Heba Fastighets (HEBA) Q2 2024 earnings summary

Executive summary

• Q2 2024 saw property values stabilize after seven quarters of decline, with profit for the period at SEK 17.5m compared to a loss of SEK -201.2m in Q2 2023.

• Management result increased 10% year-over-year to SEK 112.8m for H1 2024, excluding JV housing cooperative income.

• Rental income decreased to SEK 276.2m for H1, mainly due to property sales in 2023.

• Acquired three elderly care properties, including a senior living facility in Täby, and sold two residential properties needing renovation.

• Upgraded credit rating to BBB with stable outlook and launched a new sustainability-linked and green framework.

Financial highlights

• Net result after tax for Jan–Jun 2024 was -22.6 MSEK, or -0.14 SEK per share, compared to -388.6 MSEK (-2.35 SEK/share) last year.

• Operating surplus (NOI) decreased by 2% to 197.7 MSEK (201.9 MSEK year-over-year).

• Property value change was -51.4 MSEK for H1, a significant improvement from -647.3 MSEK last year.

• Rental income decreased by 5% to 276.2 MSEK (289.3 MSEK year-over-year).

• Dividend of SEK 0.52 per share was distributed in May 2024.

Outlook and guidance

• Management expects a market turnaround, especially in residential property in Stockholm, with positive forecasts due to strong demand in core markets.

• Financial targets include income from property management above SEK 200m, LTV below 50%, NOI margin above 70%, and increasing NOI share from public buildings.