Heba Fastighets AB (publ)

Welcome to us at HEBA. We have just released our report for the first quarter of 2024 and we are going to tell you a little bit about the results of the period. With us we have Patrik Imanelsson, our CEO, and we have Hanna Fransén, our CFO. My name is Eva Vase and I work as a communication manager. Patrik, I think you should start by summarizing the

period. I can summarize it by saying that we continue to deliver strong results on the parts we can ourselves overcome. Strong management results, financial stability, distribution, even within the sustainability area where we have just released our sustainability-related framework. So it is going strong,

as

usual.

As usual, yes. Can you tell us more about the sustainability area? What are we doing more about sustainability? We

have a sustainable rental contract. We are doing a project where we install chargers on all our parking spaces. We are reducing our energy usage, continuing to reduce from a very low level. We are developing our own environmental certification system for our buildings in operation. There is a lot of things going on within the sustainability area.

I have a question for you, Eva. We have published a new website that you have worked with. Can you tell us more about that?

Yes, I can do that. We have worked with our brand for a few years and worked with building stone for building stone. Now we have put together the bag because we have launched a new website. There are two websites. One for residents and one for investors. We have strived to make it clear so that people can easily get an insight into our business. Go in and check it out. Yes, go in and check it out. Let's get started. Thank you.

If we do a summary, we can see that the management result, which was cleared for housing rights, for the corresponding period last year, is stronger. When we look at the total result, it is better than last year, but we still have a small minus result in regards to the devaluation of our housing value. We have also acquired two old houses. We have received an upgraded rating. As I said, the new sustainability link and green framework. We have also completed our largest renovation project with almost 400 apartments and, as we mentioned, a completely new website. So that is a concentrate of the quarter.

If we look at the numbers, the year after tax is minus 40 million. As Patrik said, it is an improvement compared to the period before, when we had minus 187. The minus 40 million is mostly affected by the devaluation of our housing value. Almost 53 million this quarter and .4% in percentage. So one year ago, minus 1.7, so we see an improvement here. And the management result, we sold 19 apartments last year and they had housing value of about 93 million. So of course our housing value goes down by 5% compared to the quarter last year. And then we have to add that we have now received a raise for the housing increases that have entered the quarter. The tax revenue also decreases, but only by 1%. So here we think we really show the effective management that we still have. That we can keep the high tax revenue despite the fact that we have sold these 19 apartments. And the management result then increases by 17%. And this background calculation, as Patrik said, is that in Q1 last year we had BRF income from the collaboration project that we had in Bredäng. And then we got in about 27 million BRF income. And we don't have that now, so we want to compare the apple with the apple. So if you clear away these 27 million, we still see the management result increase by 17%. And it landed at 54.6 million per quarter.

And we can also comment, if I remember correctly, it is now seven quarters with devaluations. Yes, that's right. Even if it is planing out now. But what we see, as we have a very large increase from HEBA, is that during this two-year period or these quarters, we have not taken into account the situation. Normally when you evaluate the property, you talk about situation, situation, situation. But we have not seen any increase during this period. We have received as much devaluations, sometimes even a little more, than what other property owners have received. But when the market turns, then we will see the increase with situation, situation, situation. So we are hopeful now, when we may later during the spring and the beginning of the summer, to start seeing these rent reductions that we are talking about.

Yes, keep up.

Yes, we set new financial goals here, which was a little shorter than before, to make a clear mark also against the market, what is happening during this period now, when we are in instability and we have also sold a lot. We will have a management result that exceeds 200 million, compared to the property rights interest. Our rental rate should not exceed 50 percent. We will have a surplus rate of at least 70 percent. And then the share will be driven and collected from social properties increase, we have said. And we have not set any specific figures, but with these purchases now, we are over 25 percent that comes from social properties. And then we will during this period, that is 23 to 25, have a distribution that corresponds to at least 40 percent of the management result adjusted for tax. And our strategy for growth then, if we work with acquisition, we see first hand social properties. When it comes to housing, we work with our own portfolio and the portfolio we have in our JV. We can also think about buying construction rights, if the construction rights should not start in the near future. And we have no problem with running JV, if we have strong economic partners. And then the last point is that we actually, in principle, are through our entire property. We only have 98 apartments left to renovate, so now we are basically sitting with a completely modern property. This I have shown before, so I just wanted to say that we have 400 apartments in our own portfolio. And this is actually the latest now that we could even think of starting to sneak up during the autumn. We have received a approved plan of details that has won storage power, which is a project in Hägersten, about 50 apartments, which we are completing next to our other property. And yes, with a little flow, we might get started there already during the autumn. And then in our partnership with Åkesundballbyggnad, SAB, we have these projects, whereas the other project, Vårbergstoppen, is actually also a sale that we have made now during the first quarter to Swedish housing. And here is a picture, a rendering on Vårbergstoppen, or Kasvakten, which is two properties with a total of 300 apartments, which are under construction, one of which is in use in June this year, and the next one is in use in June next year. Yes, if you look at the recent events during the first quarter, as I said, in the background you can see the advice area in Huddinge, which is our big project, with almost 400 apartments that we have actually moved in now. Everything is renovated. Within the sustainability area, as I said, we are now down to 80 kWh per square meter, further down the road. We completed our sustainability-linked green framework, was evaluated by an independent study with the highest grades, and acquired two social properties. These two properties are combined so that one can say that there is a total of 115 apartments. And as I said, a significant part of our population now is the income from social properties.

Yes, during the quarter we have increased the property loan in combination with the acquisition. We have reduced our green obligations. We amortized 160 million here during the March month. And then we have increased the amount of certificates, and we think it feels very good that the certificate market is now in the process of emitting. The price picture is better. We can say that about the obligations market as well, that we now see that more emissions are happening and a better price picture is there. So for our part, when these obligations are to be refinanced, we see good opportunities to do that. So it feels good. The average rate, 2.52, the loan rate is 44, so we are at a good margin against our goal of being under 50%. And then during the March month we have also had our annual transition with the rating company NCR, where we got our outlook adjusted to stable. So now the rating score is double, triple B plus, or triple B with stable outlook. The rental bond then, we have secured 73 percent. And if you look at the real estate loans, you see those, the three billion obligations that are movable and the certificate. And in view of our derivative volume, it is a three billion, which is running for one year. And in this table below you can also see how the rental bond is distributed over nine to ten years. And we have worked during the quarter with restructuring. We had quite large falls within one to two years, so we have now restructured them. We have reduced the volume a little and also used the rest of the world on the derivative and extended it. So the rental bond time has been increased in a total way since the year shift and we have a better distribution now in these different years intervals. So the rental bond time is 3.3 years. On the capital bond, then, and what is short, within one year we have the estate loan, which is at the end of this year and the beginning of next year. 92 million obligations that we will repay on Friday this week, and then we have our certificate. And when it comes to loans, we see refinance them. Capital bond time 3.8 years and unprofitable rental loans we have at 1.9 billion to be able to benefit when needed. Or we can choose to raise more loans on our properties, considering that they are reimbursed to 35%. And in the graph below you see the short falls, 918 million, and then within one to two years, these almost 1.7 billion, which corresponds to the obligations there, to a billion. And a little as I said earlier, then, there we see the possibility of also remaining on the bond market.

Yes, we do this expression, we say what we do and do what we say, and it is actually a recurring comment we get when we are out talking to investors and so on. And you can think of it quite clearly, but the fact is that we already in 2018 took a decision on new goals and a strategy that we communicated clearly, we have kept to it and we have delivered. Then when we entered this new inflation society with rapidly increasing interest rates, such as a followed by pandemic and war and others, we communicated very quickly and clearly how we would get through it, with still strong management results and a strong financial position. When we had carried out this and came out after our statements and comments, and with new conditions, we communicated new, more short-term financial goals. And what you can see now when you look forward is that we have delivered and we will deliver according to those goals. So if you summarize this, you can see that with transparency, clarity and a focus on what we do, we have delivered and we deliver all the time with continuous improvements. So it looks really, really good for the HEBA.

That was a nice ending, you could say. Is there anything else you feel you want to add?

No.

No. If you have any questions about HEBA and the business, you are always welcome to contact us.