Fabege AB Q3 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Jon Vuong - Van Lanschot Kempen - Analyst : Hi, good morning. You talked about increased activities. I understand it correctly, it's mostly in the city. So that -- is it fair to say that demand is more skewed towards smaller floor plates and any specific sectors that are looking to take up space again? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 21, 2025 / 8:30AM, FABG.ST - Q3 2025 Fabege AB Earnings Call

Question: Jon Vuong - Van Lanschot Kempen - Analyst : Okay. That's good to hear. And the discussions on rent levels, how does that compare to current market rents or ERVs, if you will?

Question: Jon Vuong - Van Lanschot Kempen - Analyst : Okay. That's clear. And just on the positive reversion that you're getting in Q3, I think you captured 4% on roughly SEK80 million of leases. Could you provide a bit more color? Is this coming from a specific asset that was hugely under-rented? Or do you see a turn in the market here?

Question: Jon Vuong - Van Lanschot Kempen - Analyst : Okay. That's clear. And in terms of investments, what size are we talking about?

Question: Jon Vuong - Van Lanschot Kempen - Analyst : Okay, thank you.

Question: Nadir Rahman - UBS AG - Analyst : Hi there, good morning and thank you for taking my questions and congrats on the positive reaction to the results. My first question is on the rent negotiations. So you mentioned at Q2 that you were seeing 3% declines and now Q3, you're seeing them stay rather flat. I think it's around minus 0.1%. So could you give some color on where this is concentrated? Are there any particular office submarkets for this? And then I'll save my following questions for afterwards. Thank you.

Question: Nadir Rahman - UBS AG - Analyst : Okay. Thank you. Very clear. And I see that like-for-like rents and values are still declining. So curious to know when these will bottom out and when you think the market will start to turn in favor of rents and value? And the same question as well for vacancy because it has been flat for a couple of quarters now around 13%. So do you think that the vacancy has now bottomed out and it will start to trend towards your 5% target? And also, you're guiding towards reaching this 5% vacancy by 2030. I think that was mentioned in your Q2 report. Is that still the case? Or do you think you can achieve this 5% ahead of 2030?

Question: Nadir Rahman - UBS AG - Analyst : No. So I mentioned the like-for-like rents and value declines. I think we've still seen the values declining the past few quarters. So I was curious to know if you think this will bottom out in 2026 or whether this will continue for the coming quarters?

Question: Nadir Rahman - UBS AG - Analyst : Okay. Very clear. And on the Saab letting, how did this impact the net letting? So what contribution did that particular net letting activity have--

Question: Nadir Rahman - UBS AG - Analyst : I see. Okay. And on the topic of the rents, I see in one of your slides, you mentioned that Saab contributes 4.7% of your total rental income share. Is that only including the current one-third rented out? Or are you taking the entire building in that calculation?

Question: Nadir Rahman - UBS AG - Analyst : Okay, that's very clear, thank you. That's all. Thank you both for taking the questions.

Question: Stephanie Dossmann - Jefferies LLC - Analyst : Hello, good morning. Just one question on your slide 15, which relates to the rental development. What are your assumptions in terms of indexation, rental uplift, the underlying assumptions, I mean, please?

Question: Stephanie Dossmann - Jefferies LLC - Analyst : Yeah. Right. Correct. Yeah.

Question: Stephanie Dossmann - Jefferies LLC - Analyst : All right. And what about the indexation impact then?

Question: Stephanie Dossmann - Jefferies LLC - Analyst : Okay. And regarding your financing, is the ICR a concern for your credit rating? And what is currently your marginal cost of refinancing?

Question: Stephanie Dossmann - Jefferies LLC - Analyst : Okay, thank you very much.