Q2 2025 Fabege AB Earnings Call Transcript
Key Points
- Fabege AB (FRA:WILC) reported a stable financial performance in a challenging market, with a focus on maintaining a strong balance sheet.
- The company completed the first phase of the housing project in Haganara, generating SEK128 million in sales and a gross profit of SEK23 million.
- Fabege AB (FRA:WILC) successfully refinanced and extended a bank facility of SEK1.5 billion and issued SEK700 million in new three-year bonds at a favorable margin.
- The company launched an updated green framework with a medium green rating from S&P, emphasizing sustainability and energy efficiency.
- Fabege AB (FRA:WILC) has a strong pipeline of development projects, with 1.2 million square meters of building rights, positioning it for future growth.
- Rental income decreased by SEK53 million on a like-for-like basis, equivalent to a 3.3% decline, primarily due to negative net lettings from the previous year.
- Net operating income decreased to SEK1.233 billion, impacted by higher maintenance costs and property tax.
- Unrealized changes in property value amounted to a negative SEK650 million in the first half of the year.
- The occupancy rate in the management portfolio is a challenge, currently at 87%, with expectations of further decline before improvement.
- The office market in Stockholm remains slow, with increasing vacancy rates and longer implementation periods for future projects.
Welcome to the Fabege Q2 2025 report presentation. (Operator Instructions) Now I will hand the conference over to the speakers, CEO, Stefan Dahlbo; and CFO, Asa Bergstrom. Please go ahead.
Good morning, and welcome to our presentation for the first 2025, including the second quarter of course. With me here in the room, I have CFO, Asa Bergstrom and also Peter Kangert, IR. And as usual, we will end with a Q&A session. Next slide, please.
Our strategy, we focus on Stockholm is, of course, still that. We believe at Stockholm, we believe on offices. I know we'll come back to that later in the presentation also why. So -- but please also let us talk about figures first.
Thanks, Stefan. Yeah. Rental income for the first half year amounted to SEK1.7 billion, just below the same period last year. On a like-for-like basis, income decreased by SEK53 million, equivalent to minus 3.3%,
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