Fabege — Interim / Quarterly Report 2016

Feb 2, 2017

Q4

Summary, SEKm

	2016	2015	2016	2015
	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
Rental income	532	505	2,105	1,998
Net operating income	382	349	1,507	1,429
Profit from property management	-166	172	471	688
Profit before tax	3,514	1,596	8,680	4,233
Profit after tax	2,761	1,178	7,107	3,232
Surplus ratio,%	7 2	6 9	7 2	7 2
Loan-to-value ratio, properties, %	-	-	4 6	5 2
EPRA NAV, SEK per share	-	-	163	115

January – December 2016¹

¹The comparison figures for income and expense items relate to values for the January–December 2015 period and for balance sheet items at 31 December 2015.

CREATING THE RIGHT CONDITIONS

Christian Hermelin, CEO

SURPLUS RATIO

Long-term target 2020: 75%

INVESTMENT VOLUME

Target: At least SEK 1,500m per year

RETURN ON PROJECTS¹

Target: At least 20%

1) The return for projects in 2016 totalled 87%

TRANSACTION PROFIT²

Target: 10%

2) The transaction profit for 2015 amounted to 84%

Comments by Christian Hermelin, CEO

Good end to successful year

Healthy market conditions and committed employees produced solid earnings for 2016 – the best in Fabege's history.

A strong 2016

Contributions from all business areas

Competitive capital market and more green financing

Market outlook

Earnings Jan–Dec 2016¹

Rising rental income and an increased net operating income, coupled with substantial unrealised changes in value and transaction gains helped boost Fabege's solid earnings for 2016.

Revenues and earnings

Segment reporting

Quarter 4 in brief¹

BUSINESS MODEL CONTRIBUTIONS TO EARNINGS

	2016	2015
SEKm	Jan-Dec	Jan-Dec
Profit from Property Management activities	478	705
Changes in value (portfolio of investment
properties)	5,731	2,603
Contribution from Property	6,209	3,308
M anagement
Profit from Property Management activities	-7	-17
Changes in value (profit from Property
Development)	1,883	649
Contribution from Property	1,876	632
Development
Realised changes in value	491	2 1
Contribution from Transactions	491	2 1
Total contribution
from the operation	8,576	3,961

19%

Value growth from properties

Financing INTEREST RATE MATURITY STRUCTURE, 31 DECEMBER 2016 Average

	Amount SEKm	interest rate,%	Share,%
< 1 year	10,928	2.82	5 0
1-2 years	4,750	3.37	2 1
2-3 years	1,000	2.13	4
3-4 years	0	0.00	0
4-5 years	1,000	2.68	4
5 -6years	800	0.99	4
6-7 years	800	0.91	4
7-8 years	800	0.96	4
8-9 years	900	0.95	4
9-10 years	1,000	1.02	5
Total	21,978	2.54	100

The average interest rate for the < 1 year period includes the margin for the entire debt portfolio because the company's fixed-interest period is established using interest rate swaps, which are traded without margins.

LOAN MATURITY STRUCTURE, 31 DECEMBER 2016

	Credit agreement SEKm	Draw n, SEKm
Commercial paper programme	5,000	4,992
< 1 year	5,666	2,006
1-2 years	8,712	6,697
2-3 years	2,320	1,612
3-4 years	1,925	1,425
4-5 years	0	0
5-10 years	3,993	3,993
10-15 years	0	0
15-20 years	0	0
20-25 years	1,253	1,253
Total	28,869	21,978

BREAKDOWN OF SOURCES OF FUNDING

19% of financing is now green

Tax

Financial position and net asset value

Cash flow

SEK 163/share

EPRA NAV 31 December 2016

DIVESTMENT OF THE UARDA 7 PROPERTY IN ARENASTADEN

Operations Jan–Dec 2016¹

2016 featured rising rent levels and property values and consequently significant changes in value. Healthy sales allow scope for continued project investment and acquisitions that help increase future potential.

Property portfolio and property management

Changes in the property portfolio

Changes in value of properties

31 December 2016

BREAKDOWN OF MARKET VALUE

Projects and investments

Completed projects

Major ongoing projects

NEW LEASE WITH MIGRATIONSVERKET FOR 17,000 SQM

CHANGES IN PROPERTY VALUE 2016

Changes in property value	2016
Opening fair value 2016-01-01	40,279
Property acquisitions	460
Investments in new builds, extensions and conversions	2,673
Changes in value	7,614
Sales and disposals	-3,184
Closing fair value 2016-12-31	47,842

AVERAGE YIELD REQUIREMENT PER AREA

Average yield, %
4.17
4.83
4.99
4.53

SALE OF PROPERTIES JAN–DEC 2016

		Cat	Lettable
Property name	Area	egory	area.sqm
Quarter 1
Uarda 5	Arenastaden	Office	44,269
Quarter 2
Quarter 3
Pan 1	Gamla Stan	Office	3,149
Hammarby-Smedby 1:472 Upplands-Väsby		Land	0
Ulvsunda 1:1	Bromma	Industry	1,241
Quarter 4
Uarda 7	Arenastaden	Office	17,514
Total sales of properties			66,173

PROPERTY ACQUISITIONS JAN–DEC 2016

			Lettable
Property name	Area	Category	area, sqm
Quarter 1
Fräsaren 9	Solna	Office	9,541
Quarter 2
Sadelplatsen 1	Solna	Office/ Retail	6,363
Quarter 3
Quarter 4
Selfoss 1	Kista	Land	0
Total acquisitions of properties			15,904

ONGOING PROJECTS >SEK 50M

31 December 2016

31 December 2016									of w hich,
				Lettable	Occupancy rate,	Estimated rental	Carrying	Estimated	w orked up.
Property listing	Property type Area		Completed	area, sqm	area, %¹	value, SEKm²	amount SEKm	investment, SEKm	SEKm
Hörnan (Part of Lagern 2) Offices		Solna	Q2-2018	16,300	69%	4 5	370	530	433
Pyramiden 4	Offices	Arenastaden	Q2-2018	72,200	100%	182	2,470	2,350	1,985
Signalen 3	Offices	Arenastaden	Q3-2018	30,500	78%	9 0	457	1,080	230
Uarda 6	Offices	Arenastaden	Q4-2017	18,000	90%	5 2	760	570	497
Pelaren 1	Offices	Globen	Q3-2018	21,000	70%	6 9	205	750	7 6
Orgeln 7	Offices/ retail	Sundbyberg	Q2-2018	36,000	48%	109	669	944	175
Total				194,000	80%	547	4,931	6,224	3,396
Other land and project properties							677
Other development properties							3,431
Total projects, land and development properties							9,039
¹ Operational occupancy rate 31 December 2016.

PROPERTY PORTFOLIO

31 December 2016

31 December 2016
			Dec 31 2016				Jan-Dec 2016
	N o. of properties	Lettable area, '000 sqm	M arket value SEKm	Rental value²	Financial occupancy rate %	Rental income SEKm	Property ex penses SEKm	N et operating income SEKm
Property holdings
Investment properties ¹	6 0	921	38,803	2,190	9 5	1,956	-392	1,564
Development properties ¹	7	128	3,431	143	8 3	116	-31	8 5
Land and Project properties ¹	1 5	1 3	5,608	2	100	1 1	-17	-6
Total	8 2	1,062	47,842	2,335	9 4	2,083	-440	1,643
Of which, Inner city	2 9	400	21,513	1,097	9 5	989	-221	768
Of which, Solna Of which, Hammarby	3 8	557	22,014	1,014	9 4	900	-181	719
Sjöstad	1 1	105	3,938	224	9 2	193	-38	155
Of which, Other	4	0	377	0	0	1	0	1
Total	8 2	1,062	47,842	2,335	9 4	2,083	-440	1,643
Expenses for lettings, project development and property administration								-147
					penses for lettings, project development and property administration			1,496 ³

³ The table refers to Fabege's property portfolio on 31 december 2016. Income and expenses were recognised as if the properties were owned for the entire period. The difference between recognised net operating income above, SEK 1 496m, and net operating income in profit or loss, SEK 1 507m, is due to net operating income from divested properties being excluded, and acquired properties being adjusted upwards as if they had been owned/ completed during the period of January–September 2016. Intercompany rentals have been included in the table.

SEGMENT REPORTING IN SUMMARY¹

	2016	2016	2016	2016	2015	2015	2015	2015
	Jan-Dec	Jan-Dec	Jan-Dec	Jan-Dec	Jan-Dec	Jan-Dec	Jan-Dec	Jan-Dec
	Property	Property			Property	Property
SEKm	M anagement	Development	Transaction	Total	M anagement	Development	Transaction	Total
Rental income	1,833	272		2,105	1,888	110		1,998
Property expenses	-464	-134		-598	-517	-52		-569
N et operating income	1,369	138	0	1,507	1,371	5 8	0	1,429
Surplus ratio, %	75%	51%		72%	73%	53%		72%
Central administration	-55	-15		-70	-57	-8		-65
Net interest expense	-424	-117		-541	-515	-67		-582
Share in profits of associated companies	-412	-13		-425	-94			-94
Profit from property management activities	478	- 7	0	471	705	-17	0	688
Realised changes in value of properties			491	491			2 1	2 1
Unrealised changes in value of properties	5,731	1,883		7,614	2,603	649		3,252
Profit/ loss before tax per segment	6,209	1,876	491	8,576	3,308	632	2 1	3,961
Changes in value, fixed income derivatives and equities				104				272
Profit before tax				8,680				4,233
Properties, market value	38,803	9,039		47,842	32,626	7,653		40,279
Occupancy rate, %	95%	84%		94%	94%	79%		93%
¹ See definitions on page 1 7

Other financial information

Human resources

Parent Company

Acquisition and transfer of treasury shares

Board of Directors' proposal to the AGM

Opportunities and risks

SENSITIVITY ANALYSIS – CASH FLOW AND EARNINGS

		Effect,
	Change	SEKm
Rental income, total	1 %	21.0
Rent level, commercial income	1 %	20.6
Financial occupancy rate	1 percentage point	23.3
Property expenses	1 %	6.0
Interest expense, rolling 12 months ¹	+/ -1 percentage point	43 / 79
Interest expenses, longer term perspective	1 percentage point	219.8

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

1 In the short term, interest expenses increase regardless of whether the short-term 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.

SENSITIVITY ANALYSIS – PROPERTY VALUE

Change in value, %	Impact on after-tax profit, SEKm	Equity/ as sets ratio, %	Loan-to value ratio, %
+1	373	46.1%	45.5%
0	0	45.8%	45.9%
-1	-373	45.5%	46.4%

Earnings and key ratios 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.

Events after balance sheet date

SEK 127m

Net lettings Jan–Dec 2016

Seasonal variations

Market outlook

Accounting policies

Share information

The Fabege share is listed on the Nasdaq Stockholm and included in the Large-Cap segment.

THE 15 LARGEST SHAREHOLDERS AT 31 DECEMBER 2016*

	N umber of
		Proportion	Proportion
	shares*	of equity, %	of votes,%
Erik Paulsson with family,
privately and company	25,456,763	15.4	15.4
BlackRock Inc.	6,398,443	3.9	3.9
Investment AB Öresund	5,500,000	3.3	3.3
Länsförsäkringar Funds	4,624,421	2.8	2.8
Fourth AP-fund	4,095,674	2.5	2.5
Mats Qviberg with family	3,747,868	2.3	2.3
Vanguard	3,581,013	2.2	2.2
Norges Bank	3,184,225	1.9	1.9
Principal Global Investors	3,008,983	1.8	1.8
BNP Paribas Investment Partners	3,007,114	1.8	1.8
ENA City AB	2,810,000	1.7	1.7
Handelsbanken Funds	2,732,981	1.7	1.7
Stichting Pensionfonds ABP	1,997,177	1.2	1.2
State Street Global Advisors	1,984,189	1.2	1.2
Pensionskassan SHB Försäkringsförenng	1,920,000	1.2	1.2
Total 15 largest shareholders	74,048,851	44.8	44.8
Other	91,342,721	55.2	55.2
Total no. of
shares outstanding	165,391,572	100.0	100.0
Treasury shares	0	0	0
Total no. of registrated shares	165,391,572	100.0	100.0

*The verification date may vary for foreign shareholders.

Source: Holdings of Modular Finance AB. Compiled and processed data from various sources, including Euroclear, Morningstar and the Swedish Financial Supervisory Authority (Finansinspektionen).

SHARE INFORMATION

FABEGE DEVELOPS LIVE-WORK-PLAY CONCEPT IN NEW PROPERTY

CONSOLIDATED CONDENSED STATEMENT OF COMPREHENSIVE INCOME

	2016	2015	2016	2015
SEKm	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
Rental income	532	505	2,105	1,998
Property expenses	-150	-156	-598	-569
N et operating income	382	349	1,507	1,429
Surplus ratio, %	72%	69%	72%	72%
Central administration	-17	-17	-70	-65
Net interest/ expense	-129	-146	-541	-582
Share in profits of associated companies	-402	-14	-425	-94
Profit/ loss from property management	-166	172	471	688
Realised changes in value of properties	309	1 7	491	2 1
Unrealised changes in value of properties	3,136	1,282	7,614	3,252
Unrealised changes in value, fixed income derivatives	230	151	9 9	262
Changes in value of shares	5	-26	5	1 0
Profit/ loss before tax	3,514	1,596	8,680	4,233
Current tax	-89	-2	-88	-2
Deferred tax	-664	-416	-1,485	-999
Profit/ loss for period/ year	2,761	1,178	7,107	3,232
Items that will not be restated in profit or loss
Revaluation of defined-benefit pensions	-5	2	-5	2
Comprehensive income for the period/ year	2,756	1,180	7,102	3,234
Earnings per share, SEK	16:70	7:12	42:97	19:54
Total earnings per share, SEK	16:66	7:13	42:94	19:55
No. of shares at period end, millions	165.4	165.4	165.4	165.4
Average no. of shares, million	165.4	165.4	165.4	165.4

CONSOLIDATED CONDENSED STATEMENT OF FINANCIAL POSITION

	2016	2015
SEKm	Dec 31	Dec 31
Assets
Properties	47,842	40,279
Other tangible fixed assets	2	1
Financial fixed assets	516	923
Current assets	1,687	446
Short-term investments	114	7 0
Cash and cash equivalents	6 2	3 2
Total assets	50,223	41,751
Equity and liabilities
Shareholder's equity	23,002	16,479
Deferred tax	3,271	1,786
Other provisions	215	150
Interest-bearing liabilities¹	21,978	21,068
Other long-term liabilities	0	619
Derivative instrument	559	658
Non-interest-bearing liabilities	1,198	991
Total equity and liabilities	50,223	41,751
Equity/ assets ratio, %	4 6	3 9

¹ Of which short-term SEK 7,458m (7,058)

CONSOLIDATED CONDENSED STATEMENT OF CHANGES IN EQUITY

CONSOLIDATED CONDENSED STATEMENT OF CHANGES IN EQUITY
	Shareholders'	Of w hich, attributable to Parent Company
SEKm Shareholders' equity, 1 January 2015, according to adopted Statement of financial position	equity 13,783	shareholders 13,783
Cash dividend	-538	-538
Profit for the period	3,232	3,232
Other comprehensive income	2	2
Shareholders' equity, 31 December 2015	16,479	16,479
Cash dividend	-579	-579
Profit for the period	7,107	7,107
Other comprehensive income	-5	-5
Shareholders' equity, 31 December 2016	23,002	23,002

CONSOLIDATED STATEMENT OF CASH FLOWS

	2016	2015
SEKm	Jan-Dec	Jan-Dec
Operations
Net operating income	1,507	1,429
Central administration	-70	-65
Reversal of depreciation	0	0
Interest received	1 1	2 5
Interest paid	-647	-689
Income tax paid	4	0
Cash flow before changes in w orking capital	805	700
Change in w orking capital
Change in current receivables	8 4	831
Change in current liabilities	-112	211
Total change in w orking capital	-28	1,042
Cash flow from operating activities	777	1,742
Investing activities
Investments in new-builds, extensions and conversions	-2,600	-2,770
Acquisition of properties Divestment of properties	-460 2,315	-985 604
Other tangible fixed assets Cash flow from investing activities	-332 -1,076	440 -2,711
Financing activities
Dividend to shareholders	-579	-538
Change in interest bearing liabilities	908	1,516
Cash flow from investing activities	329	978
Cash flow for the period	3 0	9
Cash and cash equivalents at beginning of period	3 2	2 3
Cash and cash equivalents at end of period	6 2	3 2

CONSOLIDATED KEY RATIOS

	2016	2015
Financial ³	Jan-Dec	Jan-Dec
Return on capital employed, %	29.5	13.2
Return on equity, %	36.0	21.4
Interest coverage ratio, multiple ²	2.7	2.3
Equity	4 6	3 9
Loan-to-value ratio, properties, %	4 6	5 2
Debt/ equity ratio, multiple	1.0	1.3
Share related ¹ ³
Earnings per share, SEK ⁴	42:97	19:54
Total earnings per share, SEK	42:94	19:55
Equity per share, SEK	139	100
Cash flow from operating activities per share, SEK	4:70	14:27
EPRA NAV, SEK per share	163	115
EPRA, EPS	3.01	3.94
No. of outstanding shares at end of period, thousands	165,392	165,392
Average number of shares, thousands	165,392	165,392
Property-related
No. of properties	8 2	8 3
Carrying amount, Properties, SEKm	47,842	40,279
Lettable area, sqm	1,062,000	1,092,000
Financial occupancy rate, %	9 4	9 3
Surplus ratio, %	7 2	7 2

¹ No dilution is possible because no potential dilution shares (such as convertible debentures) exist.

² The interest coverage ratio definition has been changed from 1 January 2016. The comparative figures have been restated according to the new definition. ³ Unless otherwise stated, the key figure is not defined under IFRS. Please see page 17 for definitions

⁴ Definitions according to IFRS

DERIVATIVES

	Group		Parent Company
	2016	2015	2016	2015
IFRS, level 3, SEKm	Dec 31	Dec 31	Dec 31	Dec 31
Opening value	-396	-521	-396	-521
Acquisitions/ Investments	-	-	-	-
Changes in value	178	125	178	125
Matured	-	-	-	-
Closing value	-218	-396	-218	-396
Carrying amount	-218	-396	-218	-396
¹ Is attributable in its entirety to derivative instruments held by the company at the end of the quarter and shown in the statement of comprehensive income.

DEFERRED TAX

DEFERRED TAX	2016	2015
Defered tax attributable to:	Dec 31	Dec 31
- tax loss carryforwards, SEKm	-1,129	-1,092
- difference between book value and tax value in respect of properties, SEKm	4,516	3,077
- derivatives, SEKm	-123	-144
- other, SEKm	7	-55
N et debt, deferred tax , SEKm	3,271	1,786

RECONCILIATION OF KEY RATIOS

			2016	2015
Equity/ assets ratio			Dec 31	Dec 31
Equity, SEKm			23,002	16,479
Total assets, SEKm			50,223	41,751
Equity/ assets ratio			46%	39%
			2016	2015
Loan-to-value ratio, properties			Dec 31	Dec 31
Interst-bearing liabilities, SEKm			21,978	21,068
Booked value properties, SEKm			47,842	40,279
Loan-to-value ratio, properties			46%	52%
			2016	2015
Interst coverage ratio, multiple			Dec 31	Dec 31
Net operating income, SEKm			1,507	1,429
Central administration, SEKm			-70	-65
Total, SEKm			1,437	1,364
Net intrest/ expense, SEKm			-541	-582
Interst coverage ratio, multiple			2.7	2.3
	2016	2015	2016	2015
EPRA EPS	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
Profit from property management, SEKm	-166	172	471	688
Tax-deductable depreciation, SEKm	-197	-165	-590	-524
Sum, SEKm	-363	7	-119	164
Nominal tax (22%), SEKm	-80	2	-26	3 6
EPRA earnings in total, (Profit from property management minus nominal tax ) SEKm	-86	170	497	652
Number of shares, millions	165	165	165	165
EPRA EPS, SEK per share	-0.52	0.99	3.01	3.94
	2016	2015	2016	2015
EPRA N AV	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
Shareholders' equity, SEKm	23,002	16,479	23,002	16,479
Reversal of fixed-income derivatives, SEKm	559	658	559	658
Reversal of deferred tax according to the balance sheet, SEKm	3,271	1,786	3,271	1,786
Sum, SEKm	26,832	18,923	26,832	18,923
Number of shares, millions	165	165	165	165
EPRA N AV, SEK per share	163	115	163	115

	2016	2015	2016	2015
Return on equity	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
Profit for the period, SEKm	2,761	519	7,107	3,232
Average shareholders' equity, SEKm	21,624	15,040	19,741	15,131
Return on equity	51.1%	13.8%	36.0%	29.7%

CONTINGENT LIABILITIES

SEGMENT REPORTING – RECLASSIFICATIONS DURING THE PERIOD

PARENT COMPANY CONDENSED INCOME STATEMENT

	2016	2015
SEKm	Jan-Dec	Jan-Dec
Income	221	146
Expenses	-263	-226
Net financial items	-932	-152
Changes in value, fixed-income derivatives	9 9	262
Changes in value, equities	6	3 6
Group Contribution	-204	-67
Profit before tax	-1,073	370
Current tax	-19	-
Deferred tax	5 0	8
Profit for the period/ year	-1,042	378

PARENT COMPANY CONDENSED BALANCE SHEET

	2016	2015
SEKm	Dec 31	Dec 31
Participation in Group companies	12,516	12,592
Other fixed assets	43,105	41,892
of which, receivables from Group companies	42,671	41,103
Current assets	184	129
Cash and cash equivalents	5 3	3 0
Total assets	55,858	54,643
Shareholders' equity	10,681	12,301
Provisions	-55	6 8
Long-term liabilities	38,279	35,118
of which, liabilities to Group companies	24,783	21,724
Current liabilities	6,953	7,156
Total equity and liabilities	55,858	54,643

Quarterly overview

CONDENSED INCOME STATEMENT, AMOUNTS IN SEKM

		2016
SEKm	Quarter 4	Quarter 3	Quarter 2	Quarter 1	Quarter 4	Quarter 3	Quarter 2	Quarter 1
Rental income	532	534	520	519	505	495	496	502
Property expenses	-150	-133	-151	-164	-156	-130	-131	-152
N et operating income	382	401	369	355	349	365	365	350
Surplus ratio	72%	75%	71%	68%	69%	74%	74%	70%
Central administration	-17	-17	-20	-16	-17	-16	-16	-16
Net interest expence	-129	-139	-142	-131	-146	-143	-140	-153
Share in profits of associated companies	-402	-16	6	-13	-14	-59	-8	-13
Profit/ loss from property management	-166	229	213	195	172	147	201	168
Realised changes in value of properties	309	2 0	2	160	1 7	3	0	1
Unrealised value of properties	3,136	1,760	1,199	1,519	1,282	590	673	707
Unrealised changes in value, fixed-income derivatives	230	4 2	-55	-118	151	-26	194	-57
Changes in value, equities	5	0	0	0	-26	-28	-3	6 7
Profit for the period/ year	3,514	2,051	1,359	1,756	1,596	686	1,065	886
Current tax	-89	2	0	-1	-2	0	0	0
Deferred tax	-664	-437	-294	-90	-416	-167	-235	-181
Comprehensive income for the period/ year	2,761	1,616	1,065	1,665	1,178	519	830	705

CONDENSED FINANCIAL POSITION, AMOUNTS IN SEKM

	2016 2016			2015
SEKm	Quarter 4	Quarter 3	Quarter 2	Quarter 1	Quarter 4	Quarter 3	Quarter 2	Quarter 1
Assets
Properties	47,842	44,659	42,418	40,467	40,279	37,630	36,361	33,763
Other tangible fixed assets	2	2	2	1	1	1	1	1
Financial fixed assets	516	916	886	906	923	1,562	1,644	1,634
Current assets	1,687	500	529	533	446	438	506	1,933
Short-term investments	114	8 9	6 4	6 6	7 0	5 0	4 8	3 8
Cash and cash equivalents	6 2	3 6	195	3 3	3 2	3 7	411	6 2
Total assets	50,223	46,202	44,094	42,006	41,751	39,718	38,971	37,431
Equitites and liabilities
Shareholders' equity	23,002	20,246	18,630	18,144	16,479	15,299	14,780	13,951
Deferred tax	3,271	2,648	2,211	1,876	1,786	1,502	1,335	1,099
Other provisions	215	142	154	148	150	159	159	166
Interest-bearing liabilities	21,978	20,818	20,574	19,269	21,068	20,513	20,436	19,733
Other long-term liabilities	0	625	623	621	619	617	615	-
Derivative instruments	559	789	831	777	658	809	783	977
Non-interest bearing liabilitis	1,198	934	1,071	1,171	991	819	863	1,505
Total equity and liabilities	50,223	46,202	44,094	42,006	41,751	39,718	38,971	37,431

KEY RATIOS

	2016			2015
	Quarter 4	Quarter 3	Quarter 2	Quarter 1	Quarter 4	Quarter 3	Quarter 2	Quarter 1
Financial³
Return on capital employed, %	33.2	21.2	15.2	19.6	18.4	9.2	13.7	12.2
Return on equtiy, %	51.1	33.3	23.2	38.5	29.7	13.8	23.2	20.3
Interest coverage ratio, multiple²	2.8	2.8	2.5	2.6	2.0	1.9	2.3	2.0
Equity/ assets ratio, %	4 6	4 4	4 2	4 3	3 9	3 9	3 8	3 7
Loan-to-value ratio, properties, %	4 6	4 7	4 9	4 8	5 2	5 5	5 6	5 8
Debt/ equity raio, multiple	1.0	1.0	1.1	1.1	1.3	1.3	1.4	1.4
Share-related¹ ³
Earnings per share, SEK⁴	16:70	9:77	6:44	10:07	7:12	3:14	5:02	4:26
Total earnings per share, SEK	139	122	113	110	100	9 3	8 9	8 4
Cash flow from operating activities per share, SEK	1:75	0:52	0:52	1:75	4:82	1:10	6:99	1:36
EPRA NAV, SEK per share	163	144	131	126	115	107	102	9 7
EPRA EPS	-0:52	1:26	1:18	1:09	0:99	0.91	1.17	1.01
No. of shares outstanding at the end of the period, thousands	165,392	165,392	165,392	165,392	165,392	165,392	165,392	165,392
Average number of shares, thousands	165,392	165,392	165,392	165,392	165,392	165,392	165,392	165,392
Property-related
Financial occupancy rate, %	9 4	9 4	9 3	9 3	9 3	9 2	9 2	9 3
Surplus ratio, %	7 2	7 5	7 1	6 8	6 9	7 4	7 4	7 0
¹ The interest coverage ratio definition has been changed from 1 January 2016.		The comparative figures have been restated according to the new definition.
² No dilution is possible because no potential dilution shares (such as convertible debentures) exist.

³ Unless otherwise stated, the key figure is not defined under IFRS. Please see page 17 for definitions

⁴ Definitionen according to IFRS.

Definitions

RETURN ON EQUITY

RETURN ON CAPITAL EMPLOYED

LOAN-TO-VALUE RATIO, PROPERTIES

RETURN, SHARE

EQUITY PER SHARE

FINANCIAL OCCUPANCY RATE*

EPRA EPS

EPRA NAV

– LONG-TERM NET ASSET VALUE

INVESTMENT PROPERTIES*

DEVELOPMENT PROPERTIES*

P

RENTAL VALUE*

CASH FLOW FROM OPERATING ACTIVI-TIES PER SHARE

LEASE VALUE*

LAND AND PROJECT PROPERTIES*

NET LETTINGS*

EARNINGS PER SHARE

INTEREST COVERAGE RATIO

SEGMENT REPORTING

.

DEBT/EQUITY RATIO

EQUITY/ASSETS RATIO

CAPITAL EMPLOYED

TOTAL YIELD

RETENTION RATE*

SURPLUS RATIO*

This is Fabege

Business concept

Business model

Strategy for growth

Value-driving factors

Stockholm is growing

Changes in demand

Financial trend

Sustainable urban development

PROPERTY MANAGEMENT

TRANSACTIONS

PROPERTY DEVELOPMENT

CALENDAR

AGM 2017 29 Mar 2017 Interim report Jan–Mar 2017 27 April 2017, 8:00 am CET Interim report Jan–June 2017 Interim report Jan–Sep 2017 19 October 2017, 8:00 am CET

7 July 2017, 8:00 am CET

PRESS RELEASES DURING THE FOURTH QUARTER

7 Oct 2016	Fabege reports additional consideration of
	SEK 200m regarding property sale
18 Oct 2016	Fabege investing SEK 944m in Sundbyberg
17 Nov 2016	Fabege sells Uarda 7, Arenastaden
18 Nov 2016	More green financing in Fabege
21 Nov 2016	Price differentiation on green loans
22 Nov 2016	Migrationsverket signs new agreement with
	Fabege
25 Nov 2016	Fabege closes deal with Peab
25 Nov 2016	Fabege takes on greater responsibility for
	Friends Arena
20 Dec 2016	Fabege acquires HagaHuset and develops a

concept building for our era

FOLLOW US ONLINE, WWW.FABEGE.COM

Visit the Group's website for further information about Fabege and its operations. There will also be a web presentation on 2 February 2017, at which Christian Hermelin and Åsa Bergström will present the year-end report.

CHRISTIAN HERMELIN Chief Executive Officer Phone: +46 (0)8-555 148 25 +46 (0)733-87 18 25

ÅSA BERGSTRÖM Vice President and CFO Phone: +46 (0)8-555 148 29 +46 (0)706-66 13 80

This information is information that Fabege AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 12:00 CET on 2 Ferbruary 2016 .

Fabege AB (publ) Box 730, SE 169 27 Solna, Sweden Visitors: Pyramidvägen 7, 169 56 Solna, Sweden Telephone: +46 (0)8-555 148 00 Email: info@fabege.se www.fabege.com Corporate registration number: 556049–1523 Registered office of the Board of Directors: Stockholm

Fabege AB (publ)

Box 730, SE 169 27 Solna, Sweden Visitors: Pyramidvägen 7, 169 56 Solna, Sweden Telephone: +46 (0)8-555 148 00 Email: info@fabege.se www.fabege.com Corporate registration number: 556049–1523 Registered office of the Board of Directors: Stockholm