Heba Fastighets AB (publ)

Hello and welcome to us at Heba. We have released our report for Q2 2025 and we will be here in this recording to present the results. And with us we have Patrik Emanuelsson, our CEO, and we have Hanna Fransén, CFO. And my name is Eva Wase and I am the communications manager. I thought that before we get into the presentation, Patrik, you can summarize the quarter.

Yes, it has been a very successful quarter and we have achieved some decisive milestones, both in the strategic, the green and the financial. And the most positive is that this strengthens our position as one of the most promising real estate companies in sustainability and long-term. So it will be really cool to be able to present what has happened during the quarter.

Great, then we'll throw them into the presentation.

Yes, and here we can start to see what we have been working very hard on since last summer, and that is that we have used this time frame and increased the number of nursing homes. So we now have 14 of them and we have, as I will show a little later, two more on the way in. So this has been an important strategic work we have done now, where we have used a time frame where we have been able to do a lot of potential business. So in general, it looks pretty much the same as before, but it is primarily within the health care sector that we are growing quite rapidly. Yes, and this is still just an ax block of everything that has happened during this quarter. It has been a bit of a catch-up effect, but we can see that the administrative result is improved from the same period last year to 114.8 million. Even the total result is improved. We see a small adjustment of our values, not so much, but still a small positive effect, so we reach a plus result of 115.6 million. And we have also been classified as a green stock, according to Nasdaq, and we are incredibly proud of that. And it's not more than a handful of companies on the stock market that are actually green, green-classed as we are. We'll get back to that. During this quarter, we have also been involved in the EPRA index, which is a kind of quality mark that allows foreign investors to actively take part in Heba and hopefully invest in Heba. We have also repurchased 5 million shares during the period, which is also a very clear signal that we have a very strong long-term faith in the company. And then we have signed a contract with Peabom to go into a private company and build a nursing home, a large one. which almost corresponds to three standard sizes. And we have also signed an agreement to acquire a emergency response hotel that we will attend in the fall of 2026. And as I said, a lot has happened and here we can also confirm that we still deliver fantastically high values ​​at our rental guests, our customer measurement system. So we have a safety index and we have a product index that beats the record and a service index that is almost in the same parity at record levels. So it feels very good that we have control over the whole company. Yes, what is a green stock? According to a definition, Nasdaq Green Equity Designation, this should be fulfilled by at least 50% of the revenue coming from green sources and at least 50% of investments and operating costs should be green. And now when we have done this external independent survey and when Nasdaq has looked at it, we actually have 80% green revenues and over 81% green investments and operating costs. and we have no revenue from activities from fossil fuels. And we also know that our upcoming investments will increase these figures further, so it looks very, very good. And then in these times, you can almost read daily about the big problems with the fact that there are big vacancies in housing. So we want to show our record low, record low rate of vacancies. That is, in our rental housing we have 0.05 percent. And if you look at our total vacancies, where we also include both parking and small facilities and others, the total vacancy is only 0.19 percent. So this also means that if you have the right facilities in the right micro level, then there is no vacancy problem. We have no vacancy problem in our stock.

Yes, exactly. If we look at the figures, then we have a result after tax on 116 million and to compare with one year ago when it was minus result. And this is strongly driven by these value changes in both properties and derivatives. So that is the big difference between the years. On the administration result, it is quite in line with something better. So we make an improvement of 2% for the first half of the year. And on the rental income, it is fantastic plus 10% and also turnover plus 13%. This can definitely be explained by the contract we made last year, four care and care homes, but also continued very good efficiency in our administration. And then it has also been a little warmer, so we have also gained some benefit from it. In terms of value change, it is very positive, with 88 million plus, which is 0.6%. And for Q2 isolated, it is 0.5%. So we are still in a very weak, positive trend and hope for a little more in the future. And for the goals that we set for 2025-2030, we have talked about the administrative result, which on average will be improved by 5% per year. And there we are at 2% right now for this first half year. The loan rate will on average not exceed 45% during this period of five years. Right now we have 46.6, a little higher. It can also be explained by the fact that we have chosen to do these acquisitions last year. There have been good opportunities for Heba, a good object, to buy. So it is conscious choices and in combination with this relatively weak value change, we are now a little higher. During the fall, we have not planned such large outflows, so we will not increase the debt so much during the fall. And we also hope for this positive trend in value increase. The surplus rate will be over 70, and here we have a total of 74%, which is a record for Heba. So there is also another record here on the topic that Patrik has talked about. And actually for Q2 isolated, it was a total of 76%. So these are super nice figures on the surplus rate. The market value, there we now close the half-year at 13.8 billion. And the net worth of social housing has gone down and said that it will be over 20%. Today we are at 30% with the 14 nursing homes we have. And everything else is the same, and with these two acquisitions we have made, we will be at 37%. The department will correspond to at least 50% of the administrative results adjusted for tax. And the department that was made in May corresponded to 50%.

Yes, and since we are talking about records, we can continue with that. From a very, very low level, we are now down to 71 kilowatt hours per square meter. I usually say that no one is hitting us on the fingers here, but you can also see that we continue this trend in pursuit of 2030 being down to 40. So this also feels very, very good.

And within Finansdag, we have close to 6.5 billion SEK in debt. And in parentheses, you can also see the figures we had one year ago, when we had about 5.9 billion SEK. And it's quite interesting to see now this shift that we are making with an increased exposure to the capital market. We had a little more to the capital market a few years ago, lowered it during these tougher years, and now we have now chosen to increase it back a little with All 650 million green bonds this half year. So we see that as a positive and very nice price development on the entire capital market. Average interest rate 2.72, the reward rate I have mentioned earlier 46.6. And then it was in March last year that we did our annual review with the rating NCR, where we got our BBB Stable Outlook confirmed. And what has also happened during Q2 is that we have made our certificate program green. So now we can issue green obligations. And that's really fun, and we've actually done that here now also in July. So it will take a while to work through all this volume, but the absolute goal is that we will only have green certificates in the future. And as you know, the obligations are green. At the same time, we are working on relocating all of our bank loans to green funds, so that we can reach this goal of 100% green financing by 2030. If we take our movable real estate loans, everything that is short with movable obligations and certificates with deductions for the derivatives, we have 2.3 billion in interest for one year. This corresponds to that we have insured interest of 64%. and the interest rate period is 2.6 years. So here we have consciously chosen to go a little shorter, a little lower. It has been a volatile market backwards, where we have always gone a little shorter than maybe what Heba traditionally has done. Also difficult pricing on the derivatives during the year, quite sluggish. So we have also made a derivative recently, but we see that we can do a little more in the fall with perhaps a little more stable pricing. In one year, these almost 2 billion will fall. Quite a small property loan, 350 million this fall. And then we have obligations, 750, and that's first in March next year. And then the certificate, as you saw earlier, is also something that I have expanded, so it is also completely conscious. And all this debt of almost 2 billion we plan to refinance. The capital building time is 3.2 billion SEK. We have continued to use a total of 1.9 billion SEK. And the property is only listed at 29% of the market value. So here we also have opportunities if we do not want to use the capital market for any reason.

Yes, and some sustainable growth. Our two latest acquisitions that I thought we would look at. And this is actually a fantastic project that we, together with Peab, are going to develop at Lilla Essingen, which is perhaps one of the most sought-after areas, given that Stora Essingen is just above. So we feel very happy to be able to be part of this development. There are 160 apartments and six LSS apartments. And we have started building this and it will be finished in 2028. So there will be a lot of fresh rental income in this during 2028. And then we have another acquisition that we did a month earlier, which is further an elderly home in Norrtälje with 60 apartments or nursing homes, which is very central and only a stone's throw from our other nursing home in the area. So a lot of good products that we supply. And together, I think, or not just think, I know that they generate about 52 million in rental income on a yearly basis. This is what our project portfolio looks like. The upper part shows our own projects. We have a ongoing project in Källberga with 128 apartments. We hope to get started with Hägersten during the autumn. And then the others come a little further forward. And then, under partnership and collaboration, we have this project with Peab, which is the first one there. Then we have the big project in Sköndal and a slightly smaller project in Skarpnäck. So there is a really nice project portfolio to work actively with to get into the company.

Yes, I think that was the whole point. You mentioned a catch-up effect in the beginning, Patrik. There were a lot of great things that we heard. Would you like to mention something that you are a bit more satisfied with?

Yes, if you have to. We have talked about striving to become a green stock. We have been doing that for almost 6-7 years. We have worked very consistently and then suddenly we were just there. With Råge as well. We are very proud of what we have done. And then there is this project here in Poliläsningen, this huge health and care facility in a very central location in Stockholm, which also feels very good. But at the same time, we are working with what we can. It is a very unstable and volatile market, but you can see very clearly that all the work we are doing now, with what we ourselves can influence, makes us have fantastically beautiful values. We have a direct discharge that is up to levels that have been lowered to 209 for 16 years. So we have really worked actively with the things that we ourselves can do.

So it looks very, very good. And Hanna, you mentioned that during this period we have have opened for green certificates, even made green certificates. Are you extra new to something out of what is green?

No, but it feels of course great, because it still requires work to update and now it is also exciting to see what it leads to. So, as I have been explained, we can reach more volume now that we have green. So it's always good for us. Lovely.

And better loans with lower interest rates, which is good for the business and in the long run. If you have any questions that pop up, you are always welcome to contact us. With that, I think we are done for now.

Thank you.