Heba Fastighets AB (publ)

Hello and welcome to Heba. We have just released our quarterly report for the first quarter of the year and we will present the results here. With us we have Patrik Marunsson, Heba's CEO, and we have Hanna Fransén, CFO. My name is Eva Vasa and I am the communications manager. I thought Patrik, before we go into the presentation, how would you like to summarize the results for the quarter?

No, but I think we have a good headline in our press release, a stable report in an unstable environment, actually. Strong underlying nickel numbers, very good results when it comes to our energy use. So we are working hard and affecting what we can affect.

And you will soon tell us more about that. But if we look at the current situation in the future, is there anything you want to highlight before we start talking about the figures?

Yes, but what is in the past is that we will soon be classified as having a green share. So we have worked very hard with that and will come back to that as well. And then there is the digitalization that we work very intensively with, which is a kind of necessity to meet all the new requirements that are set for us, but at the same time we maintain high efficiency in the company.

Exciting. Then you can start presenting.

Well, this is more of a summary of what our stock looks like, where you can clearly see our concentration in the Stockholm area, but where you can also see that we are now up in 14 nursing homes. We have actually replaced more than half of our stock since 2019, so half of the stock consists of new and fresh properties, while we have renovated the remaining part of the stock. So we have a very modern stock in the Stockholm area. Yes, and if you look at the results of the quarter, we see that it has improved somewhat compared to previous years. Even the total result has improved, and you can see very clearly that the recovery that we had hoped for during 2025 has stopped a bit due to the worries out in the world. So the real estate markets are quite stable, we can see. So unfortunately, the recovery will not be as fast as we had hoped for during 2025. We have also received our annual confirmation of our rating, BBB with stable outlooks. We invested a green obligation of 350 million. And then actually only last week we agreed on further care and care living in Norrtälje, which we will attend in the fall of 2026. And as I said, on the way to green shares, but I was going to come back to that later.

Yes, exactly. As Patrik said, we have a plus on the last row, 53.5 million, compared to how it looked one year ago, when we had minus 40 million. But then it was strongly driven by the negative value change that we had then. Regulatory results, 55 million. It is a weak improvement compared to Q1 last year, and it is primarily driven by higher values. financial costs compared to one year ago. If we look at the development of the rental income plus 11% and also the turnover with plus 15% compared to Q1 last year, there are very strong improvements. So it is actually now these interest costs that drag down the administrative results for this quarter. The value change plus 18 million, very weak for positive improvement, corresponds to 0.1%. So, as Patrik said, it's a bit of a wait-and-see, a bit of a stabile situation, so we'll see what happens in the rest of the year. And our new financial goals for the period 2025-2030, where we have said that the administrative results on average during this five-year period will be improved by 5%, we now have plus 1% when it comes to the outfall for Q1. A reward rate that should not exceed 45% on average during this period and never exceed 50%, we now have 44.6%. A rate exceeding 70% and the outcome for Q1 is very high, it is one of the highest HEBA has had, 71.7%. compared to one year ago, when it was 69.1%. So it's an improvement of 2.6%. A lot driven by efficient management and electricity and heating costs that fell out a little lower than one year ago. It has been significantly warmer. We will have a market value that will exceed 20 billion during this period. Right now we have 13.7 billion. Minus 20% of the net of operations will come from social housing, and then it is health and care housing that we refer to. And right now we have 30%, and it will be even more with this acquisition that we will take part in next autumn. And then we have the department that will be at least 50% of the administrative results adjusted for tax. And there is the proposal to the council, which the council is on Thursday this week, to divide 50%.

I would also like to comment on our energy use and development. If you look here, we hit a new record, even Q1 this year, where we are now down to 73 kilowatt hours per square meter. And you can see a fantastic development here. If you look at how this affects the environment, it also means a halved emissions compared to 2018. And this is of course an important part of our goal, to become this green stock, but also to be a green company. And to be climate neutral by 2030, the use of energy must go down. And we have set as a goal that we will go down to 40 kilowatt hours per square meter. So we are working very hard on this. This picture shows how we can follow our properties more or less in real time. The average of this is 73, but you can also see that we put a lot of focus on the red stacks, which are the properties that have the highest energy consumption in the company. And as an example, we have four properties that are in the category the red, which are now will be replaced with mountain heat and that will be done from the half-year shift and then it will go from red to green on those properties. And we also have as a goal that all of our properties will have energy classes A to C by 2030. So this work is going very, very well and we have a high investment pace to get down to these, which also, as I said, gives a climate neutral administration by 2030. And what we are talking about on the way to a green stock is that we have our goal of 25 to 30 that we should be a green stock before the period is out. And we have now tested this against Nasdaq's green equity designation. And the requirement is that 50% of the revenues should come from green sources and at least 50% of investments and operating costs should be green. And when we now did an external independent survey of S&P Global, we found that 80% of the green revenues came from Heba and 81% from green investments and operating costs. We have no turnover from Heba. activities from fossil fuels. And with this, I would say that it is only a matter of form before Nasdaq stamps us as a green share, which is an important work now in our comprehensive green setting. And here we are as a company very, very far ahead.

Yes, within the financial sector, we had approximately 4.1 billion in real estate loans during the year. During the quarter, we have transferred 450 million to the capital market, with a green obligation of 350 million, which we issued to Stibor for three months plus 0.95, which was during the month of March. And then we have also increased the certificate a little. The average income is 2.69, to compare with 2.81% at the end of the year. The reward rate is 44.6%. And during the month of March we had this annual review with NCR, our rating company, and there we got our rating confirmed, BBB Stabil Outlook, which we also had before. And in the graph we see how the reward rate and average rate have developed since 2016. In terms of interest, if we look at our movable exposure, movable loans, short loans and also certificates with deductions for derivatives, we now have 1.8 billion SEK in interest that runs for one year. But this corresponds to that we have insured 70% of our total debt. The interest rate time is 2.9, compared to 3.8 a year ago, so it has gone down. It is also quite natural to see how the prices have been, both on the capital market and on the bank loan side lately, where we have chosen to go shorter, simply now with what we have both reimbursed and what we have refinanced. The capital bond and what falls within a year, So har vi endast 265 miljoner i lån, varav 65 av dem är redan egentligen hanterade. På obligationssidan så förfaller 350 miljoner nu i maj månad. Och sen är resten 750 miljoner först i mars nästa år. Så det är en bit bort. Och certifikaten såklart. Så nästan 2 miljarder i kortskuld. And we intend to refinance this. And if this does not work out for any reason, we can always go back to our loan agreements, which we have unused loan agreements of 1.9 billion. Capital starting time 3.3. Also there has gone down somewhat for the same reasons as I mentioned earlier. And we have then only 29 percent of the market value of the properties. So here we also have the opportunity to use that if we want. And down below we see how the capital bond falls out over the years.

Yes, and if we then look a little more specifically at our area within sustainable growth, then this is our latest acquisition. A nursing home with 60 apartments located in central Norrtälje, 300 meters from our other senior residence, our other properties in Norrtälje. Och det här är ju också lite i linje som vi har sagt att utnyttja marknaden när marknaden står väldigt lågt. Så att köpa och sälja på samma marknad är ju det mest effektiva att göra nu, investera för framtiden. Och vi kan väl konstatera att det här är på nivåer som är väldigt mycket högre än vad det var för bara några år sedan. Så att helt i linje och med marknaden. Our strategy, in an area that we know that within a five-year period we will have 50% more that is plus 80. This together with our housing portfolio gives a very good stability and long-term economic growth in the company. Our project portfolio continues, although the project in Källberga continues. The other projects we work intensively with to get construction permits and detailed plans. So we have a large portfolio of our own and likewise a very large portfolio together with Åke Sundvall Byggnads AB. Where the big project is Stora Skendal, where we hope to get a approved detailed plan soon. Our main goal is that the project will be finished in May. This will generate, together with future investments, growth of 5% in the period from 2025 to 2030. And then I think an important final picture, and that is what we have seen now, to manage the green transition, but to maintain these high values we have in economic efficiency, happy tenants and a forward-looking organization, it is very much about doing this with digital support. And we are very far ahead of how we are going to do this, with which tools we are going to do it. Some have already implemented it. And I think that we will revolutionize the industry a little bit with how we can effectively work with digital support. But we will not talk about that this time, we will come back to that.

Exciting, that is stable. We have talked a lot about preparing the organization for the CSRD report. Now there is a proposal from Europe that they should withdraw and lower the requirements. How do we relate to this?

Basically, we are in need of a green transition. We have also worked very intensively to be prepared to deliver according to this CSRD report. So the spontaneous answer is that we keep going as if nothing has happened. Because we think that working standardized includes these goals in the organization that CSRD has, even if they were and are very extensive. we think it has a value in itself. And as I said, the green transition must be carried out. And if you look at it, we are not as good as we think in Sweden. We had consumed our resources already on the 10th of April in relation to our size and proportion in the world. So we have a job to do here in Sweden and that we should slow down the pace because central bureaucrats in Brussels make a decision about this, I don't see that ahead of me. We will continue to be the green company.

Very good. That was what we had. Is there anything you would like to add? No, it's stable as it is. If you have any questions, you are always welcome to hear from us. With that we say thank you and goodbye.