since not all companies calculate financial performance measures in the same way, they are not always comparable with measures used by other companies. These financial performance measures should therefore not be regarded as substitutes for measures defined in IFRS. The following key performance indicators are not defined in IFRS, unless otherwise stated.

ACTUAL DEFERRED TAX

Estimated actual deferred tax has been calculated as approximately 4 per cent based on a 3 per cent discount rate. Furthermore, it has been assumed that loss carryforwards are realised over four years with a nominal tax rate of 20.6 per cent, which results in a net present value for deferred tax assets of 19.7 per cent. The calculation is also based on the property portfolio being realised over 50 years, 10 per cent being sold directly with a nominal tax rate of 20.6 per cent, and the remaining 90 per cent being sold indirectly via companies with a nominal tax rate of 6 per cent, which results in a net present value for deferred tax liabilities of 4 per cent.

CASH FLOW FROM OPERATING ACTIVITIES PER SHARE

Cash flow from operating activities (after changes in working capital) divided by the average number of shares outstanding.

DEBT jEQUITY RATIO

lnterest-bearing liabilities divided by shareholders' equity

DEBT RATIO

lnterest-bearing liabilities divided by rolling twelve-month gross earnings, less central administration costs and reversal of impairment.

DEVELOPMENT PROPERTIES*

Properties for which a redevelopment or extension is in progress or planned that has a significant impact on the property's net operating income. Net operating income is affected by !imitations on lettings prior to imminent improvement work.

EARNINGS PER SHARE

Parent Company shareholders' share of earnings after tax for the period, divided by the average number of shares outstanding during the period. Definition according to IFRS.

EPRA EPS

Profit from property management less tax at the nominal rate attributable to profit from property management, divided by the average number of shares. T axable profit from property management is defined as the profit

from property management less such items as tax-deductible depreciation and amortisation and redevelopments.

EPRA NDV-NET DISPOSAL VALUE

Shareholders' equity according to the balance sheet.

EPRA NRV -NET REINVESTMENT VALUE

Shareholders' equity according to the balance sheet following the reversal of fixed-income derivatives and deferred tax according to the balance sheet.

EPRA NTA -NET TANGIBLE ASSETS

Shareholders' equity according to the balance sheet following the reversal of fixed-income derivatives and deferred tax according to the balance sheet. Adjusted for actual deferred tax instead of nominal deferred tax.

EPRA VACANCY RATE

Estimated market vacant rents divided by the annual rental value for the entire property portfolio.

EQUITY/ASSETS RATIO

Shareholders' equity including non-controlling interests divided by total assets.

EQUITY PER SHARE

Parent Company shareholders' share of equity according to the balance sheet, divided by the number of shares outstanding at the end of the period.

FINANCIAL OCCUPANCY RATE*

Lease value divided by rental value at the end of the period.

INTEREST COVERAGE RATI

Gross earnings, including ground rent, less central administration costs and reversal of impairment, in relation to net interest items (interest expenses less interest income).

INVESTMENT PROPERTIES*

Properties that are being actively managed on an ongoing basis.

LAND AND PROJECT PROPERTIES*

Land and development properties, and properties undergoing new construction/complete redevelopment.

LOAN-TO-VALUE RA TIO, PROPERTIES

lnterest-bearing liabilities divided by the carrying amount of the properties at the end of the period.

LEASE VALUE*

Stated as an annual value. lndex-adjusted basic rent under the rental agreement plus rent supplements.

NET LETTINGS*

New lettings during the period less leases terminated due to departure.

RETURN ON EQUITY

Profit for the period/year divided by the average shareholders' equity including noncontrolling interests. In interim reports, the return is converted into its annualised value without taking seasonal variations into account.

RETURN ON INVESTED CAPITAL IN THE PROJECT PORTFOLIO*

The change in the value of project and development properties, divided by the capital invested (excluding the initial value) in project and development properties during the period.

RENTAL VALUE*

Lease value plus the estimated annual rent for unleased premises after a reasonable general renovation.

RETENTION RATE*

Proportion of leases that are extended in relation to the proportion of cancellable leases.

RETURN, SHARE

Dividend for the year divided by the share price at year-end.

SURPLUS RATIO*

Net operating income divided by rental income.

TOTAL RETURN ON PROPERTIES

Net operating income for the period plus unrealised and realised changes in the value of properties, divided by the market value at the start of the period plus investments for the period.

CALENDAR

05/07/2024 Interim Report Jan–Jun 2024 22/10/2024 Interim Report Jan–Sep 2024 06/02/2025 Year-end Report 2024

PRESS RELEASES DURING THE FIRST QUARTER OF 2024

17/01/2024	Invitation to Fabege's presentation of the Year-end report 2023
	31/01/2024 The traditional office needs upgrading –
	new study indicates need for a multi-faceted workplace
	05/02/2024 Bengt Dahlgren moves to Textiltorget in Hammarby Sjöstad
	07/02/2024 Year-end Report 2023
	21/02/2024 Student city Flemingsberg growing ever stronger
	07/03/2024 Nominating Committee's proposal concerning Board of Directors and Chair of
	Fabege AB (publ)
	08/03/2024 Fabege publishes its Annual Report and Sustainability Report for 2023
	12/03/2024 Notice convening the Annual General Meeting of Fabege AB (publ)

FOLLOW US ONLINE, WWW.FABEGE.SE/EN There will also be a web

presentation on the Group's website, in which Stefan Dahlbo and Åsa Bergström present the report, on 25 April 2024.

Fabege AB (publ) Box 730, SE-169 27 Solna Visitors: Gårdsvägen 6, 7tr 169 70 Solna

Phone: +46 (0) 8 555 148 00 Email: info@fabege.se

Corporate registration number: 556049-1523 www.fabege.se/en

STEFAN DAHLBO President and CEO Fabege

+46 (0) 8 555 148 10 stefan.dahlbo@fabege.se

ÅSA BERGSTRÖM Vice President and CFO

+46 (0) 8 555 148 29 asa.bergstrom@fabege.se