Fabege Ab (publ) Stock Earnings Reports

Fabege reported a stable Q2 2026 with rental income growth, improving margins and ongoing project activity. Rental income was nearly SEK 1.8bn; like-for-like rental growth was slightly negative due to previously announced large terminations, but finalized projects contributed roughly SEK 100m. Surplus ratio improved to ~73–74% and occupancy in the management portfolio rose to 87% (from 86%). Net letting was negative (SEK -86m in Q2; SEK -62m for the first half) driven by two large terminations (Max Matthiessen and Telenor). Property value changes were roughly flat for the period (+SEK 120m in Q2 after earlier unrealized losses), with yields edging slightly down on externally valued assets. Residential development contributed profit (SEK 39m in Q2 with ~21% margin); Birger Bostad and Haga Norra remain key residential projects (Block 4 construction contract signed for 132 units; Block 5 near completion). Fabege completed the acquisition of Gadden 1 (Sveaplan) and continues major city and Solna-area development (Wenner‑Gren, Mimer, Farao/Kairo). The improvement portfolio (capex pipeline) is sizable (~SEK 8–9bn), partly covering assets needing refurbishment or redevelopment. Financing is highlighted as robust: bank refinancing for 2026 done, plans to refinance SEK 2bn of capital-market debt in the autumn, average interest cost ~2.88%, roughly half the debt fixed (average fixation ~1.4 years, 2.1 years including callable swaps). Management emphasizes focus on leasing to reduce vacancy, active asset and balance-sheet management (sales of smaller plots and building-rights transactions), and continued ESG and execution capabilities. Near-term upside is expected if leasing momentum in core CBD/Arenastaden areas converts to completed leases (value uplift typically materializes ~6–12 months after leasing).