Fabege (FABG) Q2 2025 earnings summary

Executive summary

• Rental income for H1 2025 was SEK 1,717m, slightly down year-over-year, mainly due to relocations, property sales, and prior negative net lettings.

• Net operating income for H1 was SEK 1,233m, impacted by higher maintenance costs and property tax, with a surplus ratio of 72%.

• Profit from property management rose to SEK 657m, but the period ended with a net loss of SEK -267m due to negative property value changes of SEK -650m.

• The property portfolio comprised 99 properties valued at SEK 78.3bn, with a financial occupancy rate of 87%.

• The company remains focused on increasing occupancy, project completion, and sustainability initiatives.

Financial highlights

• Net sales for H1 2025 were SEK 1,845m, down from SEK 1,873m year-over-year.

• Earnings per share for H1 were SEK -0.85, improved from SEK -2.17 year-over-year.

• Realized and unrealized property value changes for H1 were SEK -687m, with realized changes of -SEK 37m.

• Equity per share at SEK 119; EPRA NRV at SEK 147 per share.

• Surplus ratio for H1 was 72% (73% last year).

Outlook and guidance

• Net letting target of SEK 80m for 2025 remains, with optimism for improved activity in H2.

• Focus on increasing occupancy to 95% over several years and completing existing projects.

• Management expects stable yields for the rest of 2025, with cautious optimism for gradual market improvement.

• Most future contract renewals expected at unchanged terms; market rents generally align with contracted rents.

• Ongoing investments in new projects and cost effectiveness.