HEBA Fastighets

Annual Report • Feb 5, 2025

Q4

The quarter 1 October – 31 December 2024

• • Profit for the period amounted to SEK 106.6m (–57.8), corresponding to SEK 0.65 (–0.35) per share.
• • Income from property management was SEK 46.9m (47.8). The decrease is related to poorer performance in jointly controlled entities and higher interest expenses due to higher interest-bearing liabilities and average interest rate.
• • Rental income amounted to SEK 143.8m (128.8).
• • Net operating income (NOI) was SEK 100.9m (86.9).
• • Unrealised changes in the value of properties amounted to SEK 70.5m (–80.7).
• • 0wnership of a senior living facility in Enköping was transferred to Heba during the quarter.

Contact person:

Patrik Emanuelsson, CEO +46 (0) 8-5225 47 50 patrik.emanuelsson@hebafast.se

The period 1 January – 31 December 2024

• • Profit for the year amounted to SEK 98.7m (–712.3), corresponding to SEK 0.60 (–4.31) per share.
• Income from property management was SEK 215.5m (270.7). The performance is on par with income from property management in 2023 excluding commonhold apartment inceome in jointly controlled entities.
• • Rental income amounted to SEK 561.8m (565.7).
• • Net operating income (NOI) was SEK 403.8m (402.1).
• • Unrealised changes in the value of properties amounted to SEK 37.9m (–1,084.5).
• • Ownership of four senior living facilities closed in 2024,
• two in Tyresö, one in Näsby Park and one in Enköping.
• A new sustainability-linked green financing framework was published.
• • Upgraded rating to BBB with Stable Outlook.
• • Heba completed the renovation of the Rådsbacken 12 property in Huddinge this year. Only 98 apartments remain to be renovated, after which the entire holding will have been upgraded to modern standards.
• • The board of directors proposes a dividend of SEK 0,52 (0.52) per share.

Year-end Report 1 January – 31 December 2024

Key figures	2024 Oct–Dec	2023 Oct–Dec	2024 Jan–Dec	2023 Jan–Dec
Property-related key figures
Rental income, SEKm	143.8	128.8	561.8	565.7
Lettable time-weighted area, 000s m2	260.2	250.6	257.5	284.6
Property yield, %	3.0	2.7	3.0	3.2
Carrying amount per m2, SEK	51,599	50,967	51,599	50,967
Financial key figures
Cash flow, SEKm	78.8	82.7	214.2	235.4
Investments, SEKm	247.3	60.0	899.5	331.2
Average interest rate, %	2.81	2.21	2.81	2.21
Property management margin, %	32.6	37.1	38.4	47.9
Loan-to-value (LTV) ratio, %	44.7	44.1	44.7	44.1
Net LTV, %	44.5	43.1	44.5	43.1
NOI margin, %	70.2	67.4	71.9	71.1
Per share data
Loss before tax, SEK	0.89	–1.14	0.86	–6.32
Profit or loss after tax, SEK	0.65	–0.35	0.60	–4.31
Dividend, SEK			0,52	0.52
Share price at 31 December, SEK	32.75	35.45	32.75	35.45
NAV, SEK	47.02	46.42	47.02	46.42

Income from property management was SEK 216m in 2024m, well above our target of SEK 200m. Excluding commonhold apartment income, the result is on par with our best years and is outstanding performance considering that we sold properties in 2023 that generated almost SEK 100m of our rental income. The full-year effect of the property sales is now fully integrated, which makes profit for the year particularly impressive.

The positive trend can largely be attributed to our modern property portfolio. We have carried out extensive renovations of our existing holdings in recent years and augmented the portfolio with new builds, both residential and senior living facilities. In conjunction, we exited low-yield properties that required major renovations and investments and in so doing created a more profitable and sustainable portfolio.

Heba also benefited from a high occupancy rate along with our successful energy saving and cost efficiency initiatives. At year-end, LTV was just under 45% and the NOI margin remained strong at 72%. This is clear evidence of efficient management, Heba's stable rental market and our close to non-existent vacancies.

Focus on elderly care facilities and long-term investments

We made strategic investments during the year that have strengthened our position in community service properties, with particular emphasis on elderly care facilities. The acquisitions of elderly care facilities in Tyresö, Täby and Enköping are salient examples of how we are continuing to build our portfolio with properties that offer stable cash flows and long-term leases. Community service properties now generate 30% of net operating income, which is a key milestone in our strategic

Restructuring accomplished. Our sights are now set on the future.

New targets 2025–2030

Growth with financial stability

• • Annual growth in income from property management of 5% or better on average.
• • LTV below 45% on average and never above 50%.
• • NOI margin above 70%.
• • Market value of properties exceeding SEK 20bn.
• • At least 20% of NOI from public buildings.
• • Shareholder dividend of at least 50% of income from property management, adjusted for tax.

ESG targets

• • Property management climate-neutral by 2030 and all operations by 2045.
• • Reduce energy use to 40 kWh/m2 (31 Dec 2024: 75 kWh/m2) and ensure that all properties reach energy class C or better by 2030. To hit these targets, we will be making the financially justifiable investments before 2030 that are necessary to achieve climate-neutral property management as of 2030.
• • All properties shall be environmentally certified in 2025.
• • Heba's stock and financing shall be entirely green as of 2030.
• • Actions we have already taken in the area of social sustainability include lowering the minimum income requirement for new tenants to the "normal amount" set by the Swedish Enforcement Authority to cover ordinary living expenses to make it possible for more people to obtain housing. As an additional target, we are aiming for all tenants to have sustainable leases by 2030 (31 Dec 2024: 47%).

Turn to pages 7–9 to read more about Heba's ESG targets.

plan and clarifies Heba's two property categories: residential rental property and elderly care facilities.

ESG action, not merely talk

ESG is an integrated aspect of our business strategy. We updated our green and sustainability-linked financing framework in 2024. Sustainalytics gave the framework its top rating, which bolsters our credibility as one of the leading forces in sustainable investment in the market. Energy use for the year was an almost incredibly low 75 kWh/m2 in our properties. This outstanding record shows that we are well on the way towards achieving our target of climate-neutral property management by 2030.

Proactive management and digitalisation

We have continued to refine and improve our methods and approach through digitalisation. The implementation of digital twins will enable us to analyse and document property conditions in real time. We will be able to act faster and more effectively, which will enhance the work environment, increase customer satisfaction and provide the conditions necessary to successfully deliver the comprehensive sustainability reporting that is now required.

Market

The market is still recovering, albeit slowly, and likewise property values.

We need to understand the consequences of new leadership in the US. We need a stronger Swedish currency. We need

cease-fires in Ukraine and the Middle East. Only thereafter can a full recovery happen. The residential housing market will remain strong in Stockholm, where willingness to pay is highest and the housing shortage is most severe. Conversely, most Swedish municipalities will struggle to build housing in the near term because building costs and interest rates demand rent levels that are unaffordable for many citizens. The market for senior living facilities is on the brink of a major boom, as the population of people aged 80+ is going to increase by 50% within five to ten years.

Armoured for the future

We look back at 2024 with pride at what we have achieved and are looking forward to 2025 with optimism. Our modern and attractive property portfolio, our financial stability and our focus on ESG prepare us well to meet future needs for housing and community service properties. Supported by clear targets for growth, climate neutrality and customer satisfaction, we continue to create value for our tenants and our shareholders.

I would like to express my deepest appreciation to our employees and partners for their outstanding commitment and engagement. They are the engines of Heba's success. Together we are building not only properties, but also trust, sustainability and long-term relationships.

Patrik Emanuelsson

CEO Heba Fastighets AB

Heba Fastighets AB Our value-creating business model

Our core business is to own, manage and develop residential rental properties and community service properties in the Stockholm-Mälaren Region.

Our vision

We shall be the best in Sweden at creating secure and attractive homes and communities.

Our business concept

Heba is a long-term and experienced property owner that develops, owns and manages residential properties and community service properties in the Stockholm-Mälaren Region. On the strength of our expertise and commitment, we offer safe, secure and sustainable homes for people throughout various phases of their lives. We create value for shareholders and society through satisfied tenants, safer and more attractive communities and trustful partnerships.

The Heba investment case

Heba runs a responsible business on the leading edge. Our hallmarks are modern properties in attractive locations, financial stability and focus on sustainability. The company is in prime position to meet future needs for housing and elderly care facilities.

Modern property portfolio in attractive regions

Heba owns and manages a modern portfolio of residential properties and elderly care facilities that are in high demand. Attractive locations, primarily in the Stockholm region along with a few in Mälaren, where strong population growth and low vacancy rates generate stable income.

Low risk, high stability

NOI margin of 72% (Dec 2024) and nearly non-existent vacancies make Heba an eminently stable property company in the market. Long-term leases for community service properties and rents that are constantly trending upward promote predictable and secure cash flows.

Ambitious ESG targets

Heba is a clear ESG leader with a green financing framework that received top marks from Sustainalytics. Energy use in the property portfolio has decreased to 75 kWh/m2 (Dec 2024). The climate targets are clear-cut: climate-neutral property management by 2030 and full climate neutrality by 2045.

Strong financial position

Low average interest, carefully balanced financing and strong key figures combined with efficient in-house property management will generate dividends when property values rise again.

Definitive growth strategy

Heba has delivered growth through renovations, strategic acquisitions of community service properties and new builds of residential properties. The most recent acquisitions of elderly care facilities are strengthening the company's position in community service properties, a sector characterised by stable demand and secure income. The project portfolio, including residential property in Källberga, is an aspect of the long-term ambition to grow sustainably.

Stable dividend producer for shareholders

Our strong financial position means that we can prioritise dividends to our shareholders, who make an essential contribution to running our business.

Positioning for the needs of the future

With its community service properties, Heba is in prime position to respond effectively to trends such as an ageing population and rising demand for elderly care facilities. The modern, sustainable property portfolio in attractive locations meets tenant demands.

Heba is the long-term choice

3 Enköping Modern properties in attractive locations in the Stockholm-Mälaren Region

Heba owns and manages a modern property portfolio comprised of residential properties and community service properties used for elderly care facilities in attractive locations in the Stockholm-Mälaren Region. The properties are mainly located near rail-bound public transportation links.

We operate in 13 municipalities from Nynäshamn in the south to Uppsala in the north and Enköping in the west, all within one hour from Stockholm. Most of the properties are located in the City of Stockholm and surrounding municipalities.

The majority of the properties are new builds or renovated. Only two properties comprising a total of 98 apartments are yet to be completed in the Heba renovation programme.

2 Uppsala	Norrtälje 2
	1
	1 1 5 Stockholm 36
	2 3 1
	1 Nynäshamn

Property holdings and market

The Heba Group's property holdings at the end of the Q4 2024 interim period (Q4 2023 in brackets)

Properties in the Stockholm-Mälaren Region	58 (56)
Residential properties	43 (45)
Community service properties	14 (10)
Project properties	1 (1)
Lettable space, m2	263,400 (250,600)
Rental apartments	3,110 (3,148)
Apartments in elderly care	825 (602)
Non-residential units1)	117 (116)

The vacancy rate for residential and non-residential units remains very low at 0.06% for residential and 0.48% for non-residential at the end of the reporting period.

1) As of Q3 2024, storage spaces are not reported as non-residential units.

A long-term and sustainable corporate citizen

Sustainability is reflected in everything Heba does, today and in the future, proceeding from our responsibility as an employer, our social responsibility and our environmental responsibility. The ESG programme is meant to ensure that the company meets its longterm ESG objectives in alignment with the UN Global Sustainable Development Goals (SDGs). Future-proofing the business is intertwined with successful enterprise.

Our three focus areas

We are working towards climate-neutral property management by 2030.

Heba's long-term sustainability target is for property management to be climate neutral by 2030 and the entire organisation by 2045. Heba supports the 1.5 degree target of the Paris Agreement. Limiting the indirect emissions of our business is the most important component for attaining that goal. It is also important to prepare the organisation for various scenarios caused by climate impact.

Environment Social sustainability Organisation

We contribute to an ethical and socially sustainable society

To Heba, social sustainability means running the business in an ethically, socially and environmentally correct manner. We offer an opportunity for a safe, secure and suitable home to people of all ages and with a variety of needs for elderly care and service. We are also committed to social initiatives through partnering with and donating to organisations that help and support vulnerable groups.

Our employees are our most important resource

Making sure that each and every one of our employees can thrive and develop ensures long-term sustainability. Heba is working actively to be an equal and inclusive workplace that creates the conditions for a sustainable, customer-oriented company. Our working environment shall be safe and secure from the physical, psychological and social perspectives. Heba takes a proactive approach to avoiding occupational accidents and illness and preventing risks.

ESG targets 2025–2030

• • Property management climate-neutral by 2030 and all operations by 2045.
• • Reduced energy use Energy use reduced from 75 kWh/m2 (31 Dec 2024) to 40 kWh/m2 by 2030.
• • Green buildings All properties shall be categorised at energy class C or better.
• • Green financing All financing shall be green as of 2030.
• • Green stock Heba stock shall be green as of 2030.
• • Reduced emissions in building processes As of 2025, emissions during the construction phase shall be halved for all new builds started, based on current reference values provided by Boverket (the Swedish National Board of Housing, Building and Planning).

All construction waste shall be sorted and prepared for recycling.

• • Sustainable property management All properties shall be environmentally certified in operation and be assessed for climate risk in 2025.
• Contribute to the energy transition in society All parking spaces shall be equipped for EV charging as of 2030.

Environment Social sustainability Organisation

• • Security The security index for Heba's residential properties shall be 80 or above.
• • Satisfied tenants

Heba shall have a service index on par with or above the median value for privately owned housing companies in large cities.

• • Lower income requirement to qualify for a lease The income requirement shall be based on the Enforcement Authority's normal amount, i.e., tenants should have SEK 6,090 left of their income to live on after the rent is paid.
• • Sustainable leases

All tenants shall have sustainable leases by 2030, meaning that they are contractually obligated to recycle, arrange green electricity supply and contribute to a smoke-free property.

• Social responsibility

Heba shall provide at least 10 apartments every year for people who are structurally homeless, with focus on vulnerable women and children.

• Supplier value chains

The value chains of all significant suppliers shall be reviewed based on the Swedish Property Federation's Code of Conduct.

• Attractive employer

Heba is working hard to be an attractive employer with focus on employee satisfaction, skills development and equal opportunity.

• • Employee Satifaction Index (ESI) ESI shall be in line with the industry average.
• Training Thirty training hours shall be provided per employee/year.
• Gender balance Women/Men: 50/50 +–10%. Female/Male managers: 50/50 +–10%.
• Employee turnover Shall be a maximum of 10%.
• Absenteeism rate Shall be 2–4%.
• Diversity

The company's needs from the perspective of equal opportunity, diversity, gender and age shall be considered in connection with every recruitment.

Sustainability events Q4 2024

We are working systematically to reduce our direct and indirect emissions in order to achieve our long-term climate target of having a climate-neutral business by 2045. As part of a chain of market actors, it is also important that, in addition to what we can do ourselves, we work together and put demands on partners and contractors.

Updated energy use target

Heba updated the energy target in 2024 because the reductions have gone faster than planned. Energy use at the end of Q4 was 75 kWh/m2. Our new target is to reduce average energy use to 40 kWh/m2 by 2030. To achieve the target, we will be implementing justified energy-saving investments in geothermal heating and solar panels. We will continuously evaluate all investments to ensure profitability. We will monitor developments in energy-saving measures and adjust the plan to prevailing conditions.

Certification in operation

Heba has developed an internal environmental certification process for properties in operation, called HållFast. Through certification, we assure documented, sustainable operation aligned with Heba's existing management systems in accordance with ISO 14001 and 9001. All Heba properties will be HållFast certified in 2025.

Preparations for CSRD reporting

Heba is required to report according to the new EU Corporate Sustainability Reporting Directive (CSRD) as of the 2025

annual reporting period. In preparation, we have carried out a comprehensive gap analysis aimed at identifying the areas we need to improve in our sustainability reporting to meet the new requirements under CSRD standards. Implementation will be based on the results of the gap analysis. In order to meet the reporting requirements we need data that can only be generated by switching to more digital solutions. The transition will require employees to use new methods.

Lower income requirement for prospective tenants

As an aspect of its social sustainability initiatives, Heba changed the income requirements for prospective tenants during the quarter. To be approved as a tenant, the "normal amount" of income set by the Swedish Enforcement Agency will now apply. If more than one adult and children live in the household, the required amount left over to live on after the rent is paid will increase.

Monitoring of the Supplier Code of Conduct

Ensuring sustainable value chains is important from numerous perspectives, including environmental responsibility, climate impact, working conditions, human rights and anti-corruption. In 2022, Heba began the effort to audit significant suppliers, determined by volume and number of orders, based on the Suppliers' Code of Conduct prepared by the Swedish Property Federation. All significant suppliers signed the Code of Conduct in 2024 and are currently being audited.

Outcome Q4 2024 75 kWh

Target 2030 40 kWh

Reduction of energy use, degree days corrected

Year-end Report 1 January – 31 December 2024

Revenue and profit

Fourth quarter

Rental income increased to SEK 143.8m (128.8) due to acquisitions closed in 2024. Property costs amounted to SEK 42.8m (41.9). Income from property management in Q4 decreased by 1.9% to SEK 46.9m (47.8). The result is attributable primarily to higher net financial expenses of SEK –41.9m (–25.9) in Q4. Unrealised changes in the value of investment properties and interest rate derivatives amounted to SEK 117.4m (–195.1). Profit before tax was SEK 147.3m (–188.1), corresponding to SEK 0.89 per share (–1.14) and profit after tax was SEK 106.6m (–57.8) or SEK 0.65 per share (–0.35).

Full year

Rental income decreased to SEK 561.8m (565.7) due to the property sales closed in 2023. Property costs amounted to SEK 158.0m (163.5). Income from property management fell by 20.4% to 215.5m (270.7). The decrease is attributable to lower rental income during the period and a loss of SEK –49.9m (35.9) from investments in jointly controlled entities related to exits from commonhold apartment projects in 2023. Excluding commonhold apartment income in jointly controlled entities, income from property management is on par with results in previous years. Unrealised changes in the value of investment properties and interest rate derivatives amounted to SEK –6.6m (–1,212.9). Profit before tax was SEK 142.4m (–1,044.1), corresponding to SEK 0.86 per share (–6.32) and profit after tax was SEK 98.7m (–712.3) or SEK 0.60 per share (–4.31).

Investments and disposals

Elderly care facility in Enköping

Heba closed an agreement in November 2024 with Krusleden Fastighets AB, a company in the Hemsö Group, to acquire an elderly care facility in Romberga, Enköping. The facility comprises 54 apartments. Ownership was transferred in December 2024 when Heba acquired the shares in the company. The agreed property value corresponds to SEK 206m. Costs incurred in 2024 amount to SEK 198.9m in consideration of received rebates. The investment is estimated at about SEK 200 million.

Elderly care facility in Täby

Investments

Heba closed an agreement with Slättö Sam Holding 2 AB in June 2024 to acquire an elderly care facility in Näsby Slottspark, Täby, Stockholm. The facility comprises 54 apartments. Ownership was transferred in September 2024 when Heba acquired all shares in the company. The agreed property value corresponds to SEK 252m. Costs incurred in 2024 amount to SEK 242.1m in consideration of received rebates. The investment is estimated at just over SEK 242m.

Elderly care facilities in Tyresö

Heba signed an agreement with Hemsö Fastighets AB in February 2024 to acquire two elderly care facilities in Tyresö, Stockholm. The facilities comprise 115 apartments. Ownership was transferred in March 2024 when Heba acquired all shares in the company. The agreed property value corresponds to SEK 347m. Costs incurred in 2024 amount to SEK 336.6m in consideration of received tax rebates. The investment is estimated at about SEK 337m.

Residential rental property in Källberga, Nynäshamn

Heba closed an agreement in October 2021 with a company controlled by MAMA Management AB to acquire rental apartments in Källberga Nynäshamn. The deal was executed as a forward funding transaction in which Heba acquired the shares in the company, which entered into a turnkey contract. Ownership was transferred in November 2022. The parties agreed in Q2 2024 that Heba would take over and execute the project under its own management. The properties comprise 128 rental apartments, 13 of which are located in terraced houses. A general contract was signed in Q2 2024 and production began in Q3 for completion in 2026. Costs incurred amount to SEK 90.6m, including 20.2m in 2024. The estimated investment has risen to SEK 400m due to the increase in lettable space for the project and the increase in costs since 2021.

Property Location No. of apts Property type Transfer of ownership Construction start Completion year Estimated investment, SEKm Romberga 23:54 Enköping 54 Elderly care facility Dec 2024 200 Äppelträdgården 1 Täby 54 Elderly care facility Sept 2024 242 Krusmyntan 1 & 2 Tyresö 115 Elderly care facility March 2024 337 Källberga Nynäshamn 128 Residential rental units Nov 2022 2024 2026 400 Total 351 1,179

Other investments

Other new investments amount to SEK 10.4m (35.9). SEK 80.0m (226.5) was invested in value-add measures in other properties during the period.

The total investment in investment properties was SEK 888.1m (327.4) in 2024.

SEK 11.4m (3.8) was invested in other non-current assets during the period.

Disposals

A contract with Sarak Fastigheter AB on the sale of two properties was signed in June 2024. The deal was executed as a corporate transaction in which Heba sold the shares and thus, indirectly, the properties. Exit occurred in September 2024.

Partnerships

Vårbergstoppen

Heba and Åke Sundvall Byggnads AB are running a rental property project in Vårbergstoppen through a partnership agreement. The rental property project comprising 300 apartments is distributed between two buildings. Construction of the project began in Q2 2021. Under the agreement, the parties each own 50% of the project. The total investment is estimated at about SEK 800m and the buildings be completed in 2024 and 2025. A contract with Svenska Bostäder on the sale of these two properties was signed in February 2024. The deal was executed as a corporate transaction in which Svenska Bostäder acquires the shares and thus, indirectly, the properties. Heba exited the first building in September 2024 and exit from the second building is planned for June 2025.

Framtidens Stora Sköndal

Heba and Åke Sundvall Byggnads AB are building 600 homes in Framtidens Stora Sköndal, phase 2a, through a partnership agreement. The housing project is divided among 260 rental apartments and 340 commonhold apartments. Under the agreement, the parties each own 50% of the project. The project is currently in the process of detailed development planning and the total investment is estimated at about SEK 2bn.

Skärgårdsskogen Skarpnäck

Heba and Åke Sundvall Byggnads AB are running a commonhold apartment project of approximately 100 apartments in Skärgårdsskogen Skarpnäck, through a partnership agreement. Under the agreement, the parties each own 50% of the project. The project is currently in the process of detailed development planning and the total investment is estimated at about SEK 250m.

Partnerships

Property	Location	No. of apts	Property type	Acquisitions	Construction start	Completion year	Estimated investment, SEKm1)
Vårbergstoppen	Vårberg	300	Rental apartments	Oct 2020	Q2 2021	2024/2025	800
Stora Sköndal	Sköndal	260 340	Rental apartments Commonhold apartments	Nov 2020			2,000
Skärgårdsskogen	Skarpnäck	100	Commonhold apartments	Sep 2021			250
Total		1,000					3,050

1) Heba's share is 50%.

Property valuation

The market value of the properties was SEK 13,589.2m as at 31 December 2024 according to valuations performed, as compared to SEK 12,773.2m at the end of 2023. All of the Group's properties, excluding project properties in early phases, were valued externally, half by Savills Sweden AB and half by Novier Real Estate AB. Other properties including project properties in earlier phases have been valued internally. These properties are categorised at Level 3 of the fair value hierarchy according to IFRS 13, meaning that the value is based on analysis of each property's status and rental/market situation. Approach

LTV and average interest rate on property loans (%)

LTV (%) Average interest rate on property loans (%)

Changes in the carrying amount of investment properties:

Investment properties (SEKm)	2024 Jan–Dec	2023 Jan–Dec
Carrying amount at the beginning of the period	12,773.2	15,718.2
Acquisitions and new builds	809.3	102.6
Investments in existing properties	78.8	224.8
Disposals	–110.0	–2,187.8
Change in value	37.9	–1,084.5
Carrying amount at the end of the period	13,589.2	12,773.2

Heba has decided to perform internal valuation of two thirds of the property portfolio and external valuation of one third of the portfolio in conjunction with the end of each quarterly reporting period. In conjunction with the end of the annual reporting period, all properties owned by the Group will be externally valued apart from the exceptions mentioned above. As of the reporting date, two of the properties had been valued by external, independent valuation firms and the recognised fair value of these two properties is the average of the aforementioned valuations. Discounted cash flow (DCF) is the principal valuation method applied, where an estimated future net operating income is calculated over an estimation period of five to ten years that takes into account the present value of an assessed market value at the end of the estimation period. Yield requirements are individual per property depending on analysis of executed transactions and the market position of the properties. Comparison and analysis of completed real estate transactions in each sub-market were also performed. The average yield requirements were 4.5% (4.2) for externally valued community service properties and 3.3% (3.2) for residential property. The total average yield requirement for externally valued properties is 3.6% (3.4). The total valuation uplift was 0.3% (–6.9) during the period of January–December.

There were relatively few deals related to community service properties used for elderly care facilities in 2024, but quoted transactions showed that yield requirements had been increased. Consequently, value growth was negative for this category in 2024. Average property yields also increased for residential properties, but considering rent uplifts, there was less impact on nominal values. The total change in value was also affected by Heba's acquisition of four community service properties used for elderly care facilities and sale of two residential properties during the year.

Financial position

Cash and cash equivalents amounted to SEK 36.5m (247.2). Equity amounted to SEK 6,450.5m (6,437.5), corresponding to an equity ratio of 45.5% (47.2). The LTV ratio was 44.7% (44.1) and the base LTV ratio was 44.5% (43.1).

Cash flow from operating activities after changes in working capital amounted to SEK 214.2m (235.4). Interest-bearing liabilities increased to SEK 6,076.9m (5,628.5). Of that amount, SEK 0.0m (0.0) consists of the used portion of overdraft facilities of SEK 132.0m (132.0) and SEK 1,497.1m (–103.9) accrues interest at a variable rate.

Heba has a commercial paper programme with a distributable amount framework of SEK 4,000m. Heba had outstanding commercial paper of SEK 523m (50) at the end of the interim reporting period. Heba always has liquidity or unused credit commitments that cover outstanding commercial paper upon maturity.

At the end of the reporting period, the average interest rate was 2.81% (2.21). Unused credit commitments amount to SEK 2,032.0m (2,232.0), including the unused portion of an overdraft facility of SEK 132.0m (132.0).

There are no liabilities denominated in foreign currencies.

Pledged collateral and guarantee commitments

Collateral pledged for interest-bearing liabilities amounted to SEK 4,302.3m (4,422.3). The parent company has issued guarantee commitments for credit facilities of SEK 277m in relation to a residential project in Vårbergstoppen

Fixed interest rate structure

The fixed interest rate structure and average interest rates as at 31 December 2024 are shown on the following table.

Fixed interest rate structure 31/12/2024

Maturity	Volume (SEKm)	Average interest rate (%)	Share (%)
< 1 year	1,617.1	5.94	27
1–2 years	650.0	1.64	11
2–3 years	750.0	1.76	12
3–4 years	400.0	1.97	7
4–5 years	1,100.0	2.06	18
5–6 years	630.0	1.57	10
6–7 years	580.0	1.97	10
7–8 years	349.8	2.59	6
8–9 years	–	–	–
9–10 years	–	–	–
Total	6,076.9	2.98	100

The table shows all agreed rates for the respective maturities via loans and interest rate derivatives. The table includes interest rate derivatives with future start dates; consequently, the average interest rate may differ from the rate that Heba is currently paying. The average rate for period 1 includes the credit margin for all loans at variable rates. This also includes the variable component of interest rate swaps, which are traded at no margin. Consequently, the average rate in year 1 does not reflect the current credit rate when borrowing.

In order to interest-rate hedge variable rate interest-bearing liabilities, Heba contracted interest rate swaps totalling SEK 3,400.0m (4,450.0) at the end of the reporting period, which

mature between 2025 and 2031, of which SEK 400m are swap futures with start dates in 2025 and 2026.

Interest rate derivatives are recognised at fair value at each quarterly reporting period and the change is recognised in the statement of comprehensive income. As at 31 December 2024, the fair value of the derivatives amounted to SEK 55.0m (99.5). All interest rate derivatives are measured based on quoted prices in official markets or according to generally accepted calculation methods. The derivatives are classified at Level 2 according to IFRS 13. A netting provision is found in the ISDA Master Agreement that provides the right to set off receivables against payables to the same counterparty. Heba has determined that there are no material differences between the fair value and the carrying amount of financial instruments apart from interest-bearing liabilities, where fair value exceeds the carrying amount by SEK 47.7 million.

Cash conversion cycle structure

The cash conversion cycle structure for Heba's property loans as at 31 December 2024 is shown on the following table.

Cash conversion cycle structure 31/12/2024

Maturity	Credit agreement (SEKm)	Used (SEKm)
Commercial paper programme	4,000.0	523.0
< 1 year	1,333.0	1,201.0
1–2 years	1,930.0	1,030.0
2–3 years	1,560.0	560.0
3–4 years	440.0	440.0
4–5 years	321.4	321.4
5–6 years	1,138.0	1,138.0
6–7 years	330.0	330.0
7–8 years	533.5	533.5
8–9 years	–	–
9–10 years	–	–
Total	11,585.9	6,076.9

The average cash conversion cycle of the loan portfolio, including loan commitments, was 3.3 years (4.0) and the average fixed interest duration was 3.1 years (3.5).

Rating

Heba was given a long-term issuer credit rating of BBB, Stable Outlook, by Nordic Credit Rating in Q1 2024.

MTN programme for issuance of bonds

Heba established an MTN (Medium Term Notes) programme in January 2021 with an amount framework of SEK 2,000 million. In January 2022, Heba expanded the existing MTN programme to a total amount framework of SEK 5,000m. The MTN programme enables Heba to issue bonds in the capital market.

EU Green and Sustainability-Linked Financing Framework

Heba launched an EU Green and Sustainability-Linked Financing Framework in February 2024. The framework was prepared in accordance with the current EU Taxonomy and the European Green Bond Standard and replaces Heba's previous green financing framework prepared in 2021. With this framework, Heba's aim is to reinforce the link between financing and sustainability strategies and objectives. The framework was prepared in partnership with Handelsbanken and reviewed by Morningstar Sustainalytics, an independent organisation. They concluded that the framework will lead to positive environmental change, and assessed Heba's key figures as "Very Strong" and the company's sustainability targets as "Highly Ambitious".

Alen 3, Norrtälje Hamn, elderly care facility and 84 rental apartments

Community service properties: Stable demand and secure income

Heba owns and manages a modern portfolio of residential properties and community service properties in attractive locations in the Stockholm-Mälaren Region. Community service properties generate 30% of Heba's net operating income. The Alen property in Norrtälje Hamn was built in 2022 and houses an elderly care facility comprising 84 apartments.

Lease liability

Heba's ground lease agreements are the most important lease agreements where Heba is the lessee. There are also a few leases of minor value that refer primarily to office equipment. The lease liability for ground leases amounted to SEK 143.9m (126.3) as at 31 December 2024. The amount was calculated at an average marginal interest rate of 3%. The cost of ground lease payments is recognised as a financial expense because the ground lease agreements are perpetual and thus the entire payment consists of interest only because there is no amortisation of the lease liability. The cost in legal entities is treated as ground lease payments and is included in NOI.

Significant risks and uncertainties

Rental income

Approximately 76% of Heba's total rental income is derived from residential tenants. The vacancy rate is very low and rents are relatively certain and predictable. All of Heba's properties are located in the Stockholm-Mälaren Region and are in desirable locations where demand is high.

Operating costs

Heating costs are Heba's largest operating cost item. The majority of the property portfolio is connected to the district heating network. Eight properties are heated mainly with geothermal heat pumps. Heba is actively engaged in reducing energy use in the property portfolio but heating costs can vary from year to year depending on weather conditions and energy prices.

Market value

The market value of the total property portfolio varies depending on the current economy and interest rate situation. When the property yield requirement in relation to the normalised net operating income (NOI) of the valuation falls by 0.5%, the market value rises by more than SEK 2.2bn. If the property yield rises by 0.5%, the market value will fall by more than SEK 1.6bn.

Finance policy

Heba's finance policy governs how financial risks must be managed and sets limits, as well as determines which financial instruments can be used. Heba has a relatively low LTV ratio. However, the Group is exposed to risks including interest rate risk due to interest-bearing borrowings. Interest rate risk refers to the risk of adverse impact on the Group's financial performance and cash flows due to changes in the market interest rate. How quickly a persistent change in interest levels affects consolidated net financial income depends on the fixed interest duration of borrowings. In order to limit the effect of changes in interest rates, about 73% of the total loan principal has been interest hedged for more than one year. Heba works continuously with the maturity structure of borrowings to optimise fixed interest terms and purchases of interest rate derivatives with regard to expected interest rate changes to ensure that favourable loan terms are achieved. Heba's current interest-bearing liabilities of SEK 1,724m comprise commercial paper of SEK 523m, bonds of SEK 350m and bank loans of SEK 851m. The company intends to redeem the bonds at maturity and refinance the remaining debt. As needed, the debt can be secured against the company's loan commitments of SEK 1.9bn.

Accounting policies

Heba complies with International Financial Reporting Standards (IFRS) adopted by the EU and interpretation of the same (IFRIC).

This interim report was prepared in accordance with IAS 34 Interim Reporting and the Swedish Annual Accounts Act. The accounting policies applied to the Group and the parent company coincide with the accounting policies applied when preparing the most recent annual report.

Heba follows ESMA Guidelines on Alternative Performance Measures of 3 July 2016 (APMs). The Guidelines cover financial performance measures that are not defined under IFRS. The principle behind APMs is that they should be used by management to assess the financial performance of the company and are thus deemed to provide valuable information to analysts and other stakeholders. Calculations of APMs are available on Heba's investor relations website, ir.hebafast.se.

The Heba share

Heba's Class B share is listed on Nasdaq Stockholm AB, Mid Cap. Information about the number of shareholders and the ten largest shareholders is available on Heba's investor relations website, ir.hebafast.se

Dividend

A divided of SEK 0.52 per share was distributed in May 2024 for the 2023 financial year. The dividend corresponded to a dividend yield of about 1.5% based on the share price as at 31 December 2023.

Share buyback

Heba Fastighets AB decided in September 2023 to carry out a share buyback programme. The programme was approved by the 2023 AGM and is aimed at transferring shares to participants in LTI 2021, LTI 2022 and LTI 2023. The acquisition is limited to a maximum of 30,000 Class B shares in the company and 9,400 shares are currently in own custody.

Ownership structure, 31 Dec 2024

Name	Total number Total number of Class A of Class B shares shares		Equity (%)	Votes (%)
IC Industricentralen Holding AB		22,520,618	13.64	7.38
Ericsson, Charlotte	1,998,320	8,661,897	6.46	9.38
Vogel, Johan	1,866,240	8,340,978	6.18	8.84
Vogel, Anna	1,866,240	8,220,992	6.11	8.80
Holmbergh, Christina	1,848,320	7,819,608	5.86	8.61
Eriksson, Anders	1,828,320	6,621,836	5.12	8.16
Härnblad, Birgitta Maria	2,065,640	6,059,936	4.92	8.75
Ericsson, Ulf		6,290,000	3.81	2.06
Spiltan Aktiefond Stabil		4,903,671	2.97	1.61
Sundström, Maria	635,680	2,890,000	2.14	3.03
Total, largest shareholders	12,108,760	82,329,536	57.19	66.62
Other shareholders	3,472,880	67,208,824	42.81	33.38
Total	15,581,640	149,538,360	100.00	100.00

Share price performance 2017–2024 (SEK)

NAV (Net Asset Value) per share (SEK)

Dividend (SEK/share)

Parent company

Rental income in the parent company amounted to SEK 237.1m (245.0) and profit before appropriations and tax was SEK 91.5m (636.2).

Events after the end of the reporting period

There are no events after the end of the interim period to report.

Stockholm, 5 February 2025

Heba Fastighets AB (publ)

Patrik Emanuelsson Chief Executive Officer

Information

The information in this year-end report is such that Heba Fastighets AB is required to publish according to the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was released for publication by the contact persons above as of today's date.

This year-end report has not been reviewed by the company's auditors.

Romberga 23:58, in Älvdansen Enköping, 154 rental apartments

Current earnings capacity

Heba's current earnings capacity is presented below on a twelve-month basis as at 31 December 2024, including the entire property portfolio as of the reporting date.

Current earnings capacity is disclosed in connection with interim reports and year-end reports. It is important to understand that the presentation is a snapshot, and not a forecast for the next twelve months. Earnings capacity does not include any assessment of any changes in rentals, vacancies, costs or interest rates. Heba's consolidated statement of comprehensive income is also affected by the value trend for the property holdings and by derivatives. These factors are not considered in current earnings capacity.

Properties acquired and exited and projects completed during the period are extrapolated at an annual rate. Deductions are made for disposals of properties that have been exited, on a full-year basis. No deductions are made for properties for which sale agreements have been made but have not yet closed.

Assumptions for current earnings capacity

Rental value consists of contracted rental income for the entire property portfolio, including known rent increases and index adjustments for 2025. Rent negotiations for 2025 were still in progress as of the reporting date for most of the residential units in the property portfolio. A rent uplift of 1% corresponds to an increase of about SEK 3m in rental value. Vacancy is

assumed according to the current vacancy rate and contracted discounts. Other income and operating and maintenance costs are assumed, based on budgeted costs for a normal year. Property tax is calculated based on current assessed values for tax purposes.

Central administration and profit or loss from investments in jointly controlled entities are calculated based on outcomes and extrapolated for the full year.

Financial income is calculated based on outcomes and extrapolated for for the full year, less non-recurring items. The costs of interest-bearing liabilities were based on the average interest level for the Group, including the effect of derivative instruments. Ground rent is calculated based on current ground leases.

SEKm	31 Dec 2024
Rental value	587
Vacancy, discounts and other income	2
Rental income	589
Operating costs	–160
Maintenance costs	–4
Property tax	–5
Net operating income (NOI)	420
Central administration	–39
Profit or loss from investments in jointly controlled entities, current1)	–4
Net financial income (- expenses)	–165
Income from property management	212

1) This does not include commonhold apartment income and other items affecting profit or loss per disposals within investments in jointly controlled entities.

Capella 2, Tullinge, 155 youth housing units

Consolidated statement of comprehensive income

SEKm	2024 Oct–Dec	2023 Oct–Dec	2024 Jan–Dec	2023 Jan–Dec
Rental income	143.8	128.8	561.8	565.7
Property costs
Operating costs	–41.3	–39.6	–150.6	–154.0
Maintenance costs	–0.5	–0.9	–2.3	–3.4
Property tax	–1.0	–1.4	–5.1	–6.1
Net operating income (NOI)	100.9	86.9	403.8	402.1
Central administration	–9.8	–9.7	–38.9	–36.5
Profit or loss from investments in jointly controlled entities	–8.6	–5.5	–49.9	35.9
Financial income	3.8	10.5	25.2	34.3
Interest expenses	–45.7	–36.3	–162.1	–177.0
Interest expenses, leases	–1.0	–0.9	–3.8	–4.1
Profit including changes in value in jointly controlled entities	39.6	44.9	174.2	254.7
Of which income from property management 1)	46.9	47.8	215.5	270.7
Impairments of financial assets	–9.0	–10.6	–18.0	–10.6
Gain or loss from disposals of property	–0.7	–27.2	–7.2	–75.4
Change in value, investment properties	70.5	–80.7	37.9	–1,084.5
Change in value, interest rate derivatives	47.0	–114.4	–44.5	–128.3
Profit or loss before tax	147.3	–188.1	142.4	–1,044.1
Current tax	–1.5	0.3	–2.5	0.3
Deferred tax	–39.3	129.9	–41.3	331.4
Profit or loss for the period	106.6	–57.8	98.7	–712.3
Other comprehensive income	–	–	–	–
Comprehensive income for the period	106.6	–57.8	98.7	–712.3
Per share data
Profit or loss after tax, SEK2)	0.65	–0.35	0.60	–4.31
Dividend (2024 proposal), SEK			0,52	0.52
Total dividend (2024 proposal), SEK 000s			85,862	85,862

Condensed consolidated statement of financial position

SEKm	2024 31 Dec	2024 30 Sep	2023 31 Dec
ASSETS
Intangible assets	9.8	4.8	5.3
Investment properties	13,589.2	13,278.5	12,773.2
Right-of-use assets	143.9	127.4	126.3
Property, plant and equipment	10.4	9.6	7.5
Investments in jointly controlled entities	1.0	0.7	14.3
Financial non-current assets	276.0	239.6	307.3
Other non-current securities holdings	0.1	9.1	18.1
Interest rate derivatives	55.0	8.0	99.5
Current assets	44.6	48.0	26.4
Cash and cash equivalents	36.5	40.5	247.2
Total assets	14,166.4	13,766.2	13,625.0
EQUITY AND LIABILITIES
Shareholders' equity	6,450.5	6,343.7	6,437.5
Non-current interest-bearing liabilities	4,352.9	4,553.6	4,916.5
Deferred tax liabilities	1,367.6	1,328.2	1,326.2
Lease liabilities	143.9	127.4	126.3
Other non-current liabilities	8.3	–	–
Tax liability	3.1	0.7	–
Current interest-bearing liabilities	1,724.0	1,316.0	712.0
Other current liabilities	116.2	96.6	106.6
Total liabilities	7,715.9	7,422.5	7,187.6
Total equity and liabilities	14,166.4	13,766.2	13,625.0

1) Income from property management does not include changes in value attributable to jointly controlled entities.

2) There is no dilutive effect as there are no potential ordinary shares. There are no non-controlling interests.

Consolidates statement of changes in equity

SEKm	Share capital	Other capital contributions	Retained earnings	Total equity attributable to shareholders in the parent
Opening balance, 1 Jan 2023	34.4	6.9	7,183.2	7,224.5
Comprehensive income for the period			–712.3	–712.3
Transactions with owners
Share buyback			–0.4	–0.4
Dividend			–74.3	–74.3
Closing balance, 31 Dec 2023	34.4	6.9	6,396.2	6,437.5
Opening balance, 1 Jan 2024	34.4	6.9	6,396.2	6,437.5
Comprehensive income for the period			98.7	98.7
Transactions with owners
Share reissuance			0.2	0.2
Dividend			–85.9	–85.9
Closing balance, 31 Dec 2024	34.4	6.9	6,409.3	6,450.5

Condensed consolidated cash flow statement

SEKm	2024 Oct–Dec	2023 Oct–Dec	2024 Jan–Dec	2023 Jan–Dec
OPERATING ACTIVITIES
Profit or loss before tax	147.3	–188.1	142.5	–1,044.1
Adjustment for non-cash items
Less share of profit or loss in jointly controlled entities	8.6	5.5	49.9	–35.9
Amortisation, depreciation and impairments of assets	10.4	24.5	21.8	27.0
Change in value, investment properties	–70.5	80.7	–37.9	1,084.5
Change in value of derivative instruments	–47.0	114.4	44.5	128.3
Other profit and loss items not affecting liquidity	7.3	32.0	–3.2	49.7
Tax paid	0.0	0.3	–0.5	0.3
Cash flow from operating activities before changes in working capital	56.2	69.4	217.1	209.9
Change in working capital	22.6	13.4	–2.9	25.5
Cash flow from operating activities	78.8	82.7	214.2	235.4
INVESTING ACTIVITIES
Investments in investment properties	–243.6	–56.2	–900.5	–327.4
Investments in financial assets	–0.4	–3.5	–0.4	–3.5
Other investments	–4.7	–1.2	–9.0	–3.8
Investments in associates	–	–16.1	–	–16.1
Dividends received from associates	–	38.0	13.5	58.0
Change in non-current receivables	–39.6	11.7	3.4	119.5
Sales of investment properties	–2.0	1,457.0	104.8	2,062.6
Disposals of other non-current assets	0.2	1.2	0.6	2.8
Cash flow from (-used in) investing activities	–290.2	1,431.1	–787.5	1,892.2
FINANCING ACTIVITIES
Borrowings	208.0	–	1,093.0	1,409.0
Repayment of loans	–0.6	–1,270.7	–644.6	–3,315.6
Share buyback	–	–0.3	–	–0.4
Dividend paid	–	–	–85.9	–74.3
Cash flow from financing activities	207.4	–1,270.9	362.6	–1,981.2
Cash flow for the period	–4.0	242.9	–210.7	146.4
Cash and cash equivalents at the beginning of the period	40.5	4.3	247.2	100.8
Cash and cash equivalents at the end of the period	36.5	247.2	36.5	247.2

Segment reporting, Group

January–December 2024 SEKm	Central city	Stockholm Immediate suburbs	Northwest	Northeast	Southwest	Southeast	Group
Rental income	62.4	155.6	36.1	189.1	102.9	15.6	561.8
Property costs	–18.6	–47.1	–10.3	–48.3	–30.1	–3.4	–158.0
Net operating income (NOI)	43.8	108.5	25.8	140.9	72.7	12.2	403.8
Investment properties, carrying amount	1,774.3	3,660.1	999.0	4,460.8	2,237.5	457.4	13,589.2

January–December 2023 SEKm	Central city	Stockholm Immediate suburbs	Northwest	Northeast	Southwest	Southeast	Group
Rental income	57.4	179.9	36.1	188.7	89.4	14.2	565.7
Property costs	–15.8	–59.2	–10.2	–47.1	–26.5	–4.7	–163.5
Net operating income (NOI)	41.6	120.7	25.9	141.6	62.9	9.5	402.1
Investment properties, carrying amount	1,793.0	3,695.5	802.3	4,201.8	2,209.5	71.2	12,773.2

Consolidated net operating income (NOI) as above coincides with recognised NOI in the statement of comprehensive income. The difference between NOI of SEK 403.8m (402.1) and profit before tax of SEK 142.4m (–1,044.1) consists of: central administration, SEK –38.9m (–36.5); interest expenses, leasing, SEK –3.8m (–4.1); net financial expense, SEK –136.8m (–142.7); loss from investments in associates, SEK –49.9m (35.9); impairments of financial assets, –18.0m (–10.6); and loss from disposals of property, SEK –7.2m (–75.4); and change in value, SEK –6.6m (–1,212.9).

Heba's business includes management of a homogeneous property portfolio. No material differences in terms of risks and opportunities are deemed to exist. The Group's internal reporting system is structured to track geographical areas. Segment reporting as above is consistent with internal reporting to management.

The distribution per property category for January–December 2024 is as follows:

SEKm	Residential properties	Community service properties	Group
Rental income	427.5	134.3	561.8
Property costs	–133.1	–24.9	–158.0
Net operating income (NOI)	294.4	109.4	403.8
Investment properties, carrying amount	10,428.3	3,160.9	13,589.2

Parent company income statement

SEKm	2024 Oct–Dec	2023 Oct–Dec	2024 Jan–Dec	2023 Jan–Dec
Rental income	59.5	56.4	237.1	245.0
Property costs
Operating costs	–24.4	–26.5	–90.3	–94.7
Maintenance costs	–1.0	–1.4	–3.2	–4.5
Property tax	–0.7	–0.6	–3.4	–3.9
Ground lease payments	–0.6	–0.9	–2.5	–2.4
Net operating income (NOI)	32.7	27.0	137.8	139.5
Depreciation of properties	–6.5	–6.5	–26.2	–27.0
Gross profit	26.3	20.5	111.5	112.5
Central administration	–9.6	–9.6	–38.4	–36.2
Gain or loss from disposals of property	–	–31.9	–8.8	–31.9
Profit or loss from investments in Group companies	75.0	740.0	36.0	693.5
Financial income	25.4	23.9	96.0	107.2
Interest expenses	–22.0	–12.1	–60.4	–80.7
Change in value of derivative instruments	47.0	–114.4	–44.5	–128.3
Profit or loss after net financial income or expenses	141.9	616.5	91.5	636.2
Appropriations	43.1	–50.3	43.1	–50.3
Current tax	–	–	–	–
Deferred tax	–26.2	50.7	–13.3	33.4
Profit or loss for the period	158.8	616.9	121.2	619.3

Condensed parent company balance sheet

SEKm	2024 31 Dec	2024 30 Sep	2023 31 Dec
ASSETS
Intangible assets	9.8	4.8	5.3
Property, plant and equipment	2,365.9	2,365.0	2,385.5
Financial non-current assets	3,685.0	3,434.3	3,003.1
Derivative instruments	55.0	8.0	99.5
Current receivables	136.5	18.7	791.9
Cash and cash equivalents	30.1	33.6	246.5
Total assets	6,282.3	5,864.5	6,531.7
EQUITY AND LIABILITIES
Shareholders' equity	2,204.7	2,045.7	2,169.2
Untaxed reserves	2.5	2.7	2.7
Provisions	217.7	191.5	204.4
Non-current liabilities	2,874.1	2,854.5	3,497.1
Current liabilities	983.1	770.0	658.4
Total liabilities	4,077.6	3,818.8	4,362.5
Total equity and liabilities	6,282.3	5,864.5	6,531.7

Key figures, Group

	2024	2023	2022	2021	2020
Property-related key figures
Lettable time-weighted area, 000s m 2	257	285	283	261	241
Property yield, % 1)	3.0	3.2	2.3	2.2	2.3
Rental income per m 2, SEK	2,182	1,987	1,802	1,726	1, 636
Property costs per m 2, SEK	614	574	524	525	499
Carrying amount per m 2, SEK	51,599	50,967	51,344	53,767	46, 560
Financial key figures
Cash flow, SEKm 2)	214.2	235.4	196.6	232.7	187.7
Investments, SEKm	899.5	327.4	1,648.4	1,404.6	1, 272.9
NOI margin, % 3) 19)	71.9	71.1	70.9	69.6	69.5
Property management margin, % 4) 19)	38.4	47.9	46.7	50.9	47.6
Interest coverage ratio, multiple 5) 19)	2.3	2.5	3.3	4.8	4.6
Average interest rate for property loans, % 6) 19)	2.81	2.21	2.26	0.93	1.15
Debt/equity ratio, multiple 7) 19)	0.9	0.9	1.0	0.8	0.8
LTV, % 8) 19)	44.7	44.1	47.9	41.1	40.8
Net LTV, % 9) 19)	44.5	43.1	48.3	41.1	41.4
Equity ratio, % 10) 19)	45.5	47.2	43.1	48.3	47.9
Return on equity, % 11) 19)	1.5	–10.4	–1.9	21.7	12.3
Return on total assets, % 12) 19)	2.2	–5.7	–0.2	13.0	8.3
Per share data
Profit or loss after tax, SEK13)	0.60	–4.31	–0.82	8.93	4.35
Cash flow, SEK 14) 19)	1.30	1.43	1.19	1.41	1.14
Shareholders' equity, SEK 15) 19)	39.07	38.99	43.75	45.38	37.10
NAV, SEK 16) 19)	47.02	46.42	52.73	55.73	45.98
Share price, SEK 17)	32.75	35.45	36.30	78.80	57.25
Carrying amount, properties, SEK 18) 19)	82.30	77.36	95.19	88.87	72.96
Shares outstanding at the end of the period, 000s	165,111	165,104	165,120	165,120	165,120

Average shares outstanding, 000s 165,104 165,117 165,120 165,120 165,120

Definitions

• 1) Net operating income in relation to the carrying amount of properties at the end of the period.
• 2) Income from property management less tax paid, adjusted for net interest paid and non-cash items and after changes in working capital.
• 3) NOI in relation to rental income.
• 4) Income from property management in relation to rental income.
• 5) Income from property management plus interest expenses in relation to interest expenses.
• 6) Average interest rate for property loans on the reporting date.
• 7) Interest-bearing liabilities in relation to visible equity at the end of the period.
• 8) Interest-bearing liabilities in relation to the carrying amount of properties at the end of the period.
• 9) Interest-bearing liabilities and declared dividend less cash and cash equivalents in relation to the carrying amount of properties at the end of the period.
• 10) Visible equity in relation to total assets at the end of the period.
• 11) Profit after tax in relation to average visible equity.
• 12) Profit or loss before tax excluding items affecting comparability plus interest expenses in relation to average total assets.
• 13) Profit or loss for the period in relation to average shares outstand ing during the period.
• 14) Cash flow from operating activities in relation to average shares outstanding during the period.
• 15) Shareholders' equity in relation to shares outstanding at the end of the period.
• 16) Shareholders' equity plus interest rate derivatives and deferred tax liabilities in relation to shares outstanding at the end of the period.
• 17) Share price at the end of the period
• 18) Carrying amount of properties in relation to shares outstanding at the end of the period
• 19) Calculations of APMs are available on Heba's website, hebafast.se.

Heba is a long-term and experienced property owner that develops, owns and manages residential properties and community service properties centrally located in the Stockholm-Mälaren Region. On the strength of our expertise and commitment, we offer safe, secure and sustainable homes with high amenity standards for people to enjoy living in throughout various phases of their lives. We create value for shareholders and society through satisfied tenants, safer and more attractive communities and trustful partnerships.

The Heba Group owns 58 properties, including 14 community service properties. These comprise 3,110 rental apartments, 825 apartments in elderly care facilities and 117 non-residential units. Heba was founded in 1952 and has been listed on Nasdaq Stockholm AB Nordic Mid Cap since 1994. hebafast.se

Contact persons:

Patrik Emanuelsson, CEO +46 8-522 547 50, patrik.emanuelsson@hebafast.se Hanna Franzén, CFO +46 8-442 44 59, hanna.franzen@hebafast.se