WELCOME TO FABEGE 20 SEPTEMBER 2018

Transcription

1 WELCOME TO FABEGE 20 SEPTEMBER 2018 Hammarby Sjöstad Solna Business Park Arenastaden Stockholms inner city

2 Fabege owns and manages every ten square meters of office space in Greater Stockholm.

3 FABEGE DEVELOPS Over 50% of the office production in the Stockholm region

4 VALUE CREATING CITY DISTRICT DEVELOPMENT CUSTOMER Property management: low risk with stable cash flow Property development: creates value imprives quality of portfolio Transaction: finance projects boost potential of portfolio Fabege s concentrated property portfolio provides us with good opportunities to influence the development of entire city districts

5 MARKET CONDITIONS Strong rental market Increasing rental levels Renegotiation + 29% (H1) Net letting SEK 123 (H1) Increasing property values Decreasing yields Value creation through project development growth and relocation to quality favor rental increase in our city districts

6 MARKET OUTLOOK Stockholm is growing More and more people emplyed in office use Limited new production pipe line Very low vacancies in attractive locations New construction can not meet demand Increasing rental levels Decreasing or stable yields

7 Project portfolio

8 INCREASED RETURN ON PROJECTS Our low building rights costs Rising rents Declining yields 10 years average return: 52% WHAT CAN HAPPEN? Our low building rights costs consists Even with a rent reduction of SEK 500/sqm and a increase in yieds with of 0.5 %, gives a margin of 50 % NEW TARGET RETURN ON PROJECTS = 50 %

9 INCREASED INVESTMENT VOLUME Building rights in attractive areas Many alternative areas Strong demand 10 years average investment volume: SEK 1.8bn WHAT CAN HAPPEN Our areas are likely to be only more attractive Our office building rights last for 10 years Demand is likely to be strong in the long term NEW TARGET INVESTMENT VOLUME SEK 2.5 BN/YEARLY

10 Quality Hotell Friends Råsunda Centralskola Paradiset Ongoing projects

11 Farao 15, 16, 17 35,000 sqm office Possible start 2020 #Park1 30,000 sqm office Possible start 2020 Haga Norra 55,000 sqm office Possible start 2020 Kairo 40,000 office Possible start 2020 Sliparen 1 in Solna Business Park 25,000 office Possible start 2020 Possible projects Bostäder Residential building rights in the portfolio 290,000 sqm

12 V I S I ON FLEMINGSBERG: STOCKHOLM SOUTH BUSINESS DISTRICT

13 Common prerequisites Flemingsberg 2018 och Arenastaden 2008 Track bound hub Large volume of land Effective municipality

14 Success factor: Stockholm south travel hub

15 Success factor: Vibrant city district WORKING LIVING VISITING

16 Result and financing

17 KEY FIGURES Q jan-jun 2018 jan-jun 2017 jan-dec 2017 Target Equity per share, SEK EPRA NAV, SEK per share Total return properties, % 10,8 4,7 15,0 Return on projects, % Min 50 Surplus ratio, % (2020) Equity/assets ratio, % Min 35 Loan-to-value ratio, % Max 50 Debt ratio, multiple 14,5 16,1 15,5 Max 13 (long term) Interest coverage ratio, multiple 3,4 3,0 3,2 Min 2.2

18 FINANCING 30 JUNE 2018 Activities during the first half-year Investment grade rating from Moody s Issued SEK 2.3bn in Fabege s MTN Expanded MTN-program from SEK 5bn to SEK 8bn Expanded total facilities with aprrox SEK 900m Reduced some on outstanding certificates in favor of longer-term bonds Extended capital maturity from 4.0 to 4.7 years Extended fixed-rate period from 2.5 years to 3.1 through new long-term interest rate swaps, totaling SEK 2.2 bn at maturities between 7 and 10 years Swap expiery reduced the average interest rate significantly Total facilities SEK 28.5 bn Total loans SEK 24.9 bn Of which, bonds SEK 7.2 bn Of which, commercial paper SEK 3.2 bn Green financing totalled 53 per cent of outstanding loans Unutilized SEK 3.5 bn Capital maturity period: 4.7 years Fixed-rate period: 3.1 years Average interest 1.83%

19 THANK YOU FOR YOUR ATTENTION

20 Appendix

21 LARGEST SHAREHOLDERS N umber of sha res* Proportion of equity, % Proportion of votes,% Erik Paulsson with family, privately and company 51,021, Fourth AP-fund 13,947, BlackRock 12,794, Länsfötrsäkringar Funds 12,314, Investment AB Öresund 11,520, Vanguard 8,404, Mats Qviberg with family 7,495, E.N.A City AB 6,068, Handelsbanken Funds 4,949, Principal Global Investors 4,908, Swedbank Robur Funds 4,848, SEB Funds 4,062, AFA Försäkringar 4,256, TR Property Investment Trust 3,946, Pensionskassan SHB Försäkringsförening 3,840, Total 15 largest shareholders 154,378, Other 176,404, Total no. of shares outstanding 330,783, Treasury shares Total no. of registrated shares 330,783,

22 OUR BUILDING RIGHTS 30 JUNE 2018 Commercial building rights sqm ( sqm in Arenastaden) Approx 36 % legally bindning Booked value: approx SEK 3 000/sqm Residential building rights sqm Approx 34 % legally bindning Booked value: < SEK 8 000/sqm