Heimstaden AB, the parent Company of Heimstaden Bostad, has suspended coupon on its Hybrid bonds. With no expectation of dividends from
Read MoreHeimstaden Bostad sold 380 residential units in Sweden to Hemvist, a fully owned subsidiary of Käpan, the Swedish employee pension fund for
Read MoreRing the bell, the historic stress in the real estate credit market is behind us. Or at least that is what it appears to be, with Heimstaden Bostad tendering
Read MoreHeimstaden Bostad have successfully bought back 90% of the 2026 NOK bonds and 95% of the 2028 NOK bonds via the tender
Read MoreHeimstaden Bostad got us excited this morning with what we initially thought was a tender for perpetual bonds. Alas, it is only
Read MoreWhat crisis? Heimstaden Bostad issued a €500m 5-yr unsecured bond at 3.875%. Heimstaden Bostad remains a BBB- with a negative outlook at S&P and
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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.
Read MoreFurther examination of the prospectus of Heimstaden AB's perpetual bonds has revealed the real reason for the rating request. The ratings deemed a
Read MoreS&P have initiated ratings on Heimstaden AB (the holding entity) with a B-. This is higher than we expected, with S&P highlighting the uncertain cash flow at AB post the suspension of dividends, resulting in interest
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Heimstaden Bostad issued SEK 1.1bn 3yr notes at STIBOR plus 240bps, their first unsecured issuance since early 2022. The spread is c.120bps wider than
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In line with their peers, Heimstaden Bostad has reported solid Q2 results with both rental income and NOI margin growing. The Privatisation Program is
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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
Read MoreChristian Fladeland, Heimstaden’s co-CEO, was interviewed for a podcast, where he continued the upbeat tone investors heard on the Q1 conference call. Despite some
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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
Read MoreThe announcement at Heimstaden AB is a non-event. It is replicating the management team at Heimstaden Bostad. This is in line with previous
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