Fabege AB · OMXSTO:FABG

Fabege AB — Q3 2016 Earnings Presentation

24 slides from Fabege AB's earnings presentation, November 2016

  1. Slide 1: Welcome to Fabege's Interim Presentation for Jan – Sep 2016

    Welcome to Fabege’s Interim Presentation for Jan – Sep 2016 Christian Hermelin, CEO & President, Fabege Åsa Bergström, Vice President & CFO, Fabege

  2. Slide 2: Fragmented Picture of the Market

    FRAGMENTED PICTURE OF THE MARKET What we read and hear in the media  Slowdown in the economy  Rents have reached the zenith  Increased interest rates 2

  3. Slide 3: Fragmented Picture of the Market

    FRAGMENTED PICTURE OF THE MARKET What we read and hear in the media What we see in the business  Slowdown in the economy  High business activity  Rents have reached the zenith  Continued rising rents  Increased interest rates  Continued declining yields 3

  4. Slide 4: Earnings 2011 – Q3 2016

    EARNINGS 2011 – Q2, 2016 SEKm 2016, Q3 2015 2014 2013 2012 2011 Contribution from 3,975 3,308 1,755 944 1,230 1,256 Property Management Contribution from Property 1,140 632 266 409 872 401 Development Contribution from 182 21 300 135 167 173 Transactions Contribution from 5,297 3,961 2,321 1,488 2,2

  5. Slide 5: Condensed Income Statement

    CONDENSED INCOME STATEMENT SEKm Jan-Sep 2016 Jan-Sep 2015 Rental income 1,573 1,493 Property expenses -488 -413 • Rental growth in identical Net operating surplus 1,125 1,080 portfolio approximately 9 % Central administration -53 -48 • Surplus ratio: 72 % (72) Net financial items -412 -436 • Return

  6. Slide 6: Key Figures

    KEY FIGURES 30.09.2016 30.09.2015 30.09.2014 Equity, SEKm 20,246 15,299 12,883 Equity per share, SEK 122 93 78 EPRA NAV – Long-term net worth, SEK per 144 107 89 share Return on equity, % 31.6 18.8 8.7 Equity ratio, % 44 39 36 Loan-to-value ratio, % 47 55 59 Interest coverage ratio, multiple 2.6 2.4

  7. Slide 7: Capital Market

    Capital Market 7

  8. Slide 8: Financing 30 September 2016

    FINANCING 30 SEPTEMBER 2016  Total facilities SEK 23.9 bn Activities during the third quarter  Total loans SEK 20.8 bn  Issue Nya SFF SEK 460m • Of which, bonds SEK 2.3 bn  Fixed interest SEK 600m • Of which, commercial paper SEK 5.0 bn  Maturity old closable swaps SEK 600m  2016 refinancing d

  9. Slide 9: Green Financing Becoming Standard

    GREEN FINANCING BECOMING STANDARD  New green issue in Nya SFF 460m SEK  Our green sources now consist of: • MTN program • New SFF • EIB • SEB  Green financing share: 12 percent 9

  10. Slide 10: Rental Market

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  11. Slide 11: Net letting 87m SEK

    Net letting 87m SEK Renegotiations + 24 procent Stockholm´s strong growth and the relocation to quality properties favour rental increase in our area 9

  12. Slide 12: High Demand for Quality

    HIGH DEMAND FOR QUALITY  Here we see three of our largest properties. Today they don’t have any vacancies Trängkåren 7, DN-huset Luma 1, Hammarby sjöstad Apotekaren 22, Norrmalm

  13. Slide 13: Transaction Market

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  14. Slide 14: Transaction Market – Still Very Strong

    TRANSAKTIONSMARKNADEN - STILL VERY STRONG --  Our growth in value during the period amounted to SEK 4.478m, corresponding to 11 %  Average yield 4.70 %  Most of the value growth in the management portfolio in the third quarter was due to increasing rents …and we anticipate that yield requirements

  15. Slide 15: Project Portfolio

    Project Portfolio 15

  16. Slide 16: Value Creation Projects

    VALUE CREATION PROJECTS  Approx 194,000 sqm under construction  Forecast investments in 2016: SEK 2.5bn  Occupancy rate 69% • Including the reconstruction project in Orgeln 1,800 sqm 5,400 sqm 0 sqm 6,300 sqm 6,000 sqm 16

  17. Slide 17: New Project – Orgeln 7

    NEW PROJECT- ORGELN 7  Grand Central Sundbyberg  Investment aprrox: SEK 944m  Rental valu:e: SEK 107m  Completed: Q2 2018  Lettable area: 36,000 sqm  Environment classification: BREEAM-SE, Very Good 17

  18. Slide 18: Vision Solna Business Park

    VISION SOLNA BUSINESS PARK  180,000 sqm of new office  Upgrade of 144,000 square meters of existing office  2,000 residentials for about 5,000 people  Increased service 18

  19. Slide 19: Our Good Prerequisites

    OUR GOOD PREREQUISITES • Best locations in Stockholm • Best project portfolio in Sweden • Best market in Europe • Best organisation in the world 19

  20. Slide 20: Questions

    20 QUESTIONS ARENASTADEN HAMMARBY SJOSTAD STOCKHOLM CITY SOLNA BUSINESS PARK

  21. Slide 21: Thank You for Your Attention

    THANK YOU FOR YOUR A Fabege

  22. Slide 22: Appendix

    Appendix

  23. Slide 23: Revenues 2015-2017

    REVENUES 2015-2017 • Including known lettings and vacancies • Excluding rental targets SEKm 23

  24. Slide 24: Our Project Portfolio – September 30, 2016

    OUR PROJECT PORTFOLIO – SEPTEMBER 30, 2016  Commercial development rights • 347,000 sqm (107,000 sqm in Arenastaden) • Approx. 55 % legally binding  Housing development rights • 161,000 sqm Stora Frösunda 2, Hagalund 2:2 • Approx. 56 % legally binding  Partly owned development rights (our share)

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