The call at 1 pm may be more interesting as investors will seek further details on potential large-scale asset disposal, but the quarterly release is very operational in detail.  Rental growth continues to show improvement and with Net Operating Margin improving 300 bps on both a quarterly and LTM basis, cash flow continues to improve.  The Privatisation Program reached SEK 2.4bn in the quarter, continuing to achieve a premium (24%) to book value.  Heimstaden Bostad continues demonstrating its access to the financial markets (mainly secured) via its €725m sustainability-linked secured credit facility in the Netherlands and two SEK bonds totalling SKE 2,300m issued in the quarter.  

The S&P-defined LTV is 57.7% with an ICR of 1.6x.  Despite the improving operational data, the ICR continues to fall, and our model shows that they will be unable to maintain their credit rating without strategic large-scale asset disposal. Expect the investor call to focus on this.  

Please find our updated analysis on Heimstaden Bostad and Heimstaden AB here.  

Distressed debt was seeking good companies and adequate asset coverage, with bad balance sheets. Both Heimstaden Bostad and

In line with their peers, Heimstaden Bostad has reported solid Q2 results with both rental income and NOI margin growing.  The Privatisation Program is

No material change in the stand-alone liabilities of Heimstaden AB, with the Company buying back SEK130m of their SEK bonds due in 2025. There remains

Please find our updated analysis here.

Our previous emails have highlighted the age-old problem of mismatch of assets and liabilities and the dire consequences for equity holders.  An old story, but one been