Read Our Annual Report 2020
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We turn vision into reality Annual and Sustainability Report 2020 About Fabege Our focus areas This is Fabege 1 Highlights of the year 2 Message from the CEO 4 p. 20 Stockholm Business concept, vision and strategy 10 Future prospects 12 City development 18 inner city Stockholm inner city 20 Hammarby Sjöstad 22 Arenastaden 24 Haga Norra 26 p. 22 Hammarby Solna Business Park 28 Flemingsberg 30 Sustainability 32 Sjöstad Employees 34 Case study 36 Targets and results 38 Message from the CFO 40 p. 24 Arenastaden Financial reporting Directors’ Report 43 Financing 46 p. 26 Haga Norra Risks and opportunities 48 Group 60 Statement of comprehensive income 60 Statement of financial position 61 Statement of changes in equity 62 p. 28 Solna Statement of cash flows 63 Parent Company 64 Business Park Profit and loss accounts 64 Balance sheet 64 Statement of changes in equity 65 Statement of cash flows 65 Notes 66 p. 30 Flemingsberg Corporate Governance Report 82 Message from the Chairman 82 Executive Management Team 92 Board of Directors and Auditor 94 Signing of the Annual Report 96 Auditor’s Report 97 Sustainability Sustainability Report 100 GRI index 130 Limited assurance review of the Sustainability Report 133 Other information Property portfolio 134 Projects 137 Property listing 140 Share information 147 Five-year summary 148 Reconciliation of key performance indicators 149 Definitions 151 Annual General Meeting and registration 152 This is a translation of the Swedish original. In case of any inconsistency between the Swedish and the Contents English version, the Swedish version shall prevail. About Fabege | Financial Reporting | Sustainability | Other information Fabege | 2020 | CEO comment | Business concept | Future prospects | City development | Sustainability | Employees | Case studies | Targets | CFO comment This is Fabege With a focus on commercial properties, Fabege develops attractive locations in the Stockholm area. We are a proactive partner that puts people front and centre. Our innovative, responsible and flexible ethos enables companies, locations and our city to develop and thrive. 94 We take a long-term approach in our perspective and ownership. properties 191 Major owner on our submarkets ditions to help people and companies employees We create value by managing, improv- develop and thrive. Through close co- ing and actively adjusting our property operation and the efficient use of re- portfolio through sales and acquisi- sources, we build value for our owners, 100% tions. With combined property clus- customers and their employees. of our properties* are ters, we build up extensive market environmentally certified knowledge and generate significant Holistic approach to sustainability opportunities to help our customers The fact that we are a major property thousand grow and satisfy their various needs owner in our submarkets means we 1,245 sqm locally. Furthermore, this approach of- can take significant responsibility for lettable area fers us a firm foundation for effective whole areas and contribute towards property management and a high oc- making Stockholm a more climate - thousand cupancy rate. friendly location. At the same time we 578 sqm want to help increase enjoyment of, office development rights From the customer’s perspective and safety in the street environment, The key to Fabege’s value creation is particularly by adding interesting and developing our customer offering to unexpected elements to our everyday SEK 3.2bn keep pace with the times and bringing lives that create life between the build- rental value long-term attractive districts to life. ings. Through green financing we cre- Rapid changes in society demand ate sustainable buildings, environ- strong business partners who are re- ments and a long-term healthy and SEK 76.6bn sponsive and have the energy to find pleasant city for those who spend time property value new solutions to new needs. Our con- here. We adopt an active role and con- * Relates to investment and project portfolio cept isn’t primarily about constructing sider the entire area. All the time. excluding future development properties buildings. It’s about creating the con- Clear geographical Great potential Stable and green Three concentration and a We have a large portfolio of We have a stable balance targeted focus development rights for both sheet and strong key ratios. reasons Our presence in a select num- office and residential prop- “Trends come and go, but to invest ber of fast-growing submar- erties. Low initial values and real estate will always be kets in the Stockholm area an efficient construction needed”. This describes in Fabege creates many advantages. It process create good poten- our business well. We are a means we have good knowl- tial to generate impressive leader in sustainability and edge of the market and effi- values. The goal is to invest have 100 per cent green fi- cient property management. SEK 10bn in our office devel- nancing and a 100 per cent It is not possible to be the opment rights alone over a environmentally-certified in- best at everything. We have four-year period. vestment and project prop- therefore chosen to focus on erty portfolio. commercial properties and close proximity to our cus- tomers. We are experts in Stockholm’s office market. FABEGE ANNUAL AND SUSTAINABILITY REPORT 2020 1 About Fabege | Financial Reporting | Sustainability | Other information Fabege | 2020 | CEO comment | Business concept | Future prospects | City development | Sustainability | Employees | Case studies | Targets | CFO comment Scandinavia’s first zero-energy hotel Scandinavia’s first zero-energy hotel has almost been completed in Arena- staden. The hotel is part of Nordic Choice Hotel’s Comfort Hotel chain, with 336 rooms, 88 long-stay apart- ments and Nordic Choice Hotel’s Swedish headquarters. Lunches for City Mission We’ve bought just short of 20,000 lunches from restaurants in our prop- erties and donated them to the City Mission and care workers in Stockholm during the pandemic. Key piece of the puzzle in place in Sweden’s biggest urban develop- ment project During the year we acquired the Regu- latorn 2 property, which constitutes a key piece of the puzzle in the develop- Unusual opportunity for new ment of the future district of Flemings- Arenastaden home to Europe’s building projects in inner city bergsdalen. The transaction gives us healthiest workplace Fabege has been granted a land allo- greater control over the district’s future SEB’s offices in Arenastaden have cation permit by the City of Stockholm development. achieved Fitwel healthy building cer- at Sveaplan. A prerequisite for the cre- tification. It is the first workplace in ation of the development right, cover- Europe to be awarded three stars, ing about 9,000 square metres, is that which only five per cent of those Sveaplan is redeveloped in accord- that apply for certification manage ance with the city’s plans for Östra to achieve. Hagastaden. 2 FABEGE ANNUAL AND SUSTAINABILITY REPORT 2020 About Fabege | Financial Reporting | Sustainability | Other information Fabege | 2020 | CEO comment | Business concept | Future prospects | City development | Sustainability | Employees | Case studies | Targets | CFO comment Fabege | 2020 | CEO comment | Business concept | Future prospects | City development | Sustainability | Employees | Case studies | Targets | CFO comment Royal Opera and Theatre choose Fabege and Flemingsberg The Royal Swedish Opera (Operan) and the Royal Dramatic Theatre (Dramaten) have signed a lease with Fabege to relocate parts of their oper- ations from Nacka to Flemingsberg. Fabege is included in the sustaina- The lease marks the start of the next bility index Global Challenges (GCX) phase of Fabege’s urban development Fabege is the first real estate company plans in Flemingsbergsdalen. to qualify for GCX. The fact that all in- vestment properties are environmen- tally certified according to BREEAM In- Use and all new production is certified according to BREEAM-SE is the reason for the inclusion in the index. The pandemic The pandemic has been a major fea- ture of the year on all levels of society. We have focused on maintaining close contact with our customers and sup- porting our employees. New land allocation in Hammarby Sjöstad Fabege and the City of Stockholm have come to agreement on a land allocation on Hammarby Fabriksväg (Korp hopp et 5). The land allocation forms part of the city’s project to link up Hammarbyhöjden and Hammarby Sjöstad. Together with the acquisition of Påsen 1 and Fabege’s surrounding properties in the area, the new land Fabege is a Great Place to Work allocation creates significant opportu- Fast-growing technology At the end of 2020, our workplace was nities to expand Hammarby Sjöstad’s company signs lease with certified as a ‘Great Place to Work’. The vibrant urban character. Fabege standard is proof that our employees Mentimeter, with over 80 million consider Fabege to be a good work- users and customers in over place. 200 countries, is now relocat- ing its Swedish headquarters to Fabege’s architectural gem at Apotekaren 22 in the city. FABEGE ANNUAL AND SUSTAINABILITY REPORT 2020 3 About Fabege | Financial Reporting | Sustainability | Other information Fabege | 2020 | CEO comment | Business concept | Future prospects | City development | Sustainability | Employees | Case studies | Targets | CFO comment “I’m aware that over the past year we have learned to appreciate what the office means for us as individuals and for the company.” Stefan Dahlbo President and CEO Fabege 2020 will go down in history as a year that fea- During the summer and start of autumn the tured dramatic events, major fluctuations and situation stabilised, largely thanks to significant many surprises. A year that began with much economic and political intervention, and there promise soon came to demand significant ad- was some room for optimism. Until November. justments of us all, both on a personal level and Then it turned out that this pandemic wasn’t for society as a whole.