Heimstaden Bostad: 2024 Annual, Governance, and Sustainability Report

28 Feb 2025 08:00 CET

2024 Highlights:

· Residential fundamentals remain strong, reflected in annualised like-for
-like rental growth above 5%, annualised real economic occupancy increasing to
98.5%, and an LTM NOI margin above 70%
· Property values increased 2.7% on a year-over-year basis due to NOI growth
stemming from strong operating performance alongside value-accretive CAPEX
projects
· Privatisation sales for 2024 reached an estimated SEK 7,589 million with
1,673 units sold at a 26.1% premium to book value across five markets
· Return to the capital markets with issuance of approximately SEK 14,360
million stemming from five transactions for the purposes of liability management
· Continued access to asset-backed financing with approximately SEK 27,500
million raised including EUR 725m sustainability-linked credit facility backed
by a Dutch portfolio
· Fitch revised their Outlook to Stable from Negative in January 2025
following their downgrade to 'BBB-' from 'BBB' in Q1 2024
· Stabilisation in key credit metrics including S&P-defined LTV and ICR
· Greenhouse gas emissions reduced by 15.5% across scope 1, 2, and 3 compared
to SBTi Climate Roadmap baseline year of 2020 while Morningstar Sustainalytics
has confirmed our "Negligible" ESG Risk Rating for 2024

Q4 2024 Standalone Highlights (figures in brackets refer to same quarter 2023):

· Like-for-like rental growth of 5.3% (5.6%) and rental income of SEK 4,076
million (3,845)
· Quarterly NOI margin improved to 70.4% (66.0%) and the LTM NOI margin was
70.4% (67.4%)
· Continued improvements to operating fundamentals supported a 0.7% (-1.6%)
increase in property values
· Privatisation sales, for the quarter, reached SEK 2,379 (876) million with
530 (206) residential units sold at a 24% (31%) premium to book value
· Real economic occupancy of 98.6% (98.4%)
· Net LTV of 53.8% (56.3%) and ICR of 2.0x (2.0x)
· S&P-defined LTV of 56.9% (58.6%) and S&P ICR of 1.6x (1.7x)
· Issued SEK 500 million floating rate notes, EUR 500 million senior unsecured
fixed rate notes, and EUR 500 million perpetual hybrid securities

Co-CEO Helge Krogsbøl comments:

"Heimstaden Bostad's portfolio achieved impressive operating results with rental
income growth maintaining strong momentum and our NOI margin ended the year at a
record 70.4%. This underscores our ability to deliver continued income growth
while maintaining equally sustained cost control."


Co-CEO Christian Fladeland comments:

"Following a successful reopening of the capital markets, all eyes are on
operational resilience and Heimstaden Bostad's operations have proven best-in
-class. Looking ahead, we expect the momentum in income growth to spur a
continued recovery in residential property values throughout 2025."

Contact:
Frederik Stentoft Berling, Media Relations
+45 2130 9489, media@heimstaden.com

Cody Nelson, Investor Relations
+47 948 94 196, ir@heimstaden.com

About Heimstaden Bostad:
Heimstaden Bostad is a leading European residential real estate company with
more than 162,000 homes across nine countries with a property value of SEK 334
billion. We acquire, develop, and manage properties with an evergreen
perspective. Guided by our Scandinavian heritage and values Dare, Care, and
Share - our about 2,000 colleagues fulfil our mission to enrich and simplify our
customers' lives through Friendly Homes. Read more
at www.heimstadenbostad.com (https://eur01.safelinks.protection.outlook.com/?url
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http%3A%2F%2Fwww.heimstadenbostad.com%2F&data=05%7C02%7Cfrederik.berling%40heims
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640092_Press_Release_Heimstaden_Bostad_Annual_Report_2024_28022025.pdf
640092_Heimstaden_Bostad_Annual_Report_2024_ENG.pdf