Heimstaden - comment

Operationally, Heimstaden Bostad continues to show resilient numbers, with like-for-like rental growth of 5%, leading to a Note Operating Income growth. This growth has offset the underlying expanding yields, leading to a 0.8% increase in property values. European Housing Prices are starting to rebound, with 8 out of the 9 markets Hemistaden involved in rebounding from cyclical lows and four even exceeding their previous highs. This renewed confidence in housing prices has allowed Heimstaden to achieve a 30% gross premium on their privatisation program, which will accelerate in the coming months. This enables Heimstaden Bostad to forecast a stable ICR at c.1.6x, partially due to using the proceeds from the privatisation program for liability management and Heimstaden Bostad’s hedging profile.

There was no mention of the Hybrids on the release but we expect this topic to be raised on the conference call at 1 pm UK time.