Q3 2024 Fabege AB Earnings Call Transcript
Key Points
- Fabege AB (FBGGF) reported a positive valuation change in the third quarter after seven quarters of negative value changes.
- Rental income increased by 5% on a like-for-like basis for the first nine months of 2024.
- The surplus ratio for the third quarter was strong at 77%, indicating efficient cost management.
- Interest expenses decreased in the third quarter due to falling market interest rates and effective management of interest rate derivatives.
- The company achieved an excellent sustainability ranking, with a GRESB rating of 95 out of 100 for property management operations.
- Net letting was negative for the quarter, with a decrease of SEK11 million, indicating challenges in securing new tenants.
- The occupancy rate is expected to decrease in the near future due to tenant departures, such as Telia.
- The company faces challenges in the office market, with longer decision times for new contracts due to economic uncertainty.
- Convendum, a significant tenant, filed for Chapter 11, raising concerns about potential rent adjustments or vacancies.
- The overall property value decreased by SEK1.2 billion for the entire period, despite a positive change in the third quarter.
Please go ahead.
(audio in progress) our presentation for the third-quarter 2024. The first slide you have seen before. It's about the focus we have on Stockholm, like we only have 100 properties from Stureplan to Flemingsberg. We have a little bit more than 1 million square meters and a total value of SEK78 billion. And as you now have seen in the report, the valuation this quarter was positive.
During the quarter, we had the pleasure of officially welcoming -- have some positive happenings. We have developments. We have welcomed Royal Swedish Opera, the Royal Dramatic Theatre to Flemingsberg. We're going to open a restaurant in Regulatorn in Flemingsberg. We have started the tenants to move in to Ackordet in Haga Norra, the garage in Haga Norra has finished, and so on and so on. The list can be quite long. But with that said, there are also some challenges.
Next slide, please. You see some of the figures for the third quarter. We have almost the same level of rental incomes, even
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