Heba Fastighets (HEBA) Q4 2024 earnings summary

Executive summary

• Profit after tax for 2024 was 98.7 MSEK, a turnaround from -712.3 MSEK in 2023, with EPS at 0.60.

• Management result reached 215.5 MSEK, exceeding the 200 MSEK target despite lower rental income from property sales.

• Strategic focus on Stockholm, Mälardalen, and elderly care, with community properties now 30% of NOI.

• High occupancy and cost efficiency led to a surplus/NOI margin of 72%.

• Dividend proposal for 2024 is 0.52 SEK/share.

Financial highlights

• Rental income for 2024 was 561.8 MSEK, down 0.7% due to property sales; NOI increased to 403.8 MSEK.

• Management result for Jan–Dec 2024: 215.5 MSEK (270.7 MSEK in 2023); excluding JV condo income, results are comparable.

• Property value change: 37.9 MSEK (0.3%), compared to -1,084.5 MSEK (-6.9%) last year.

• Q4 profit: 106.6 MSEK (-57.8 MSEK); Q4 property value change: 70.5 MSEK (-80.7 MSEK).

• Profit before tax was 142.4 MSEK, compared to -1,044.1 MSEK last year.

Outlook and guidance

• 2025–2030 targets: 5% annual management result growth, leverage below 45%, surplus/NOI margin above 70%.

• Property value to exceed 20 BSEK; at least 20% of NOI from community properties.

• ESG: climate-neutral property management by 2030, all operations by 2045, all properties energy class C or better by 2030.

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