Heba Fastighets (HEBA) Q1 2025 earnings summary

Executive summary

• Q1 2025 profit reached SEK 53.5 million, reversing a loss of -SEK 40.1 million year-over-year; EPS improved to SEK 0.32 from -SEK 0.24.

• Management result was SEK 55.0 million, up from SEK 54.6 million year-over-year.

• Rental income increased by 11% to SEK 150.9 million, driven by acquisitions.

• Confirmed BBB credit rating with stable outlook; SEK 350 million in green bonds issued.

• Strategic focus on profitable, sustainable growth in Stockholm and Mälardalen, emphasizing rental housing and care properties.

Financial highlights

• Operating surplus (NOI) rose by 15% to SEK 108.2 million year-over-year.

• Property value change was SEK 18.1 million, corresponding to a 0.1% increase; total property value SEK 13.7 billion.

• Net loan-to-value ratio at 44.4%, total LTV at 44.6%; equity ratio 45.6%.

• Average interest rate on property loans at 2.69%.

• Cash flow from operations was SEK 42.4 million; investments SEK 57.0 million.

Outlook and guidance

• New financial targets for 2025–2030: average annual management result growth of 5%, NOI margin above 70%, LTV not exceeding 45%.

• Target for property market value to exceed SEK 20 billion by 2030; Q1 2025 value at SEK 13.7 billion.

• At least 20% of net operating income to come from community service properties.

• Dividend policy: at least 50% of management result after tax.