Fabege is performing well! Early in the year, we noted growth in income, profit from property management and property values. Positive net lettings in the past year are now contributing to this beneficial development, as project properties are being completed and tenants are assuming occupancy. In the first quarter, we signed many new leases, which will contribute to a continued positive trend in the time to come.
Our potential for continued positive development is strong today, now that we see that Stockholm is growing at the same time as the new production of offices remains low. Fabege offers modern offices in attractive locations. Our concentration brings us closer to our customers and provides strong market familiarity, which are two pivotal factors for maintaining existing tenants and identifying new customers.
Our committed employees are working hard to also make 2012 a good year for net lettings. During the first quarter, we signed more than 50 new leases, of which the lease with the Swedish Tax Agency (SEK 60m, net) was by far the largest. Equally important is the fact that our customers choose to stay in our premises.
We have secured a stronger cash flow for the future and we create value. At the same time we know that there is more potential to pursue.
The rate of investment remained high during the quarter. Efforts to complete our five major projects are progressing. We also commenced the project of remodelling the Nöten 4 property in Solna strand on behalf of the Swedish Tax Agency. We expect to maintain a high and profitable rate of investment during the year.
Despite an uncertain business environment and weaker economic forecasts also for Sweden, we have not noted any signs of a slowdown in our business discussions to date. We continue to encounter significant interest from potential tenants. Internally, we have initiated an effort to become a more customer-oriented organisation. By being more receptive to our tenants’ needs, we create more satisfied customers and even more committed employees, thus forming the foundation for continued increased income and value growth moving forward.
Stockholm, March 2012
Christian Hermelin
CEO Fabege