Sweden's Heba Fastighets nine-month profit nearly doubles

Overview

• Swedish property manager's rental income rose 4% and net operating income increased 5% yr/yr

• Profit for January–September nearly doubled yr/yr

• Company attributes results to efficiency gains, digitalisation and reduced maintenance costs

Outlook

• Company targets energy use of 40 kWh/m2 by 2030

• Company says growth will be driven by development, digital operations and capital management

• Company says integrated sustainability programme aims to lower costs and risks

Result Drivers

• EFFICIENCY IMPROVEMENTS - Co cited several years of efficiency gains, digitalisation and energy optimisation as key drivers, per CEO Patrik Emanuelsson

• RENOVATIONS AND LOWER MAINTENANCE - Co said portfolio renovations and reduced maintenance costs contributed to results

• SUSTAINABILITY PROGRAMME - Co said its sustainability programme led to lower costs and risks

Company press release:

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the real estate rental, development & operations peer group is "buy"

• Wall Street's median 12-month price target for HEBA Fastighets AB is SEK35.00, about 46.8% above its October 20 closing price of SEK23.85

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 15 three months ago

Reuters Recommended Reads

• Oct 21 - Corem Property Group returns to profit; asset gains offset property value declines

• Oct 21 - Sweden's Neobo Q3 profit from property management rises on lower costs

• Oct 21 - Sweden's Wihlborgs 9-month rental income rises on new leases, projects and renegotiation

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)