Heimstaden (HEIM) Q2 2025 earnings summary

Executive summary

• Like-for-like rental income grew 5.2% year-over-year, with total rental income at SEK 3,959 million, supported by indexations, tenant improvements, and rent reversion.

• Net operating income rose to SEK 2,930 million, with a quarterly NOI margin of 74.0% and LTM NOI margin of 71.5%.

• Real economic occupancy increased to 98.5%, reflecting strong demand and portfolio management.

• Property values increased by 1.2% during the quarter, driven by positive rental growth and robust housing markets.

• Privatisation sales reached SEK 2,268 million, with 507 units sold at a 29.9% premium to book value.

Financial highlights

• Rental income for Q2 2025 was SEK 3,959 million, up 0.4% year-over-year.

• Net operating income margin improved to 74.0% from 71.4% in Q2 2024.

• Net loan-to-value (LTV) reduced to 54.2% from 58.1% year-over-year.

• Interest coverage ratio (ICR) stood at 1.9x, up from 1.8x in Q2 2024.

• Net cash flow from operating activities was SEK 1,234 million, with closing cash and equivalents at SEK 5,705 million.

Outlook and guidance

• Continued focus on value-accretive capital expenditures and privatisation sales to support deleveraging.

• Expectation of further unit deliveries in Denmark, Sweden, Czechia, and Germany, with an estimated fair value of SEK 2,849 million and annualised NOI of SEK 115 million.

• Ongoing deployment of maintenance and sustainability investments, with increased capital expenditure anticipated.