Heba Fastighets (HEBA) Q3 2024 earnings summary

Executive summary

• Management result increased 3% to SEK 168.5m (excluding JV housing revenues) compared to the same period last year, despite property divestments reducing rental income by SEK 93m.

• Profit after tax for Q3 was SEK 14.7m, a turnaround from a loss of SEK -265.9m in Q3 2023; nine-month loss after tax was SEK -7.9m (-654.5m), mainly due to less negative property value changes.

• Acquired three elderly care/senior living properties and sold two residential properties requiring renovation.

• Issued SEK 350m in green bonds and started construction of 128 rental apartments in Källberga.

• Property portfolio now consists of 57 properties, with 3,108 residential and 117 non-residential units, and a very low vacancy rate.

Financial highlights

• Operating surplus/NOI decreased 4% to SEK 302.9m; rental income down 4% to SEK 418.0m compared to the same period last year.

• Q3 management result was SEK 55.9m (60.3m), and Q3 net result was SEK 14.7m (-265.9m).

• Q3 property value change was +18.8m SEK, compared to -356.5m SEK in Q3 2023; nine months: -32.6m SEK (-1,003.8m).

• NOI margin reached a record high of 72.5%.

• NAV per share: SEK 46.42 (47.05); share price at 30 September: SEK 37.15 (23.95).

Outlook and guidance

• Financial targets for 2025–2030: average management result/property management income growth of 5% per year, leverage/LTV not to exceed 45% on average, surplus/NOI margin above 70%, and at least 20% of net operating income from community properties.

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

• ESG targets: climate-neutral property management by 2030, all operations by 2045, halve energy use, and 100% green financing by 2030.