Quarterly Report • Feb 4, 2021
Quarterly Report
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| 2020 | 2019 | 2020 | 2019 | |
|---|---|---|---|---|
| Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec | |
| Rental income | 703 | 724 | 2,806 | 2,856 |
| Net operating income | 528 | 539 | 2,112 | 2,144 |
| Profit from property management | 370 | 394 | 1,474 | 1,532 |
| Profit before tax | 1,279 | 2,755 | 4,007 | 7,034 |
| Profit after tax | 1,034 | 2,502 | 3,167 | 6,006 |
| Net lettings | $-49$ | 55 | $-45$ | $-37$ |
| Surplus ratio,% | 75 | 74 | 75 | 75 |
| Loan-to-value ratio, properties, % | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 35 | 36 |
| EPRA NRV, SEK per share | 155 | 145 | ||
Realised and unrealised changes in value amounted to SEK 2,764m (5,743) in properties and SEK -229m (-235) in fixed-income derivatives.
Profit for the year before tax amounted to SEK 4,007m $(7,034).$
come and expense items mber 2019 period and elate to or definitions, see page 2
Stefan Dahlbo, CEO
SURPLUS RATIO
Target: 75%
INVESTMENT VOLUME
Target: SEK 2,500m per year over a business cycle
NET LETTINGS
Target: SEK 80m per year
2020 will go down in history as a year that featured dramatic events, major fluctuations and many surprises. A year that began with much promise soon came to demand significant adjustments of us all, both on a personal level and for society as a whole. The economic trend was largely determined by the pandemic and its rapid spread.
Despite the various challenges during the year, we have managed to deliver healthy net operating income, a strong surplus ratio and growth in the value of the portfolio, while maintaining a strong financial position. Our projects are progressing and we completed two acquisitions.
But even for us here at Fabege, 2020 has naturally been overshadowed by the pandemic and its consequences. A great deal of time has been devoted to dialogue with our customers. Fabege's goal is at all times to be an effective partner; to be able to respond and develop alongside our customers. We have supported the service industry in our portfolio by buying almost 20,000 lunches, which we donated to the City Mission and our hospitals in Stockholm.
Despite this exceptional period, both rent levels and valuations have held up well during the year. In renegotiations, the average increase in the rental value was 20 per cent. The volume of renegotiations declined due to several negotiations being postponed because of the pandemic. Changes in value totalled SEK 2,715m, and expectations regarding rent levels in valuations are consistent with signed lease levels.
Our net lettings amounted to SEK -45m, largely as a consequence of lease terminations for potential development properties, but also because for various reasons customers have opted to terminate leases or reduce their office space. Of course there are those among our and other companies' customers who want, or who have no choice but to change their office structure due to current circumstances.
Our vacancy rate has increased during the past year. We have bolstered our lettings team and will in 2021 focus on raising the occupancy rate the management portfolio.
We repurchased shares during the year as a tool for generating shareholder value. A total of 4.6 million shares were repurchased at an average price of SEK 118.16. With a net asset value (EPRA NRV) of SEK 155/share, it was the best portfolio we could acquire in 2020.
I am confident that our focus on Stockholm, and primarily office properties, is a recipe for success for the future as well. We will be launching several redevelopment projects and new building projects in 2021. I stand firmly by our goal of investing SEK 10bn over a four-year period. Over the next few years we will be devoting more time and energy to creating value from all our housing development rights as well. These development rights have often been generated in our urban development work. The development rights equate to a total of just over 8,000 apartments, mainly in Solna and Flemingsberg.
Many question marks remain and there is a great deal of uncertainty regarding what 2021 has in store. We don't know how quickly the vaccination programme will be rolled out, and what the pace of recovery will be like, or what the 'new normal' will be, post pandemic. But it's been a positive start to the year. In Q1, we signed a 12-year lease for approx. 7,600 sqm with Convendum in the Bocken 39, Kungsgatan 9 property, with annual rent of SEK 62m. The capital market has also recovered to pre-corona levels, evidence of which came with a successful bond issue at the end of January, when we issued SEK 700m with five and six-year maturities, attracting considerable interest from investors. During the quarter, Bilia will also be moving into its new premises in Haga Norra, sales have started of the first apartments with a very positive response, and in Arenastaden, Choice will be taking over its new offices.
Fabege enjoys a strong financial position, which means we are able to cope well even in difficult times, and harness any opportunities that may arise. Several of our key performance indicators are stronger at the start of 2021 than they were in 2020. Our properties are modern and well-managed, and situated in attractive locations. We have a unique development rights portfolio with considerable potential. We have stable customers. Fabege's employees are motivated and capable. We are well prepared and the Board is therefore proposing an increase in the dividend of approximately 12 per cent to SEK 3.60/share, to be distributed on two occasions.
The majority of Fabege's customers are large, stable companies. However, we also have customers in the service sector who have asked to defer rental payments and for rental rebates due to the pandemic. We are making arrangements with customers on a case-by-case basis, focusing on transfers to monthly payments and repayment deferrals. In total, rebates have been granted during the year totalling SEK 64m, SEK 18m of which is being repaid via the government rent support package. The net amount has reduced rental income for the year. Furthermore, we have made provisions regarding deferrals granted with payments of SEK 18m. We believe that some of our customers will be needing support at the start of 2021 as well.
Access to financing on the capital market came to a standstill at the start of the pandemic in March and April, but gradually recovered in the lead up to the summer and particularly quickly at the start of the autumn. Following a period of uncertainty at the end of the autumn, the new year has begun on a positive note, with interest and margins at pre-pandemic levels. During the year, Fabege has been active on both the commercial paper and bond markets, and been able to take advantage of good issue opportunities. We have also refinanced bank loans at attractive levels during the period.
We now have just a few financing maturities over the coming year, no bank facilities are due to lapse until 2022 and we have bonds totalling SEK 900m due to mature in 2021. If market conditions allow, we intend to replace commercial paper and bonds due to mature with new issues, but we are able to refinance remaining maturities using existing credit facilities in banks, if required.
Fabege is a strong brand, both with the banks and on the capital market, and our strategy of allocating financing across several different sources, spreading refinancing over time and relying exclusively on green financing is a strength.
All our projects are proceeding according to schedule. We have managed to staff our projects and keep to our schedules by planning ahead.
The property portfolio is valued according to a well-established process. Many of our properties have been independently valued several times during the year. Before the end of the year, around 30 per cent of the portfolio was again independently valued by Newsec and Cushman Wakefield. Overall, the average yield requirement in the portfolio declined to 3.88 per cent during the year, and the total unrealised change in value amounted to SEK 2.7bn.
All employees continued to work from home as far as possible. Technical operations have been divided into teams working in shifts, the aim being to reduce the risk of spreading infection. Meetings and collaboration are largely taking place digitally and we are providing various forms of support to make it easier for employees to work from home. We carried out three surveys during the year, all of which reveal that our employees are coping well and that working from home is effective, but that we miss meeting at the office.
As for so many other companies, the coronavirus pandemic is having a negative impact on the business, albeit limited for Fabege. Our stable financial position provides reassurance and a firm foundation.
Net operating income and profit from property management declined somewhat, mainly due to property divestments. Both the investment property portfolio and the project portfolio contributed positive changes in value during the year.
Profit after tax for the year was SEK 3,167m (6,006), corresponding to earnings per share of SEK 9.65 (18.16). Profit for the year before tax amounted to SEK 4,007m (7,034). Slightly lower earnings from property management and lower changes in value meant that profit before tax declined in comparison with the year-earlier period.
Rental income decreased to SEK 2,806m (2,856), while net operating income fell to SEK 2,112m (2,144). The divestment of Pelaren 1 and Trängkåren 7 meant that rental income fell by SEK 188 million against a comparable period. In an identical portfolio, rental income grew by roughly 5 per cent (14), just over half of which related to growth through tenants moving into completed project properties. Rebates and provisions during the year owing to the coronavirus pandemic amounted to SEK 64m, SEK 18m of which was repaid to Fabege via the government rent support package. The remaining increase in an identical portfolio related to net vacations prior to projects and growth as a result of new lettings and renegotiated rent levels. The lower running costs were mainly due to lower electricity and heating costs as a result of the mild winter. Net operating income in an identical portfolio rose by approximately 6 per cent (16). Overall, the surplus ratio amounted to 75 per cent (75).
Realised changes in value of SEK 49m (0) related to reversed provisions from previous transactions
Total unrealised changes in value amounted to SEK 2,715m (5,743). The unrealised change in the value of the investment property portfolio of SEK 1,941m (4,129) was mainly attributable to increased rent levels for new lettings and renegotiations and lower yield requirements. The amount included unrealised changes in value of SEK 43m relating to properties sold. During the year the average yield requirement declined by 0.09 percentage points to 3.88 per cent (3.97).
The project portfolio contributed to an unrealised change in value of SEK 744m (1,443), mainly due to development gains in major project properties.
The share in earnings of associated companies was SEK $-53m$ $(-64)$ and mainly related to a capital contribution to Arenabolaget. Operations at Friends Arena have been negatively impacted by the pandemic and the fact that events have been cancelled.
Unrealised changes in value in the derivatives portfolio totalled SEK -229m (-235). The extension of the fixed-rate term and low long-term interest rates led to an increase in the deficit value during the year. Net interest items amounted to SEK -462m $(-465)$ .
The Property Management segment generated net operating income of SEK 2,076m (2,098), representing a surplus ratio of 78 per cent (76). The occupancy rate was 92 per cent (94). Earnings from property management totalled SEK 1,511m (1,551). Unrealised changes in the value of properties amounted to SEK 1,898m (4,129).
The Property Development segment generated net operating income of SEK 36m $(46)$ , giving a surplus ratio of 24 per cent $(42)$ . Earnings from property management totalled
SEK -38m (-19). Unrealised changes in the value of properties amounted to SEK 774m $(1,443)$
Earnings from transactions amounted to SEK 92m (171) including unrealised changes in value relating to Sadelplatsen 1, which was divested, to be vacated in April/March 2021.
| 2020 | 2019 | |
|---|---|---|
| SEKm | Jan-Dec | Jan-Dec |
| Profit from Property Management activities | 1.511 | 1.551 |
| Changes in value (portfolio of investment | ||
| properties) | 1,898 | 4,129 |
| Contribution from Property | ||
| Management | 3,409 | 5,680 |
| Profit from Property Management activities | $-38$ | -19 |
| Changes in value (profit from Property | ||
| Development) | 774 | 1,443 |
| Contribution from Property | ||
| Development | 736 | 1,424 |
| Realised changes in value | 92 | 171 |
| Contribution from Transactions | 92 | 171 |
| Total contribution | ||
| from the operation | 4.237 | 7.275 |
$3.7%$ Value growth in the property portfolio
The comparison figures for income and expense items relate to values for the January-December 2019 period and for balance sheet items at 31 December 2019.
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 company is striving for a balance between different forms of financing on both the capital and banking markets, with long-term relationships with the major financiers having high priority.
Fabege has a firm belief in the ability of the financial market to contribute to a more sustainable society, and is keen to play an active part in its transition towards greater accountability. The company has worked closely with its creditors in order to achieve this, including in the development of green loan products. In the fourth quarter, the last three loan agreements were converted to green agreements, which meant that the company achieved its target of all financing, both capital market and bank financing, being sustainable. At year-end, the company had green bonds of SEK 7,950m and green commercial paper totalling SEK 2,025m outstanding within the green framework. In addition there are green loans of SEK 15,170m and green covered bonds via the co-owned company SFF totalling SEK 1,524m.
Fabege's fixed-rate period at year-end was 4.1 years. The derivatives portfolio comprised interest rate swaps totalling SEK 17,150m with terms of maturity extending through 2030 and carrying fixed interest at annual rates of between -0.18 and 1.35 per cent before margins.
During the year, the capital market has continually reacted to the current pandemic situation. A swift recovery at the end of the summer and start of autumn was reversed again when the situation deteriorated at the end of autumn. Following hopes of a rapid vaccination rollout, the start of the new year has shown signs of greater optimism and we are once again seeing price levels that are beginning to resemble pre-pandemic levels, as well as high demand, particularly for green bonds. This was confirmed for Fabege by a successful issue of SEK 700m at the end of January.
Net financial items included other financial expenses of SEK 31m, 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 27m (13) relating to project properties was capitalised.
| 2020-12-31 | 2019-12-31 | |
|---|---|---|
| Interest-bearing liabilities, SEKm | 26,669 | 26,414 |
| of which outstandning MTN, SEKm | 7,950 | 6,850 |
| of which outstandning SFF, SEKm | 1,524 | 2,085 |
| of which outstandning commercial paper, SEKm | 2,025 | 1,980 |
| Unutiluzed facilities, SEKm | 3,867 | 4,580 |
| Capital maturity, year | 5.2 | 5.8 |
| Fixed-rate period, year | 4.1 | 4.5 |
| Fixed-rate, share of the portfolio,% | 74 | 73 |
| Derivative market value, SEKm | $-597$ | $-368$ |
| Average interest, inclu. facilities, % | 1.77 | 1.80 |
| Average interest excl. facilities, % | 1.67 | 1.72 |
| Unsecured assets, % | 36.5 | 28.0 |
| Loan-to-value, % | 34.8 | 36.0 |
| GREEN FINANCING, 31/12/2020 | Credit lines | Outstanding loans and bonds |
|---|---|---|
| Green MTN-bonds, SEKm | 7,950 | 7,950 |
| Green bonds vis SFF, SEKm | 1,524 | 1,524 |
| Green commercial paper, SEKm | 5,000 | 2.025 |
| Green loans, other, SEKm | 21,066 | 15,170 |
| Total green financing, SEKm | 35,540 | 26.669 |
| Share of green financing, % | 100 | 100 |
| Total green facilities, SEKm | 56,916 | |
| of which free green facilities, SEKm | 21,629 |
| Average | |||
|---|---|---|---|
| Amount SEKm |
interest rate,% |
Share,% | |
| < 1 year | 6,844 | 3.86 | 26 |
| 1-2 years | 1,000 | 0.02 | 4 |
| 2-3 years | 2,150 | 0.96 | 8 |
| 3-4 years | 2,900 | 0.74 | 11 |
| 4-5 years | 2,600 | 0.97 | 10 |
| 5 -6years | 2,700 | 0.84 | 10 |
| 6-7 years | 2,800 | 1.00 | 10 |
| 7-8 years | 3,276 | 1.57 | 12 |
| 8-9 years | 2,000 | 0.60 | 7 |
| 9-10 years | 400 | 0.19 | |
| Total | 26,669 | 1.67 | 100 |
The average interest rate for the <1 year period includes the margin for the variable portion of the debt portfolio, because the company's fixed interest term is established using interest rate swaps, which are traded without marains.
| Credit agreement SEKm |
Drawn, SEKm |
|
|---|---|---|
| Commercial paper programme | 5,000 | 2,025 |
| < 1 year | 1,310 | 900 |
| 1-2 years | 11,412 | 8,512 |
| 2-3 years | 3,900 | 2,618 |
| 3-4 years | 3,850 | 2,550 |
| 4-5 years | 1,555 | 1,555 |
| 5-10 years | 3,706 | 3,706 |
| 10-15 years | 3,550 | 3,550 |
| $15-20$ years | 1,253 | 1,253 |
| Total | 35,537 | 26,669 |
Fabeae | Interim report Q4 2020
Tax on profit for the year amounted to SEK -840m (-1,028). Current tax of SEK 24m related mainly to the reversal of current tax after retesting of prior years' tax assessments. Tax was calculated at a rate of 21.4 per cent on taxable earnings in 2020. In accordance with the new corporate taxation method, the deferred tax liability has been recalculated at the new tax rate of 20.6 per cent.
The new regulations relating to restrictions on interest deductions that came into force on 1 January 2019 are not deemed to have any material impact on tax paid.
Shareholders' equity amounted to SEK 41,542m (40,068) at year-end and the equity/assets ratio was 52 per cent (52). Equity per share attributable to Parent Company shareholders totalled SEK 127 (121). EPRA NRV was SEK 155 per share (145).
Cash flow from operating activities before changes in working capital amounted to SEK 1,513m (1,539). Change in working capital had an impact on cash flow of SEK -164m (478). Investing activities had an impact of SEK 82m $(-1,270)$ on cash flow, while financing activities had an impact of SEK $-1,435$ m ( $-738$ ) on cash flow. In investing activities, cash flow was driven by property transactions and projects. Cash and cash equivalents declined by a total of SEK 4m (9) during the year.
Fabege's Board of Directors has adopted the following financial targets for the business.
GRESB (Global Real Estate Sustainability Benchmark) produces an annual ranking of the property sector from a sustainability perspective. In this year's survey, Fabege achieved 93 points, which means that the company is ranked as a global leader in the Office sector in the category of listed real estate companies. The assessment covers a broad range of areas, including environmental aspects, social sustainability, governance and monitoring.
The companies surveyed represent more than USD 5.3 billion in assets under management, and GRESB's data is used by more than 100 institutional and financial investors to monitor investments and navigate the strategic choices required for the industry to transition to a long-term sustainable future.
The projects progressed according to plan. Acquisitions and investments amounted to SEK 3.2m. Net lettings totalled SEK -45m. Renegotiations declined in volume as but made a positive contribution to the rental value of 20 per cent.
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. At 31 December 2020, Fabege owned 94 properties with a combined rental value of SEK 3.2bn, a lettable area of 1.2 million sqm and a carrying amount of SEK 76.6bn, of which development and project properties account for SEK 11.3bn. The financial occupancy rate for the entire portfolio, including project properties, dropped to 91 per cent (94). The decline is primarily attributable to the vacation of the Glädien 13 property in Västra Kungsholmen, which was announced some time ago, and acquired vacancies. The occupancy rate in the investment property portfolio was 92 per cent (94).
During the year, 114 (165) new leases were signed at a total rental value of SEK 157m (246), with 96 per cent of the space pertaining to green leases. Lease terminations amounted to SEK -202m (-283). Net lettings totalled SEK -45m (-37). Leases totalling SEK 115m (275) were renegotiated, with an average rise in rental value of 20 per cent (19). However, the volume of renegotiations has declined due to several negotiations being postponed because of the pandemic. The retention rate during the period was 65 per cent (70).
Fabege and Peab are joint investors in a co-owned garage property in Råsunda, Solna. The property is being accounted for using proportionate consolidation and was included in Fabege's accounts at year-end with a property value of SEK 35m. Two properties were acquired in the second quarter: Påsen 1 in Hammarby Sjöstad and a land property in Arenastaden for a purchase price totalling SEK 440m. In the third quarter, Regulatorn 2 in Flemingsberg was acquired for a purchase price of SEK 760m. September also saw the formal handover of the development right Poolen 1, Arenastaden.
During the first quarter, a land property in Vallentuna was sold for a purchase price of SEK 58m. During the fourth quarter, Sadelplatsen 2 in Solna was sold for a purchase price of SEK 260m with resignation on March 26 2021. Including a reversal of a provision for previously divested properties, realised changes in value amounted to SEK 49m (0). Furthermore, Hagalund 2:2, Haga Norra, has been divided up into six properties.
The property portfolio is valued according to a well-established process. The entire property portfolio is independently valued at least once annually. Just over 30 per cent of the portfolio was independently valued in the fourth quarter, while the remaining properties were internally valued based on the most recent independent valuations. The total market value at the end of the period was SEK 76.6bn (74.3).
Unrealised changes in value totalled SEK 2,715m (5,743). Expectations regarding rent levels in valuations are consistent with signed lease levels. During the year the average yield requirement declined by 0.09 per cent to 3.88 (3.97).
The change in the value of the investment property portfolio amounted to SEK 1,941m (4,129), of which SEK 43m related to properties sold.
The project portfolio contributed to an unrealised change in value of SEK 774m (1,443). The change in value of the project portfolio was mainly due to development gains in major project properties.
The comparison figures for income and expense items relate to values for the January-December 2019 period and for balance sheet items at 31 December 2019.
Fabege's objective is for the company's entire property portfolio to be certified to BREEAM-SE/BREEAM In-Use standard. Fabege's new builds are certified in accordance with BREEAM-SE, and our aim is to achieve the level of 'Excellent'. Of Fabege's 94 properties, 59 were certified by the end of the period. Overall, this represents 82 per cent (83) of the total combined area of Fabege's existing portfolio. The properties that have not yet begun certification relate to land and development property for future project development.
Work has been underway this current year to upgrade several certifications in the existing portfolio, and during the period a further eight properties were upgraded, two of which moved up to 'Excellent' and six to 'Very Good'.
Our green framework allows us to issue green bonds and green commercial paper and to link other loans to the framework. Green financing offers Fabege better conditions both with banks and on the capital market, and access to more financing alternatives. The green framework has increased the proportion of green financing sources. All Fabege's creditors can now offer green financing, and the aim of 100 per cent green financing was achieved just before year-end.
Find out more about Fabege's green financing at www.fabege.se/gronfinansiering, where you will also find investor reports.
Fabege's new energy efficiency targets are divided into phases. In 2019, we exceeded the target in the Swedish energy policy agreement of 50 per cent more efficient use of energy by 2030 compared with 2005. In 2020, Fabege's average energy consumption was 74 kWh / sqm (accumulated twelve months' outcome.). 2020 was a special year with a mild winter and low consumption due to the fact that many offices were not used as tenants during the pandemic chose to work from home. The target for 2023 of an average energy use of 77 kWh / sqm remains. The portfolio is divided into two parts: newer properties that have received planning permission since 2012 and have a target of 50 kWh/sqm, and older properties that have a target of 85 kWh/sqm.
In this year's survey by GRESB, Fabege achieved 93 points, which means that the company is ranked as a global leader in the Office sector in the category of listed real estate companies. The assessment covers a broad range of areas, including environmental aspects, social sustainability, governance and monitoring.
In the autumn, CICERO Shades of Green carried out an assessment of Fabege. The results reveal that 95 per cent of Fabege's revenue and investments for 2020 were classified as green. Furthermore, Fabege has received CICERO's highest rating, 'excellent,' in an assessment of the company's sustainability governance. CICERO has concluded that Fabege has a comprehensive sustainability strategy, including ambitious climate targets. CICERO evaluates bonds and shares from a sustainability perspective. The evaluation approach for equities is built on a quantitative and qualitative analysis of a company's entire operations, in which both revenue streams and investments are classified in three shades of green (or brown) depending on their compatibility with a carbon-neutral future. The evaluation also examines the company's governance and strategies associated with sustainability
| 2020 | 2019 | 2018 | Target | |
|---|---|---|---|---|
| Energy performance, KWh/sqm Atemp | 74 | 81 | 98 | Average max. 77 kWh/sqm Atemp |
| Proportion of renewable energy, % | 96 | 91 | 91 | 100 |
| Environmetal certification, numer of | 59 | 56 | 56 | |
| Environmetal certification, of total area, % | 82 | 83 | 82 | 100 |
| Green lease, share of total office space | 96 | 94 | 90 | 100 |
| Green lease, share of newly signed area,% | 73 | 75 | 71 | 100 |
| Green financing, % | 100 | 84 | 60 | 100 |
| Satisfied employees, confidence rating, % | 79 | 74 | 78 | 2021 minst 85% |
| GRESB, points | 93 | 94 | 86 | >90 |
Fabege has a long-term, target-based and integrated approach towards creating more sustainable properties. Our overriding long-term goal is to have zero net emissions from property management by the year 2030. By this we mean that we will have control over all the emissions associated with our operations, and that 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 carbon sinks such as forest, or wind and solar parks.
Fabege has been linked up with the Science Based Targets initiative since 2019, and has thus taken an initial step in reorganising the business to help achieve the 1.5-degree target
In 2020, we began work on retroactively calculating our climate impact from Scope 3 emissions during the base year of 2019, which is a major challenge. We have also set up the ambitious target of cutting our carbon footprint within Scope 3 by half by the year 2030. Achieving this target will require us to use innovative approaches in our project development, involving reuse, choice of materials, new technology and imposing stringent requirements during procurement processes.
Work is underway with the support of Citylab on ensuring a sustainable Arenastaden, in partnership with the City of Solna and Sweden Green Building Council. Citylab is Sweden's first certification system for sustainable urban development, and it includes an evaluation element that answers the question: How sustainable was it?
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 value. During the year, investments in existing properties and projects totalled SEK 1,854m (2,556), of which investments in projects and development properties accounted for SEK $1,353m(1,544)$ .
The capital invested in the investment property portfolio, which amounted to SEK 501m (1,012) and encompassed energy investments and tenant customisations, also contributed to the total growth in value. The amount includes investments in several more substantial tenant customisations during the year.
The first quarter saw the completion of the conversion of Fortet 2, Solna, into a hotel, longstay accommodation, and co-working and restaurant facilities. KOM Hotel took over the premises as tenant at the beginning of April. The redevelopment project relating to part of Paradiset 23, Västra Kungsholmen, and Fräsaren 12 in Solna Business Park was also completed during the year. Tenants have moved in and the few remaining vacant areas will be completed during the management phase.
The development of the Haga Norra area at the Hagalund 2:11 property in Solna is proceeding with the construction of Bilia's new facility. The investment is expected to amount to roughly SEK 1,152m and the facility will be ready by the first quarter of 2021. Work is currently underway on completion and final inspection in preparation for Bilia's move.
The project to construct a hotel, long-stay accommodation and offices at the Nationalarenan 3 property in Arenastaden has also entered the final stages prior to Choice taking up occupancy on 1 April 2021. The building is designed to be a zero-energy structure and will be certified to BREEAM-SE standard, Excellent. The total investment has been estimated at SEK 772m.
The Poolen project is progressing as planned and work is underway on erecting the frame. The acquisition of the development right was implemented as planned in September. The property includes approx. 29,000 sqm of lettable office space, and will be constructed in a 3D reallotment above the swimming pool being built by Solna Municipality. The investment is estimated at SEK 1,103m. With TietoEvry having signed a lease to rent approximately 22,000 sqm, occupancy is at 75 per cent.
In February, it was decided to convert and develop Stigbygeln 2, Arenastaden. With Peab having left the property, it is now being developed to accommodate multiple customers, including Fabege's new headquarters. The investment is estimated at SEK 189m. The property will be completed ready for occupancy in the first and second quarters of 2021. Work is currently continuing on installations, painting and furnishings. The occupancy rate is 73 per cent.
Redevelopment work has begun at Glädjen 2, Stadshagen, following the premises being vacated by former tenant LRF. The investment is estimated at SEK 177m. The occupancy rate is 12 per cent since Electrolux signed a lease.
A further two projects will be launched in 2021 following lettings and a decision by the Board. These relate to part of Regulatorn 2, Flemingsberg, where Fabege is planning construction for the Royal Swedish Opera and Royal Dramatic Theatre, as well as Bocken 39 on Kungsgatan, which is to be upgraded and customised for Convendum.
| Changes in property value | 2020 |
|---|---|
| Opening fair value 2020-01-01 | 74,250 |
| Property acquisitions | 1,370 |
| Investments in new builds, extensions and conversior | 1.854 |
| Changes in value | 2,715 |
| Sales and disposals 1 | $-3,541$ |
| Closing fair value 31/12/20 | 76,648 |
| 1 Refers disposal of Trängkåren 7 |
| Total investments | 1.854 |
|---|---|
| Investments in management properties | 501 |
| Investments in project- & development properties | 1,353 |
| Average yield, % |
|---|
| 3.60 |
| 4.00 |
| 4.20 |
| 5.48 |
| 3.88 |
| Property name | Area | Category | Lettable area, sam |
|---|---|---|---|
| Quarter 2 | |||
| Järva 3:7 | Arenastaden | Land | |
| Påsen 1 | Hammrby Sjöstad Office | 9,884 | |
| Quarter 3 | |||
| Regulatorn 2 | Flemingsberg | Office | 43,157 |
| Poolen 1 | Arenastaden | Mark | |
| Total acquisitions | 53,041 |
| Lettable | ||
|---|---|---|
| Property name Area |
Category | area.sqm |
| Quarter 1 | ||
| Vallentuna Rickeby 1:327 | Land | |
| Total sales of properties |
Fabege and Svenska Hyreshus AB are leading a housing development project in Kista via co-owned Selfoss Invest AB. The total investment is estimated to be SEK 570m excluding purchase of the land. The project comprises 276 apartments. All 69 apartments in stage 1 have been sold and were occupied on 1 April. Stage 2 was completed in the autumn, and 53 of 77 apartments have been sold, corresponding to a selling rate of 69 percent. Stage 3, comprising 130 apartments, is being built with the flexibility to change the leasing form from tenant-owned apartments to rental or company apartments. Completion is planned for the first quarter of 2021. The project is being externally financed with a construction loan.
Development of the Lagern 3 property in Råsunda into tenant-owned apartments is progressing according to schedule. The project is being managed together with the TB Group in a 50/50 per cent coowned company. The investment is estimated to total SEK 288m excluding purchase of the land. 67 per cent of the project's 134 apartments have been leased via binding preliminary contracts. Now that the external work has been largely completed, work is underway on installations and interior fittings.
Work is continuing on the development of the housing project in cooperation with Brabo at the Hagalund 2:2 property in Haga Norra. The project includes 418 apartments that are being produced in a 3D reallotment above the facility that Fabege is building for Bilia. The estimated investment totals approximately SEK 1.1bn. Work is currently continuing on completing the frame and installations. Alongside this, work is continuing on reallotment of the property. In the first phase of selling, which includes 153 apartments, leases have been signed on 134 apartments via non-binding booking agreements. The project is being financed with an owner's loan and external construction loan. The current JV projects are not being consolidated, but will be recognised in accordance with the equity method. Income recognition will not occur until the projects are approaching completion.
$\sim$
| 31/12/2020 | Booked value, | Estimated | of which, | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Property listing | Property type Area | Completed | area, sam | Lettable Occupancy rate, area, % 1 |
Rentel value 2 | SEKm investment, SEKm | worked up. SEKm |
||
| Stigbygeln 2 | Offices | Solna | $Q1-2021$ | 8,400 | 73% | 30 | 513 | 189 | 106 |
| Hagalund 2:1131 | Retail/Office | Arenastaden | $Q1-2021$ | 40,300 | 100% | 51 | 665 | 1,152 | 876 |
| Nationalarenan 3 | Hotel | Arenastaden | $Q1-2021$ | 19.100 | 100% | 55 | 930 | 772 | 654 |
| Poolen 1 | Offices | Arenastaden | Q1-2022 | 29,000 | 75% | 95 | 663 | 1,103 | 318 |
| Glädjen 12 | Kontor | Stadshagen | Q4-2022 | 11.000 | 12% | 44 | 527 | 177 | |
| Total | 107,800 | 82% | 275 | 3,298 | 3,393 | 1,961 | |||
| Other land and project properties | 1,071 | ||||||||
| Other development properties | 6,965 | ||||||||
| Total projects, land and development properties | 11,334 |
1 Operational occupancy rate 31 Dec 2020
2 Rental value including additions. The annual rent for the largest projects in progress could increase to SEK 275m (fully let) from SEK Om in annualised current rent as of 31 Dec 2020 3 In leaseable area for the property Hagalund 2:11 (former Stora Frösunda 2) there are approximately 25,400 sqm garage space
DEVELOPMENT RIGHTS
| Commercial, sqm | Residential, sqm |
|---|---|
| Inner city | ,100 36,000 Inner city |
| Solna 300,100 Solna |
259,200 |
| Hammarby Sjöstad | 58,700 Hammarby Sjöstad |
| Flemingsberg | 104,000 Flemingsberg 235,000 |
| 79,000 Others Others |
|
| Total 577,800 Total |
495,300 |
| Legal binding, % 21 |
18 Legal binding, % |
| Booked value, SEK/sam | 5,200 Booked value, SEK/sqm 6,200 |
Area and carrying amount relate to additional development rights space. Development will in some cases require demolition of existing areas, which will impact the project calculation. The volumes are not maximised. Ongoing planning work aims to increase the volume of future development rights. Contractually agreed land allocations in Stockholm inner city and Solna Business Park have been included. Development rights linked to wholly-owned properties in Flemingsberg have also been included. Forthcoming land allocations in Flemingsberg that are not yet contractually agreed are excluded. The conclusion is that these will bring a substantial volume of development rights at low initial values.
| Lettable area, '000 | Market | Rental | Financial | ||
|---|---|---|---|---|---|
| Property holdings | No. of properties | sqm | value SEKm | value 2 | occupancy rate % |
| Investment properties 1 | 60 | 021, ا | 65,314 | 3,037 | 92 |
| Development properties 1 | 20 | 215 | 8,157 | 201 | 72 |
| Land and Project properties 1 | 14 | 9 | 3.177 | $\Omega$ | |
| Total | 94 | 245, ا | 76,648 | 3,242 | 91 |
| Of which, Inner city | 27 | 320 | 28,910 | 1,223 | 89 |
| Of which, Solna | 51 | 723 | 38,650 | .589 | 93 |
| Of which, Hammarby Sjöstad | 134 | 7,532 | 368 | 89 | |
| Of which, Other | 68 | 1.556 | 62 | 87 | |
| Total | 94 | 1,245 | 76,648 | 3,242 | 91 |
| . |
1 See definitions
2 In the rental value, time limited deductions of about SEK 116m (in rolling annual rental value at 31 Dec 2020) have not been deducted.
| 2020 | 2020 | 2020 | 2020 | 2019 | 2019 | 2019 | 2019 | |
|---|---|---|---|---|---|---|---|---|
| Jan-Dec | Jan-Dec | Jan-Dec | Jan-Dec | Jan-Dec | Jan-Dec | Jan-Dec | Jan-Dec | |
| Property | Property | Property | Property | |||||
| SEKm | Management Development | Transaction | Total | Management Development | Transaction | Total | ||
| Rental income | 2,656 | 150 | 2,806 | 2,747 | 109 | 2,856 | ||
| Property expenses | $-580$ | $-114$ | $-694$ | $-649$ | $-63$ | $-712$ | ||
| Net operating income | 2,076 | 36 | $\mathbf o$ | 2,112 | 2,098 | 46 | o | 2,144 |
| Surplus ratio, % | 78% | 24% | 75% | 76% | 42% | 75% | ||
| Central administration | $-82$ | $-12$ | $-94$ | $-76$ | $-9$ | $-85$ | ||
| Net interest expense | $-401$ | $-61$ | $-462$ | $-414$ | $-51$ | $-465$ | ||
| Ground rents | $-30$ | 0 | $-30$ | $-26$ | $-2$ | $-28$ | ||
| Share in profits of associated companies | $-52$ | $-1$ | $-53$ | $-31$ | $-3$ | $-34$ | ||
| Profit from property management activities | 1,511 | $-38$ | ٥ | 1,473 | 1,551 | $-19$ | o | 1,532 |
| Realised changes in value of properties | $\circ$ | $\circ$ | 49 | 49 | 0 | $\circ$ | $\Omega$ | $\Omega$ |
| Unrealised changes in value of properties | ,898 | 774 | 43 | 2,715 | 4,129 | 1,443 | 171 | 5,743 |
| Profit/loss before tax per segment | 3,409 | 736 | 92 | 4,237 | 5,680 | 1,424 | 171 | 7,275 |
| Changes in value, fixed income derivatives and equities | $-231$ | $-241$ | ||||||
| Profit before tax | 4,006 | 7,034 | ||||||
| Properties, market value | 65,314 | 11,334 | 76,648 | 65,972 | 8,278 | 74,250 | ||
| Occupancy rate, % | 92% | 72% | 91% | 94% | 89% | 94% |
1 See definitions
Reclassifications during the period between the Property Management and Property Development segments are stated in the note on Segment Reporting on page 18.
In accordance with IFRS 8, segments are presented from the point of view of management, divided into the following segments: Property Management, Property Development and Transactions. Rental income and property expenses, as well as realised and unrealised changes in the value of properties, are directly attributable to properties in each segment (direct income and expenses). In cases where a property changes character during the year, earnings attributable to the property are allocated to each segment based on the period of time that the property belonged to each segment. Central administration and items in net financial expense have been allocated to the segments in a standardised manner based on each segment's share of the total property value (indirect income and expenses). Property assets are directly attributed to each segment and recognised on the balance sheet date.
| Change in value, % | Impact on after-tax |
Equity/as- profit, SEKm sets ratio, % |
Loan-to- value ratio, % |
|---|---|---|---|
| + l | 602 | 52.7% | 34.7% |
| Ω | 52.4% | 34.8% | |
| $-602$ | 52.2% | 34.9% |
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 deferred tax deduction.
| Change ffect, SEKm | ||
|---|---|---|
| Rental income, total | $1\%$ | 28.1 |
| Rent level, commercial income | $1\%$ | 27.1 |
| Financial occupancy rate | percentage point | 33.4 |
| Property expenses | $1\%$ | 6.9 |
| Interest expense, rolling 12 months 1 | +/-1 percentage point | 33/8 |
| Interest expenses, longer term perspective | percentage point | 266.7 |
The sensitivity analysis shows the effects on the Group's cash flow and earnings on an annualised basis after taking account of the full effect of each parameter.
1In the short term, interest expenses increase regardless of whether the shortterm rate rises or falls. Due to interest rate floors in loan agreements, Fabege is not able to fully utilise negative interest rates, whereby a negative outcome arises even when interest rates are reduced.
The graph above shows the development of contracted rental income, including occupancies and vacations that are known about and renegotiations, but excluding letting targets. The graph therefore does not constitute a forecast, but rather aims to demonstrate the rental trend in the existing contract portfolio on the balance sheet date.
At the end of the year, 191 people (191) were employed by the Group.
Sales during the period amounted to SEK 320m (315) and earnings before appropriations and tax amounted to SEK 356m (3,352). Net investments in property, equipment and shares totalled SEK 1m (0).
| Maturity, year | No. of | Annual leases value, SEKm |
Share, % |
|---|---|---|---|
| 2021 | 575 | 534 | 18% |
| 2022 | 296 | 651 | 22% |
| 2023 | 242 | 357 | 12% |
| 2024 | 117 | 190 | 7% |
| 2025 | 77 | 263 | 9% |
| $2026+$ | 79 | 801 | 27% |
| Commercial | 1,386 | 2,796 | 96% |
| Residentals | 128 | 13 | $0\%$ |
| Garage and parking | 778 | 109 | 4% |
| Total | 2,292 | 2,918 | 100% |
1 Of which just over SEK 186m has already been renegotiated for 2020.
| Share 1 , % Valid to year | ||
|---|---|---|
| SEB Banken | 7% | 2037 |
| The Swedish Tax Agency | 5% | 2022 |
| Telia Company AB | 5% | 2031 |
| ICA Fastigheter Sverige AB | 4% | 2030 |
| Swedbank | 2% | 2029 |
| The Swedish Migration Agency | 2% | 2028 |
| Carnegie Investment Bank AB | 2% | 2022 |
| The Swedish Agency for Education | 1% | 2024 |
| Telenor AB | 1% | 2028 |
| Telenor AB | $1\%$ | 2023 |
| Total | 30% |
1Share of contracted rent
Klaus Hansen Vikström, Vice President and Business Development Manager, has decided to fully make the transition to his own business as of 1 May 2021.
In January, Fabege signed a 12-year lease for approx. 7,600 sqm with Convendum in the Bocken 39, Kungsgatan 9 property. The annual rent amounts to approx. SEK 62m.
A bond issue of SEK 700m was carried out at the end of January, spread over two tranches of five and six years respectively. Interest from investors was very high.
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 2019 Annual Report (pages $34 - 40$ ).
Properties are recognised at fair value and changes in value are recognised in profit or loss. Effects of changes in value on consolidated profit, the equity/assets ratio and the loan-to-value ratio are also presented in the section on Risks and opportunities and the sensitivity analysis in the 2019 Annual Report. Financial risk, defined as the risk of insufficient access to long-term funding through loans, and Fabege's management of this risk are also described in the Risks and opportunities section of the 2019 Annual Report (pages 34-40).
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 2.2. The target for the loan-to-value ratio is a maximum of 50 per cent. The debt ratio will amount to a maximum of 13.
Apart from the effects of Covid-19 that have been described on page 3, no material changes in the company's assessment of risks have been made since publication of the 2019 Annual Report.
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, whereby net lettings in these quarters are often higher.
Many question marks remain and there is a great deal of uncertainty regarding what 2021 has in store. We don't know how quickly the vaccination programme will be rolled out, and what the pace of recovery will be like, or what the 'new normal' will be, post pandemic. The impact of the pandemic on Fabege is reported on page 3.
Fabege enjoys a strong financial position, which means we are able to cope well even in difficult times, and also harness any opportunities
that may arise. Several of our key performance indicators are stronger at the start of 2021 than they were in 2020. Our properties are modern and well-managed, and situated in attractive locations. We have stable customers. Fabege's employees are motivated and capable. We are well prepared to take on the challenges and opportunities open to us on the market over the coming year.
Fabege prepares its consolidated financial statements according to International Financial Reporting Standards (IFRS). 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 Interim Financial Reporting are submitted both in the notes and in other sections of the interim report.
The company has received government support in the form of the rent support package, which is recognised as a reduction in rental income. This is recognised in profit or loss in the same period as the decline in income for which the support is intended, to the extent it is deemed reasonably likely that the conditions have been satisfied and the support has been received/will be received. There are no contingent liabilities linked to the government support. The Group has not received any other forms of government support.
The Group applies the same accounting policies and valuation methods as in the latest annual report. Other new or revised IFRS standards or other IFRIC -interpretations that came into effect after 1 January 2020 have not had any material impact on the consolidated financial statements. The Parent Company prepares its financial statements according to RFR 2 Accounting for Legal Entities and the Swedish Annual Accounts Act, and applies the same accounting policies and valuation methods as in the latest annual report.
Stockholm, 4 February 2021
STEFAN DAHLBO Chief Executive Officer
This year-end report has not been examined by the company's auditors
Fabege had a total of 42,394 known shareholders at 31 December 2020, including 59.3 per cent Swedish ownership. The 15 largest owners controlled 44.5 per cent of the total number of shares and votes.
Fabege will issue as a dividend to its shareholders the portion of the company's profit that is not required to consolidate or develop operations. Under current market conditions, this means that the dividend is expected to sustainably account for at least 50 per cent of profit from continuous property management and realised gains from the sale of properties after tax.
The Board of Directors proposes a dividend of SEK 3.60 per share (3.20), to be paid on two occasions in April and October in the amount of SEK 1.80 per share on each occasion.
The 2020 AGM passed a resolution mandating the Board, for a period extending up 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. During the year, 4,577,402 shares were repurchased at an average price of SEK 118.16. At 31 December 2020, the company held 4,577,502 treasury shares corresponding to 1.4 per cent of the number of registered shares.
| Number of shares* | of equity, % of votes,% | Proportion Proportion | |
|---|---|---|---|
| Erik Paulsson and company | 50,858,718 | 15.6 | 15.6 |
| BlackRock | 15,745,399 | 4.8 | 4.8 |
| AMF Insurance & Funds | 9.511.098 | 2.9 | 2.9 |
| Handelsbanken Funds | 8.559.614 | 2.6 | 2.6 |
| Vanguard | 8,546,787 | 2.6 | 2.6 |
| Länsförsäkringar Funds | 7,485,093 | 2.3 | 2.3 |
| Mats Qviberg with family | 7,106,054 | 2.2 | 2.2 |
| E.N.A City Aktiebolag | 6,460,000 | 2.0 | 2.0 |
| Fourth AP-fund | 5,534,743 | 1.7 | 1.7 |
| Norges Bank | 5,482,722 | 1.7 | 1.7 |
| BMO Global Asset Management | 4,403,288 | 1.3 | 1.3 |
| Schroders | 4.376.841 | 1.3 | 1.3 |
| Folksam | 4,075,892 | 1.2 | 1.2 |
| Swedbank Robur Funds | 3,927,263 | 1.2 | 1.2 |
| AFA Insurance | 3.744.298 | 1.1 | 1.1 |
| Total 15 largest shareholders | 145,817,810 | 44.5 | 44.5 |
| Other | 184,965,334 | 55.5 | 55.5 |
| Total no. ofshares outstanding | 326,205,742 | 98.6 | 98.6 |
| Treasury shares | 4,577,402 | 1.4 | 1.4 |
| Total no. of registrated shares | 330,783,144 | 100.0 | 100.0 |
*The verification date may vary for foreign shareholders.
| rabege | |
|---|---|
| Lowest price, SEK | 109.55 |
| Highest price, SEK | 138.10 |
| VWAP, SEK | 125.13 |
| Average daily turnover, SEK | 98,153,644 |
| Number of traded shares, no | 49,418,168 |
| Average number of transactions, no | 2,789 |
| Number of transactions, no | 175,688 |
| Average value per transcation, SEK | 35,197 |
| Daily turnover relative to market capitalization | 0.24 |
| Number of shares | Capital & votes,% |
|
|---|---|---|
| Foreign institutional owners | 74,656,351 | 22.6 |
| Swedish institutional owners | 98,884,007 | 29.9 |
| Other owners | 72,100,980 | 21.0 |
| Swedish private individuals | 46,277,155 | 14.7 |
| Anonymous ownership | 34,287,249 | 10.4 |
| Holding own shares | 4,577,402 | 1.4 |
| Total | 330,783,144 | 100 |
*Source: Holdings from Modular Finance AB. Compiled and processed data from various sources, including Euroclear, Morningstar and the Swedish Financial Supervisory Authority (Finansinspektionen).
| 2020 | 2019 | 2020 | 2019 | |
|---|---|---|---|---|
| SEKm | Oct Dec | Oct-Dec | jan dec | jan-dec |
| Rental income 1 | 703 | 724 | 2,806 | 2,856 |
| Property expenses | $-175$ | $-185$ | $-694$ | $-712$ |
| Net operating income | 528 | 539 | 2,112 | 2,144 |
| Surplus ratio, % | 75% | 74% | 75% | 75% |
| Central administration | $-24$ | $-21$ | $-93$ | $-85$ |
| Net interest/expense | $-116$ | $-115$ | $-462$ | $-465$ |
| Ground rent | $-8$ | $-7$ | $-30$ | $-28$ |
| Share in profits of associated companies | $-10$ | -2 | $-53$ | $-34$ |
| Profit/loss from property management | 370 | 394 | 1,474 | 1,532 |
| Realised changes in value of properties | 24 | $\Omega$ | 49 | $\Omega$ |
| Unrealised changes in value of properties | 799 | .878 | 2,715 | 5,743 |
| Unrealised changes in value, fixed income derivatives | 87 | 483 | $-229$ | -235 |
| Changes in value of shares | $\Omega$ | $-2$ | $-6$ | |
| Profit/loss before tax | 1,279 | 2,755 | 4,007 | 7,034 |
| Current tax | 21 | 24 | 27 | |
| Deferred tax | $-244$ | $-274$ | $-864$ | $-1,055$ |
| Profit/loss for period/year | 1,034 | 2,502 | 3,167 | 6,006 |
| Items that will not be restated in profit or loss | ||||
| Revaluation of defined-benefit pensions | $-1$ | $-16$ | $-1$ | $-16$ |
| Comprehensive income for the period/year | 1,033 | 2,486 | 3,166 | 5,990 |
| Off which attributable to the minority | $-10$ | $\Omega$ | $-33$ | |
| Total comprehensive income attributable to Parent Company shareholders | 1,033 | 2,476 | 3,166 | 5,957 |
| Earnings per share, SEK | 1:75 | 7:56 | 9:65 | 18:16 |
| No. of shares at period end, millions | 328,283 | 330,783 | 328,283 | 330,783 |
| Average no. of shares, thousands | 329,211 | 330,783 | 329,211 | 330,783 |
The definition of property and other income amounts to SEK 121m for the period January-December 2020.
2 Edditional payment, service and other income amounts to SEK 121m for the period January-December 2020.
| 2020 | 2019 | |
|---|---|---|
| SEKm | Dec 31 | Dec 31 |
| Assets | ||
| Properties | 76,648 | 74,250 |
| Right of ground use | 897 | 942 |
| Other tangible fixed assets | 15 | 6 |
| Derivative instrument | 20 | 58 |
| Financial fixed assets | 1,108 | 810 |
| Current assets | 350 | 318 |
| Short-term investments | 108 | 134 |
| Cash and cash equivalents | 20 | 24 |
| Total assets | 79,166 | 76,542 |
| Equity and liabilities | ||
| Shareholder's equity | 41,542 | 40,068 |
| Deferred tax | 8,288 | 7,431 |
| Other provisions | 183 | 182 |
| Interest-bearing liabilities 1 | 26,669 | 26,414 |
| Lease liability | 897 | 942 |
| Derivative instrument | 617 | 426 |
| Non-interest-bearing liabilities | 970 | ,079 |
| Total equity and liabilities | 79,166 | 76,542 |
| $1 \bigcap f$ which shorttorm SEK 2025m $14.5651$ |
Of which shortterm SEK 2,925m (4,565).
| CONSOLIDATED CONDENSED STATEMENT OF CHANGES IN EQUITT | |||||
|---|---|---|---|---|---|
| Total equity | total | ||||
| quity | |||||
| 5,097 | 3,017 | 26.799 | 34,912 | 51 | 34,964 |
| 5.973 | 5.973 | 33 | 6,006 | ||
| $-16$ | $-16$ | $-16$ | |||
| 5,957 | 5,957 | 33 | 5,990 | ||
| $-876$ | $-876$ | $-10$ | $-886$ | ||
| -876 | -876 | $-10$ | -886 | ||
| 5,097 | 3,017 | 31.880 | 39,993 | 74 | 40,068 |
| 3,167 | 3,167 | $\circ$ | 3,167 | ||
| $-1$ | |||||
| 3,166 | 3,166 | o | 3,166 | ||
| $-541$ | $-541$ | $-541$ | |||
| $-1,050$ | $-1,050$ | $-1,050$ | |||
| $-26$ | $-26$ | $-74$ | $-100$ | ||
| $-1,617$ | $-1,617$ | $-1,691$ | |||
| 5,097 | 3,017 | 33,428 | 41,542 | 0 | 41,542 |
| Share capital | contributed capital |
Other Retained earnings incl. Profit/loss for the period |
attributable to shareholders |
Parent Company Non-controlling shareholders'e interests $-74$ |
| SEKm | 2020 Jan-Dec |
2019 |
|---|---|---|
| Operations | Jan-Dec | |
| Net operating income | 2,112 | 2,143 |
| Central administration | $-93$ | $-85$ |
| Reversal of depreciation | $\Delta$ | $\mathbf{1}$ |
| Interest received | 16 | 9 |
| Interest paid | $-550$ | $-556$ |
| Income tax paid | 24 | 27 |
| Cash flow before changes in working capital | 1,513 | 1,539 |
| Change in working capital | ||
| Change in current receivables | $-34$ | 304 |
| Change in current liabilities | $-130$ | 174 |
| Total change in working capital | $-164$ | 478 |
| Cash flow from operating activities | 1,349 | 2,017 |
| Investing activities | ||
| Investments in new-builds, extensions and conversions | $-1,826$ | $-2,518$ |
| Acquisition of properties | $-1,370$ | $\Omega$ |
| Divestment of properties | 3,589 | ,685 |
| Other tangible fixed assets | $-411$ | $-437$ |
| Cash flow from investing activities | $-18$ | $-1,270$ |
| Financing activities | ||
| Dividend to shareholders | $-1,050$ | $-877$ |
| Transfer of treasury shares | $-541$ | |
| Loans received | 10,117 | 23,376 |
| Amortization of debt | $-9,861$ | $-23,237$ |
| Cash flow from investing activities | $-1,335$ | $-738$ |
| Cash flow for the period | $-4$ | 9 |
| Cash and cash equivalents at beginning of period | 24 | 15 |
| Cash and cash equivalents at end of period | 20 | 24 |
| 2020 | 2019 | |
|---|---|---|
| Financial | Jan-Dec | Jan-Dec |
| Return on equity, % | 7.8 | 16.0 |
| Interest coverage ratio, multiple | 4.3 | 4.4 |
| Equity | 52 | 52 |
| Loan-to-value ratio, properties, % | 35 | 36 |
| Debt ratio, multiple | 13.2 | 12.8 |
| Debt/equity ratio, multiple | 0.6 | 0.7 |
| Share related 1 | ||
| Earnings per share, SEK 2 | 9:65 | 18:16 |
| Equity per share, SEK | 127 | 121 |
| Cash flow from operating activities per share, SEK | 4,11 | 6:10 |
| Average no. of shares, thousands | 328,317 | 330,783 |
| No. of outstanding shares at end of period, thousands | 326,206 | 330,783 |
| Property-related | ||
| No. of properties | 94 | 87 |
| Carrying amount, Properties, SEKm | 76,648 | 74,250 |
| Lettable area, sam | ,245,000 | 1,255,000 |
| Financial occupancy rate, % | 91 | 94 |
| Total return on properties, % | 6.6 | 11.5 |
| Surplus ratio, % | 75 | 75 |
| service and the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of th $A + C = 1, 2, $ |
1 Unless otherwise stated, the key figure is not defined under IFRS. Please see page 21 for definitions.
$^2$ Definitions according to IFRS.
| 2020 | 2019 | |
|---|---|---|
| Jan-Dec | Jan-Dec | |
| EPRA Earnings (income from property mgmt after tax), SEKm | 1,285 | ,324 |
| EPRA Earnings (EPS), SEK/share | 3:92 | 4:01 |
| EPRA NRV (long term net asset value), MSEK | 50,427 | 47.867 |
| EPRA NRV, SEK/share | 155 | 145 |
| EPRA NTA (long term net asset value), SEKm | 48.217 | 46,067 |
| EPRA NTA, SEK/share | 148 | 139 |
| EPRA NDV (net asset value), SEKm | 41,542 | 40.068 |
| EPRA NDV, SEK/share | 127 | 121 |
| EPRA Vacancy rate, % | 6 |
Derivatives are measured at fair value in accordance with Level 2. 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 of an accounting nature and have no impact on cash flow. At the due date, the market value of derivative instruments is always zero.
| 2020 | 2019 | |
|---|---|---|
| Defered tax attributable to: | Dec 31 | Dec 31 |
| - tax loss carryforwards, SEKm | $-693$ | $-690$ |
| - difference between book value and tax value in respect of properties, SEKm | 9.166 | 8,322 |
| - derivatives, SEKm | $-128$ | $-201$ |
| - other, SEKm | $-57$ | $\Omega$ |
| Net debt, deferred tax, SEKm | 8.288 | 7,431 |
Details are provided below regarding reconciliation of the financial key performance indicators that Fabege continually monitors and for which established financial targets are in place. The following financial targets have been established by the Board of Directors:
| 2020 | 2019 | |||
|---|---|---|---|---|
| Equity/assets ratio | Dec 31 | Dec 31 | ||
| Equity, SEKm | 41,542 | 40,068 | ||
| Total assets, SEKm | 79,166 | 76,542 | ||
| Equity/assets ratio | 52% | 52% | ||
| 2020 | 2019 | |||
| Loan-to-value ratio, properties | Dec 31 | Dec 31 | ||
| Interst-bearing liabilities, SEKm | 26,669 | 26,414 | ||
| Booked value properties, SEKm | 76,648 | 74,250 | ||
| Loan-to-value ratio, properties | 35% | 36% | ||
| 2020 | 2019 | |||
| Debt ratio | Dec 31 | Dec 31 | ||
| Operating surplus, SEKm | 2,112 | 2,144 | ||
| Central administration, SEKm | $-93$ | $-85$ | ||
| Total, SEKm | 2,019 | 2,059 | ||
| Interest-bearing liabilities, SEKm | 26.669 | 26,414 | ||
| Debt ratio, multiple | 13.2 | 12.8 | ||
| Interst coverage ratio, multiple | 2020 Dec 31 |
2019 Dec 31 |
||
| Net operating income, SEKm | 2,112 | 2,144 | ||
| Ground rent | $-30$ | $-28$ | ||
| Central administration, SEKm | $-93$ | $-85$ | ||
| Total, SEKm | 1,989 | 2,031 | ||
| Net intrest/expense, SEKm | $-462$ | $-465$ | ||
| Interst coverage ratio, multiple | 4.3 | 4,4 | ||
| 2020 | 2019 | 2020 | 2019 | |
| Return on equity | Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec |
| Profit for the period, SEKm | 1.034 | 2,502 | 3,167 | 6,006 |
| Average shareholders' equity, SEKm | 41.193 | 38,825 | 40,805 | 37.516 |
| Return on equity | 10.0% | 25.8% | 7.8% | 16.0% |
| 2020 | 2019 | 2020 | 2019 | |
| Total return on properties | Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec |
| Net operating income, SEKm | 528 | 539 | 2,112 | 2,144 |
| Unrealized and realized value changes properties, SEKm | 823 | 1,878 | 2,764 | 5,743 |
| Market value including captal investment during the period, SEKm | 73,933 | 72,372 | 73,933 | 68,678 |
| Total return on properties | 1.8% | 3.3% | 6.6% | 11.5% |
| 2020 Jan-Dec |
2019 Jan-Dec |
|||||
|---|---|---|---|---|---|---|
| EPRA NRV, EPRA NTA & EPRA NDV | NRV | NTA | NDV | NRV | NTA | NDV |
| Shareholders' equity, SEKm | 41.542 | 41,542 | 41,542 | 40.068 | 40.068 | 40,068 |
| Inclusion of decided not paid dividend, SEKm | ||||||
| Inclusion of fixed-income derivatives according to the balance sheet, SEKm | 597 | 597 | 597 | 368 | 368 | 368 |
| Inclusion of deferred tax according to the balance sheet, SEKm | 8.288 | 8,288 | 8,288 | 7.431 | 7,431 | 7,431 |
| Exclusion of actual deferred tax, SEKm | $\sim$ | $-2,210$ | $-2,210$ | $\sim$ | $-1,800$ | $-1,800$ |
| Exclusion of fixed-income derivatives according to the balance sheet, SEKm | ٠ | $-597$ | $-368$ | |||
| Inclusion of deferred tax according to the balance sheet after adjustment of actual deferred tax, SEKm | $\sim$ | $-6.078$ | $-5,631$ | |||
| NAV | 50,427 | 48,217 | 41,542 | 47,867 | 46,067 | 40,068 |
| Number of shares at period end | 326.2 | 326.2 | 326.2 | 330.8 | 330.8 | 330.8 |
| NAV per share, SEK | 155 | 148 | 127 | 145 | 139 | 121 |
| 2020 | 2019 | |
|---|---|---|
| EPRA EPS | Jan-Dec | Jan-Dec |
| Profit from property management, SEKm | 1,474 | 1,532 |
| Tax-deductable depreciation, SEKm | $-593$ | $-567$ |
| Sum, SEKm | 881 | 965 |
| Nominal tax (21,4%), SEKm | 189 | 207 |
| EPRA earnings in total, (Profit from property management minus nominal tax) SEKm | 1,474 | 1,325 |
| Number of shares, millions | 328.3 | 330.8 |
| EPRA EPS, SEK per share | 3:92 | 4:01 |
| 2020 | 2019 | |
|---|---|---|
| EPRA Vacancy rate | Jan-Dec | Jan-Dec |
| ERV of vacant space, SEKm | 289 | 200 |
| Rental value, yearly, entire portfolio, SEKm | 3.242 | 3.103 |
| EPRA Vacancy rate, % | 9% | 6% |
Contingent liabilities comprise the balance sheet date guarantees and commitments in favour of associated companies of SEK 489m (531) and other 0 $(0).$
In the first quarter, the project at Fortet 2, Solna, was completed and the property reclassified from a project property to an investment property. In the third quarter, the Glädjen 12 property was transferred from Property Management to Projects. Regulatorn 2, which was acquired in the third quarter, is classified as a development property. In the fourth quarter, the Stigbygeln 3 property was reclassified from Property Management to Property Development.
| . | ||
|---|---|---|
| 2020 | 2019 | |
| SEKm | Jan-Dec | Jan-Dec |
| Income | 320 | 315 |
| Expenses | $-351$ | $-356$ |
| Net financial items | 618 | 3,630 |
| Share in profits of associated companies | $\circ$ | |
| Changes in value, fixed-income derivatives | $-229$ | $-235$ |
| Changes in value, equities | $-2$ | $-2$ |
| Group Contribution | $\Omega$ | |
| Profit before tax | 356 | 3,352 |
| Current tax | $\circ$ | |
| Deferred tax | 48 | 60 |
| Profit for the period | 404 | 3,412 |
| 2020 | 2019 | |
|---|---|---|
| SEKm | Dec 31 | Dec 31 |
| Participation in Group companies | 12.517 | 12,516 |
| Other fixed assets | 44,457 | 44,139 |
| of which, receivables from Group companies | 44,188 | 43,865 |
| Current assets | 108 | 642 |
| Cash and cash equivalents | ||
| Total assets | 57,083 | 57,308 |
| Shareholders' equity | 13,517 | 14,717 |
| Provisions | 70 | 70 |
| Long-term liabilities | 43,292 | 39,326 |
| of which, liabilities to Group companies | 17.533 | 17,552 |
| Current liabilities | 204 | 3,195 |
| Total equity and liabilities | 57,083 | 57,308 |
$\overline{a}$
$\overline{a}$
| 2020 | 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| SEKm | Quarter 4 Quarter 3 | Quarter 2 | Quarter 1 Quarter 4 Quarter 3 Quarter 2 Quarter 1 | ||||||
| Rental income | 703 | 696 | 696 | 711 | 724 | 683 | 731 | 718 | |
| Property expenses | $-175$ | $-158$ | $-170$ | $-191$ | $-184$ | $-141$ | $-177$ | $-209$ | |
| Net operating income | 528 | 538 | 526 | 520 | 539 | 542 | 554 | 509 | |
| Surplus ratio | 75% | 77% | 76% | 73% | 74% | 79% | 76% | 71% | |
| Central administration | $-24$ | $-21$ | $-25$ | $-23$ | $-21$ | $-21$ | $-22$ | $-21$ | |
| Net interest expence | $-116$ | $-119$ | $-116$ | $-111$ | $-115$ | $-117$ | $-125$ | $-108$ | |
| Ground rents | -8 | -8 | -8 | -6 | -7 | -7 | -7 | ||
| Share in profits of associated companies | $-10$ | $-14$ | $-18$ | $-11$ | $-2$ | 0 | $-25$ | $-7$ | |
| Profit/loss from property management | 370 | 376 | 359 | 369 | 394 | 397 | 375 | 366 | |
| Realised changes in value of properties | 24 | $\Omega$ | $\Omega$ | 25 | $\Omega$ | $\Omega$ | |||
| Unrealised value of properties | 799 | 391 | $-304$ | .829 | 1,874 | 743 | .798 | ,324 | |
| Unrealised changes in value, fixed-income derivatives | 87 | $-24$ | $-49$ | $-243$ | 483 | $-215$ | $-265$ | $-238$ | |
| Changes in value, equities | $\Omega$ | $\circ$ | - 1 | -4 | -3 | ||||
| Profit for the period/year | 1,279 | 743 | 6 | 1.979 | 2,755 | 921 | 1.909 | 1,449 | |
| Current tax | $\Omega$ | $\circ$ | 25 | 21 | $\Omega$ | -3 | |||
| Deferred tax | $-244$ | $-169$ | $-21$ | $-430$ | $-274$ | $-207$ | $-264$ | $-310$ | |
| Comprehensive income for the period | 1,034 | 574 | $-15$ | .574 | 2.502 | 714 | 1.642 | 1,148 |
| 2020 | 2019 | |||||||
|---|---|---|---|---|---|---|---|---|
| SEKm | Quarter 4 | Quarter 3 | Quarter 2 Quarter 1 | Quarter 4 | Quarter 3 | Quarter 2 Quarter 1 | ||
| Assets | ||||||||
| Properties | 76,648 | 75399 | 73565 | 72996 | 74250 | 71591 | 71821 | 69616 |
| Right of ground use | 897 | 942 | 942 | 942 | 942 | 942 | 942 | 942 |
| Other tangible fixed assets | 15 | 15 | 15 | 6 | 6 | 6 | 6 | 3 |
| Derivative instruments | 20 | 19 | 31 | 58 | $\sim$ | |||
| Financial fixed assets | ,108 | 1011 | 948 | 911 | 813 | 758 | 690 | 424 |
| Current assets | 350 | 396 | 457 | 479 | 342 | 559 | 652 | 735 |
| Short-term investments | 108 | 108 | 107 | 130 | 134 | 126 | 126 | 128 |
| Cash and cash equivalents | 20 | 727 | 282 | 195 | 24 | 16 | 15 | 66 |
| Total assets | 79,166 | 78,609 | 76,335 | 75,690 | 76,569 | 73,998 | 74,252 | 71,914 |
| Equitites and liabilities | ||||||||
| Shareholders' equity | 41,542 | 40.844 | 40,278 | 41,343 | 40,068 | 37,582 | 36,868 | 36,102 |
| Deferred tax | 8,288 | 8,045 | 7,875 | 7,853 | 7,431 | 7,162 | 6,956 | 6,691 |
| Other provisions | 183 | 179 | 180 | 181 | 182 | 167 | 167 | 167 |
| Interest-bearing liabilities | 26,669 | 26,205 | 24,694 | 23,472 | 26,414 | 26,001 | 27,544 | 26,518 |
| Leasing Debt | 897 | 942 | 942 | 942 | 942 | 942 | 942 | 942 |
| Derivative instruments | 617 | 695 | 679 | 641 | 426 | 851 | 636 | 371 |
| Non-interest bearing liabilitis | 970 | .699 | .687 | 1.258 | 1.106 | .293 | 1.139 | 1,123 |
| Total equity and liabilities | 79,166 | 78,609 | 76,335 | 75,690 | 76,569 | 73,998 | 74,252 | 71,914 |
| 2020 | 2019 | |||||||
|---|---|---|---|---|---|---|---|---|
| Quarter 4 Quarter 3 Quarter 2 Quarter 1 Quarter 4 Quarter 3 Quarter 2 Quarter 1 | ||||||||
| Financial | ||||||||
| Return on equtiy, % | 10.0 | 5.7 | $-0$ . | 15.5 | 25.8 | 7.7 | 18.0 | 12.9 |
| Interest coverage ratio, multiple 2 | 4.3 | 4.3 | 4.3 | 4.4 | 4.4 | 4.4 | 4.2 | 4.5 |
| Equity/assets ratio, % | 52 | 52 | 53 | 55 | 52 | 51 | 50 | 50 |
| Loan-to-value ratio, properties, % | 35 | 35 | 34 | 32 | 36 | 36 | 38 | 38 |
| Debt ratio, multiple | 13.2 | 12.9 | 12.1 | 11.4 | 12.8 | 13.0 | 14.2 | 14.2 |
| Debt/equity raio, multiple | 0.6 | 0.6 | 0.6 | 0.6 | 0.7 | 0.7 | 0.7 | 0.7 |
| Share-related 1 | ||||||||
| Earnings per share, SEK 2 | 7:65 | 1:75 | $-0:05$ | 4:78 | 7:56 | 2:16 | 4:97 | 3:47 |
| Total earnings per share, SEK | 127 | 124 | 123 | 126 | 121 | 114 | 111 | 109 |
| Cash flow from operating activities per share, SEK | 0:61 | $-40$ | 0:89 | l:21 | :34 | 0:56 | 1:40 | 1:40 |
| No. of shares outstanding at the end of the period, thousands | 326,206 | 328,206 | 328,283 | 328,283 | 330,783 | 330,783 | 330,783 | 330,783 |
| Average no. of shares, thousands | 328,317 | 329,211 | 329,533 | 329,533 | 330,783 | 330,783 | 330,783 | 330,783 |
| Property-related | ||||||||
| Financial occupancy rate, % | 91 | 91 | 92 | 94 | 94 | 94 | 94 | 94 |
| Total return on properties, % | 1.8 | $\cdot$ 3 | 0.3 | 3.4 | 3.3 | 1.8 | 3.5 | 2.7 |
| Surplus ratio, % | 77 | 77 | 76 | 73 | 74 | 79 | 76 | 71 |
| 1 Unless otherwise stated, the key figure is not defined under IFRS. Please see page 21 for definitions. 2 Definitionen according to IFRS. |
The company presents certain financial performance measures in the interim report that are not defined according to IFRS. The company considers that these measures provide valuable supplementary information for investors and company management, as they enable an assessment and benchmarking of the company's presentation. Since not all companies calculate financial performance measures in the same way, these are not always comparable to
Estimated actual deferred tax has been calculated at approximately 4 per cent based on a discount rate of 3 per cent. Furthermore, it has been assumed that loss carry forwards are realised over four years with a nominal tax rate of 21.4 per cent, which gives 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, with 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 amounting to 6 per cent, which gives a net present value for deferred tax liabilities of 4 per cent.
Cash flow from operating activities (after changes in working capital) divided by the average number of shares outstanding.
Interest-bearing liabilities divided by shareholders' equity.
Interest-bearing liabilities divided by rolling twelve-month net operating income less central administration.
Properties in which a conversion or extension is in progress or planned that has a significant impact on the property's net operating income. Net operating income is affected either directly by the project or by limitations on lettings prior to impending improvement work.
Profit from property management less tax at a nominal rate attributable to profit from property management, divided by average number of shares. Taxable profit from property management is defined as profit from property management less such amounts as tax-deductible depreciation and remodelling.
Shareholders' equity according to balance sheet.
Shareholders' equity according to balance sheet following the reversal of fixed-income derivatives and deferred tax according to the balance sheet.
Shareholders' equity according to 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.
Estimated market rent for vacant rents divided by the annual rental value for the entire property portfolio.
Shareholders' equity including non-controlling interest divided by total assets.
Parent Company shareholders' share of equity according to the balance sheet, divided by the number of shares outstanding at the end of the period.
Lease value divided by rental value at the end of the period.
Net operating income including ground rent less central administration in relation to net interest items (interest expenses less interest income).
Properties that are being actively managed on an ongoing basis.
Land and development properties and properties in which a new construction/complete redevelopment is in progress.
Stated as an annual value. Index-adjusted basic rent under the rental agreement plus rent supplements.
Interest-bearing liabilities divided by the carrying amount of the properties at the end of the period.
New lettings during the period less terminations to vacate.
Parent Company shareholders' share of earnings after tax for the period, divided by average number of shares outstanding during the period. Definition according to IFRS.
Lease value plus estimated annual rent for vacant premises after a reasonable general renovation.
Proportion of leases that are extended in relation to the proportion of cancellable leases
Profit for the period/year divided by average shareholders' equity including non-controlling interest. In interim reports, the return is converted into its annualised value without taking account of seasonal variations.
Change in value of project and development properties, divided by invested capital (excluding initial value) in project and development properties during the period.
Dividend for the year divided by the share price at year-end.
Net operating income divided by rental income.
Net operating income for the period plus unrealised and realised changes in the value of properties, divided by market value at start of period plus investments for the period.
*This key performance indicator is operational and is not regarded as an alternative performance measure according to ESMA's guidelines.
Fabege is one of Sweden's leading property companies, focusing mainly on letting and managing office premises as well as city district development. The company offers modern premises in prime locations in fastgrowing submarkets in the Stockholm region: Stockholm inner city, Solna and Hammarby Sjöstad.
Fabege offers attractive and efficient premises, mainly offices but also retail and other premises. The concentration of properties to wellcontained clusters leads to greater customer proximity and, coupled with Fabege's extensive local expertise, creates a solid foundation for efficient property management and high occupancy.
At 31 December 2020, Fabege owned 94 properties with a total market value of SEK 76.6bn. The rental value was SEK 3.2bn.
Fabege works with sustainable city district development, with a primary focus on commercial properties within a limited number of submarkets in good locations in the Stockholm area.
Fabege aims to create value by managing, improving and actively adjusting its property portfolio through sales and acquisitions.
Fabege conducts activities in three business areas: Property Management, Property Development and Transactions.
Fabege's strategy is to create value by managing and developing the property portfolio and through transactions, acquiring and divesting properties with the aim of increasing potential in the property portfolio. 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 aimed at enhancing the appeal of an area benefit many of Fabege's customers.
A number of external factors affect Fabege's business activities and these, together with the transaction volume and trends in the office market in Stockholm, represent the prerequisites for the company's success.
Stockholm is one of the five metropolitan areas in Western Europe where the population is increasing at the fastest rate. Forecasts suggest that by the year 2030, Stockholm County will have half a million more inhabitants than it currently has. The most significant growth is among people in the active labour force, which is boosting demand for office premises.
New technology and new working methods are fuelling demand for flexible and space-efficient premises in prime locations. Excellent peripheral services and good communication links in the form of public transport are in increasing demand, as are environmentally certified offices and green leases.
The property market is impacted by trends in both the Swedish and the global economy. Lower vacancy rates in Stockholm's inner city and a stronger economic climate have historically meant rising rents.
Sustainability issues are becoming increasingly important in terms of both individual properties and entire areas. Interest in environmental considerations involving choice of materials and energy-saving measures is on the rise. Demand is increasing for premises in areas with a favourable mix of offices, retail, service and residential units, as well as excellent transport links and interest in the environment.
The essence of Fabege's operations is finding the right premises for a customer's specific requirements and ensuring that the customer is content. This is accomplished through longterm work and based on close dialogue with the customer, thus building mutual trust and loyalty.
High-quality property development is the second key cornerstone of our business. Fabege has long-standing expertise in pursuing extensive property development projects, with the aim of attracting long-term tenants to properties that have not yet been fully developed and can be redesigned based on the customer's specific requirements.
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 to take advantage of opportunities to generate capital growth through acquisitions and divestments.
2021 Annual General Meeting Interim report Jan-March 2021 Interim report Jan-June 2021 Interim report Jan-Sep 2021
25 March 2021, 3.00 pm CET 26 April 2021, 7.30 am CET 9 July 2021, 7.30 am CET 20 October 2021, 7.30 am CET
There will also be a web presentation on the Group's website on 4 February 2021, during which Stefan Dahlbo and Åsa Bergström will present the report.
in
| 22 Dec 2020 | Fabege expands Executive Management Team |
|---|---|
| 21 Dec 2020 | FOLLOW US ON SOCIAL Fabege first with 100 per cent green financing |
| 11 Dec 2020 | MEDIA Fabege sells Sadelplatsen 1 in Solna |
| 2 Dec 2020 | Hotel Giò wins Solna Urban Environment Prize 2020 |
| 24 Nov 2020 | Fabege named by GRESB as global leader in sustainability |
| in 2020 | |
| 20 Oct 2020 | Fabege launches share buyback |
| 20 Oct 2020 | Interim report January - September 2020 |
| 6 Oct 2020 | Electrolux Professional to move to Glädjen at Hornsbergs |
| strand | |
| $1$ Oct 2020 | New Pen Park adds colour to Arenastaden |
Including regulatory and non-regulatory press releases.
STEFAN DAHLBO, President and CEO Contact: +46 (0) 8 555 148 10, [email protected]
ÅSA BERGSTRÖM, Vice President and CFO Contact: +46 (0) 8 555 148 29, [email protected]
Fabege AB (publ) Box 730, SE 169 27 Solng, Sweden Visitors: Pyramidvägen 7 59 56 Solna, Sweden Telephone: +46 (0)8-5
Email: [email protected] 48 00 www.fabege.se Corporate registration number: 556049-1523 of the Board of Directors: Stockholm Registered
c/o Fabege
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