Fabege AB (publ)

Solid Q3 operating performance; leasing momentum strongest near-term driver - Net letting: +SEK 55m in Q3 (positive despite some pressure in comparable portfolio). - Rental income: SEK 2.7bn, +~4% vs Q2; residential development NOI also strong (Q3: +SEK 112m, YTD: +SEK 112m, per CFO commentary). - Occupancy: 87% (unchanged vs Q2); company emphasized vacancy reduction and leasing as the primary value lever.

Comparable rental trend still pressured, but “decided/contracted effects” improve forward numbers - Identical portfolio rental growth: -1.2% (management linked to prior-year negative net letting). - Portfolio/project tailwinds: projects finalized earlier contributed ~SEK 132m during the period; management also guided that Q4 and 2027 are shaped by project/renegotiation effects (see below). - Q3/forward leasing commentary: CBD activity viewed as strengthening; more “4 days/week” office policies from tenants; incentives/discounting described as not increasing materially (possibly tightening slightly).

Renegotiations support cash flow; next quarters shaped by specific one-offs - Renegotiations (Q3): SEK 90m total (uplift +~SEK 1.9m); breakdown noted: SEK 60.4m renegotiated rents (+3%) and SEK 31m extensions. - YTD renegotiations: SEK 320m (slightly down ~0.6%); net lease YTD: -SEK 7m. - Important timing effects (investors should model separately): - DNB Carnegie: “old contract” effects visible in Q3; full effect in Q4 2026, while new contract starts from Q3 2027 (detailed in CEO remarks). - One-off discount/IFRS effect: CEO expects a slight drop in Q4 2026 due to rebates/discount accounting tied to a renegotiated refurbishment/tenant situation; future cash flow is expected higher.