HEBA

The NOI margin for the period increased to 72.5% as compared to 72.2% in the preceding period. Comprehensive income for the interim reporting period remains negative, mainly due to adverse changes in value. The change in value of real estate for January-September 2024 was SEK -32.6m (-1,003.8), corresponding to -0.3% (-6.4). The change in value of real estate for Q3 alone was positive at SEK 18.8m (-356.4).

Patrik Emanuelsson, CEO of Heba Fastighets AB:

Heba’s performance in the period of January-September is a sign of strength and evidence that we are doing things the right way. We are delivering in line with our targets for the year. The board of directors set new financial and ESG targets for 2025-2030.

New financial targets 2025-2030 for growth with financial stability:

• Average annual growth in income from property management of 5%
• Average annual LTV of 45% or below and never above 50% 
• NOI margin above 70%
• Market value of properties exceeding SEK 20bn
• At least 20% of NOI generated by public buildings
• Dividend to shareholders of at least 50% of income from property management, adjusted for tax

The strategy for hitting the financial targets is to achieve growth through profitable acquisitions, new builds and exits. New builds must generate surplus value of at least 10%. We are focusing on a traditional builder role in which we build both to own and to sell while maintaining a strong balance sheet.

The ESG targets include achieving climate-neutral property management by 2030 and reducing energy use to 40 kWh/m2. All properties shall obtain energy class C or better by 2030 and all properties shall be environmentally certified five years ahead of that, in 2025. Read more about the targets in the interim report.

Key figures for the interim reporting period, January-September 2024:

• The loss for the interim period amounted to SEK -7.9m (-654.5), corresponding to SEK -0.05 (‑3.96) per share.
• Income from property management excluding commonhold apartment income in jointly controlled entities increased by 3% to SEK 168.5m (163.6).
• Rental income amounted to SEK 418.0m (436.9).
• Net operating income was SEK 302.9m (315.3).
• Change in the value of properties of SEK -32.6m (-1,003.8). 

Ownership of a senior living facility comprising 54 apartments in Täby was transferred to Heba and two residential properties in Midsommarkransen were sold during the quarter. We also began building 128 residential rental units in Källberga in Q3, one of several outstanding projects in the project portfolio. We have also entered into a general building contract for 48 residential rental units in Hägersten planned for completion in 2026.

Heba will present results for January–September 2024 in a pre-recorded video. The video will be published on ir.hebafast.se after the report is released.