Heimstaden (HEIM) Investor presentation summary

Financial performance and profitability

• Operating profit reached SEK 5,986 million, supported by a SEK 3,086 million property value increase and strong rental growth of 5.4% like-for-like, with a 98.3% real economic occupancy rate and a 71% NOI margin.

• Standalone adjusted earnings after debt and hybrids were SEK 523 million for Q1 2025, with cost control reducing OPEX by 4.3% LTM.

• Divestments, including Danish development projects, generated SEK 489 million in profit and SEK 937 million in gross proceeds.

• Management contract income was SEK 180 million, and other income from asset sales contributed significantly to quarterly results.

• Gross asset values and cash increased by 6.5% since Q1 2024, reflecting asset sales and value growth.

Balance sheet and capital structure

• Net interest-bearing debt decreased to SEK 8,680 million, with cash and cash equivalents at SEK 1,359 million as of Q1 2025.

• Heimstaden Bostad's adjusted net asset value stood at SEK 128,530 million, with a 35.9% share of capital.

• Debt reduction of approximately SEK 9 billion since Q2 2022, driven by asset sales and refinancing.

• Issued EUR 430 million fixed rate and SEK 750 million floating rate senior unsecured bonds, extending the maturity profile.

• Standalone ICR improved to 3.0x and Net LTV reduced to 18.5%, both well within covenant thresholds.

Portfolio and operational highlights

• Pan-European residential portfolio spans nine markets with 323,360 homes and a fair value of SEK 323 billion.

• Like-for-like rental growth outpaced inflation, with most markets showing positive rental momentum.

• Real economic occupancy remained above 98% for the 15th consecutive quarter.

• NOI margin reached a record high, with potential to exceed the 71% guidance for FY25.

• Value growth was recorded across all markets, with a 1.0% quarterly gain in property values.