Heimstaden (HEIM) Q1 2026 earnings summary

Executive summary

• Like-for-like rental growth was 4.2% year-over-year, with rental income at SEK 3,925 million, down 2.4% due to FX effects and privatisation sales.

• Net operating income (NOI) margin improved to 70.8% from 68.8% year-over-year, with LTM NOI margin at 72.6%.

• Real economic occupancy reached 98.7%, up from 98.3% year-over-year.

• Privatisation sales totaled SEK 2,609 million, with 634 units sold at a 30.4% premium to book value.

• A goodwill impairment loss of SEK 1,176 million was recorded.

Financial highlights

• Rental income decreased to SEK 3,925 million from SEK 4,023 million year-over-year, mainly due to FX and divestments.

• NOI for the quarter was SEK 2,778 million, up slightly from SEK 2,769 million, with a margin of 70.8%.

• Property expenses fell 8.9% to SEK 1,130 million, driven by cost control and portfolio reduction.

• Realised gains from property divestments were SEK 551 million, up from SEK 421 million.

• Interest expenses decreased to SEK 1,540 million from SEK 1,676 million.

• Net cash flow from operating activities was SEK 247 million, compared to -263 million year-over-year.

Outlook and guidance

• Like-for-like rental growth is expected to continue outperforming core CPI, supported by indexation and tenant improvements.

• Capital expenditure is expected to increase in FY2026, focusing on maintenance, sustainability, and tenant improvements.

• 872 units are expected to be delivered through 2026, with an estimated fair value of SEK 2,513 million.