The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Nadir Rahman - UBS - Analyst
: My first question relates to vacancy. And you mentioned the SAAB and the Alfa Laval tenant and the positive effects on the vacancy. So what
quantum change could we expect in the next 18 months from these tenants moving into the properties?
And the second question is a follow-up on that is that there have been talks, I guess, in the press of Ericsson potentially exploring options beyond
their current site for a larger plot. Do you think they're a potential candidate for one of your properties in Solna?
Question: Nadir Rahman - UBS - Analyst
: Correct. Yes, from SAAB and Alfa Laval into the properties in the next 18 months. So what quantum change can we expect from that?
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OCTOBER 22, 2024 / 8:30AM, FABG.ST - Q3 2024 Fabege AB Earnings Call
Question: Nadir Rahman - UBS - Analyst
: Right. Yes.
Question: Nadir Rahman - UBS - Analyst
: And if I may ask a follow-up on a slightly different topic. So you mentioned in your presentation that the decline in space needed by businesses,
but you say it's driven by the business cycle. Or do you think this is a cyclical effect at this point in time? Or do you think that this is a more fundamental
shift in preference that may last for a longer time?
Question: Nadir Rahman - UBS - Analyst
: Sorry about that, sorry. So I should repeat that. So in your report, you mentioned a decline in space needed by businesses. That has been driven
by the business cycle. Do you find that this is a cyclical effect on this occasion?
Or do you think this is a more fundamental shift in the markets this time and in preferences that will be longer term?
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OCTOBER 22, 2024 / 8:30AM, FABG.ST - Q3 2024 Fabege AB Earnings Call
Question: Ventsi Iliev - Kempen & Co - Analyst
: First one would be on operations, of course, you mentioned that the office market is still challenging and --
Question: Ventsi Iliev - Kempen & Co - Analyst
: Okay. You mentioned a challenging office market. And then one trend specifically is that occupiers are taking longer. But that's not all because
rents are still under pressure and occupancy is moving up. So what, in your view, needs to change for operations to turn positive?
Question: Ventsi Iliev - Kempen & Co - Analyst
: Okay. And then on valuations, of course, you reported stable valuations. And then in Sweden, you typically talk about the yield requirement, which
you reported 4.5%, but let's say, on the rest of the continent, corporates typically look at the NOI yield, which if I calculate for you, I get to 3.8%.
And first, do you have any comments on that?
And second, why should your properties be appraised at such a yield when typically for the NOI yields, we see 4% or above?
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OCTOBER 22, 2024 / 8:30AM, FABG.ST - Q3 2024 Fabege AB Earnings Call
Question: Ventsi Iliev - Kempen & Co - Analyst
: Okay. And then maybe one last question on Convendum. It is one of your tenants. Could you just quote your total exposure to co-working. And
then just in general, there was also an interview with the CEO of Convendum and he was implying that Convendum cannot pass the inflation to
their customers.
So what's your view on that space in general?
Question: Alexander Totomanov - Green Street Power Partners LLC - Analyst
: Sorry, there were some technical difficulties. Two questions for me. This morning, you reported a 1.2% increase in vacancy driven by Solna, about
a 2% increase. And judging by the commentary, that seems to be driven by Arenastaden, and Hammarby by about a 4% increase. Could you please
comment on the new vacancies?
Are they driven by a couple of large tenants? How is the reletting discussion going? And do you expect -- where do you see the occupancy landing
by the end of the year? And one more question with regards to announced M&A. Yesterday, DNB announced it's purchasing Carnegie, which is
your fifth most significant tenant.
I know it's early innings, but given the 2027 expiry on the lease, are you already planning for this?
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