Heimstaden (HEIM) Q4 2025 earnings summary

Executive summary

• Achieved strong operational performance in 2025, with stable rental income, high occupancy, and margin growth driven by disciplined execution and sustainability integration.

• Portfolio diversified across major European cities, focusing on affordable, well-managed homes and responsible property management.

• Sustainability remains central, with top ESG ratings and progress on climate targets, including a 14.2% emissions reduction since 2020.

Financial highlights

• Rental income for 2025 was SEK 15,916 million, flat year-over-year (2024: SEK 15,919 million).

• Net operating income improved to SEK 11,475 million (2024: SEK 11,188 million), with a margin of 72.1% (2024: 70.3%).

• Property expenses decreased by 6.1% to SEK 4,378 million, reflecting cost control and portfolio streamlining.

• Real economic occupancy remained high at 98.5% for the year.

• Fair value of investment properties at year-end was SEK 324,429 million, with a 3% annual increase.

• Realised gains from property divestments reached SEK 2,207 million, with privatisation sales at a 28.9% premium to book value.

• Goodwill impairment of SEK 3,707 million recorded in Q4.

• Profit before tax was SEK 16,012 million (2024: SEK 10,403 million); profit for the year was SEK 13,056 million (2024: SEK 7,621 million).

Outlook and guidance

• Expect continued value growth in Sweden and Denmark, driven by strong rental performance and stabilising yields.

• Positive valuation momentum anticipated in Denmark and Czechia; moderate price pressure in Norway expected to reverse in 2026.

• Majority of outstanding development deliveries expected through 2026, adding 901 units and SEK 2,440 million in value.