Earnings Release • Feb 7, 2022
Earnings Release
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¹ The comparison figures for income and expense items relate to values for the January– December 2020 period and for balance sheet items on 31 December 2020.
| 2021 | 2020 | 2021 | 2020 | |
|---|---|---|---|---|
| Oct-Dec Oct-Dec | Jan-Dec Jan-Dec | |||
| Net sales | 808 | 703 | 2,951 | 2,806 |
| Gross profit | 560 | 528 | 2,176 | 2,112 |
| Profit/loss from property management |
418 | 370 | 1,537 | 1,474 |
| Profit/loss before tax | 2,723 | 1,279 | 6,712 | 4,007 |
| Profit/loss after tax | 2,258 | 1,034 | 5,400 | 3,167 |
| Net lettings | 32 | -49 | 162 | -45 |
| Surplus ratio, % | 76 | 75 | 76 | 75 |
| Loan-to-value ratio, properties, % | - | - | 36 | 35 |
| EPRA NRV, SEK per share | - | - | 171 | 155 |
Profit after tax for the year was SEK 5,400m (3,167), corresponding to earnings per share of SEK 16.73 (9.65).
Net lettings during the year totalled SEK 162m (–45).
For key performance indicator definitions, see page 24.
Target: SEK 2,500m per year over a business cycle
Target: 75%
Despite the pandemic, 2021 was a good year, both for Fabege and for many of our customers. We have experienced an active rental market, received a host of enquiries, achieved positive net lettings, increased rental income, improved net operating income and, above all, seen healthy growth in the value of our property portfolio.
The year also saw rising share prices, record-low interest rates and capital that is desperately looking for ways to generate a return. This has led to many property companies achieving a stock market value way in excess of their net asset value. So for us it's been particularly important to maintain a firm focus on our business and the factors we are able to influence. Continuing to develop a robust company that generates healthy earnings, holds a strong financial position and has plenty of opportunities. We mustn't forget that property management is at the heart of our business, with a portfolio valued at roughly SEK 83bn. Every day we must nurture and develop our property holdings. It's a daily responsibility involving numerous tasks, big and small. But it's these very tasks that generate long-term results, which is perhaps why we've been somewhat unadventurous. But that's not to say we've been resting on our laurels. We've actually completed several significant transactions to boost our growth opportunities.
During the fourth quarter, we took a natural step in our strategy as an urban developer in Greater Stockholm through the acquisition of SHH Bostad. The acquisition gives us a more comprehensive offering in urban development by including residential and public-services property. It will increase the development rights portfolio to the equivalent of approximately 10,000 homes, primarily in the Stockholm region.
Net lettings during the fourth quarter totalled SEK 32m. There was heightened activity on the rental market in the autumn, with more viewings and negotiations. The largest letting was to Convendum for approximately 4,400 sqm at Drottninggatan 29, right next to the seat of the Swedish government. The lease is for ten years and the company will take up occupancy in June 2023. In total, we signed leases for approximately 12,000 sqm in Stockholm inner city for their co-working concept during the year. This year´s net letting landed at SEK 162m, one of the best numbers ever for us.
We also began the next stage of urban development in Haga Norra via the construction of the first office block, residential units and parking facilities. The office district Kvarter 1 will be ready for occupancy in early 2024 and will provide approximately 31,500 sqm of commercial space across eight floors. We often look to attract an 'anchor tenant' to take a large
NET LETTINGS
Target: SEK 80m per year
section of the space before launching any new projects. However, we are seeing substantial demand for good office space in and around Arenastaden, and we are now creating a high quality office product in an attractive setting close to Solna station. So I have no concerns about vacancies on completion.
To create shareholder value, we made use of our strong balance sheet and repurchased an additional 700,000 shares. During the year we repurchased a total of approximately 4.9 million shares at SEK 122.05 per share. I regard share buybacks as a natural tool for generating shareholder value.
We have received several prestigious international accolades. The Pep Park "100 metres Pep" in Huvudsta, Solna has been awarded the IOC IAKS Award in Bronze and has also received an additional award for its accessibility. Our hotel House of Choice, which is Scandinavia's first zero-energy hotel, was named BREEAM Building of the Year 2021 by Sweden Green Building Council.
In Flemingsberg, we are working alongside Huddinge municipality and Södertörn University on the research project 'Social sustainability in the physical environment'. The aim is to create an inclusive urban environment for all residents, students, workers and visitors in the area. During the quarter, the project received funding from Vinnova.
Autumn saw record-high transactions in our market, which is reflected in lower yield requirements and positive changes in value. I think we are unlikely to see a sharp reduction in yield requirements going forward, although there is still a slight delay in valuations.
I am confident about our prospects for 2022. We feel that the Stockholm market is stable, with healthy demand for office premises in all our submarkets. New lettings and renegotiations are being completed at good rent levels. Our housing projects that have been on the market have been selling extremely well. This positive trend appears to be continuing into early 2022.
Of course there will be challenges in 2022 as well. Working to reduce vacancy rates and strengthen cash flow will be two key focus areas for us during the year. The 10 per cent vacancy rate in our portfolio is too high, although much of this figure is due to customisations for tenants yet to move in. We are also aware that we will have a vacancy in the Nöten property in Solna Strand when the Swedish Tax Agency moves out at the beginning of 2022. Work is underway on adapting these premises to accommodate more tenants. However, I have no concerns about more structural vacancies either there or in the rest of our portfolio. We have good premises in prime locations close to public transport, and we have also consolidated our letting function to ensure that we are avaible and able to resond to market needs.
We have a strong financial position. Stability is the hallmark of our operations – we have a modern portfolio of properties in attractive locations, stable customers, committed employees and good growth opportunities via our development rights and projects. We are well prepared to take on the challenges and opportunities open to us on the market over the coming year.
Stefan Dahlbo, CEO
In 2021, activity in the rental market picked up and Fabege signed and renegotiated a number of leases.
Some of the larger newly signed leases included:
Total net lettings amounted to SEK 162m.
"We're delighted at the confidence Alfa Laval has shown in us by choosing Flemingsberg as the site of their future development and operations," commented Stefan Dahlbo, CEO.
Profit after tax for the year was SEK 5,400m (3,167), corresponding to earnings per share of SEK 16.81 (9.65). Profit before tax for the period amounted to SEK 6,712m (4,007). Higher profit from property management and positive changes in value for both properties and derivatives meant that profit before tax increased year-on-year.
Rental income amounted to SEK 2,889m (2,806) and net operating income to SEK 2,185m (2,112). The increase in revenue was mainly due to acquisitions and occupancy of project properties. In an identical portfolio, income rose by approximately 2 per cent. The increase in property costs mainly related to winter costs such as heating and snow removal. Net operating income in an identical portfolio rose by approximately 3 per cent (6). The surplus ratio was 76 per cent (75).
Earnings for SHH Bostad AB, which was acquired with completion in October, are included in the Fabege Group's earnings for the fourth quarter. Revenue from housing development totalled SEK 62m. Housing development costs amounted to SEK –71m, of which administrative costs amounted to SEK –19m. Gross earnings thus amounted to SEK –9m and are attributable to the fact that administrative costs are recognised on an ongoing basis, while sales and project settlements are recognised in connection with project completion. Furthermore, income from co-owned projects is recognised under associated companies.
Central administration costs totalled SEK – 110m (–93), of which just over SEK –11m was attributable to one-off costs for Fabege's new head office.
Net interest items amounted to SEK –495m (–462). The increase in interest expenses was mainly due to a higher volume of loans. Ground rent amounted to SEK –36m (–30).
Share in profit/loss of associated companies amounted to SEK 2m (–53), of which SEK – 35m related to contributions to
Arenabolaget, SEK 25m to settlement of the joint venture project Selfoss, Kista, and SEK
12m to final settlement of SHH's co-owned project in Huddinge.
The property portfolio is valued using a wellestablished process. The entire property portfolio is independently valued at least once annually. Roughly 27 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 83.3bn (76.6). Unrealised changes in value totalled SEK 4,585m (2,715). The average yield requirement declined by 0.12 percentage points to 3.76 per cent (3.88) during the period.
Realised changes in value of SEK 56m related to gains from the sale of Selfoss 1, Kista, to the joint venture company that has been developing housing at the property.
The tax expense for the period amounted to SEK –1,312m (–840). Tax was calculated at a rate of 20.6 per cent (21.4) on taxable earnings. The interest deduction limitations are not expected to have a material effect on taxes paid in the current year.
Segment reporting has been adjusted due to the acquisition of SHH.
The Property Management segment generated net operating income of SEK 2,111m (2,076), representing a surplus ratio of 80 per cent (78). The occupancy rate was 90 per cent (92). Profit from property management totalled SEK 1,530m (1,512). Unrealised changes in the value of properties amounted to SEK 3,437m (1,918).
The Property Development segment generated net operating income of SEK 60m (43), giving a surplus ratio of 43 per cent (31). Profit/loss from property management totalled SEK -1m (–10). Unrealised changes in the value of properties amounted to SEK 265m (423).
In the Projects segment, unrealised changes in value of SEK 8883m (374) were
| Changes in property values, SEKm | 2021 |
|---|---|
| Opening fair value, 01/01/2021 | 76,648 |
| Property acquisitions | 752 |
| Investments in new builds, extensions and c | 1,874 |
| Unrealised changes in value | 4,585 |
| Sales, disposals and other | -602 |
| Closing fair value, 31/12/2021 | 83,257 |
| Area | Average yield requirement, % |
|---|---|
| Stockholm city | 3.44% |
| Solna | 3.87% |
| Hammarby Sjöstad | 4.11% |
| Other markets | 5.24% |
| Average yield | 3.76% |
recognised. The change in value of the project portfolio was mainly due to development gains in major project properties.
The Housing segment generated gross earnings of SEK –9m (-) from housing development and SEK 12m (-) from associated companies. Profit/loss from property management totalled SEK –2m (-).
Further information about breakdown by segment is provided in the segment report and segment notes on pages 10 and 22.
Shareholders' equity amounted to SEK 45,174m (41,542) at the end of the period and the equity/assets ratio was 51 per cent (52). Equity per share attributable to Parent Company shareholders totalled SEK 141 (127). EPRA NRV was SEK 171 per share (155).
Recognised goodwill of SEK 234m is entirely attributable to the acquisition of SHH Bostad AB.
Recognised property value relates to Fabege's investment property portfolio, including project and land properties. At year-end, the total property value amounted to SEK 83.3bn (76.6).
Refers to ongoing in-house projects and development properties for future production within SHH. The value at yearend totalled SEK 821m (-), including SEK 451m relating to ongoing production and SEK 370m concerning development properties for future development.
Cash flow from operating activities before changes in working capital amounted to SEK 1,558m (1,513). Changes in working capital had an impact on cash flow of SEK – 41m (–164). Investing activities had an impact of SEK –2,978m (–18) on cash flow, while cash flow from financing activities totalled SEK 1,572m (–1,335). In investing activities, cash flow is driven by property transactions and projects. Overall, cash and cash equivalents increased by SEK 111m (–4) during the year.
October saw the acquisition of housing development company SHH Bostad AB. The acquisition will enable Fabege to be involved in the value creation process for longer and run several different types of projects under our own management. SHH's portfolio includes a number of ongoing and forthcoming housing development projects, mainly in the Stockholm area. The acquisition strengthens Fabege's position as an urban developer in the Greater Stockholm area, and brings expertise in housing and public-services property.
Find out more at: www.fabege.se/en.
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.
BREAKDOWN OF SOURCES OF FINANCING
Moody's Rating
stable outlook
The company is striving to achieve 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's bank facilities are complemented by a MTN programme of SEK 12bn, a commercial paper programme of SEK 5bn and the possibility of borrowing a maximum of SEK 6bn via SFF's secured MTN programme.
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 role in its transition towards greater accountability. The target of 100 per cent green financing was achieved at the end of the previous year. In June, the company took the next step in expanding its sustainable financing in the form of a loan linked to the EU's new taxonomy. 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. In December, two credit facilities of SEK 2,000m each were extended for three and five years respectively.
2021-12-31 2020-12-31 Interest-bearing liabilities, SEKm 30,399 26,669 of which outstanding MTN, SEKm 10,950 7,950 of which outstanding SFF, SEKm 1,524 1,524 of which outstanding commercial paper, SEKm 2,250 2,025 Undrawn facilities, SEKm 3,374 3,867 Fixed-term maturity, years 4.9 5.2 Fixed-rate period, years 3.7 4.1 Fixed-rate period, percentage of portfolio, % 76 74 Derivatives, market value, SEKm -65 -597 Average interest expenses, incl. committed credit facilities, % 1.71 1.77 Average interest expenses, excl. committed credit facilities, % 1.62 1.67 Unpledged assets, % 43.8 36.5 Loan-to-value ratio, % 36.5 34.8
Fabege's fixed-rate period at the end of the quarter was 3.7 years. The derivatives portfolio comprised interest rate swaps totalling SEK 18,950m with terms of maturity extending through 2032 and carrying fixed interest at annual rates of between –0.18 and 1.30 per cent.
The commercial paper market is seeing high demand for green commercial paper in particular. At the end of the quarter, outstanding commercial paper and bonds totalled SEK 14.7bn.
Net financial items included other financial expenses of SEK 33m, 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 16m (27) relating to project properties was capitalised.
Interest-bearing liabilities 34% Other liabilities 15%
Pledged assets 56% Unpledged assets 44%
Fabege's Board of Directors has decided on the following financial targets for the business:
| Amount, SEKm | Average interest rate,% | Percentage, % | |
|---|---|---|---|
| < 1 year | 8,636 | 3.25 | 28 |
| 1-2 years | 2,150 | 0.96 | 7 |
| 2-3 years | 3,188 | 0.78 | 10 |
| 3-4 years | 2,600 | 0.97 | 9 |
| 4-5 years | 3,100 | 0.93 | 10 |
| 5-6 years | 3,250 | 1.03 | 11 |
| 6-7 years | 3,276 | 1.57 | 11 |
| 7-8 years | 2,000 | 0.60 | 7 |
| 8-9 years | 800 | 0.39 | 3 |
| 9-10 years | 900 | 0.72 | 3 |
| 11 years | 500 | 0.81 | 1 |
| Total | 30,399 | 1.62 | 100 |
| Credit agreements, SEKm | Drawn, SEKm | |
|---|---|---|
| Commercial paper programme | 2,250 | 2,250 |
| < 1 year | 2,958 | 2,798 |
| 1-2 years | 5,900 | 2,636 |
| 2-3 years | 9,088 | 6,888 |
| 3-4 years | 1,555 | 1,555 |
| 4-5 years | 5,050 | 5,050 |
| 5-10 years | 4,456 | 4,456 |
| 10-15 years | 3,530 | 3,529 |
| 15-20 years | 1,236 | 1,236 |
| Total | 36,023 | 30,399 |
| Credit facilities | Outstanding loans and bonds |
|
|---|---|---|
| Green MTN bonds, SEKm | 10,950 | 10,950 |
| Green bonds via SFF, SEKm | 1,524 | 1,524 |
| Green commercial paper, SEKm | 2,250 | 2,250 |
| Green loans, other, SEKm | 21,087 | 15,463 |
| Total green financing, SEKm | 35,811 | 30,187 |
| Green financing, % | 100 | 99 |
| Total green available borrowing facility, SEKm | 68,503 | |
| of which unrestricted green available borrowing facility, SEKm | 28,440 |
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 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 target of 100 per cent green financing was achieved just before year-end 2020/21. Our green financing was complemented in June 2021 by a taxonomy-adapted loan that satisfies the EU taxonomy's proposed criteria for green financing. The decline in the proportion of green financing from 100 to 99 per cent at yearend was due to the acquisition of SHH Bostad AB, whose loans were not classified as green. The aim is to convert these to green loans in 2022.
Find out more about Fabege's green financing at www.fabege.se/en/greenfinancing, where the company's investor reports can also be accessed.
Activity in the rental market increased and net lettings in the fourth quarter totalled SEK 32m. Accumulated over the year, net lettings amounted to SEK 162m. Renegotiations made a positive contribution of 11 per cent towards the rental value in renegotiated leases. Projects proceeded according to plan.
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 2021, Fabege owned 94 properties with a combined rental value of SEK 3.4bn, a lettable area of 1.2 million sqm and a carrying amount of SEK 83.3bn, of which development and project properties account for SEK 13.9bn. The financial occupancy rate for the entire portfolio, including project properties, was 90 per cent (91). The occupancy rate in the investment property portfolio was 90 per cent (92).
During the year, 149 (114) new leases were signed at a total rental value of SEK 329m (157), with 96 per cent of the space pertaining to green leases. Lease terminations amounted to SEK –167m (–202). Net lettings amounted to SEK 162m (–45). Leases totalling SEK 239m (115) were renegotiated, with an average rise in rental value of 11 per cent (20). The retention rate during the year was 72 per cent (65).
During the first quarter, Sadelplatsen 1 was divested. Four properties relating to housing development rights in Haga Norra were sold to the joint venture company that Fabege owns together with Brabo, which is developing tenant-owned apartments on the properties. Fabege also entered into two land allocation agreements, one with the City of Solna and one with Huddinge Municipality. In connection with this, an additional purchase price of SEK 270m was paid for previously acquired properties in Flemingsberg. In the third quarter, SEK 176m was paid to the City of Solna relating to the acquisition of housing development rights in Huvudsta. In October, Fabege acquired SHH Bostad AB at a purchase consideration of SEK 880m. The acquisition value of SHH's portfolio of ongoing housing development
projects and development properties amounted to SEK 505m. The portion of the purchase price that is not allocated to shareholders' equity or fair value adjustments of properties of SEK 214m is recognised as goodwill. In December, an additional land property was acquired in Flemingsberg from Skanska, for a total purchase consideration of SEK 56m. In addition, a residential property in Borås was taken over via SHH.
| Total investments | 1,874 |
|---|---|
| Investments in project properties | 1,191 |
| Investments in development properties | 48 |
| Investments in investment properties | 635 |
| Lettable | |||
|---|---|---|---|
| Property | Area | Category | area, sqm |
| Q1 | |||
| Sadelplatsen 1 | Frösunda | Offices | 6,368 |
| Hagalund 2:12-2:15 Haga Norra | Residential | 0 | |
| Q2 | |||
| No sales | |||
| Q3 | |||
| No sales | |||
| Q4 | |||
| No sales | |||
| Total | 6,368 |
| Lettable | ||
|---|---|---|
| Area | Category | area, sqm |
| Solna | Land | 0 |
| Daggkåpan 2 Borås | Bostad | 7,381 |
| 0 | ||
| 7,381 | ||
| Generatorn 11 Flemingsberg Mark |
Redevelopment work is underway at Glädjen 2, Stadshagen, with a total estimated investment of SEK 177m. The first tenant moved in in June 2021. The project is now proceeding with customisations for the next tenant, who will be taking up occupancy in September 2022. The occupancy rate is 34 per cent.
The project regarding the development of part of Bocken 39, Kungsgatan, is continuing, with a focus on interior fittings ahead of Convendum's move in July 2022. The investment is estimated at SEK 205m.
The project relating to the construction of premises for the Royal Opera and Royal Dramatic Theatre at the Regulatorn 4 property in Flemingsberg is progressing, with project planning and procurement of building services. The local development plan entered into force in June 2021. Construction is scheduled to begin in early 2022 and the property will be ready for occupation in June 2024. The investment is estimated at SEK 430m.
In Flemingsberg, planning and design is underway for the construction of offices and laboratories for Alfa Laval. Fabege has entered into a land allocation agreement with Huddinge Municipality for the site in question and work is underway on a local development plan. The investment is estimated at SEK 740m excluding land acquisition, as Alfa Laval has decided to expand the total space to approximately 20,000 sqm. The building is expected to be ready for occupancy during the second quarter of 2025.
The Board of Directors has also made a decision on an investment of just under SEK 1.4bn relating to an office block at the Hagalund 2:10 property in Haga Norra. No leases have been signed as yet. Work is currently underway on planning and project design. Additional projects decided upon include the construction of a mobility house (mainly parking) in Arenastaden, the redevelopment of the Påsen 1 property in Hammarby Sjöstad and tenant customisations for Convendum in the Hägern 7 property, Drottninggatan. Furthermore, rebuilding work on Nöten 4, Solna Strand, will begin when the Swedish Tax Agency leaves at the end of March.
SHH's property portfolio includes 25 projects, of which 8 are managed as part of ongoing production, with an estimated investment volume of SEK 998m. In the
fourth quarter, the Läroverksvallen tenantowner association (BRF) project in Borlänge was completed and vacated. Kaptenen in Botkyrka, another BRF project, is in the process of being completed, with the apartments scheduled to be taken over in December 2021 and the start of 2022. In addition, a BRF project co-owned with Balder has been completed in Huddinge.
Fabege and SHH Bostad AB have been leading a housing development project in Kista via co-owned Selfoss Invest AB. The project was completed during the autumn and has been charged to profit or loss prior to year-end with a project gain of SEK 25m, which has been recognised as income from associated companies. In the third quarter, the capital gain of SEK 58m from the sale of the property to the joint venture company was recognised as a realised change in value.
The housing project being conducted in cooperation with Brabo in Haga Norra is proceeding according to plan. The project includes 418 apartments that are being produced in a 3D reallotment above the facility that Fabege has built for Bilia. The investment totals approximately SEK 1.1bn. The project is being financed with an owner's loan. The reallotment process was completed during the first quarter and Fabege sold the four properties concerned to the joint venture company. Work is continuing on completing the frame, installations and furnishings. The first tenants began moving in in August 2021, and the project is expected to be completed at year-end 2022/23. A total of 405 apartments have been sold, of which 215 have been signed with tenancy contracts and 190 with non-binding booking agreements. As the project is completed, the booking agreements will be converted into tenancy contracts.
The development of the property Lagern 3, Råsunda, into tenant-owned apartments is proceeding according to plan, with occupancy scheduled between November 2021 and February 2022. The project is being managed together with the TB Group in a 50/50 per cent joint venture company. The investment is estimated to be SEK 288m, excluding purchase of the land. All 134 apartments have been sold via binding preliminary contracts. 42 apartments have been taken over and the remainder will be taken over in February and March 2022.
The current joint venture projects are being recognised in accordance with the equity method. Income recognition will take place on completion of the projects.
| Lettable | Occupancy rate, | Carrying amount, |
Estimated investment, |
of which | |||||
|---|---|---|---|---|---|---|---|---|---|
| Property listing | Category | Area | Completed | area, sqm | % space¹ Rental value² | SEKm | SEKm | spent, SEKm | |
| Poolen 1 | Offices | Arenastaden | Q1-2022 | 28,100 | 82% | 94 | 1,678 | 1,075 | 862 |
| Glädjen 12 | Offices | Marieberg | Q4-2022 | 11,000 | 33% | 44 | 571 | 177 | 49 |
| Bocken 39 (part of) | Offices | Norrmalm | Q3-2022 | 7,700 | 100% | 68 | 1,490 | 205 | 63 |
| Regulatorn 4 | Workshops etc Flemingsberg | Q2-2024 | 11,900 | 100% | 24 | 60 | 430 | 24 | |
| Total | 58,700 | 85% | 230 | 3,799 | 1,887 | 998 | |||
| Other land and project properties | 3,330 | ||||||||
| Other development properties | 8,262 | ||||||||
| Total project, land and development properties | 15,391 |
¹Operational occupancy rate at 31 December 2021.
²Rental value including additions. The annual rent for the largest projects in progress could increase to SEK 230m (fully let) from SEK 5m in annualised current rent at 31 December 2021.
| Commercial development rights | Residential development rights | ||||||
|---|---|---|---|---|---|---|---|
| Area | floor area, sqmegal approval, %Carrying amount, SEK/sqm | Area | loor area, sqmegal approval, % arrying amount, SEK/sqm | ||||
| Inner city | 29,900 | 3 | 8,700 | Inner city | 1,300 | 0 | 0 |
| Solna | 382,800 | 23 | 7,100 | Solna | 281,700 | 48 | 10,000 |
| Hammarby Sjöstad | 70,000 | 35 | 8,500 | Hammarby Sjöstad | - | - | - |
| Flemingsberg | 268,300 | 6 | 4,500 | Flemingsberg | 272,000 | 0 | 5,500 |
| SHH Bostad | 7,100 | 0 | 14,200 | SHH Bostad | 120,000 | 67 | 4,400 |
| Other | 20,000 | 100 | 1,500 | Other | - | - | - |
| Total | 778,100 | 19 | 6,300 | Total | 675,000 | 32 | 7,100 |
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. All agreed land allocations have been included.
| Lettable area, '000 | Market | Rental | Financial | ||
|---|---|---|---|---|---|
| Property holdings | No. of properties | sqm | value SEKm | value² | occupancy rate % |
| Investment properties¹ | 58 | 975 | 69,356 | 3,022 | 90 |
| Development properties¹ | 19 | 245 | 8,262 | 274 | 87 |
| Land and project properties¹ | 17 | 27 | 5,639 | 63 | 29 |
| Total | 94 | 1,247 | 83,257 | 3,359 | 90 |
| Of which, Inner city | 27 | 323 | 31,007 | 1,221 | 89 |
| Of which, Solna | 48 | 712 | 41,991 | 1,687 | 90 |
| Of which, Hammarby Sjöstad | 11 | 136 | 8,051 | 384 | 88 |
| Of which, Flemingsberg | 6 | 69 | 1,927 | 65 | 90 |
| Of which, Other | 2 | 7 | 281 | 2 | 0 |
| Total | 94 | 1,247 | 83,257 | 3,359 | 90 |
¹See definitions.
²In the rental value, time limited deductions of about SEK 73m (in rolling annual rental value at 31 December 2021) have not been deducted.
| 2021 | 2021 | 2021 | 2021 | 2021 | 2020 | 2020 | 2020 | 2020 | 2,020 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Dec | Jan-Dec | Jan-Dec Jan-Dec Jan-Dec | Jan-Dec | Jan-Dec | Jan-Dec | Jan-Dec Jan-Dec | ||||
| SEKm | ||||||||||
| Rental income | 2,722 | 138 | 29 | 0 | 2,889 | 2,655 | 140 | 11 | - | 2,806 |
| Project & contract sales, residential | - | - | - | 62 | 62 | - | - | - | - | - |
| Total net sales | 2,722 | 138 | 29 | 62 | 2,951 | 2,655 | 140 | 11 | - | 2,806 |
| Property expenses | -611 | -78 | -15 | 0 | -704 | -579 | -97 | -18 | - | -694 |
| Project & contract costs. residential development | - | - | - | -71 | -71 | - | - | - | - | - |
| Gross profit | 2,111 | 60 | 14 | -9 | 2,176 | 2,076 | 43 | -7 | - | 2,112 |
| Of which net operating income property management | 2,111 | 60 | 14 | 0 | 2,185 | 2,076 | 43 | -7 | - | 2,112 |
| Sur plus ratio, prorety management | 78% | 43% | 48% | 76% | 78% | 31% | -64% | 75% | ||
| Of which gross profit residential development | - | - | - | -9 | -9 | - | - | - | - | - |
| Central administration & marketing | -93 | -11 | -6 | - | -110 | -82 | -8 | -4 | - | -94 |
| Net interest income/expense | -417 | -50 | -23 | -5 | -495 | -400 | -44 | -18 | - | -462 |
| Ground rent | -36 | - | - | - | -36 | -30 | - | - | - | -30 |
| Share in profits of associated companies | -35 | - | 25 | 12 | 2 | -52 | -1 | - | - | -53 |
| Profit from property management | 1,530 | -1 | 10 | -2 | 1,537 | 1,512 | -10 | -29 | - | 1,473 |
| Realised changes in value properties | 0 | 0 | 56 | - | 56 | 24 | 25 | - | - | 49 |
| Unrealised changes in value properties | 3,437 | 265 | 883 | - | 4,585 | 1,918 | 423 | 374 | - | 2,715 |
| Profit before tax per segment | 4,967 | 264 | 949 | -2 | 6,178 | 3,454 | 438 | 345 | - | 4,237 |
| Changes in value interest rate derivatives & shares | 534 | -231 | ||||||||
| Profit before tax | 6,712 | 4,006 | ||||||||
| Market value properties | 69,105 | 8,262 | 5,639 | 251 | 83,257 | 65,314 | 7,630 | 3,704 - | 76,648 | |
| Project & developmentproperties | - | - | - | 821 | 821 | - | - | - | - | - |
| Occupancy rate, % | 90 | 90 | 92 | 91 |
1 Explanation of classifications and also the reclassifications during the period between the Property Management and Property Development segments are stated in the note on Segment Reporting on page 22.
Our ambition does not stop at 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.
Average energy use 2021
GRESB 2021
In 2021, Fabege once again achieved 93 points in GRESB's sustainability survey.
Work supported by Citylab in partnership with the City of Solna and Sweden Green Building Council to ensure a sustainable Arenastaden has been paused pending a manual update. A brand new district is being built in Flemingsbergsdalen, and we are now implementing the goals of the area's sustainability programme in our daily urban development work. This programme has also been developed in accordance with Citylab. Citylab is Sweden's first certification system for sustainable urban development.
The targets and roadmap we have established to support the Paris Agreement via the Science Based Targets initiative are the backbone of Fabege's work with climate issues. By 2030, Fabege will have reduced the climate impact of its construction projects by the life cycle analysis demonstrating a halving of kg CO2e/GFA compared with 2019. This will require us to adopt an innovative approach to our project development, involving recycling, choice of materials, new technology and stringent requirements in our procurement processes. Project design work has begun on Parkhuset in Solna Business Park, which is a challenge-focused innovation project that aims to halve the carbon footprint during construction by reusing building material.
Fabege has a long-term, target-based and integrated approach towards creating more sustainable properties. Our ultimate longterm goal is for Fabege's property management to be carbon neutral by the year 2030, which is measured in kg CO2e/sqm. 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 additive technology that reduces the amount of carbon dioxide in the atmosphere.
Fabege's energy efficiency targets are divided into phases. In 2019 we were already exceeding the Swedish Energy Agreement's target of 50 per cent more efficient energy use in 2030 compared with 2005. In 2021, Fabege's average energy use was 76 kWh/sqm (cumulative 12-month result). The target is average energy use of 77 kWh/sqm by 2023. 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. The increase was due to 2020 being an unusual year, with a mild winter and low energy consumption due to the fact that many offices were not used because tenants decided to let their employees work from home.
Fabege's objective is for the company's entire property portfolio to be certified to BREEAM-SE/BREEAM In-Use standard. All project properties and investment properties have been certified since 2019. Fabege's new construction will now be certified according to BREEAM-SE, ambition level Excellent, and our investment properties according to BREEAM In-Use, ambition level Very Good. Of Fabege's 94 properties, 59 were certified at the end of the period. Overall, this represents 81 per cent of the 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.
In 2021, work continued on upgrading several BREEAM In-Use certifications in the existing portfolio. During the period, a further 2 properties achieved the level Very Good.
In autumn 2020, 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 of 'Excellent' in an assessment of the company's sustainability governance. Find out more at: www.fabege.se/en.
Fabege is subject to the EU's Non-Financial Reporting Directive.
In accordance with the mandatory reporting for the 2021 financial year, Fabege reports the extent to which the Group's activities are covered by EU taxonomy.
This information is published as part of the 2021 Annual Report and Sustainability Report.
| System | Quantity | Sqm, GLA | Target |
|---|---|---|---|
| BREEAM In-Use | 48 | 718,723 | 72% |
| BREEAM-SE | 9 | 251,025 | 25% |
| BREEAM Bespoke | 1 | 7,364 | 1% |
| Miljöbyggnad | 1 | 24,338 | 2% |
| Total certified properties | 59 | 1,001,450 | 100% |
| 2021 | 2020 | 2019 | Target | |
|---|---|---|---|---|
| Energy performance, KWh/sqm Atemp | 77 | 74 | 81 | Max. 77 kWh/sqm Atemp |
| Proportion of renewable energy, % | 95 | 96 | 91 | 100 |
| Environmental certification, number of properties | 59 | 59 | 56 | |
| Environmental certification, % of total area | 81 | 82 | 83 | 100 |
| Green leases, % of newly signed space | 96 | 96 | 94 | 100 |
| Green leases, % of total space | 80 | 73 | 75 | 100 |
| Green financing, % | 99 | 100 | 84 | 100 |
| Satisfied employees, confidence rating, % | 86 | 79 | 74 | 2021 minst 85% |
| GRESB, points | 93 | 93 | 94 | >90 |
Scandinavia's first zero-energy hotel in Arenastaden – House of Choice, Nationalarenan 3 – was named BREEAM Building of the Year 2021.
Five properties have energy performance certificates at EPC level A, which corresponds to almost 20 per cent of the total area of the investment property portfolio.
Fabege collaborates with municipalities, authorities, other property owners and associations to create safe and attractive areas. We continue to focus on social sustainability in urban planning and projects as we develop the physical environment in our districts. Fabege focuses on education, leisure time, health and work.
Examples of initiative:
This is a quarterly follow-up of Fabege's work with 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. An overall review of our sustainability work is published once a year in the Sustainability Report; further information is available at www.fabege.se/en.
| Impact on | Loan-to-value | |
|---|---|---|
| tax, SEKm | ratio, % | ratio, % |
| 651 | 51.6% | 36.4% |
| 0 | 51.3% | 36.5% |
| -651 | 51.1% | 36.7% |
| earnings after | Equity/assets |
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.
| ChangeEffect, SEKm | ||
|---|---|---|
| Rental income, total | 1% | 28.8 |
| Rent level, commercial income | 1% | 28.0 |
| Financial occupancy rate | 1 percentage point | 33.6 |
| Property expenses | 1% | -7.0 |
| Interest expenses, LTM¹ | +/-1 percentage point | 65 / 17 |
| Interest expenses, longer term perspective | 1 percentage point | 304.0 |
The sensitivity analysis shows the effects on the Group's cash flow and profit on an annualised basis after taking into account the full effect of each parameter.
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 period, 218 people (191) were employed by the Group.
Sales during the period amounted to SEK 324m (320) and earnings before appropriations and tax amounted to SEK 149m (356). Net investments in property, equipment and shares totalled SEK 9m (1).
No significant events occurred after the balance sheet date.
| Annual rent, | Percentage, | ||
|---|---|---|---|
| Maturity, year | No. of leases | SEKm | % |
| 2022 | 596 | 679 | 23% |
| 2023 | 299 | 375 | 12% |
| 2024 | 213 | 274 | 9% |
| 2025 | 132 | 326 | 11% |
| 2026 | 99 | 353 | 12% |
| 2027+ | 73 | 862 | 29% |
| Commercial | 1,412 | 2,868 | 95% |
| Housing leases | 119 | 12 | 0% |
| Indoor and outdoor parking | 730 | 127 | 4% |
| Total | 2,261 | 3,007 | 100% |
¹Of which just over SEK 133m has already been renegotiated for 2022.
| Share, % | Year of expiry | |
|---|---|---|
| SEB | 6% | 2037 |
| The Swedish Tax Agency | 5% | 2022 |
| ICA Fastigheter Sverige AB | 4% | 2030 |
| Telia Company | 4% | 2031 |
| Swedebank | 2% | 2029 |
| Carnegie Investment Bank AB | 2% | 2022 |
| The Swedish Migration Agency | 2% | 2028 |
| The Swedish Agency for Education | 1% | 2024 |
| Telenor AB | 1% | 2028 |
| Svea Ekonomi AB | 1% | 2023 |
| Total | 30% |
¹Percentage of contracted rent.
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 2020 Annual Report (pages 48–57).
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-tovalue ratio are also presented in the section on Risks and opportunities and the sensitivity analysis in the 2020 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 2020 Annual Report (pages 48–57).
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.
Since the start of the pandemic, we have commented in particular on the risks and impact of the pandemic. As we no longer see specific risks associated with the pandemic, this section has been deleted. No material changes in the company's assessment of risks have therefore been implemented following publication of the 2020 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.
Activity on the rental market saw a gradual increase in the autumn, with more viewings and negotiations. We feel that the Stockholm market is stable, with healthy demand for office premises in all our submarkets. New lettings and renegotiations are being completed at good or slightly higher rent levels. Autumn saw record-high transactions in our market, which is reflected in lower yield requirements and positive changes in value. However, we do not expect sharply declining market yields to continue to fall, although there is still a slight delay in valuations.
Fabege has a strong financial position. We have created new investment opportunities in our areas via the acquisitions that were completed during the year. The acquisition of SHH enables us to take the next step towards more comprehensive urban development that extends to housing 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 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, with the addition of the following principle resulting from the acquisition of SHH, which develops and sells tenant-owned apartments ordered by tenant-owner associations. During the construction period, costs incurred are recorded in the asset class 'project and development properties'. Fabege considers that it has a controlling interest in tenant-owner associations, which is why these apartments are consolidated. This means that there is no contract in accordance with IFRS 15 until the end customer has signed a lease. The end customer buys a right of use in the tenant-owner association corresponding to a specific apartment. Fabege's business model means that control is transferred to the customer that acquires the apartment once the customer takes possession of the apartment. Revenue is therefore recognised once the apartment has been completed and the customer has moved in. Revenue is based on actual income from the sale of a housing project. Recognised income per apartment is matched by the apartment's estimated cost on completion of the project.
Other new or revised IFRS standards or other IFRIC interpretations that came into effect after 1 January 2021 have not had any material impact on 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, 7 February 2022
Stefan Dahlbo CEO
This year-end report has not been examined by the company's auditors.
Fabege's shares are listed on NASDAQ Stockholm and included in the Large Cap segment.
Fabege had a total of 46,538 known shareholders at 31 December 2021, including 61.1 per cent Swedish ownership. The 15 largest owners control 47.3 per cent of the total number of shares and votes.
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 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 4:00 per share (3.60) to be paid on four occasions quarterly in the amount of SEK 1.00 per share on each occasion.
The 2021 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, 4.9 million shares were repurchased. The company held 9,450,984 treasury shares on 31 December. The repurchases were made at an average price of SEK 122.05 per share. The holding represents 2.86 per cent of the total number of registered shares.
| Proportion of | Proportion | ||
|---|---|---|---|
| Number of shares* | capital, % | of votes, % | |
| Erik Paulsson & company | 52,108,718 | 16.2 | 16.2 |
| BlackRock | 15,745,399 | 4.9 | 4.9 |
| Länsförsäkringar Funds | 11,078,935 | 3.4 | 3.4 |
| Handelsbanken Funds | 10,183,585 | 3.2 | 3.2 |
| Vanguard | 9,748,719 | 3.0 | 3.0 |
| Mats Qviber and family | 7,106,054 | 2.2 | 2.2 |
| APG Asset Management | 6,874,676 | 2.1 | 2.1 |
| E.N.A City Aktiebolagt | 6,530,000 | 2.0 | 2.0 |
| Norges Bank | 5,959,751 | 1.9 | 1.9 |
| The Fourth Swedish National Pension Fund | 5,287,965 | 1.6 | 1.6 |
| Folksam | 5,057,913 | 1.6 | 1.6 |
| The Third Swedish National Pension Fund | 4,756,373 | 1.5 | 1.5 |
| AFA Insurance | 4,064,798 | 1.3 | 1.3 |
| BNP Paribas Asset Management | 3,925,536 | 1.2 | 1.2 |
| AMF Pension & Funds | 3,657,852 | 1.1 | 1.1 |
| Total 15 largest shareholders | 152,086,274 | 47.3 | 47.3 |
| Total no. ofshares outstanding | 321,332,160 | 97.1 | 97.1 |
| Treasury shares | 9,450,984 | 2.9 | 2.9 |
| Total no. of registered shares | 330,783,144 | 100 | 100 |
| Fabege | |
|---|---|
| Lowest price, SEK | 129.60 |
| Highest price, SEK | 160.50 |
| VWAP, SEK | 146.60 |
| Average daily turnover, SEK | 72,106,249 |
| Number of traded shares | 31,469,851 |
| Average number of transactions | 2,001 |
| Number of transactions | 128,036 |
| Average value per transaction, SEK | 36,043 |
| Daily turnover relative to market capitalisation | 0.15 |
| Capital & | ||
|---|---|---|
| Number of shares | votes, % | |
| Foreign institutional owners | 104,280,670 | 31.5 |
| Swedish institutional owners | 74,671,560 | 22.6 |
| Other owners | 73,803,998 | 22.3 |
| Swedish private individuals | 45,519,054 | 13.8 |
| Anonymous ownership | 23,056,878 | 7.0 |
| Treasury shares | 9,450,984 | 2.9 |
| Total | 330,783,144 | 100 |
*Source: Holdings by Modular Finance AB. Compiled and processed data from various sources, including Euroclear, Morningstar and the Swedish Financial Supervisory Authority (Finansinspektionen).
| 2021 | 2020 | 2021 | 2020 | |
|---|---|---|---|---|
| SEKm | Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec |
| Rental income¹ | 746 | 703 | 2,889 | 2,806 |
| Sales residential projects | 62 | - | 62 | - |
| Net Sales | 808 | 703 | 2,951 | 2,806 |
| Property expenses | -177 | -175 | -704 | -694 |
| Residential projects expenses | -71 | - | -71 | - |
| Gross profit | 560 | 528 | 2,176 | 2,112 |
| of wich gross profit property managment | 569 | 528 | 2,185 | 2,112 |
| Surplus ratio, % | 76% | 75% | 76% | 75% |
| of wich gross profit property projects | -9 | - | -9 | - |
| Central administration | -25 | -24 | -110 | -93 |
| Net interest expense | -130 | -116 | -495 | -462 |
| Ground rent | -9 | -8 | -36 | -30 |
| Share in profit of associated companies | 22 | -10 | 2 | -53 |
| Profit/loss from property management | 418 | 370 | 1,537 | 1,474 |
| Realised changes in value of properties | 0 | 24 | 56 | 49 |
| Unrealised changes in value of properties | 2,165 | 799 | 4,585 | 2,715 |
| Unrealised changes in value, fixed-income derivatives | 140 | 87 | 532 | -229 |
| Changes in value of shares | 0 | -1 | 2 | -2 |
| Profit/loss before tax | 2,723 | 1,279 | 6,712 | 4,007 |
| Current tax | 0 | -1 | 0 | 24 |
| Deferred tax | -465 | -244 | -1,312 | -864 |
| Profit/loss for period/year | 2,258 | 1,034 | 5,400 | 3,167 |
| Items that will not be restated in profit or loss | ||||
| Revaluation of defined-benefit pensions | 6 | -1 | 6 | -1 |
| Comprehensive income for the period/year | 2,264 | 1,033 | 5,406 | 3,166 |
| Of which attributable to non-controlling interests | 0 | 0 | 0 | 0 |
| Total comprehensive income attributable to Parent Company shareholders | 2,264 | 1,033 | 5,406 | 3,166 |
| Earnings per share, SEK | 7:02 | 7:65 | 16:73 | 9:65 |
| No. of shares outstanding at period end, thousands | 321,332 | 326,206 | 321,332 | 328,283 |
| Average no. of shares, thousands | 321,665 | 328,317 322,743 | 329,211 |
¹On-charging, service and other income amounts to SEK xxm for the period January–December 2021.
²Earnings per share are the same before and after dilution.
| 2021 | 2020 | |
|---|---|---|
| SEKm | Dec 31 | Dec 31 |
| Assets | ||
| Goodwill | 234 | - |
| Properties | 83,257 | 76,648 |
| Right-of-use asset, leasehold | 1,092 | 897 |
| Other property, plant and equipment | 22 | 15 |
| Derivatives | 121 | 20 |
| Non-current financial assets | 832 | 1,108 |
| Development properties | 821 | - |
| Current assets | 1,382 | 350 |
| Short-term investments | 96 | 108 |
| Cash and cash equivalents | 131 | 20 |
| Total assets | 87,988 | 79,166 |
| Equity and liabilities | ||
| Shareholders' equity | 45,174 | 41,542 |
| Deferred tax | 9,603 | 8,288 |
| Other provisions | 197 | 183 |
| Interest-bearing liabilities¹ | 30,399 | 26,669 |
| Lease liability | 1,093 | 897 |
| Derivatives | 186 | 617 |
| Non-interest-bearing liabilities | 1,336 | 970 |
| Total equity and liabilities | 87,988 | 79,166 |
¹Of which current, SEK 2,798m (2,925).
| Total equity | ||||||
|---|---|---|---|---|---|---|
| Other | Retained earnings | attributable to Parent | Non | Total | ||
| SEKm | Share capital | contributed capital |
incl. profit/loss for the year |
Company shareholders |
controlling interests |
shareholders' equity |
| Shareholders' equity, 1 January 2020, according to adopted Statement of financial pos | 5,097 | 3,017 | 31,880 | 39,993 | 74 | 40,068 |
| Profit/loss for the period | 3,167 | 3,167 | 0 | 3,167 | ||
| Other comprehensive income | -1 | -1 | -1 | |||
| Total income and expenses for the period | 3,166 | 3,166 | 0 | 3,166 | ||
| TRANSACTIONS WITH SHAREHOLDERS | ||||||
| Share buybacks | -541 | -541 | -541 | |||
| Cash dividend | -1,050 | -1,050 | -1,050 | |||
| Acquisition of minority interests | -26 | -26 | -74 | -100 | ||
| Total transactions with shareholders | -1,617 | -1,617 | -74 | -1,691 | ||
| Shareholders' equity, 31 December 2020, according to adopted Statement of fina | 5,097 | 3,017 | 33,428 | 41,542 | 0 | 41,542 |
| Profit/loss for the period | 5,400 | 5,400 | 5,400 | |||
| Other comprehensive income | 6 | 6 | 6 | |||
| Total income and expenses for the period | 5,406 | 5,406 | 0 | 5,406 | ||
| TRANSACTIONS WITH SHAREHOLDERS | ||||||
| Share buybacks | -613 | -613 | -613 | |||
| Approved but unpaid dividend | 0 | |||||
| Cash dividend | -1,161 | -1,161 | -1,161 | |||
| Total transactions with shareholders | -1,774 | -1,774 | 0 | -1,774 | ||
| Shareholders' equity, 31 Dec 2021 | 5,097 | 3,017 | 37,060 | 45,174 | 0 | 45,174 |
| 2021 | 2020 | |
|---|---|---|
| SEKm | Jan-Dec | Jan-Dec |
| Operations | ||
| Net operating income | 2,176 | 2,112 |
| Central administration | -110 | -93 |
| Reversal of depreciation | 7 | 4 |
| Interest received | 20 | 16 |
| Interest paid | -535 | -550 |
| Income tax paid | 0 | 24 |
| Cash flow before changes in working capital | 1,558 | 1,513 |
| Change in working capital | ||
| -94 | ||
| Change in current receivables | -59 | -34 |
| Change in current liabilities | 112 | -130 |
| Total change in working capital | -41 | -164 |
| Cash flow from operating activities | 1,517 | 1,349 |
| Investing activities | ||
| -734 | ||
| Investments in new-builds, extensions and conversions | -1,890 | -1,826 |
| Acquisition of properties | -735 | -1,370 |
| Divestment of properties | 309 | 3,589 |
| Other non-current financial assets | 72 | -411 |
| Cash flow from investing activities | -2,978 | -18 |
| Financing activities | ||
| Dividend to shareholders | -1,161 | -1,050 |
| Treasury share buybacks | -613 | -541 |
| Borrowings | 14,958 | 10,117 |
| Repayment of debt | -11,612 | -9,861 |
| Cash flow from financing activities | 1,572 | -1,335 |
| Cash flow for the period | 111 | -4 |
| Cash and cash equivalents at beginning of period | 20 | 24 |
| Cash and cash equivalents at end of period | 131 | 20 |
| 2021 | 2020 | |
|---|---|---|
| Financial¹ | Jan-Dec | Jan-Dec |
| Return on equity, % | 12.5 | 7.8 |
| Interest coverage ratio, multiple | 4.1 | 4.3 |
| Equity/assets ratio, % | 51 | 52 |
| Loan-to-value ratio, properties, % | 36 | 35 |
| Debt ratio, multiple | 14.7 | 13.2 |
| Debt/equity ratio, multiple | 0.7 | 0.6 |
| Share-based¹ | ||
| Earnings per share, SEK² | 16:73 | 9:65 |
| Equity per share, SEK | 141 | 127 |
| Cash flow from operating activities per share, SEK | 4:70 | 4:11 |
| Average no. of shares, thousands | 322,743 | 328,317 |
| No. of shares outstanding at end of period, thousands | 321,332 | 326,206 |
| Property-related | ||
| No. of properties | 94 | 94 |
| Carrying amount, properties, SEKm | 83,257 | 76,648 |
| Lettable area, sqm | 1,247,000 | 1,254,000 |
| Projekt & developmentproperties, SEKm | 821 | - |
| Financial occupancy rate, % | 90 | 91 |
| Total return on properties, % | 8.7 | 6.6 |
| Surplus ratio, % | 76 | 75 |
¹Unless otherwise stated, the key performance indicator is not defined under IFRS. See definitions.
²Definition according to IFRS.
| 2021 | 2020 | |
|---|---|---|
| Jan-Dec | Jan-Dec | |
| EPRA Earnings (income from property mgmt after tax), SEKm | 1,356 | 1,285 |
| EPRA Earnings (EPS), SEK/share | 4:20 | 3:92 |
| EPRA NRV (long-term net asset value), SEKm | 54,842 | 50,427 |
| EPRA NRV, SEK/share | 171 | 155 |
| EPRA NTA (long-term net asset value), SEKm | 52,037 | 48,217 |
| EPRA NTA, SEK/share | 162 | 148 |
| EPRA NDV (net asset value), SEKm | 45,174 | 41,542 |
| EPRA NDV, SEK/share | 141 | 127 |
| EPRA Vacancy rate, % | 10 | 9 |
| 2021 | 2020 | |
|---|---|---|
| Deferred tax attributable to: | Dec 31 | Dec 31 |
| - tax loss carryforwards, SEKm | -532 | -693 |
| - difference between carrying amount and tax value of properties, SEKm | 10,174 | 9,166 |
| - derivatives, SEKm | -13 | -128 |
| - other, SEKm | -26 | -57 |
| Net debt, deferred tax, SEKm | 9,603 | 8,288 |
| 2021 | 2020 | |||||||
|---|---|---|---|---|---|---|---|---|
| SEKm | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| Rental income | 746 | 721 | 715 | 707 | 703 | 696 | 696 | 711 |
| Sales property projects | 62 | - | - | - | - | - | - | - |
| Net sales | 808 | 721 | 715 | 707 | 703 | 696 | 696 | 711 |
| Property expenses | -177 | -152 | -174 | -201 | -175 | -158 | -170 | -191 |
| Costs property projects | -71 | - | - | - | - | - | - | - |
| Gross profit | 560 | 569 | 541 | 506 | 528 | 538 | 526 | 520 |
| of which gross profit property management | 569 | 569 | 541 | 506 | 528 | 538 | 526 | 520 |
| Surplus ratio | 76 | 79% | 76% | 72% | 75% | 77% | 76% | 73% |
| of which gross profit property projects | -9 | - | - | - | - | - | - | - |
| Central administration | -25 | -24 | -30 | -32 | -24 | -21 | -25 | -23 |
| Net interest expense | -130 | -124 | -122 | -118 | -116 | -119 | -116 | -111 |
| Ground rent | -9 | -9 | -9 | -9 | -8 | -8 | -8 | -6 |
| Share in profit of associated companies | 22 | -9 | -11 | -1 | -10 | -14 | -18 | -11 |
| Profit/loss from property management | 418 | 404 | 369 | 346 | 370 | -376 | 359 | 369 |
| Realised changes in value of properties | 0 | 0 | 56 | 0 | 24 | 0 | 0 | 25 |
| Unrealised changes in value of properties | 2165 | 881 | 1025 | 514 | 799 | 391 | -304 | 1,829 |
| Unrealised changes in value, fixed-income derivatives | 140 | 124 | 34 | 234 | 87 | -24 | -49 | -243 |
| Changes in value, equities | 0 | 1 | 0 | 0 | -1 | 0 | 0 | -1 |
| Profit/loss before tax | 2723 | 1,411 | 1,484 | 1,094 | 1279 | 743 | 6 | 1,979 |
| Current tax | 0 | 0 | 0 | 0 | -1 | 0 | 0 | 25 |
| Deferred tax | -465 | -315 | -301 | -231 | -244 | -169 | -21 | -430 |
| Profit/loss for the period | 2258 | 1,096 | 1,183 | 863 | 1,034 | 574 | -15 | 1,574 |
| 2021 | 2020 | |||||||
|---|---|---|---|---|---|---|---|---|
| SEKm | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| Assets | ||||||||
| Goodwill | 234 | - | - | - | - | - | - | - |
| Properties | 83,257 | 80,369 | 78,842 | 77,210 | 76,648 | 75,399 | 73,565 | 72,996 |
| Right-of-use asset, leasehold | 1,092 | 897 | 897 | 897 | 897 | 942 | 942 | 942 |
| Other property, plant and equipment | 22 | 21 | 21 | 14 | 15 | 15 | 15 | 6 |
| Derivatives | 121 | 94 | 57 | 60 | 20 | 11 | 19 | 31 |
| Non-current financial assets | 832 | 1,595 | 1,529 | 1,536 | 1,108 | 1,011 | 948 | 911 |
| Development properties | 821 | - | - | - | - | - | - | - |
| Current assets | 1,382 | 449 | 535 | 528 | 350 | 396 | 457 | 479 |
| Short-term investments | 96 | 96 | 95 | 95 | 108 | 108 | 107 | 130 |
| Cash and cash equivalents | 131 | 85 | 259 | 287 | 20 | 727 | 282 | 195 |
| Total assets | 87,988 | 83,605 | 82,235 | 80,627 | 79,166 | 78,609 | 76,335 | 75,690 |
| Equity and liabilities | ||||||||
| Shareholders' equity | 45,174 | 43,007 | 41,911 | 40,882 | 41,542 | 40,844 | 40,278 | 41,343 |
| Deferred tax | 9,603 | 9,135 | 8,821 | 8,519 | 8,288 | 8,045 | 7,875 | 7,853 |
| Other provisions | 197 | 181 | 182 | 182 | 183 | 179 | 180 | 181 |
| Interest-bearing liabilities | 30,399 | 28,393 | 28,268 | 27,321 | 26,669 | 26,205 | 24,694 | 23,472 |
| Lease liability | 1,093 | 897 | 897 | 897 | 897 | 942 | 942 | 942 |
| Derivatives | 186 | 299 | 386 | 422 | 617 | 695 | 679 | 641 |
| Non-interest-bearing liabilities | 1,336 | 1,693 | 1,770 | 2,404 | 970 | 1,699 | 1,687 | 1,258 |
| Total equity and liabilities | 87,988 | 83,605 | 82,235 | 80,627 | 79,166 | 78,609 | 76,335 | 75,690 |
| 2021 | 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||
| Financial¹ | |||||||||
| Return on equity, % | 12.5 | 10.3 | 11.4 | 8.4 | 10 | 5.7 | -0.1 | 15.5 | |
| Interest coverage ratio, multiple² | 4.1 | 4.3 | 4.1 | 3.9 | 4.3 | 4.3 | 4.3 | 4.4 | |
| Equity/assets ratio, % | 51 | 51 | 51 | 51 | 52 | 52 | 53 | 55 | |
| Loan-to-value ratio, properties, % | 36 | 35 | 36 | 35 | 35 | 35 | 34 | 32 | |
| Debt ratio, multiple | 14.7 | 14 | 14.1 | 13.7 | 13.2 | 12.9 | 12.1 | 11.4 | |
| Debt/equity raio, multiple | 0.7 | 0.7 | 0.7 | 0.7 | 0.6 | 0.6 | 0.6 | 0.6 | |
| Share-based¹ | |||||||||
| Earnings per share for the period, SEK² | 7:02 | 3:40 | 3:67 | 2:64 | 7:65 | 1:75 | -0:05 | 4:78 | |
| Equity per share, SEK | 141 | 134 | 130 | 126 | 127 | 124 | 123 | 126 | |
| Cash flow from operating activities per share, SEK | 1:03 | 1:36 | 1:01 | 1:30 | 0:61 | 1:40 | 0:89 | 1:21 | |
| No. of shares outstanding at the end of the period, thousands | 321,332 | 321,998 | 321,998 | 323,206 | 326,206 | 328,206 | 328,283 | 328,283 | |
| Average no. of shares, thousands | 321,665 | 321,998 | 322,602 | 327,110 | 328,317 | 329,211 | 329,533 | 329,533 | |
| Property-related | |||||||||
| Financial occupancy rate, % | 90 | 91 | 91 | 91 | 91 | 91 | 92 | 94 | |
| Total return on properties, % | 8.7 | 1.9 | 2.1 | 1.3 | 1.8 | 1.3 | 0.3 | 3.4 | |
| Surplus ratio, % | 76 | 79 | 76 | 72 | 77 | 77 | 76 | 73 |
¹Unless otherwise stated, the key performance indicator is not defined under IFRS. Please refer to definitions.
²Definition according to IFRS.
Details are provided below regarding reconciliation of the financial key ratios that Fabege reports.
| 2021 | 2020 | |||
|---|---|---|---|---|
| Equity/assets ratio | Dec 31 | Dec 31 | ||
| Shareholders' equity, SEKm | 45,174 | 41,542 | ||
| Total assets, SEKm | 87,988 | 79,166 | ||
| Equity/assets ratio | 51% | 52% | ||
| 2021 | 2020 | |||
| Loan-to-value ratio, properties | Dec 31 | Dec 31 | ||
| Interest-bearing liabilities, SEKm | 30,399 | 26,667 | ||
| Carrying amount, properties, SEKm | 83,257 | 76,648 | ||
| 821 | - | |||
| Loan-to-value ratio, properties | 36% | 35% | ||
| 2021 | 2020 | |||
| Debt ratio | Dec 31 | Dec 31 | ||
| Net operating income, SEKm | 2,185 | 2,112 | ||
| Central administration, SEKm | -110 | -93 | ||
| Total, SEKm | 2,075 | 2,019 | ||
| Interest-bearing liabilities, SEKm | 30,399 | 26,669 | ||
| Debt ratio, multiple | 14.7 | 13.2 | ||
| 2021 | 2020 | |||
| Interest coverage ratio, multiple | Dec 31 | Dec 31 | ||
| Net operating income, SEKm | 2,185 | 2,112 | ||
| Ground rent, SEKm | -36 | -30 | ||
| Central administration, SEKm | -110 | -93 | ||
| Total, SEKm | 2,039 | 1,989 | ||
| Net interest expense, SEKm | -495 | -462 | ||
| Interest coverage ratio, multiple | 4.1 | 4.3 | ||
| 2021 | 2020 | 2021 | 2020 | |
| Return on equity | Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec |
| Profit/loss for the period, SEKm | 2,258 | 1,034 | 5,400 | 3,167 |
| Average equity, SEKm | 44,091 | 41,193 | 43,358 | 40,805 |
| Return on equity | 20.5% | 10.0% | 12.5% | 7.8% |
| 2021 | 2020 | 2021 | 2020 | |
| Total return on properties | Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec |
| Net operating income, SEKm | 569 | 528 | 2,185 | 2,112 |
| Unrealised and realised changes in the value of properties, SEKm | 2,165 | 823 | 4,641 | 2,764 |
| Market value including investments for the period, SEKm | 81,092 | 73,933 | 78,672 | 73,933 |
| Total return on properties | 3.4% | 1.8% | 8.7% | 6.6% |
| 2021 | 2020 | 2021 | 2020 | |
| Debt/equity ratio | Oct-Dec | Oct-Dec | jan-dec | Jan-Dec |
| Interest-bearing liabilities, SEKm | 30,399 | 26,669 | 30,399 | 26,669 |
| Shareholders' equity, SEKm | 45,174 | 41,542 | 45,174 | 41,542 |
| Debt/equity ratio | 0.7 | 0.6 | 0.7 | 0.6 |
| 2021 | 2020 | 2021 | 2020 | |
| Equity per share | Oct-Dec | Oct-Dec | jan-dec | Jan-Dec |
| Shareholders' equity, SEKm | 45,174 | 41,542 | 45,174 | 41,542 |
| No. of shares outstanding at end of period, million | 321 | 326 | 321 | 326 |
| Equity per share | 141 | 127 | 141 | 127 |
| 2021 | 2020 | 2021 | 2020 | |
| Cash flow per share | Oct-Dec | Oct-Dec | jan-dec | Jan-Dec |
| Cash flow from operating activities, SEKm | 330 | 198 | 1,517 | 1349 |
| Avergae number of shares, million | 323 | 328 | 323 | 328 |
| Cash flow per share | 1.02 | 0.60 | 4.70 | 4.11 |
| 2021 | 2020 | |||||
|---|---|---|---|---|---|---|
| Jan-Dec | Jan-Dec | |||||
| EPRA NRV, EPRA NTA & EPRA NDV | NRV | NTA | NDV | NRV | NTA | NDV |
| Shareholders' equity, SEKm | 45,174 | 45,174 | 45,174 | 41,542 | 41,542 | 41,542 |
| Reversal of approved but unpaid dividend, SEKm | - | - | - | - | - | - |
| Reversal of fixed-income derivatives according to balance sheet, SEKm | 65 | 65 | 65 | 597 | 597 | 597 |
| Reversal of deferred tax according to balance sheet, SEKm | 9,603 | 9,603 | 9,603 | 8,288 | 8,288 | 8,288 |
| Deduction of actual deferred tax, SEKm | - | -2,805 | -2,805 | - | -2,210 | -2,210 |
| Deduction of fixed-income derivatives according to balance sheet, SEKm | - | - | -65 | - | - | -597 |
| Deduction of deferred tax according to balance sheet after adjustment of estimated actual | ||||||
| deferred tax, SEKm | - | - | -6,798 | - | - | -6,078 |
| NAV | 54,842 | 52,037 | 45,174 | 50,427 | 48,217 | 41,542 |
| Number of shares outstanding, millions | 321.3 | 321.3 | 321.3 | 326.2 | 326.2 | 326.2 |
| NAV per share, SEK | 171 | 162 | 141 | 155 | 148 | 127 |
| 2021 | 2020 | |||||
| EPRA EPS | Jan-Dec | Jan-Dec | ||||
| Profit/loss from property management, SEKm | 1,537 | 1,474 |
| Profit/loss from property management, SEKm | 1,537 | 1,474 |
|---|---|---|
| Deduction for tax depreciation, SEKm | -660 | -593 |
| Total, SEKm | 877 | 881 |
| Nominal tax (20.6%), SEKm | 181 | 189 |
| EPRA earnings in total (profit/loss from property management less nominal tax), SEKm | 1,356 | 1,474 |
| Number of shares, millions | 322.7 | 328.3 |
| EPRA EPS, SEK per share | 4:20 | 3:92 |
| 2021 | 2020 | |
| EPRA Vacancy rate | Jan-Dec | Jan-Dec |
| EPRA Vacancy rate | Jan-Dec | Jan-Dec |
|---|---|---|
| Estimated market value of vacant property rents, SEKm | 349 | 289 |
| Annual rental value, entire portfolio, SEKm | 3,359 | 3,242 |
| EPRA Vacancy rate, % | 10% | 9% |
| 2021 | 2020 | |
|---|---|---|
| SEKm | Jan-Dec | Jan-Dec |
| Income | 324 | 320 |
| Expenses | -385 | -351 |
| Net financial items | -324 | 618 |
| Share in profit of associated companies | 0 | 0 |
| Changes in value, fixed-income derivatives | 532 | -229 |
| Changes in value, equities | 2 | -2 |
| Appropriation | 0 | 0 |
| Profit/loss before tax | 149 | 356 |
| Current tax | - | 0 |
| Deferred tax | -109 | 48 |
| Profit/loss for the period | 40 | 404 |
| SEKm Dec 31 Dec 31 Investments in Group companies 13,400 12,517 Other non-current assets 45,434 44,457 of which, receivables from Group companies 45,164 44,188 Current assets 115 108 Cash and cash equivalents 2 1 Total assets 58,951 57,083 Shareholders' equity 11,782 13,517 Provisions 69 70 Non-current liabilities 45,687 43,292 of which, liabilities to Group companies 18,038 17,533 Current liabilities 1,413 204 Total equity and liabilities 58,951 57,083 |
2021 | 2020 |
|---|---|---|
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. The valuation assumptions have not changed significantly compared to the last annual report.
On the balance sheet date, contingent liabilities comprised guarantees and commitments in favour of associated companies of SEK 704m (612) and other 0 (0).
In accordance with IFRS 8, segments are presented from the point of view of management, broken down by segment. In connection with the acquisition of SHH Bostad, the segment reporting has been adjusted to better highlight the various business areas. Fabege's property portfolio is classified as follows:
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. All revenue and expenses attributable to SHH's operations are recognised within the Housing segment.
The change to segment reporting with the separation of development properties and ongoing projects and land properties means that some of Fabege's properties have been reclassified. Comparative figures have also bee adjusted in accordance with the new breakdown.
In the first quarter, the project at Hagalund 2:11 (the Bilia project) was completed and the property was reclassified from a project property to an investment property. During the second quarter, the projects at Stigbygeln 2 and Nationalarenan 3, both in Arenastaden, were completed and the properties were reclassified from project to investment properties.
On 18 October 2021, the Group acquired all the shares in SHH Bostad AB at a purchase consideration of SEK 880m. Through the acquisition, the Group expects to strengthen its residential development rights portfolio by acquiring both expertise and more development rights in its home market of Stockholm.
The goodwill recognised for the acquisition represents the value that the acquisition brings to the Fabege Group in terms of greater expertise and a consolidated market position in housing development, along with synergies with existing operations.
Acquisition-related expenses amount to SEK 2m and relate to consultancy fees in connection with due diligence. These expenses have been recognised as other operating expenses in the income statement and other comprehensive income.
During the period from 18 October until 31 December 2021, SHH contributed SEK 62m to the Group's revenue and SEK –1m to the Group's post-tax profit. If the acquisition had occurred as of January 1, 2021, SHH would have contributed SEK 253m to the Group's revenues and SEK 65m to the Group's earnings. The acquisition's net liquidity impact amounts to SEK -754m.
| Property, Plant and equipment | 5 |
|---|---|
| Interests in associated companies | 53 |
| Properties | 50 |
| Development properties | 692 |
| Other Current assets | 377 |
| Cash and cash equivalents | 126 |
| Provisions | -24 |
| Interest-bearing liabilities | -394 |
| Non-interest-bearing liabilities | -239 |
| Net identifiable assets and liabilities | 646 |
| Group Goodwill | 234 |
| Consideration transferred | 880 |
Fabege is one of Sweden's leading property companies. We develop attractive and sustainable 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 holding, with a portfolio grouped into clusters. The Group includes SHH Bostad, a property development company with a focus on housing and community properties. With a large number of residential buildings rights, together we have great opportunities to create a mixed population in our districts.The concentration of our properties to well-contained clusters leads to greater customer proximity and, coupled with Fabege's excellent local expertise, creates a solid foundation for efficient property management and high occupancy rates. At 31 December 2021, Fabege owned 94 properties with a total market value of SEK 83.3bn. The rental value was SEK 3.4bn. To this was added a development portfolio within SHH Bostad comprising ongoing and upcoming housing development projects to a value of SEK 821m.
Fabege works with sustainable city district development, with a primary focus on commercial properties within a limited number of submarkets in prime 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 its 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.
Fabege's operations are affected by a number of external factors, such as pricing and demand for premises, the transaction market's yield requirements and changes in market interest rates, which lay the foundations 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. According to forecasts, the population of Stockholm County will continue to grow over the next 20 years. 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. Peripheral services and effective 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. Demand for premises is closely linked to GDP growth and companies' need for premises. Changes in market interest rates impact yield requirements.
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 long-term 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.
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 measures used by other companies. These financial performance measures should not therefore be regarded as substitutes for measures defined according to IFRS. The following key performance indicators are not defined according to IFRS, unless otherwise stated.
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 carryforwards are realised over four years with a nominal tax rate of 20.6 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 by limitations on lettings prior to impending improvement work.
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.
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 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
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.
Annual General Meeting 2022 29 March 2022, 3.00 pm CET Interim Report January–March 2022 26 April 2022, 7.30 am CET Interim Report January–June 2022 8 July 2022, 7.30 am CET Interim Report January–September 2022 20 October 2022, 07.30 am CET
| 20/12/2021 | Convendum and Fabege sign agreement on new co-working space on |
|---|---|
| Drottninggatan | |
| 16/12/2021 | Fabege launches share buyback |
| 01/12/2021 | House of Choice named BREEAM Building of the Year 2021 |
| 19/11/2021 | Offices with a strong character and timeless architecture are emerging in Haga |
| Norra | |
| 28/10/2021 | International architecture award for Pep Park in Solna |
| 20/10/2021 | Interim Report Jan–Sep 2021 |
| 06/10/2021 | Fabege acquires SHH Bostad AB |
| 04/10/2021 | Invitation to Fabege's presentation of Interim Report Jan–Sep 2021 |
There will also be a web presentation on the Group's website on 7 February 2022, during which Stefan Dahlbo and Åsa Bergström will present the report.
Fabege AB (publ) Box 730, SE 169 27 Solna Visitors: Gårdsvägen 6, top floor, 169 70 Solna
Phone: +46 (0) 8 555 148 00 Email: [email protected]
Corporate registration number: 556049-1523 Registered office of the Board of Directors: www.fabege.se/en
STEFAN DAHLBO President and CEO Fabege
+46 (0) 8 555 148 10 [email protected]
ÅSA BERGSTRÖM Vice President and CFO
+46 (0) 8 555 148 29 [email protected]
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