Heimstaden (HEIM) Q3 2025 earnings summary

Executive summary

• Like-for-like rental growth reached 4.5% year-over-year, with rental income at SEK 3,989 million, slightly down due to privatisation and portfolio sales.

• Net operating income margin improved to 75.3% from 73.0% year-over-year, driven by cost control and strong rental growth.

• Privatisation sales totaled SEK 2,865 million for 615 units, sold at a 28.2% premium to book value.

• Real economic occupancy remained high at 98.6%.

• Property values were stable, with a 0.2% increase in fair value.

Financial highlights

• Rental income decreased 0.7% year-over-year to SEK 3,989 million.

• Net operating income for the quarter was SEK 3,005 million, up from SEK 2,934 million a year ago.

• Net loan-to-value (LTV) improved to 53.3% from 57.4% year-over-year.

• Interest coverage ratio (ICR) remained stable at 1.9x.

• Cash flow from operating activities was SEK 747 million, up from SEK 293 million in Q3 2024.

Outlook and guidance

• No new development commitments in the quarter; 986 units expected to be delivered from Q4 2025 through 2027.

• Continued focus on value-accretive capital expenditures and portfolio optimisation.