This article first appeared on GuruFocus .
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Rental Income:SEK892 million, an increase of SEK27 million compared to last year.
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Net Operating Income:Increased by SEK39 million from last year.
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Surplus Ratio:Achieved a rate of 72% for Q1.
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Income from Property Management:SEK370 million, nearly 30% up from last year.
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Property Value:SEK78.6 billion at the end of Q1.
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Average Yield:Unchanged at 4.59% from year-end.
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Equity per Share:SEK120 per share.
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Net Letting:Positive SEK24 million, with new lettings at SEK69 million and terminations at SEK45 million.
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Renegotiated Rents:Total of SEK100 million, with a slight decline of 0.4% in rents.
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Average Interest Cost:Increased slightly from 2.82% to 2.85%.
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Undrawn Facilities:SEK6 billion available.
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Ongoing Projects Investment:Farao Kairo up to SEK630 million, Wenner Gren Center up to SEK609 million, and Mimer 5 up to SEK217 million.
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Energy Consumption:23 kilowatt hours per square meter, same as last year despite a colder winter.
Release Date: April 23, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Fabege AB ( FBGGF ) reported a positive net letting of SEK24 million in Q1, marking the second consecutive quarter of positive net letting.
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The company achieved a surplus ratio of 72%, the best Q1 performance ever, despite higher winter costs.
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Fabege AB ( FBGGF ) signed a significant lease contract with Stockholm Sjukhem for an elderly care facility, enhancing its portfolio in Arenastaden.
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The company has a high customer satisfaction index, with 95% of tenants recommending Fabege as a landlord.
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Fabege AB ( FBGGF ) maintains strong access to financing, with undrawn facilities of SEK6 billion, providing stability for future operations.
Negative Points
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The vacancy rate remains high at 14%, unchanged from the previous quarter, indicating challenges in reducing unoccupied spaces.
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There were negative value changes in the management portfolio, amounting to SEK191 million, impacting overall property valuations.
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Higher STIBOR rates have negatively impacted financial expenses, although this is partially offset by reduced refinancing margins.
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The company faces potential lease terminations, such as with Max Mathiessen, which could affect future occupancy rates.
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Fabege AB ( FBGGF ) reported increased rental discounts, rising from SEK225 million in Q4 to SEK269 million, indicating potential pressure on rental income.
Q & A Highlights
Q: Bent, you promised to increase the share price since the main shareholder is not happy with SEK80 per share. How will you do that? A: We need to reduce our vacancy rates and be more creative in our offerings. We are focusing on creating working spaces that meet tenant demands, such as showrooms and office spaces, which should help improve our share price.
Q: Have you changed anything substantially in how you work with leasing or marketing to decrease vacancies? A: We are focusing more on leasing as a priority. Everyone in the company, from property caretakers to the leasing department, is working to reduce vacancies. We are making sure properties are well-maintained and appealing to potential tenants.
Q: Is the positive net letting trend in Q1 a new trend? A: I hope so. We are seeing more decisions being made in leasing, which is encouraging. Despite global uncertainties, the local market in Stockholm is still active, and we are optimistic about continuing this trend.
Q: Can you provide more details on the properties that took a revaluation hit in Solna? A: These are properties with higher vacancies or expected vacancies. We are in discussions with potential tenants, and we hope to see a reversal of these write-downs in future quarters.
Q: What is your guidance for investments this year? A: We expect to invest a little less than SEK2 billion this year. The level of investment will depend on board decisions for new projects.
Q: Are you comfortable with your short interest rate maturity? A: Yes, we are comfortable but are monitoring the market for opportunities to hedge more if pricing is favorable. We might increase hedging in the future.
Q: Can you explain the increase in rental discounts reported? A: The increase is related to specific contracts and tenants moving in with initial discounts. We do not disclose specific contracts.
Q: Have you changed your approach to maintenance costs? A: We are more cautious now, ensuring maintenance is done at the right time and in conjunction with other property activities. We are not overspending but maintaining properties in good condition for tenants.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
