Heba Fastighets AB (publ)

Hello and welcome to HEPA. We have just released our report for the first quarter of the year and we will present the results here. With us we have Patrik Imarundsson, HEPA's CEO, and we have Hanna Fransén, CFO. My name is Eva Vas and I am the communication manager. Patrik, before we start the presentation, how would you like to summarize the results for the quarter? I

think we have a good rubric on the press release, or rather the CEO, a stable report in an unstable environment. Strong underlying key figures, very good results when it comes to our energy usage. So we work hard and affect what we can affect.

And you will soon tell us more about that. But if we look a little more forward, is there something you want to highlight before we start talking? What

is in store for us now is that we will soon have a class that has a green share, so we have worked very hard with that and will return to that. And then there is the digitization that we work very intensively with, which is a form of necessity to meet all the new requirements that are put on us, but at the same time we maintain high efficiency in the company.

Exciting, then you can start presenting.

This is a more comprehensive picture of what our stock looks like. You can clearly see our concentration in the Stockholm area. But you can also see that we are now in 14 care homes. And that can also be given as input that we have actually replaced more than half of our stock since 2019. So half of the stock consists of new and fresh properties, and at the same time we have renovated the remaining part of the stock. So we have a very modern stock in the Stockholm area. And if you look at the results of the quarter, we see that it is somewhat improved compared to previous years. Even where the total result is improved, and you can see very clearly that the recovery that we had hoped for in 2025 has stopped a bit now because of the worries out in the world. So the housing world is quite stable, we can see. So unfortunately, the recovery will not be as fast as we had hoped for in 2025. We have also received our annual confirmation of our rating, BBB with stable views. We amended a green obligation of 350 million. And then actually, just last week, we agreed on further care and care homes in Norrtälje, which we will enter in the fall of 2026. And as I said, on the way to green action, but I thought I would come back to that a bit.

Yes, exactly. As Patrick said, we have plus on the last row, 53.5 million, compared to what it looked like a year ago, when we had minus 40 million. But then it was strongly driven by the negative value change that we had then. Administration result, 55 million. It is a weak improvement compared to Q1 last year. And it is actually primarily driven by higher financial costs compared to one year ago. Because we look at the development of the rents, plus 11 percent, and also the gross profit with plus 15 percent compared to Q1 last year. So there are very strong improvements. So it is actually now these rent costs that are pulling down the administration result for this quarter. Value change plus 18 million, very weak for a positive improvement, corresponds to 0.1 percent. So what Patrick says, it is a bit of a de-warning, a bit of a stable situation, so we will see what happens in the rest of the year. And our new financial goals, which stretch to the period 2025 to 2030, where we have said that the administration result on average during this five-year period should be improved by 5 percent, then we now have plus 1 percent in the total expense for Q1. A rate of payment that should not exceed 45 percent in average during this period and never exceed 50, then we now have 44.6. An excess rate of over 70 percent and the decline for Q1 is very high, it is one of the highest rates had, 71.7, to compare with one year ago, when it was 69.1. So it is an improvement with 2.6 percent, very much driven by effective administration 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 and right now we have 13.7 billion. At least 20 percent of the drift network will come from social housing and then it is the health and care care that we refer to. And right now we have 30 percent and it will be even more with this acquisition that we will add next August. And then we have the distribution that should be at least 50 percent of the management result adjusted for tax. And there is the proposal for the annual tax, which is on Thursday this week, to divide 50 percent.

Yes, then I thought I would comment a little on our energy use and our development. If you look here, we are breaking 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 see 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 also become this green share, but also to be a green company. And be climate neutral in 2030, so energy use must be reduced. And we have set a goal that we will go down to 40 kilowatt hours per square meter. So we are working very hard on this and this picture actually shows how we can follow our properties more or less in real time. The average of this will be 73, but you can also see that we are focusing very much on the red stocks, which are the properties that have the highest energy use in the company. And as an example, we have four properties that are in the category of the red, which is now replaced by mountain heat. And it 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 our properties should have energy class A to C in 2030. So this work is working very, very well and we have a high investment rate to come down to these, which also gives a climate neutral administration 2030. And what we are talking about on the way to a green share, we have in our goal 25 to 30 that we should be a green share 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 capital costs should be green. And when we now did an external independent review of S&P Global, we found that 80% of green revenues came from HEMA and 81% of green investments and capital costs. We have no change in activities from fossil fuels. And with this, I would say that it is just a form of work before Nasdaq establishes us as a green share, which is an important work now in our extensive green transition. And here we are as a company very, very far ahead.

Yes, within the financial day we had at the turn of the year, a 4.1 billion housing loan. So during the quarter we have converted 450 million to the capital market, each of a green obligation of 350 million. And we emitted that on Stivor three months plus 0.95 during the March month. And then we have also increased the certificate a little. The average rate, 2.69, to be compared with 2.81 at the turn of the year. The loan rate, 44.6. And during the March month we had this annual transition with NCR, our rating company, and there we got our rating confirmed, triple B stable outlook, which we also had before. And in the graph we see how the rate of payment and the average interest rate have developed since 2016. The rental bond, if we look at our real exposure, real loans, short loans and also certificates with a term for derivative, we now have 1.8 billion in rental bonds that run for a year. But that corresponds to the fact that we have insured 70% of our total rental debt. The rental bond time, 2.9, to be compared with 3.8, one year ago, so it has gone down. Also quite naturally, given how the prices have been both on the capital market and the bank loan side recently, where we have chosen to go shorter, simply now with what we have both renewed and what we have refinanced. And the capital bond, which falls within a year, we have only 265 million in loans, only 65 of them are already handled. On the bond side, 350 million falls now in the May month, and the rest 750 million first in March next year, so it's a bit away. And the certificate of course, so almost 2 billion in short-term debt, and we intend to refinance this, and if for some reason it would not work, we can always fall back on our rental bonds, which we have unused rental bonds of 1.9 billion. Capital bond time, 3.3, also there, gone down a bit for the same reasons as I mentioned earlier. And we have only insured 29% of the market value of the properties, so here we also have the opportunity to use that if we want. And at the bottom we see how the capital bond falls out over the year.

Yes, and if we then look a little more specifically at our area of sustainable growth, then this is our latest acquisition, a care home with 60 apartments located in central Norrtälje, 300 meters from our other residents and our other properties in Norrtälje. And this is also a bit in line, as we have said, to exploit the market when the market is very low, so buying and selling on the same market is the most effective thing to do now, invest in the future. And we can see that this is at levels that are much higher than it was just a few years ago, so completely in line with our strategy. Within an area that we know that within a five-year period we will have 50% more, which is plus 80. So this together with our housing portfolio gives a very good stability and long-term economic growth in the company. Our project portfolio runs on, although the project in Källberga runs on. The other projects we work intensively with to get building permits and details plans. So we have a large own portfolio and likewise a very large portfolio together with Åke Sundvall building Saabee. Where the big project is Stora Jundal, where we are hopefully soon to get approved details plan. And Vårbergstoppen, where we expect the project to be completed in May. So this will generate together with the coming investments, will deliver this growth of 5% throughout this period 25 to 30. And then I think an important final picture actually, and that is what we have seen now. To manage a green transition by maintaining these high values we have in economic effectiveness, satisfied guest of residence and a forward-looking organization. So it is very much about doing this with digital support. And we are very far ahead of how we will do this, with what tools we will do it, some are already implemented. And I think that a little bit we will revolutionize the industry with how you can actually work effectively with digital support. But we will not talk about that this time, but we will get back to

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

Well, 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 are going as if nothing has happened. Because we think that working standardize, include 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 you think in Sweden. We had used our resources already on April 10 in relation to our size and the proportion in the world. So we have a job to do here in Sweden and that we would lower the pace because central bureaucrats in Brussels made a decision about this, I do not see that in front of me. We will continue to be the green company.

Very good. That was all we had. Is there anything else you would like to add? No, it is stable. If you have any questions, you are always welcome to ask us. With that we say thank you and goodbye. Thank you.