Slide 1: Fabege Interim Report Jan-Mar 2023
Fabege Interim Report Jan-Mar 2023 Stefan Dahlbo, CEO Åsa Bergström, CFO
Slide 2: Fabege in brief
FABEGE IN BRIEF Solna Stockholm inner city Property value. fee SEK 4i,638m Property value SEK 31,558m (6) Lettable afea ‘i £729,000 sqm Lettable area 326,000 sqm NCPSEEO Rental value _ ee: SEK 1894m, Rental value SEK 1,523m © Solna Business Park TT Tf Stockholms innerstad H () \/Hammarby Sjéstad Ham
Slide 3: Summary Jan-Mar 2023
Summary Jan-Mar 2023 ● Increased rental income and operating surplus ● Increasing interest costs ● Decreasing managemnt profit ● Negative value changes in the property portfolio ● Net letting SEK -12m 3
Slide 4: Condensed income statement
Condensed income statement SEKm Jan- Mar 2023 Jan-Mar 2022 Rental income 829 762 Sales residential projects 187 7 Net sales 1,016 769 Property expenses -231 -208 Residential projects expenses -165 -14 Gross profit 620 547 • Rental growth in identical Central administration -26 -25 portfolio: approx.
Slide 5: Property valuation Q1 2023
Property valuation Q1 2023 Property value SEK 85,0bn of which management portfolio SEK 70.7bn Q1 2023 Q4 2022 Q3 2022 Q2 2022 Externally 47% 80% 35% 35% valued Value change SEK -2,110m SEK -3,665 SEK 253m SEK 1,020m Yield 4.11% 3.99% 3.77% 3.96% Value change Q4 2022 Value change Q1 2023 • Yield (+0.
Slide 6: Sensitivity analysis – Property values
Sensitivity analysis – Property values Chane in value Impact on Equity per Equity/ratio Loan-to-value earnings after share tax 31/03/2023 SEK 137 48% 40% 5% SEK -3,374m SEK 124 46% 42% 10% SEK -6,749m SEK 113 44% 44% 20% SEK -13,497m SEK 92 40% 50% 25% SEK -16,871m SEK 82 38% 53% Based on property v
Slide 7: Key ratios, 31 March 2023
Key ratios, 31 March 2023 2023 2023 Jan-Mar Jan-Mar Target Equity per share, SEK 137 145 EPRA NRV, SEK per share 166 179 Total return properties, % -1.7 3.3 Surplus ratio, % 72 73 75 Equity/assets ratio , % 48 51 >35 Loan-to-value ratio, % 40 35 <50 Debt ratio, multiple 15.4 14.4 <13 Interest covera
Slide 8: Continued stable financing Activities during Q1
Continued stable financing Activities during Q1 Total facilities SEK 39.6bn ● Still good demand for commercial paper Total loans SEK 34.0bn New bank facility of 0.5bn • of which bonds SEK 10.6bn Bond issue SEK 250m, 2 years, margin 200bp • of which commercial paper SEK 2.7bn Committed line
Slide 9: Maturity structure, loans 31/03/2023
Maturity structure, loans 31/03/2023 2023: 2024: Maturity CP SEK 2.7bn (each certificate is rolled an average of Bond maturity Sek 4.1bn, of which SEK 3.45bn in the first half of the SEK 3m) year Maturity bonds SEK 1.4bn Refinancing bank facilities New bankfacility SEK 500m (paid April) •
Slide 10: Fixed-rate period 31/12/2022
Fixed-rate period 31/12/2022 Maturity Interest rate Fixed interest bonds Total swaps and loans 61 per cent of the portfolio fixed Average fixed-rate term 2.5 years 2023 1,050 219 1,269 2024 2,400 786 3,186 Fixed interest derivatives between -0.15% and 1.30% 2025 2,200 400 2,600 Sensitivity a
Slide 11: Stockholm office
Stockholm office Rents Vacancies 10 000 18% 9 000 16% 8 000 14% 7 000 12% 6 000 10% 5 000 8% 4 000 6% 3 000 2 000 4% 1 000 2% 0 0% 2023E 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 CBD Inner city Prime Suburbs Outer suburps CBD I
Slide 12: Stockholm office yield
Stockholm office yield 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% 2023E 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 CBD Inner city Prime Suburbs Outer suburps 12 Source Newsec
Slide 13: Net letting 2023
Net letting 2023 SEKm Q1 Q1 Net letting 2012-2022 SEKm 2023 2022 275 250 New lettings 48 61 225 200 175 Terminations -60 -53 150 125 100 Net letting -12 8 75 50 25 Target 2023 > SEK 80m 0 -25 -50 -75
Slide 14: Stable customers with long agreements
Stable customers with long agreements Share of Year of Customer Approx 660 customers total rent expiry SEB 7% 2037 25 largest customers represents 41% ICA Fastigheter Sverige 4% 2030 of rental value Telia Company 4% 2031 Average contract length 5.1 years TietoEvry 2% 2029 Share of total rent
Slide 15: Renegotiations Q1 2023
Renegotiations Q1 2023 Lease maturity structure Annual rent, Renegotiations Maturity, year No. of leases SEKm Percentage, % • SEK 179m extended on 2023¹ 488 590 17% unchanged terms 2024¹ 354 378 11% 2025 230 497 15% 1 • SEK 34m -4% (refers to retail) 2026 243 507 15% 2027 76 345 10% SEK 380m of
Slide 16: Occupancy rate 31/03/2023
Occupancy rate 31/03/2023 Management portfolio • Economic occupancy rate 90% 95 • Net addition upcoming move-in and move outs SEK +63m 94 93 Development portfolio 92 • Relates to properties that are partly or fully vacated for 91 project development, lettings are made for short-term contracts wi
Slide 17: Rental development existing lease portfolio 31/03/2023
Rental development existing lease portfolio 31/03/2023 SEKm 900 845 854 837 842 850 829 800 771 781 750 717 700 650 600 550 500 450 400 Q2-2022 Q3-2022 Q4-2022 Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 • Based on contracted leases including known occupations, relocations and renegotiations Q1 2023 • E
Slide 18: Capex
Capex Investments 2012-2022 SEKm 3 500 2023 Investments 2022 Jan-Mar 3 000 Project- & developments SEK 416m SEK 1,427m properties 2 500 2 000 Management properties SEK 283m SEK 800m 1 500 Total SEK 699m SEK 2,257m 1 000 500 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 18
Slide 19: Project portfolio 31/03/2023
Project portfolio 31/03/2023 Estimated capex: SEK 4.5bn Capex Q1 2023: SEK 416m Estimated Lettable Occupancy rate, % Book value, investment, of which Property listing Category Area Completed area, sqm space¹ Rental value² SEKm SEKm spent, SEKm Nöten 4 Offices Solna Strand Q2-2024 53,400 0% 130 1
Slide 20: Building rights 31/03/2023
Building rights 31/03/2023 Commercial building rights • 744,550 gross floor area, sqm • Approx. 18 % legal binding • Book value: SEK 6,300/sqm Residential building rights • 657,160 gross floor area, sqm • Approx. 37 % legal binding • Book value: SEK 7,300/sqm 20
Slide 21: Price development
Price development We estimate price increases in the past year (rolling 12 months) at 10 -15% Certain types of work and materials stand out with price increases of more than 30% such as: • Construction work (Ground and foundation work) due to fuel prices, steel and reinforcement. • Frames (pilla
Slide 22: Our active sustainability work continues
Our active sustainability work continues Target average energy consumption 2025: 70 kWh/sqm Energy savings Q1: 4% comperad to the prevoius year in the management portfolio The Sustainability House 22
Slide 23: Questions
Questions Our vision The success factor for a new era 23
Slide 24: Appendix
Appendix Fabege
Slide 25: Dividend policy Fabege
Dividend policy Fabege Dividend in relation to management results 2010-2022 140% At least 50 per cent of the profit from 120% ongoing management and realized profit from property sales after tax 100% 80% 60% 40% 20% 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022