Fabege came into this Q3 2026 report with a bruised chart, down about 12% over three months and softer over one month as well. The stock closed at SEK64.8 on 22 October, so the initial reaction has been muted for a company that just reported a sharp rebound in profitability.
The real story sits in the income statement. Net income from continuing operations over the past twelve months reached SEK1,032m and basic earnings per share for Q3 landed at 2.23 SEK. For a Stockholm office landlord long framed as a balance sheet worry, this set of numbers shifts the conversation back to earnings power and interest coverage risk instead of pure valuation anxiety.
Impressed by Fabege's earnings rebound but still nervous about balance sheet risk in an office-heavy portfolio? Compare this setup with our list of solid balance sheet and fundamentals stocks (203 results) to see businesses that pair income strength with sturdier financial footing.
Q3 2026 Earnings Summary
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Revenue (Q3 2026 vs. Q3 2025):SEK1,285m vs. SEK852m (up about 51%)
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Net Income from Continuing Operations (Q3 2026 vs. Q3 2025):SEK700m vs. SEK99m (up more than 7x)
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Basic EPS (Q3 2026 vs. Q3 2025):2.23 SEK vs. 0.31 SEK (up more than 7x)
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Net Income from Continuing Operations, Trailing 12 Months to Q3 2026 vs. Q3 2025:SEK1,032m vs. SEK287m (up about 260%)
Ask Charlie what Fabege said about cutting vacancy and TI costs .
Evaluating Fabege's Margin-Uplift Ambition Against Q3
The bullish story argues Fabege can turn its Stockholm footprint and energy focus into outsized rental and margin gains.
"Digitalization, energy efficiency initiatives, and disciplined asset focus support margin expansion and stable, above-market shareholder returns amid evolving market dynamics."
Q3 results give this claim some real milestones. Rental income reached SEK2.7b with project completions adding SEK132m, and the surplus ratio stood at 76%, which points to tighter cost control. Profit from property management of SEK1,166m and an interest coverage ratio of 2.7x indicate healthier earnings capacity, even as occupancy remains at 87% and identical-portfolio rents are still soft.
One Narrative disagrees with today's price. → See where this Narrative says Fabege should trade .
Fabege Bear Case: Vacancies And Densification Still On Trial
The cautious view argues that Fabege's future hinges on stubborn vacancies and project timing rather than this quarter's profit rebound.
"Intensifying structural vacancies in Solna Business Park and selected submarkets, combined with only modest leasing momentum, risk locking a materially lower occupancy rate into the base for several years."
Q3 shows mixed progress against that concern. Net letting of SEK55m and a 3% uplift on renegotiated rents point to some leasing traction, yet portfolio occupancy is still 87% and identical portfolio rents declined 1.2%. Property values in Solna remain weaker, which keeps the structural vacancy argument very much alive for Fabege.
Hunt For Mispriced Earnings Power
Fabege just reported a stronger income line while the share price stayed relatively muted into the Q3 release. The real opportunity sits in finding stocks that could be undervalued before the market adjusts to them.
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Company 1 - 27% below our estimate - expand higher margin complex generics and ex U.S. portfolios as rising operating cash flow supports product filings and debt reduction.
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Company 2 - 28% below our estimate - push direct to consumer channels and premium product upgrades while scaling newer categories that contribute meaningfully to the overall portfolio.
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Company 3 - 19% below our estimate - grow subscription based software bundles on top of hardware as expanded regional tailoring and partnerships widen the addressable market for connectivity solutions.
That is three of the list. See every one of the 196 undervalued companies on it →
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include FABG.ST .
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