Slide 1: Fabege Interim Report Jan-Sep 2023
Fabege Interim Report Jan-Sep 2023 Stefan Dahlbo, CEO Åsa Bergström, CFO
Slide 2: Fabege in brief
FABEGE IN BRIEF Stockholm inner city: SEK'40,059 Property value: SEK 30,727 ® 1226 sqm Lettable area: 325 sqm = \V Arenastaden / Haga Norra R e is __eiser eas ~ i (s) “4,908m Rental value: 1,558m \/ soina Business Park 1b WE ( © , \/ Stockholm inner city © ) Hammarby Sjéstad Hammarby Sjéstad: Flemin
Slide 3: Summary Jan-Sep 2023
Summary Jan-Sep 2023 ● Increased rental income and operating surplus ● Increased interest costs ● Slightly lower managemnt profit ● Negative value changes in the property portfolio ● Net letting SEK -3m ● Increased occupancy rate ● LOI signed regarding the tental of entire Nöten 4 at Solna Strand (6
Slide 4: Condensed income statement
Condensed income statement SEKm Jan- Sep 2023 Jan-Sep 2022 Rental income 2,539 2,251 Sales residential projects 486 132 Other income 11 0 Net sales 3,036 2,383 Property expenses -650 -584 Residential projects expenses -463 122 Gross profit 1,923 1,667 • Rental growth in identical Central administrat
Slide 5: Property valuation Q3 2023
Property valuation Q3 2023 Property value SEK 82.7bn of which management portfolio SEK 68.5bn Q3 2023 Q2 2023 Q1 2023 Q4 2022 Externally 55% 60% 74% 80% valued Value change SEK -1,591m SEK -1,715m SEK -2,110m SEK -3,665mm Yield 4.25% 4.17% 4.11% 3.99% Value change Q3 2023 Value change Q2 2023 • Yiel
Slide 6: Sensitivity analysis – Property values
Sensitivity analysis – Property values Chane in value Impact on Equity per Equity/ratio Loan-to-value earnings after tax share 30/09/2023 SEK 131 47% 42% 5% SEK -3,283m SEK 118 45% 44% 10% SEK -6,566m SEK 108 43% 46% 20% SEK -9,850m SEK 97 41% 49% 25% SEK -13,133m SEK 87 39% 52% Based on property va
Slide 7: Key ratios, 30 September 2023
Key ratios, 30 September 2023 2023 2022 Jan-Sep Jan-Sep Target Equity per share, SEK 131 153 EPRA NRV, SEK per share 157 185 Total return properties, % -4.0 6.0 Surplus ratio, % 75 74 75 Equity/assets ratio , % 47 51 >35 Loan-to-value ratio, % 42 36 <50 Debt ratio, multiple 14.5 15.4 <13 Interest co
Slide 8: Financing
Financing Over view Activities during Jan-Sep ⚫ Still good demand for commercial paper Total debt SEK 34.6bn ⚫ Updated MTN-prospectus Undrawn credit facilities , SEK 4.4bn* ⚫ New bank facilities of SEK 2.9bn Loan-to-value 42% ⚫ Repaid bonds of SEK 2.0bn ⚫ Bond issue SEK 950m of which SEK 700m in Sep
Slide 9: Maturity profile
Maturity profile Commercial Paper back-up extended with 24 months every 6 months 2023: 2024: ⚫ Maturity: Commercial Paper 2,7bn (extended on average 3 months) ⚫ Q1: MTNs SEK 1.6bn, CP SEK 0.4bn ⚫ Maturity: MTNs 0.4bn (3/10) ⚫ Q2: MTNs SEK 1.9bn, bank SEK 1.7bn ⚫ Undrawn facilities 4.4bn ⚫ Q3: MTNs S
Slide 10: Fixed-rate period 30/09/2023
Fixed-rate period 30/09/2023 Average interest rate Maturity Swaps FXD MTN & Total Loan % 4 2023 750 412 1,162 3 2024 2,400 786 3,186 2 2025 2,200 400 2,600 1 2026 2,700 400 3,100 0 2027 2,800 450 3,250 2028 2,300 976 3,276 2029 2,000 2,000 ⚫ 60 per cent of the portfolio fixed 2030 800 800 ⚫ Average
Slide 11: Transactions
Transactions ⚫ Few office transactions ⚫ Large institutional ownership, ⚫ No stressed sellers ⚫ Pending market 11
Slide 12: Transactions
Transactions SEK 3.4bn to Nrep ⚫ Orgeln 7 • 39,200 sqm, Sundbyberg • BREEAM-SE Excellent ⚫ Glädjen 12, • 10,800 sqm, Stadshagen • BREEAM-SE Excellent ⚫ The properties was taken over on October 12 12
Slide 13: Rent development Stockholm Q3 2011 – Q3 2023
Rent development Stockholm Q3 2011 – Q3 2023 SEK 9,500 JLLs Property clock Q3 2023 8,500 Stockholm 7,500 6,500 5,500 Declining rental Rental growth declineg 4,500 3,500 Rental increase Declining 2,500 rental decline 1,500 Q3 11Q3 12Q3 13Q3 14Q3 15Q3 16Q3 17Q3 18Q3 19 Q320 Q3 21Q3 22Q3 23 CBD Prime C
Slide 14: Vacancies Q3 2011 – Q3 2023
Vacancies Q3 2011 – Q3 2023 % 26 22 18 14 10 6 2 Q3 11 Q3 12 Q3 13 Q3 14 Q3 15 Q3 16 Q317 Q3 18 Q3 19 Q3 20 Q3 21 Q3 22 Q3 23 14 CBD Other inner city Suburbs Solna/Sundbyberg Kista Source: Citymark and JLL
Slide 15: Fabege - Flexible solutions
FABEGE - FLEXIBLE SOLUTIONS Dog careiee Fabege . ; i} ww { TARY és 1 Sign. a
Slide 16: Net letting Jan-Sep 2023
Net letting Jan-Sep 2023 SEKm Acu Q3 Acu Q3 Net letting 2012-2022 SEKm 2023 2022 275 250 New lettings 160 175 225 200 175 Terminations -163 -107 150 125 Net letting -3 66 100 75 50 25 0 -25 Target 2023 > SEK 80m -50 -75
Slide 17: Stable customers with long agreements
Stable customers with long agreements Share of Year of Customer ⚫ Approx 700 customers total rent expiry SEB 6.3% 2037 ⚫ 25 largest customers represents 42% ICA Fastigheter Sverige 3.7% 2030 of rental value Convendum 3.5% 2034 ⚫ Average contract length 5.1 years Telia Company 3.4% 2031 ⚫ Share of to
Slide 18: Renegotiations Q3 2023
Renegotiations Q3 2023 Lease maturity structure Annual ⚫ Renegotiations Maturity, year No. of leases rent, SEKm Percentage, % 2023¹ 248 111 3% • SEK 287m extended on 2024¹ 437 551 16% unchanged terms 2025 276 509 15% 2026 274 553 16% • SEK 73m 1.0% 2027 120 443 13% 2028+ 126 1,135 33% • SEK 252m has
Slide 19: Occupancy rate 30/09/2023
Occupancy rate 30/09/2023 ⚫ Management portfolio • Economic occupancy rate 91% 96 94 ⚫ Development portfolio 92 • Relates to properties that are partly or fully vacated for project development, lettings are made for short-term 90 contracts without a right of possession 88 • In total approximately 23
Slide 20: Rental development existing lease portfolio 30/09/2023
Rental development existing lease portfolio 30/09/2023 SEKm 900 865 855 850 829 811 804 806 809 800 781 750 700 650 600 550 500 450 400 Q4-2022 Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q2-2024 Q3-2024 • Based on contracted leases including known occupations, relocations and renegotiations Q3 2023 • E
Slide 21: Capex
Capex Investments 2012-2022 SEKm 3,500 Investments 2023 2022 2023E 2024E SEKm Jan-Sep 3,000 Project- & developments 1,425 1,427 2,500 properties 2,000 Management 748 800 properties 1,500 Total 2,173 2,257 2,900 2,000 1,000 500 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 21
Slide 22: Project portfolio 30/09/2023
Project portfolio 30/09/2023 ⚫ Estimated capex: SEK 4.5bn • Of wich SEK 2.2bn spent Estimated Lettable Occupancy rate, % Book value, investment, of which Property listing Category Area Completed area, sqm space¹ Rental value² SEKm SEKm spent, SEKm Semaforen 1 Garage Arenastaden Q4-2023 18,000 0% 15
Slide 23: Birger Bostad and JV Haga Norra
Birger Bostad ⚫ Ongoing projects running as expected ⚫ 6 completed projects during the period ⚫ 27 apartments sold since the year-end JV Haga Norra ⚫ 39 apartments sold since the year-end 23
Slide 24: Sustainability - News
SUSTAINABILITY - NEWS Energy use rolling 12 month reduced to 72 kWh/sgm —taget to 2025 70 kWh/sgm Solar cells today produce 1.98 kWh/sqm in the managment portfolio Ackordet 1, Haga Norra, BREEAM-SE outstanding Recycling strategy - Goal 20% of materials in proje: should be recycled : - Our recycling
Slide 25: Fabege - GRESB 2023
FABEGE - GRESB 2023 Totalt Average score Total, participating companies 93 points 75 points 2,084 Fabege in GRESB 2023
Slide 26: Trust & Education
Trust $ Education crue MEETING , Ca “oy s & : s ~ 8 ema z Meaningful 9 " i} Pleasant _ spare time = - Z al surroundings Eat 4 mM: bi 2 , aay ) * S % ae % : 3 “sy 3 On ow Comfort *doavn109 Well being Employment >AKTIV VANTAN” - FOR A SAFER AND MORE ATTRACTIVE
Slide 27: Questions
Questions Our vision The success factor for a new era 27