DOCSLIB.ORG

Our Customers and Our Locations Are Central in Everything We Do

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Our Customers and Our Locations Are Central in Everything We Do Our customers and our locations are central in everything we do. ANNUAL REPORT 2012 Contents Fabege Introduction 2012 in brief Fabege is one of Sweden’s leading property This is Fabege com panies, focusing mainly on letting and managing Message from the CEO 2 offi ce premises as well as property development. The business Business model and strategic focus 4 A goal-oriented business 6 Fabege off ers attractive and effi cient premises, mainly offi ces The business 8 but also retail and other premises. Th e company’s operations are Property Management 10 highly concentrated to a number of fast-growing submarkets Property Development 12 in the Stockholm region, namely Stockholm inner city, Solna and Transactions 14 Hammarby Sjöstad. Market and property portfolio 16 Fabege manages a well-located property portfolio that is Market overview 18 continuously refi ned through development, sales and acquisitions. Fabege’s markets Th e concentration of properties to well-contained clusters brings Stockholm inner city 20 the company closer to its customers, which, coupled with Fabege’s Hammarby Sjöstad 22 Solna 24 extensive local expertise, creates a solid foundation for effi cient Property portfolio 28 property management and high occupancy. Valuation of the Fabege’s vision is to be the most proactive, innovative and property portfolio 30 competent commercial property company in Stockholm as well as Property listing 32 an important partner for its customers and society in general. Opportunities and risks 38 At the close of 2012, Fabege owned 95 properties with a Financing 42 combined market value of SEK 31.6 bn. Th e company’s rental income for the year was SEK 1.9bn. Sustainability Responsible enterprise 44 report Environmental work 46 Employees 50 Suppliers 52 Concentrated portfolio Business ethics 53 Social involvement 54 GRI Index 56 Solna Financial The fi nancial year 58 Stockholm reporting Directors’ Report 60 The Group Statement of comprehensive income 66 Statement of fi nancial position 67 Statement of changes in equity 68 Statement of cash fl ows 69 Hammarby The Parent Profi t and loss accounts 70 Company Balance sheets 70 Statement of changes in equity 71 Statement of cash fl ows 71 Notes 72 Corporate Governance Report 83 Board of Directors and Auditor 90 Group Management 90 Signing of the Annual Report 92 Auditor’s Report 93 per cent of Other Share information 95 information Information to shareholders 98 the portfolio Five-year summary 99 History 100 is found within a fi ve-kilometre radius Defi nitions 100 of the centre of Stockholm The formal audited Annual Report comprises the information on pages 60–92. This document is in all respects a translation of the Swedish original Annual Report. In the event of any differences between this translation and the Swedish original, the latter shall prevail. 2012 in brief Financial highlights Customers are even more Rental income increased to SEK 1,869m (1,804). The year-on-year change satisfi ed was due to growth through Long-term and stable relationships positive net lettings and with satisfi ed customers are a completed projects. critical success factor for Fabege. Realised and unrealised In 2012, surveys were conducted of value changes amounted to all customers. In view of the requests SEK 1,576m (1,266) for presented, Fabege’s procedures were improved in a number of properties and SEK –190m aspects, leading to even greater (–397) for fi xed-income customer satisfaction. derivatives. Profi t for the year before tax increased to SEK 2,032m (1,417). After-tax profi t for the year amounted to SEK –88m (1,141), correspond- Successful energy-effi ciency ing to earnings per share of SEK –0.54 (7.01), following enhancements a provision of SEK 1,900m for ongoing tax matters. In 2012, Fabege continued its efforts to minimise the company’s environ mental impact and, in co-operation with customers, to contribute to Net lettings amounted sustainable urban development. The best examples are the successful to SEK 141m (130). energy-effi ciency enhancements that combine positive environmental effects with cost-savings for both tenants and Fabege. Heating consumption declined The Board proposes an additional 4 per cent in 2012, which is approximately 50 per cent lower a dividend of SEK 3.00 than the average level for Stockholm County. per share (3.00). Rental income and net operating income Surplus ratio Equity/assets ratio SEKm % % 2,500 80 45 40 75 2,000 35 70 30 1,500 25 65 20 1,000 60 15 500 10 55 5 0 50 0 08 09 10 11 12 03 04 05 06 07 08 09 10 11 12 03 04 05 06 07 08 09 10 11 12 Rental income Net operating income Results Target: 70% Results Target: at least 30% Fabege 2012 The business Fabege operates in three business areas: Property Management, Property Development and Transactions. Theme Fabege the customer FABEGE Property Property Transactions Management Development PROPERTY MANAGEMENT Th e essence of what Fabege does is fi nding the right premises for a customer’s specifi c requirements and ensuring that the customer is content. Fabege’s approach is long-term and based on close dialogue In this vignette, we will present some of with the customer, thus building mutual trust and loyalty. Fabege’s projects and partnerships during 2012. Read about some of our conversion PROPERTY DEVELOPMENT projects, tenant customisations and sustain- Qualifi ed development activities that add value to Fabege’s ability projects. properties comprise the second cornerstone of the business. Th e company has long-standing expertise and long experience of extensive property development projects and strives to attract long-term tenants to properties that have not yet been fully developed and can be redesigned based on the customer’s specifi c requirements. TRANSACTION Fabege’s third cornerstone is Transactions. Acquisitions and sales are an integral part of Fabege’s business model and make a signifi cant contribution to consolidated profi t. Th e company continuously analyses its portfolio to take advantage of opportunities to increase capital growth. Key fi gures 2012 2011 Operational key fi gures 2012 2011 Rental income, SEKm 1,869 1,804 Property value, Property Management, SEKbn 28.8 22.8 Net operating income, SEKm 1,264 1,227 Property value, Property Development, SEKbn 2.8 6.4 Profi t for the year, SEKm –88 1,141 Invested in the proprietary property portfolio, Return on equity, % –0.8 9.9 SEKbn 2.0 1.5 Surplus ratio, % 68 68 Acquisitions, SEKbn 0.3 0.5 Equity/assets ratio, % 34 39 Sales, SEKbn 1.3 0.9 Interest coverage ratio, multiple 2.3 2.2 Earnings per share before and after dilution, SEK –0.54 7.01 www.fabege.se Dividend per share, SEK 3.001) 3.00 for more information about Fabege and its operations. 1) Proposed cash dividend for 2012. 2012 IN BRIEF Submarkets Stockholm inner city Several of Fabege’s city properties are located in the quarters around Kungsgatan, Drottninggatan, at Norrtull and on east and west Kungs holmen. The property port- folio includes the two well-known profi le properties, DN-huset and the Wenner- Gren Center. Read more on page 32. Portion of Fabege’s total rental value No. of properties 37 Lettable area, ‘000 sqm 475 Market value, SEKm 16,950 Rental value, SEKm 1,197 Financial occupancy rate, % 93 53% Solna Arenastaden and Solna Business Park are Fabege’s principal submarkets in Solna. Fabege is both an initiator and partner of the new and emerging Arenastaden district. The Friends Arena is located here, while the construction of the Mall of Scandinavia shopping complex, the Quality Hotel Friends, offi ce properties and residential units is under way. Read more on page 34. Portion of Fabege’s total rental value No. of properties 37 Lettable area, ‘000 sqm 503 Market value, SEKm 11,904 Rental value, SEKm 840 Financial occupancy rate, % 90 37% Hammarby Sjöstad Fabege owns most of the commercial properties in Hammarby Sjöstad, where the Luma property is the largest. This is one of the most interesting development areas in Stockholm and is currently highly attractive for housing and office premises. Read more on page 36. Portion of Fabege’s total rental value No. of properties 13 Lettable area, ‘000 sqm 126 Market value, SEKm 2,515 Rental value, SEKm 205 Financial occupancy rate, % 88 9% 1 Message from the CEO Satisfi ed customers the key to our success It is crucial for Fabege to maintain close customer relations. As a result, we have worked intensely during the past two years to implement a structured customer process through which we increasingly ask customers about their requirements to identify how we can enhance our performance. The positive effects of this programme are clearly visible. The tenant retention rate – meaning how large a percentage of our tenants choose to extend their lease – rose substantially. Compared with previous levels, recent years have seen a 50 per cent reduction in the number of tenants wishing to relocate. One factor underlying customer satisfaction is that we, via our with this project is to create the most attractive offi ce workplace local offi ces, consistently work close to our customers, making it location in Scandinavia. Similarly, we are developing and profi l- easier to identify requests and changes in requirements. Also, ing all locations in an environment in which offi ces are mixed thanks to owning a large number of properties in particular loca- with residential, retail and experience-based facilities. tions, we have excellent potential to meet new requirements. When tenants expand and need larger premises, or are faced with ENVIRONMENTAL GAINS AND REDUCED COSTS other changes in requirements, we can usually meet their needs Sustainability is another key component in making our proper- within the particular location.
Load more

Recommended publications
  • “Our Customers and Locations Are Central in Everything We Do.” Contents 2010 in Brief
    Annual Report 2010 “Our customers and locations are central in everything we do.” Contents 2010 in brief Introduction 2010 in brief 1 This is Fabege 2 Message from the CEO 4 Solna The business Strategic focus 6 Stockholm Opportunities and risks 9 Financing 10 The business 12 Property portfolio 20 Hammarby Property valuation 24 Sjöstad Market review 26 Fabege markets Stockholm inner city 28 Solna 30 Concentrated portfolio Hammarby Sjöstad 32 During the year, Fabege sold 54 properties for List of properties 34 SEK 4,350m. Accordingly, Fabege has concluded Responsible enterprise 40 the streamlining of its portfolio to its prioritised submarkets. The concentration has resulted in 98 per Financial reports The 2010 fi nancial year 48 cent of Fabege’s properties now being located within Directors’ report 50 fi ve kilometres of Stockholm’s centre. The divestments have freed capital with which to increase project in- The Group Profi t and loss accounts 56 vestments in the proprietary portfolio, and to acquire Balance sheets 57 properties offering favourable growth potential. Statement of changes in equity 58 Cash fl ow statement 59 Fabege’s heat consumption is The parent company Profi t and loss accounts 60 Balance sheets 60 40 per cent below national Statement of changes in equity 61 Cash fl ow statement 61 average. Fabege’s climate work began in 2002 with a project to replace Notes 62 old oil-fi red boilers with district heating. After that Fabege initiated Corporate governance report 74 a systematic effort to optimize the use of energy, and Fabege cur- Board of Directors 80 rently consumes 40 per cent less heat than the national average.
    [Show full text]
  • View Annual Report
    “ Our customers and locations are central in everything we do.” Annual Report 2009Ä P L Ä Ä G E N Contents Highlights of 2009 Introduction 2009 in brief 1 This is Fabege 2 Message from the CEO 4 Financial highlights The business Strategic focus 6 • Earnings after tax for the year increased by SEK The business 10 936m from SEK –511m to SEK +425m. The lower Property portfolio 15 net interest expenses added SEK +244m and re- Market valuation 18 duced negative value adjustments brought another The investment market 19 Market review 20 SEK +1,753m, while the effective tax rate increased Fabege markets by SEK – 1,084m. Stockholm inner city 23 • Earnings before tax were SEK 561m (–1,285) Solna 24 in Property Management and SEK 119m (–55) in Hammarby sjöstad and Other markets 27 Improvement Projects. List of properties 28 • The profit from property management increased to Responsible enterprise 34 SEK 838m (568) while rental income decreased Financial reports Directors’ report 42 to SEK 2,194m (2,214) due to sales of properties. The Group Profit and loss account 48 • The surplus ratio increased to 67 per cent (65%). Balance sheet 49 Statement of changes in equity 50 • Earnings per share were SEK 2.59 (–3.07) and Cash flow statement 51 equity per share was SEK 61 (60). The parent company Profit and loss account 52 • The Board proposes a dividend of SEK 2.00 per Balance sheet 52 share (2.00). Statement of changes in equity 53 Statement of Cash flows 53 Notes 54 Signing of the Annual Report 66 www.fabege.se Audit report 67 More information about Fabege and our operations Corporate governance report 68 is available on the Group’s website.
    [Show full text]
  • WE CREATE CONDITIONS for SUCCESS ANNUAL REPORT 2015 This Document Is a Translation of the Original, Published in Swedish
    WE CREATE CONDITIONS FOR SUCCESS ANNUAL REPORT 2015 This document is a translation of the original, published in Swedish. In cases of any discrepancies between the Swedish and English version, or in any other context, the Swedish original shall have precedence. FABEGE CREATES CONDITIONS FOR SUCCESS INTRODUCTION This is Fabege 1 Highlights of the year 2 Message from the CEO 4 Business concept, strategy and value chain 6 Business model 8 Targets 10 OPERATIONS Overview of operations 12 Property Management 14 Property Development 18 ATTRACTIVE Transactions 22 Valuation 24 LOCATIONS Market overview 26 Fabege’s properties are located in a Stockholm inner city 28 number of the fastest growing areas in Hammarby Sjöstad 30 Stockholm all of which offer excellent Solna 32 Arenastaden 34 transport facilities. Sustainability work 36 Stakeholder dialogue 38 Material issues 39 Employees 40 Business ethics 44 Social involvement 46 CONCENTRATED MODERN Awards and nominations 47 PORTFOLIO PROPERTIES FINANCIAL Directors’ Report 49 Concentrated portfolios facilitate market Modern, sustainable offi ces REPORTING Risks and opportunities 56 awareness and provide opportunities to in attractive locations in terms of Group meet customer requirements. This means the transport links and good surrounding Statement of comprehensive income 63 Statement of fi nancial position 64 company is well placed to infl uence the services are increasingly in demand. Statement of changes in equity 65 development of entire city districts and Fabege offers modern, fl exible and Statement
    [Show full text]
  • View Annual Report
    WE CREATE CONDITIONS FOR SUCCESS ANNUAL REPORT 2017 CONTENTS INTRODUCTION This is Fabege 1 Highlights of the year 2 Message from the CEO 4 Employees 6 How we create value 10 Business model 12 Targets and results 14 DEVELOPMENT OF CITY DISTRICTS Market overview 16 City district development strategy 20 Stockholm inner city 22 Hammarby Sjöstad 23 Arenastaden 24 Haga Norra 26 Solna Business Park 27 Projects 28 OPERATIONS Overview of operations 34 Property Management business area 36 Property Development business area 38 Transactions business area 40 Energy and environment 42 Sustainable relationships 46 Valuation of the property portfolio 48 FINANCIAL REPORTING Directors’ Report 51 Financing 54 Risks and opportunities 57 Group 63 Statement of comprehensive income 63 Statement of financial position 64 Statement of changes in equity 65 Statement of cash flows 66 Parent Company 67 Profit and loss accounts 67 Balance sheets 67 Statement of changes in equity 68 Statement of cash flows 68 Notes 69 Corporate Governance Report 82 Message from the Chairman 82 Executive Management Team 91 Board of Directors and Auditor 92 Signing of the Annual Report 94 Auditor’s Report 95 OTHER INFORMATION GRI index 98 Sustainability Report in accordance with Swedish Annual Accounts Act 100 Limited assurance review of the Sustainability Report 101 Five-year summary 102 Reconciliation of key ratios 103 The Fabege share 104 Property portfolio 108 Property listing 110 Definitions 116 Annual General Meeting and registration 117 Audited financial information Sustainability information subjected to limited assurance review Information about Fabege’s sustainability work is detailed under each operating segment and management of sustainability issues is described in the Corporate Governance Report.
    [Show full text]
  • We Create Conditions for Success
    We create conditions Annual Report 2013 FABEGE AB for success | ANNUAL REPORT 2013 REPORT ANNUAL Introduction 2013 at a glance 2 Message from the CEO 4 This is Fabege 6 Business model 8 Targets 10 Core values 12 The business Market and driving forces 14 Business areas 16 Property Management 18 Property Development 20 Transaction 22 Market overview 24 Stockholm inner city 26 Hammarby Sjöstad 28 Solna 30 Arenastaden 32 Valuation 34 Financing 36 Risks and uncertainties 38 Sustainability Sustainability report 42 report Brief note from the CEO 43 Sustainability for Fabege 44 Environment 46 Employees 50 Business ethics 54 Social involvement 55 GRI index 56 Financial Directors’ Report 58 reporting Group Statement of comprehensive income 64 Statement of financial position 65 Statement of changes in equity 66 Statement of cash flows 67 Parent Company Profit and loss accounts 68 Balance sheets 68 Statement of changes in equity 69 Statement of cash flows 69 Notes 70 Corporate Governance Report 81 Executive Management Team 87 Board of Directors and Auditor 88 Signing of the Annual Report 90 Auditor’s Report 91 Other Five-year summary 93 information Share information 94 Property portfolio 96 Property listing 98 Definitions 104 Information to shareholders 104 This document is a translation of the original, published in Swedish. In cases of any discrepancies between the Swedish and English versions, or in any other context, the Swedish original shall have precedence. FABEGE ANNUAL REPORT 2013 Modern properties Sustainable Stockholm Long-term Growth areas Concentrated portfolio Customer proximity Informal Project development Prime locations Efficient Business orientation Property Management Offices We are one of Sweden’s leading property com panies, focusing mainly on letting and managing office premises as well as property development.
    [Show full text]
  • Fabege – Annual Report 2016
    ANNUALANNUAL REPORT REPORT 2016 2016 WE CREATE CONDITIONS FOR SUCCESS CONTENTS Introduction This is Fabege 1 Highlights of the year 2 Message from the CEO 4 How we create value 6 Business model 8 Targets and results 10 Development of city districts Introduction 12 Market overview 14 Stockholm inner city 18 Hammarby Sjöstad 20 Solna 22 Arenastaden 24 Solna Business Park 26 Operations Overview of operations 28 Property Management business area 30 Property Development business area 34 Transactions business area 38 Valuation of the property portfolio 40 Energy and the environment 42 Sustainable relationships 44 Employees 46 Financial reporting Directors’ Report 51 Financing 54 Risks and opportunities 56 Group 63 Statement of comprehensive income 63 Statement of financial position 64 Statement of changes in equity 65 Statement of cash flows 66 Parent Company 67 Profit and loss accounts 67 Balance sheet 67 Statement of changes in equity 68 Statement of cash flows 68 Notes 69 Corporate Governance Report 82 Message from the Chairman 82 Executive Management Team 91 Board of Directors and Auditor 92 Signing of the Annual Report 94 Auditor’s Report 95 Other information GRI index 98 Limited assurance review of the Sustainability Report 100 Five-year summary 101 The Fabege share 102 Property portfolio 104 Property listing 106 Definitions 112 Information to shareholders 113 Audited financial information Sustainability information subjected to limited assurance review Information about Fabege’s sustainability work is detailed under each operating segment and management of sustainability issues is described in the Corporate Gover- nance Report. For further information about Fabege’s sustainability work, visit www.fabege.com.
    [Show full text]
  • “ Our Customers and Locations Are Central in Everything We Do.”
    “ Our customers and locations are central in everything we do.” Annual Report 2009Ä P L Ä Ä G E N Contents Highlights of 2009 Introduction 2009 in brief 1 This is Fabege 2 Message from the CEO 4 Financial highlights The business Strategic focus 6 • Earnings after tax for the year increased by SEK The business 10 936m from SEK –511m to SEK +425m. The lower Property portfolio 15 net interest expenses added SEK +244m and re- Market valuation 18 duced negative value adjustments brought another The investment market 19 Market review 20 SEK +1,753m, while the effective tax rate increased Fabege markets by SEK – 1,084m. Stockholm inner city 23 • Earnings before tax were SEK 561m (–1,285) Solna 24 in Property Management and SEK 119m (–55) in Hammarby sjöstad and Other markets 27 Improvement Projects. List of properties 28 • The profit from property management increased to Responsible enterprise 34 SEK 838m (568) while rental income decreased Financial reports Directors’ report 42 to SEK 2,194m (2,214) due to sales of properties. The Group Profit and loss account 48 • The surplus ratio increased to 67 per cent (65%). Balance sheet 49 Statement of changes in equity 50 • Earnings per share were SEK 2.59 (–3.07) and Cash flow statement 51 equity per share was SEK 61 (60). The parent company Profit and loss account 52 • The Board proposes a dividend of SEK 2.00 per Balance sheet 52 share (2.00). Statement of changes in equity 53 Statement of Cash flows 53 Notes 54 Signing of the Annual Report 66 www.fabege.se Audit report 67 More information about Fabege and our operations Corporate governance report 68 is available on the Group’s website.
    [Show full text]