The residential real estate company reported stronger margins, lower leverage and higher occupancy, while Heimstaden Bostad also issued green floating-rate notes and reaffirmed its 2026 guidance.
Heimstaden Bostad reported like-for-like rental growth of 4.1% in the quarter, down from 5.2% a year earlier, while rental income rose to SEK 3,979 million from 3,954. Profitability improved as the quarterly NOI margin increased to 75.9% from 74.1%, with the last-twelve-month measure at 73.1% versus 71.6% for Q3 2025 to Q2 2026. Operating fundamentals supported a 0.2% increase in property values, compared with 1.2% in the corresponding period the year before, while real economic occupancy reached 98.8%, up from 98.5%. The quarter also included SEK 2,238 million in privatisation sales, versus 2,268 a year earlier, with 538 residential units sold compared with 507 and pricing at a 30.1% premium to book value, broadly in line with 30.0% previously. A major accounting hit came after the investment in Lumo Homes, formerly Kojamo, was reclassified from associated company to financial asset, resulting in an accounting loss of SEK 3,471 million. Balance-sheet metrics improved, with net LTV at 47.9% from 51.7% and ICR at 2.3x from 2.0x. S&P-defined LTV was 53.2% versus 55.4%, while S&P ICR rose to 1.8x from 1.6x. On funding, Heimstaden Bostad issued two green senior unsecured floating-rate notes: SEK 650 million with a 3.5-year tenor and SEK 500 million with a 5-year tenor, carrying coupons of 3-month STIBOR plus 1.00% and plus 1.18%, respectively. Co-CEOs Helge Krogsbøl and Christian Fladeland said the company reaffirmed its 2026 guidance, citing prudent interest-rate risk management, capital allocation and continued focus on portfolio performance.