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1. Company Snapshot

1.a. Company Description

Fabege AB (publ), a property company, focuses primarily on the development, investment, and management of commercial premises in Sweden.Its property portfolio comprises office, retail, industrial/warehouse, residential, hotel, and garage properties.The company also engages in the acquisition and sale of properties.


It owns 94 properties.The company was formerly known as Wihlborgs Fastigheter AB and changed its name to Fabege AB (publ) in December 2005.Fabege AB (publ) was founded in 1924 and is headquartered in Solna, Sweden.

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1.b. Last Insights on FABG

Fabege AB's recent performance was buoyed by a Q3 2025 earnings report showcasing increased rental income and positive net letting. Despite market challenges, the company's ability to navigate complexities is evident. A mixed quarter highlights resilience in rental income growth. According to recent earnings call highlights, Fabege's strategic positioning supports stability. No information on share buyback or new product launches is available. Property value declines and occupancy rates presented challenges. (Source not cited for rating)

1.c. Company Highlights

2. Fabege's 2025 Earnings: A Mixed Bag

Fabege's rental income stood at SEK 3.5 billion, a slight increase from the previous year, while the surplus ratio in property management was 74%, with a profit from property management of SEK 1.4 billion, up 5.5% from the previous year. The company's earnings per share (EPS) was -0.57223, missing estimates of 0.983. The fourth quarter saw a rental income of SEK 899 million, up 4.4% from the previous year, with a profit from property management of SEK 371 million, up 11%. The company's net lettings for the quarter were SEK 33 million, ending the year at plus SEK 36 million.

Publication Date: Feb -09

📋 Highlights
  • Rental Income Growth: Annual rental income rose to SEK 3.5 billion (+1.4% YoY), with Q4 rental income up 4.4% to SEK 899 million.
  • Profitability Improvement: Profit from property management reached SEK 1.4 billion (+5.5% YoY), with Q4 profit up 11% to SEK 371 million.
  • Dividend and Returns: Proposed dividend of SEK 2.20/share and EPRA NRV of SEK 145/share, reflecting 1.1% total return on properties.
  • Sustainability Progress: CO2 emissions cut by 35% since 2018, and energy consumption reduced to 65 kWh/m², with 12,500 parking spaces including 2,700 EV charging spots.
  • Financial Resilience: Strong liquidity with SEK 6 billion undrawn facility, 47% fixed-rate debt, and occupancy rate increased to 86% (14% vacancy reduction).

Operational Highlights

Fabege's occupancy rate increased to 14% due to new projects entering the management portfolio. The company has a strong financing position, with an undrawn facility of SEK 6 billion and a bond issue of SEK 850 million in January. The average interest rate cost has decreased during the year, with 47% of the portfolio having a fixed interest rate. Bent Oustad, the CEO, notes that the company is working closely with tenants to keep them, and the potential for new commercial projects starts this year, but Fabege prefers to have tenants in place before starting larger projects.

Valuation and Dividend

The company's EPRA NRV was SEK 145 per share. The Board has proposed a dividend per share of SEK 2.20, with a dividend yield of 2.37%. The current P/B Ratio is 0.71, indicating that the stock might be undervalued. Fabege's P/S Ratio is 7.05, and EV/EBITDA is 24.91, suggesting a relatively high valuation for its earnings. The company's ROE is -0.92%, and ROIC is 0.0%, indicating poor profitability.

Future Prospects

Fabege guides for SEK 70 million negative from associated companies, mainly Arenabolaget. Rental income will increase, partly due to positive net letting. The company targets an equity return of 15% for land development projects, mainly in core areas. Analysts estimate next year's revenue growth at 3.0%. The company is confident about a relatively stable average interest rate this year, and the financing market is strong, but Fabege's interest rate duration is a bit low.

Strategic Initiatives

Fabege has a strong tenant list and is working closely with tenants to keep them. The company is monitoring long-term interest rates, ready to act when favorable, with some older swaps maturing this and next year, increasing interest rate costs. Fabege is also considering opportunities for capital recycling but hasn't made decisions on rationalizing locations or tightening portfolio segments.

3. NewsRoom

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Assessing Fabege (OM:FABG) Valuation After Recent Steady Share Price Performance

Feb -09

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Fabege AB (FRA:WILC) Q4 2025 Earnings Call Highlights: Strong Property Management Growth Amid ...

Feb -05

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Fabege AB (STU:WILC) Q3 2025 Earnings Call Highlights: Navigating Market Challenges with ...

Oct -21

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Fabege AB (FRA:WILC) Q2 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...

Jul -08

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Fabege AB (FBGGF) Q1 2025 Earnings Call Highlights: Navigating Challenges with Strategic Focus

Apr -15

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3 European Growth Stocks With Insider Ownership Seeing Up To 52% Earnings Growth

Mar -27

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High Insider Ownership Growth Stocks To Watch In February 2025

Feb -26

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Fabege AB (FRA:WILC) Q4 2024 Earnings Call Highlights: Navigating Challenges with Strategic Optimism

Feb -07

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.24%)

6. Segments

Management

Expected Growth: 7%

Fabege AB's 7% growth is driven by effective management, led by a strong CEO, who has implemented a successful strategy focusing on sustainable property development, efficient operations, and strategic acquisitions. This, combined with a favorable Swedish real estate market, has resulted in increased rental income and property values, ultimately driving the company's growth.

Birger Housing

Expected Growth: 9%

Birger Housing from Fabege AB (publ) achieves 9% growth driven by increasing demand for sustainable and modern housing in Sweden, fueled by urbanization and a growing population. Strong brand reputation, strategic partnerships, and efficient project management also contribute to this growth.

Processing

Expected Growth: 6%

Fabege AB's 6% growth is driven by increasing demand for sustainable and flexible office spaces, strategic acquisitions, and a strong Swedish economy. The company's focus on innovative and energy-efficient buildings, coupled with its solid financial position, enables it to capitalize on market trends and expand its portfolio.

Projects

Expected Growth: 8%

Fabege AB's 8% growth is driven by increasing demand for sustainable and modern offices in Stockholm, strategic acquisitions, and a strong development pipeline. Additionally, the company's focus on innovation, cost control, and efficient project management contribute to its growth momentum.

7. Detailed Products

Office Properties

Fabege AB (publ) offers office spaces for rent, providing modern and flexible work environments for businesses of all sizes.

Warehouse and Logistics Properties

Fabege AB (publ) provides warehouse and logistics facilities for rent, catering to the needs of e-commerce, manufacturing, and distribution companies.

Retail Properties

Fabege AB (publ) offers retail spaces for rent, providing prime locations for retailers to showcase their products and services.

Residential Properties

Fabege AB (publ) develops and manages residential properties, offering apartments and homes for rent.

Project Development

Fabege AB (publ) develops and manages large-scale projects, including urban development initiatives and infrastructure projects.

8. Fabege AB (publ)'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Fabege AB (publ) is medium due to the presence of alternative real estate companies in the Swedish market.

Bargaining Power Of Customers

The bargaining power of customers is low as Fabege AB (publ) has a strong brand reputation and a diversified customer base.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium as Fabege AB (publ) relies on a few large suppliers for construction materials and services.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the Swedish real estate market, including regulatory hurdles and high capital requirements.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the Swedish real estate market, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 45.66%
Debt Cost 3.95%
Equity Weight 54.34%
Equity Cost 9.18%
WACC 6.79%
Leverage 84.04%

11. Quality Control: Fabege AB (publ) passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Allreal Holding

A-Score: 6.1/10

Value: 3.3

Growth: 2.1

Quality: 6.6

Yield: 6.9

Momentum: 8.0

Volatility: 10.0

1-Year Total Return ->

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VGP

A-Score: 6.1/10

Value: 3.1

Growth: 6.1

Quality: 7.0

Yield: 5.6

Momentum: 7.5

Volatility: 7.3

1-Year Total Return ->

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Grainger

A-Score: 5.4/10

Value: 5.6

Growth: 5.4

Quality: 6.4

Yield: 5.0

Momentum: 2.0

Volatility: 8.0

1-Year Total Return ->

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Aroundtown

A-Score: 4.7/10

Value: 7.7

Growth: 4.1

Quality: 6.1

Yield: 3.1

Momentum: 4.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Fabege

A-Score: 4.3/10

Value: 2.4

Growth: 3.7

Quality: 5.0

Yield: 4.4

Momentum: 4.0

Volatility: 6.0

1-Year Total Return ->

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CPI Property Group

A-Score: 4.1/10

Value: 4.5

Growth: 6.0

Quality: 3.3

Yield: 0.0

Momentum: 2.0

Volatility: 9.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

81.35$

Current Price

81.35$

Potential

-0.00%

Expected Cash-Flows