Fabege Ab · OMXSTO:FABG

Fabege Ab — Q2 2023 Earnings Presentation

38 slides from Fabege Ab's earnings presentation, Jul 7, 2023

  1. Slide 1: Fabege Interim Report Jan-Jun 2023

    Fabege Interim Report Jan-Jun 2023 Stefan Dahlbo, CEO Åsa Bergström, CFO

  2. Slide 2: Flemingsberg

    Flemingsberg • Fastighetsvärde 2,6 Mdkr • 9 fastigheter • 70 000 kvm • 8:e största studentstad • Initiativ om social hållbarhet

  3. Slide 3: Summary Jan-Jun 2023

    Summary Jan-Jun 2023 ● Increased rental income and operating surplus ● Increased interest costs ● Slightly lower managemnt profit ● Negative value changes in the property portfolio ● Net letting SEK +22m ● LOI signed regarding the tental of entire Nöten 4 at Solna Strand (66,000 sqm) 3

  4. Slide 4: Condensed income statement

    Condensed income statement SEKm Jan- Jun 2023 Jan-Jun 2022 Rental income 1,685 1,480 Sales residential projects 308 28 Net sales 1,993 1,508 Property expenses -444 -399 Residential projects expenses -281 -23 Gross profit 1,268 1,086 • Rental growth in identical Central administration -55 -55 portfol

  5. Slide 5: Property valuation Q2 2023

    Property valuation Q2 2023 Property value SEK 83,5bn of which management portfolio SEK 69.7bn Q1 2023 Q2 2023 Q4 2022 Q3 2022 Externally 60% 47% 80% 35% valued Value change SEK -1,715m SEK -2,110m SEK -3,665m SEK 253m Yield 4.17% 4.11% 3.99% 3.77% Value change Q1 2023 Value change Q2 2023 • Yield (+

  6. 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 30/06/2023 SEK 134 47% 40% 5% SEK -3,316m SEK 124 46% 43% 10% SEK -6,631m SEK 111 44% 45% 20% SEK -13,263m SEK 90 40% 51% 25% SEK -16,579m SEK 80 38% 54% Based on property v

  7. Slide 7: Key ratios, June 2023

    Key ratios, 30 June 2023 2023 2022 Jan-Jun Jan-JUn Target Equity per share, SEK 134 151 EPRA NRV, SEK per share 161 183 Total return properties, % -3,0 5.1 Surplus ratio, % 74 73 75 Equity/assets ratio , % 47 51 >35 Loan-to-value ratio, % 40 36 <50 Debt ratio, multiple 14.6 15.1 <13 Interest coverag

  8. Slide 8: Financing

    Financing Over view Activities during H1 ⚫ Still good demand for commercial paper Total debt SEK 33.8bn ⚫ New bank facilities of SEK 2.9bn Undrawn credit facilities , SEK 5.9bn* ⚫ Bond issue SEK 250m (February) Loan-to-value 40% ⚫ Repaid bonds of SEK 1.2bn Sustainability 100% Green financing ⚫ Updat

  9. Slide 9: Maturity profile

    Maturity profile SEKm 3,500 3,000 Commercial Paper back-up extended every 6 months (to 24 months) 2,500 2,000 1,500 1,000 500 0 Commercial paper Medium term notes Credit facilities 2023: 2024: ⚫ Maturity: Commercial Paper 2,5bn (extended on average 3 months) ⚫ Q1: MTNs 1.6bn ⚫ Maturity: MTNs 1.2bn ⚫

  10. Slide 10: Fixed-rate period 30/06/2023

    Fixed-rate period 30/06/2023 Maturity Swaps FXD MTN & Total Loan ⚫ 61 per cent of the portfolio fixed 2023 1,050 114 1,164 ⚫ Average fixed-rate term 2.3 years 2024 2,400 786 3,186 ⚫ Fixed interest derivatives between -0.15% and 1.30% 2025 2,200 400 2,600 ⚫ Sensitivity analysis rolling 12 months: 202

  11. Slide 11: Flemingsberg

    Flemingsberg • Fastighetsvärde 2,6 Mdkr • 9 fastigheter • 70 000 kvm • 8:e största studentstad • Initiativ om social hållbarhet

  12. Slide 12: Rent development in Stockholm

    Rent development in Stockholm 12

  13. Slide 13: Take-up in Stockholm

    Take-up in Stockholm 300 000 280 000 260 000 240 000 220 000 200 000 180 000 = 160 000 3 140 000 120 000 100 000 80 000 60 000 40 000 20 000 oO. 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 m CBD Mlnner city, CBD excluded = North of Sthlm ™ South of Sthim Source: CityMark Analys

  14. Slide 14: Office stock and office employment in Stockholm

    Office stock and office employment in Stockholm 14

  15. Slide 15: Vacancies in Stockholm

    Vacancies in Stockholm 20 18 16 14 12 Percent 10 woes ba me = weet =~ | | 2012 q3 2013 q1 2013 q3 2014.q1 2014 q3 2015 q1 2015 q3 2016 q1 2016 q3 2017 q1 2017 q3 2018 q1 2018 q3 2019 q1 2019 q3 2020 q1 2020 q3 2021 q1 2022 q1 2022 q3 2023 q1 —— CBD —— Inner city, CBD excluded ——— North of Sthim 1 ==

  16. Slide 16: Trends

    Trends ⚫ A digital transformation that drives change ⚫ Values, well-being and sustainability ⚫ Need for flexibility, simplicity and service ⚫ Availability more important ⚫ The offices are still important, but need to be developed

  17. Slide 17: Net letting 2023

    Net letting 2023 SEKm H1 H1 Net letting 2012-2022 SEKm 275 2023 2022 250 225 New lettings 136 137 200 175 Terminations -114 -93 150 125 100 Net letting 22 44 75 50 25 Target 2023 > SEK 80m 0 -25 -50 -75

  18. Slide 18: Stable customers with long agreements

    Stable customers with long agreements Share of Year of Customer ⚫ Approx 700 customers total rent expiry SEB 6.4% 2037 ⚫ 25 largest customers represents 42% ICA Fastigheter Sverige 3.7% 2030 of rental value Telia Company 3.5% 2031 ⚫ Average contract length 5.1 years Convendum 3.3% 2034 ⚫ Share of to

  19. Slide 19: Renegotiations Q2 2023

    Renegotiations Q2 2023 Lease maturity structure Annual Maturity, year No. of leases rent, SEKm Percentage, % 2023¹ 349 261 8% ⚫ Renegotiations 2024¹ 427 567 16% 2025 248 492 14% • SEK 241m extended on 2026 1 271 532 15% unchanged terms 2027 99 450 13% 2028+ 98 1,019 29% • SEK 73m 1.5% Commercial 1,4

  20. Slide 20: Occupancy rate 30/06/2023

    Occupancy rate 30/06/2023 ⚫ Management portfolio • Economic occupancy rate 91% 95 94 ⚫ Development portfolio 93 • Relates to properties that are partly or fully vacated for project development, lettings are made for short-term 92 contracts without a right of possession 91 • In total approximately 23

  21. Slide 21: Rental development existing lease portfolio 30/06/2023

    Rental development existing lease portfolio 30/06/2023 SEKm 900 855 858 861 850 848 850 829 800 771 781 750 700 650 600 550 500 450 400 Q3-2022 Q4-2022 Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q2-2024 • Based on contracted leases including known occupations, relocations and renegotiations Q2 2023 • E

  22. Slide 22: Capex

    Capex Investments 2012-2022 SEKm 3,500 Investments 2023 2022 2023E 2024E SEKm Jan-Jun 3,000 Project- & developments 884 1,427 2,500 properties 2,000 Management 518 800 properties 1,500 Total 1,402 2,257 2,900 2,000 1,000 500 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 22

  23. Slide 23: Project portfolio 30/06/2023

    Project portfolio 30/06/2023 ⚫ Estimated capex: SEK 4.4bn ⚫ Capex H1 2023: SEK 882m 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 Parking Arenastaden Q4-2023 18,000 0% 15

  24. Slide 24: Arenastaden 2008 and 2022

  25. Slide 25: Flemingsberg

    Flemingsberg • Fastighetsvärde 2,6 Mdkr • 9 fastigheter • 70 000 kvm • 8:e största studentstad • Initiativ om social hållbarhet

  26. Slide 26: Solna Business Park

    A Ce. = eSolna Busifies

  27. Slide 27: Flemingsberg

    Flemingsberg • Fastighetsvärde 2,6 Mdkr • 9 fastigheter • 70 000 kvm • 8:e största studentstad • Initiativ om social hållbarhet

  28. Slide 28: Flemingsberg

    Flemingsberg © 1960: 350 INHABITANTS a

  29. Slide 29: Flemingsberg Idag

    FLEMINGSBERG IDAG Workers: 15,000 Residents: 15,000 Students: 18,000 Campus Flemingsberg Sédertérn University KTH Royal Institute of Technology Karolinska Institutet Swedish Red Cross University Idun Lovén Art School Stockholm University College of Music Education

  30. Slide 30: Flemingsberg Vision 2050

    FLEMINGSBERG VISION 2050 50,000 residents 50,000 workers 50,000 students

  31. Slide 31: Flemingsberg

    Flemingsberg • Fastighetsvärde 2,6 Mdkr • 9 fastigheter • 70 000 kvm • 8:e största studentstad • Initiativ om social hållbarhet

  32. Slide 32: Birger Bostad JV Haga Norra

    Birger Bostad ⚫ Ongoing projects running as expected ⚫ 5 completed projects during the period ⚫ 21 apartments sold since the year-end JV Haga Norra ⚫ 34 apartments sold since the year-end 32

  33. Slide 33: Building rights 30/06/2023

    Building rights 30/06/2023 ⚫ Commercial building rights • 742,400 gross floor area, sqm • Approx. 19 % legal binding • Book value: SEK 6,400/sqm ⚫ Residential building rights • 605,000 gross floor area, sqm • Approx. 33 % legal binding • Book value: SEK 6,700/sqm 33

  34. Slide 34: Sustainability work continues

    Sustainability work continues ⚫ Reduce energy consumption to 70 kWh/sqm 2025 ⚫ Increased number of charging points for cars ⚫ The recycling hub, circularity goal ⚫ The Sustainability House ⚫ Efforts for social sustainabiltiy 34

  35. Slide 35: The Sustainability House

    The Sustainability House

  36. Slide 36: In total, we have saved

    In total, we have saved about 105 kg CO2e/sqm regarding recycled material and 18 kg CO2e/sqm regarding transport from suppliers that has been avoided. Examples of recycled materials: Stairs (exterior/interior) 100% Doors (interior/exterior) 100% HDF 100% Cooling units 100% Kitchenettes 100% Toilets,

  37. Slide 37: 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

  38. Slide 38: Questions

    Questions Our vision The success factor for a new era 38

Fabege — Q2 2023 Earnings Presentation on 6ix