Heba Fastighets AB (publ)

Hej och välkommen till oss på Heba. Vi har precis släppt vår bokslutskommuniqué för 2024 och vi tänker här presentera resultatet. Med oss har vi Patrik Marusson, vd på Heba, vi har Hanna Fransén, CFO Heba och jag heter Eva Basso och är kommunikationschef. I thought we would start with you, Patrik, to summarize the year.

Yes, a very simple summary is that we deliver on our goal. And I think that's quite impressive considering that we have carried out a fairly extensive restructuring of our property. During 2023, we sold properties that correspond to almost 100 million in revenue. And now we have structured it and we still end up with a result that is among the best we have ever done.

So we have a restructuring behind us. What will the effects be?

The effect will be that we now have a very sustainable state. It is modern, it is either renovated or predominantly newly produced. And it is also completed with elderly housing or care and care housing.

Om vi redan nu tittar lite framåt, kan du avslöja någonting? Vi kommer prata om det här längre fram i presentationen.

Ja, men det är väl två delar egentligen. Den ena är ju nu att få komma igång ordentligt med tillväxten igen. Och den andra är ju att komma igång ordentligt med den gröna omställningen som vi ju är i full fart. Men som vi nu kommer in i ett nytt skede.

Vi får lyssna på det här senare. Men varsågod med din presentation.

Yes, and we start here as an example to show this. Today we have 58 properties. We have a stock that you see here is very concentrated in Stockholm. And then we have a small stock about an hour away so that we can run the administration in our own direction. And this means that we have rental apartments and we have care and care homes that are in the hot segment in Stockholm, where we will have a strong growth in those who fill plus 80 within five years. And also where we have the strongest urbanization, i.e. the immigration to Stockholm. So we have a modern and sustainable existence in the strongest geography in the country. To summarize this year, as mentioned, we deliver an administrative result over the target of 216 million. The total result goes from minus 700 to plus. Almost 100. And this is controlled by the value changes in the properties, which are now weak this year. We have set new goals that range from 2025 to 2030. And we have also acquired four nursing homes during the year. In Täby, two in Tyresö and one in Enköping. Here we have had the opportunity to acquire nursing homes on a very, very good market that we assess. less properties than before but on a higher level than before with better economic efficiency. We have also sold two housing properties with a need for renovation and we have actually started up a new production with 128 rental houses in Kjellberga outside of Nynäshamn, a housing area with much higher quality. And then we have redesigned our green framework so that it is now also the sustainability link. And after that we have actually returned to the obligation market and have now raised new green obligations for 350 million SEK. Within social sustainability, we have taken a very important decision, which means that new tenants, that it is enough to fill the normal amount of Kronofogden to get access to the apartment if you have the right queue times. And this is an important part in increasing the availability of housing, but also that it is not the property company that prioritizes in the tenants' pockets, that you get more space to prioritize your own economy. And then, as we are a strong shareholder, we propose to the board that we will have a share of 0.52 kronor per share. And if you look at our goals now, which we now conclude with this, then we can see that we had a target of 200 million in the administrative result and we delivered 216. We will have a reward rate that does not exceed 50%. We have a drop now of 44.7%. The surplus rate will be over 70% and we have a drop of 72%. And then we have a goal that we will increase the proportion of drift methods from social facilities. And with the structuring we have done now in 2024, we are actually at 30% of drift methods that come from social facilities. And in the target image we had, we were going to divide at least 40% and we suggest then a division of 50%.

Yes, as Patrik said, we close the year after the tax on almost 99 million in the results of the year. And last year minus 712. And the biggest driving cause is of course the negative value changes we had last year, almost 1.1 billion. So there is considerable difference this year. The administrative result is 215.5. Last year, HEPA had BRF income from housing rights sales. And that is not something that HEPA usually has, and it was a one-time thing. So even if the result last year was 271, if we clean up the lost BRF income that we had, then these administrative results are in line with each other. The rents decreased by 0.7% and the turnover increased by 0.4%. So there are quite small differences, but behind this there are quite big changes. We have under 2024 had a year-long effect of selling 25% of our rents. And these are the 100 million rents that Patrik mentioned earlier. Samtidigt har vi fyllt på med lite äldreboenden eller vård- och omsorgsboenden, men de har vi inte haft helårseffekt på. Så det är väldigt starkt resultat med de här underliggande nyckeltalen sett till hela historiken. Värdeförändringen då, svagt positiv. Vi ser hur det har kommit tillbaka lite grann under hösten och vi har då plus 38 miljoner att jämföra med det här stora talet förra året, nästan 1,1 miljarder. Och i procent betyder det plus 0,3 procent på helår och förra året hade vi nästan minus 7 procent.

Och tittade vi lite då på development on different key figures, different graphs, we can see the development of the surplus rate, which has gone from 61.5% to now up to 72%. And that is what makes it possible to reduce the stock and replace it with fewer properties. But as we see in the picture on the right, the administrative result still increases. So if you look at an almost comparable area compared to 2017, compared to 2024, we have doubled our administrative result on the same existing area. And that is the secret to the fact that we have actually managed to get this the loss of these almost 100 million by increasing the efficiency of our facilities. And another part that is also an effect of it, including the effect of all our energy measures that we do, is also that today we have a record low level of our energy use of 75 kilowatt hours per square meter. And this also starts with us will be able to achieve the new sustainable goals, which is that all of our properties will be green. And we are on a very good path with this fantastic result. If we also look at whether this has had any effects for our customers, for our tenants, we can see that we have the same positive development, both on the service index and on the experience of security, as we actually have on all other keys. So the company has become more efficient, but also actually happier tenants than ever, as we have seen lately.

The quarter alone, Q4 2024, we have a governance result of almost 47, compared to the year before, which was almost 48. So there are very small differences in these quarters. But still plus at the end of the row, 107 million compared to minus 58 million last year. And it is the same thing again, this value change that is the big difference, that we now got 70 million plus in value change and last year had minus 80. So Q4-24 alone was actually a positive value change of 0.6%.

Yes, and if we look at the current events during quarter four, it was that we contributed to this social housing in Enköping, that we now deliver with a drift net that is 30% higher when it comes to, or the proportion of drift net from social housing is now 30%. So we have It has created a very strong second leg, which is also not as conjunctural as housing is. So it has been a good complement and an even stronger strength to an already strong position that we have. Energy consumption is record low. We have also engaged ourselves a lot and prepared ourselves for CSRD, which is very comprehensive, and the reports are coming from 2025, so we are just at the start of how we are going to handle the reporting. And then we have also put a focus on that our suppliers should have signed a code of conduct And we have also revised our most essential suppliers to ensure that they deliver up to these requirements that we set in the code. And as I said, we started our latest new production project during quarter four.

When it comes to the financial situation, we have over 6 billion in total debt, where the property loan stands for 4.1 billion. Green obligations, 1,450,000 SEK. That's the 350,000 SEK that came in during the fall. And then the certificate, over 500,000 SEK. And we have talked about that earlier, that we want to increase the volume of the certificate, which we have also done. It is a functioning market, the pricing is very good, and it is still the absolute best source for us to borrow money on, cost-effectively. The average rate is 2.81, the reward rate is 44.7, we have our rating from NCR, BBB, Stable Outlook, and on the right you can see how the reward rate and average rate have developed since 2015. Räntebindningen, tittar vi på det som är kortare än ett år så har vi våra rörliga fastighetslån, de korta lånen, rörliga obligationer och certifikat. Med avdrag då för hela derivatportföljen så är det dryga 1,6 miljarder som ligger kort. Men det motsvarar då andra sidan att 73% av skulden är räntesäkrat. Ni ser här också ner i tabellen då hur räntebindningen faller ut under ett år och upp till 7-8 år. Räntebindningstid 3,1 år. In terms of capital, we have about 1.7 billion that will fall within one year. The property loan, 850. The obligation will fall in May, 350 million. And then the certificate. And here we have said that we will finance this in its entirety. The capital building time has decreased and is now 3.3 years. This is not surprising given that the prices and margins have been higher and more difficult to assess in the last few years. We have therefore chosen to go shorter during this time. We have a loan agreement of 1.9 billion SEK, just like before. The share of the market value is now 32%, so it has decreased by 35%. And in the table you can also see how the capital bindings fall out from under one year to seven or eight years.

It was the year that was that. I thought just to clarify a little bit, we talk a lot about social housing and it is actually so that it covers quite a lot of different types of housing.

Can you explain a little more what we are focusing on? Yes, social housing is everything from what we call care and care housing to hikten och det kan vara försvarsfastigheter, det kan vara allt som egentligen är finansierat med skattemedel. Och sen tror jag väl att en del kan lite tärniga på gränserna där, att det kan till och med vara kontor med verksamhet som är skattefinansierad. Men vårt fokus är väldigt tydligt då på det som är vård- och omsorgsboende, det vill säga biståndsbedömda vårdboenden för egentligen de som can't afford to live at home, or that you can't afford to live at home with home care, but that you need care the whole day. So that's our main focus. And then we also have a whole lot of what is called LSS housing, which is also a form of our housing.

And then we're going to look forward to 2025. We have made a decision, our board has made a decision on new goals.

Yes, and we felt that when we entered this new period with rapidly changing interest rates, inflation, pandemics and war and so on, that we created a shorter strategy to be clear about the market and how we were going to deliver. And then we saw that there was an opportunity now to take a more long-term approach and set new goals. Det jobbade vi med fram till i september förra året och så satte vi nya mål för perioden 25-30. Självklart orienterade mot det finansiella men också väldigt tydligt och ambitiösa hållbarhetsmål. Som ju är viktigt nu i den här gröna omställningen som vi alla måste göra. Så jag tänkte lite mer i detalj presentera dem. Och börjar vi med de finansiella då. So, of course, everything is based on the fact that we should always have a long-term financial stability. And with that in mind, we make the assessment with these new conditions that we should be able to have an increase in the administrative result of 5%. This can change a little from year to year. Some years it can be a little more, some years it can be a little less. But when you look after this period, we should on average have increased by at least 5% annually during the period 25-30. The reward rate should not exceed 45%. It's the same thing there. Periodically, it could bounce up to 50%, but when you look at the whole period, we should be at 45% on average. We should continue to have a strong, good efficiency in our economy, in our properties, so the reward rate should be over 70%. If we look at the planning requirements we have made, we see that there will be a careful value growth on our properties. At the same time, as we continue with our existing housing portfolio and with acquisitions, the market value of our properties before the period is over will rise to over 20 billion. We have set a goal for the social density net. And why we have set a goal is very much about that if the market gets us positive on housing, we do not want to end up in a negative spiral, that we must simultaneously accelerate on social density if that is not a prerequisite. So there we have set at least 20% and as I said earlier, we are at 30% now. And that may continue to increase a little more within that segment. And then we will be a strong and stable distributor, so the goal is to distribute 50% of the administrative result adjusted for tax. And this is what our latest acquisition looks like, where we acquired a nursing home of Hemsö in Enköping, which is also adjacent to one of our latest properties. So we create a high administrative efficiency with it as well. And if we look at how we grow, especially within the housing sector, we base it very much on our own project portfolio, but also our partnership or collaboration with Åke Sundvall, where we have a total of approximately 1,500 apartments in a very nice portfolio. in the right geographical location, which are important conditions now when construction costs are higher and the interest rate is higher, that you really are on the right market. All these projects are on the right market in the Stockholm area. If we switch over to the environmental goals, we have set very high goals when it comes to our energy use. When we entered this period, we were at 80. And to achieve one of the other goals, to be climate neutral in the administration in 2030, we need to halve the energy use in our facilities. And there we have a goal now to be able to carry it out until 2030, i.e. 40 kilowatt hours per kilowatt meter. We have another goal that our properties should be green and that actually involves two things. One is that our properties should have energy class C or better in their energy declaration. And if you get that, you can also have a green share. So a 100% green financing and a green share. So we really become the green company. And we are well on the way, we can see this with the low energy consumption we already have as input value. Another challenge we have set as a goal is to reduce our emissions from our new buildings, mainly new production and in some ways also renovation. And we have said that we will halve the emissions from 2030 and then it is comparable to the reference value of Boverket. But already now it means that the project we start, we need to go in with the ambition that we already see that they have halved the load. We still feel that we should reach the total climate neutrality by 2045 with all our business. But it also applies to all other companies in Sweden. So we believe that when we push, others will follow. And then we get this positive development. That we get our emissions down, simply. But there is no time to lose, so we keep going. Klimatneutral förvaltning 2030, som sagt. Vi kommer inleda en miljöcertifiering av alla våra fastigheter i drift nu under 2025. Alla fastigheter ska certifieras under 2025. Det här är en del i att man alltid ska ha kontroll på sina fastigheter så vi vet att de är så optimala som möjligt, både ur ett förvaltningsperspektiv men också ur ett miljöperspektiv. And then we continue our work that we have done now, I think we are in our fourth year this year, where we do annual climate risk analyses. Also to manage these new tougher weather conditions. I do not want to say only extreme weather, but we should actually manage weather that does not come up on those levels as well and have a preparation to handle it. And if we look at social sustainability, we will continue to strive to have a goal over 80 on security, which of course is also a challenge now in these times with explosions and shootings, but we have a good level today and we continue to work in a good way. We will increase the pace of maintaining apartments for structurally homeless and we have focused on vulnerable women and children and we will continue to do so, but we will increase And then we continue with the work of examining our main supplier chain, which is also an important part of ensuring that our suppliers live up to the high requirements we have to be a good employer, but also environmentally friendly. And as I said, in November we decided to reduce the entry requirements on the economy for our tenants. Yes, and an important part of this, and what we call making it possible, and maybe almost necessary, if we are to maintain our high levels of energy, economic efficiency, energy and so on, then we need to have control over our properties in real time. And that means that we have to set up a new way of working, but also with the support of digitalization. And that is where we see everything from how we work with operative key words to sensors that give us how a property behaves. And in that context, it becomes quite natural to use both business intelligence and artificial intelligence. So we are in a real transition phase at the same time as we are working with growth.

Good. So if we summarize a little bit, we are done with restructuring, we are focusing on growth, we are going into our community housing, and we are working intensively with the green transition.

Yes, and digitalization.

And digitalization. Yes.

So we are very excited to come back now in a good growth, but also actually to be able to achieve this basic setting, which is very important for all of us.

It feels inspiring. It feels like a fun journey to be on.

I agree. I agree. That was all we had for now. And if you have any questions, you are always welcome to hear from us. Thanks a lot. Thank you.