Heimstaden Third quarter 2023

Q3 2023

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

Highlights

∙ The European residential markets continue to experience increased supply/demand

imbalances putting further upward pressure on rents across our markets. The like-for-

like rental growth was at 4.2% (5.7%) and real economic occupancy continued to stay

high at 98.1% (98.2%) in Q3

∙ The strong operational performance is driven by both rental income at SEK 3.9 billion

(3.8) and prudent cost efficiency measures. The NOI margin was 69.5% (69.0%).

∙ Fair value change was -1.4% (-2.1%) and had an impact on profit of SEK -4.9 billion

(-7.4). After five quarters of declining property values, valuations are now showing

signs of stabilisation

∙ Heimstaden Bostad’s Board approved to scale up the privatisation plan initiated earlier

in 2023. Proceeds will be prioritised for debt service and liability management to

support the key credit metrics

∙ Heimstaden continued its strategic deleveraging efforts by buying back 2024 and

2025 senior unsecured bonds, amounting to SEK 563 million. The sale of our Icelandic

portfolio, which has generated an annualised ROI of appr. 18%, was announced in

October. The proceeds will be used for liability management purposes and cover

upcoming debt maturities

∙ Fitch lowered Heimstaden’s rating to ‘BB’ and revised the Outlook to Rating Watch

Negative. The downgrade reflects a forecasted weaking of the interest coverage ratio

339 billion

Investment Properties, SEK

57.9%

Net loan-to-value

2.7 billion

Net operating income, SEK

1.8x

Interest coverage ratio

Key Figures

Q3 2023 Q2 2023 Q3 2022 YTD 2023 YTD 2022

Financials

Rental income SEK m 3,905 3,800 3,283 11 403 9,729

Growth y-o-y % 18.9 15.5 42.4 17,2 50.0

Net operating income SEK m 2,714 2,623 2,260 7,738 6,350

Net operating income margin % 69.5 69.0 68.8 67.9 65.3

Total comprehensive income/loss SEK m -5,812 244 -2,390 -18,135 12,759

Capital expenditures SEK m 2,043 2,026 2,436 6,113 6,967

Portfolio Metrics

Fair value of investment properties SEK m 338,754 346,629 343,456 338,754 343,456

Homes Units 163,157 162,166 155,822 163,157 155,822

Real economic occupancy, residential % 98.1 98.2 98.4 98.2 98.5

Like-for-like rental income growth % 4.2 5.7 5.5 5.0 5.5

Credit Metrics

Net loan-to-value % 57.9 57.2 52.2 57.9 52.2

Net debt / Total assets % 51.4 50.3 46.3 51.4 46.3

Interest Coverage Ratio (ICR) Multiple 1.8 2.0 2.6 1.8 2.6

Rental Income

SEK million

Real Economic Occupancy

Net Loan-to-Value (LTV)

Q3 23Q2 23Q1 23Q4 22Q3 22

3,283

3,474

3,698

3,800

3,905

Q3 23Q2 23Q1 23Q4 22Q3 22

Real Occupancy Ratio

98.4 98.3 98.2 98.2

98.1

Q3 22Q2 23Q1 23Q4 22Q3 22

52.2

53.6

54.9

57.2

57.9

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

CEO letter

Favourable market fundamentals continue to benefit us. As an owner and manager of Heimstaden Bostad, we are pleased to

see that the company consistently achieves a strong operational performance and that the Net Operating Income margin has

organically improved. To further support the Heimstaden’s financial position, we completed a bond buyback for a total of SEK

563 million and a sale of the Icelandic portfolio. In addition, Heimstaden Bostad’s Board has announced a Privatisation Plan.

Heimstaden Bostad announced the Privatisation Plan

Following last quarter’s commitment to defending the ‘BBB’ rating, Heimstaden

Bostad’s Board has approved a Privatisation Plan which includes establishing a new

business line, where the company target to sell a part of the portfolio to the private

home-owner market. The plan will be ramped up over the coming quarters and ul-

timately is expected to deliver SEK 20 billion by the end of 2025. We see this as an

exciting new strategy that will support the company’s deleveraging program while

crystallising premiums to book values as a key support to the credit metrics.

Continue to reduce leverage

The last months, we have continued to deliver on our strategic plan to reduce lev-

erage.

In September, we completed a bond buyback of 2024 and 2025 senior unsecured

bonds for a total consideration of SEK 563 million. Additionally, we announced in

October the sale of our Icelandic portfolio, which has given us an annualised return

on investment of appr. 18% post-acquisition. The transaction offers an attractive

opportunity to accelerate our exit from the Icelandic market, advance our deleverag-

ing, and capture a significant portion of the ongoing exit strategy’s upside.

The proceeds from the buyback and the Icelandic transaction will be used for liabil-

ity management purposes and cover outstanding debt maturities until 2025.

Heimstaden Bostad continues to address upcoming maturities with strong bank

partnerships across the portfolio. In the third quarter, Heimstaden Bostad obtained

SEK 13 billion in secured bank financing and have in total signed SEK 50 billion in

funding the past 18 months.

As expected, Fitch lowered our rating to ‘BB’ and revised the Outlook to Rating

Watch Negative. The downgrade reflects a forecasted weaking of the interest cov-

erage ratio.

Attention from the media

Lately, certain media articles have incorrectly described Heimstaden and Heim-

staden Bostad as companies in crisis. During the last month, we have proactively

countered the allegations in several interviews, highlighting that both companies

have for many years delivered great annually returns to shareholders, continue to

achieve strong operational results, and are well-prepared for upcoming maturities.

Continued momentum in reaching our sustainability goals

Our sustainability efforts are made with purpose and passion and continue to re-

ceive external validation on our sustainability reporting, which confirms we are on

the right track. This quarter, Morningstar Sustainalytics and Danske Bank’s annual

ESG report gave Heimstaden Bostad top scores, spotlighting key achievements,

ambitious climate roadmap, and sustainability-linked financing framework.

Welcoming Christian to his new role

In September, I was especially pleased to welcome Chief Investment Officer

Christian Fladeland as Deputy CEO, a natural progression considering his substan-

tial contributions to Heimstaden’s positive development.

Helge Krogsbøl

CEO Heimstaden

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

Market update

The investment market faces low transaction volumes and uncertain residential value stability. Residential values are linked to yield

spreads and inflation-linked income, with real interest rates as a key determinant. Investors and operators must now prove their

operational excellence and deep understanding of residential real estate fundamentals. Privatising part of our portfolio will showcase

the resilience of our high-quality assets.

More to residential values than yields

I often hear concerns about how residential yields are too low to be sustainable and that

they fall short of covering funding costs. Accordingly, this occasionally prompt questions

about the potential impact on property valuations if yields were to increase significantly,

creating a positive spread over funding costs. Based on pure math, a 100-200 bps yield

expansion would result in 25-50% decline in values overnight.

Interestingly, during the past decade of declining interest rates, there was limited ex-

amination of why residential yields didn’t decrease to a comparable extent. This period

illustrates that residential values are influenced by many factors beyond nominal interest

rates. The same obvious explanations remain relevant today, as we observe values de-

clining less than can be explained by the observed yield expansion.

The difference between nominal and real yields

Over the past decade, lower interest rates and low inflation, coupled with increased

global productivity, balanced the impact of lenient monetary policies on inflation. During

this period, moderate construction cost increases and low funding costs kept rental

growth from soaring. Consequently, rental growth prospects, which contribute to the

total return for residential real estate, have shifted along with rising interest rates and

inflation. This shift should be factored in when comparing nominal funding costs and the

actual returns in residential real estate, as the total return outlook for residential real es-

tate has significantly improved.

Residential rents have consistently tracked or outperformed inflation

Rental growth in our markets has matched or outperformed inflation over the past few

decades. While regulations may limit rental increases to match inflation, the real increase

in wages is enhancing affordability and enabling unregulated markets to experience

surplus growth. Currently, we are witnessing like-for-like rental growth matching core

inflation, and we anticipate that the growth will surpass core inflation in the near future,

making up for the shortfall observed over the past year.

Privatisations are accretive to shareholders and support credit metrics

We are initiating a 5–8-year plan to streamline our portfolio through selective mar-

ket-based privatisation. This will generate profits and optimise capital allocation as we

transition units to the home-ownership market when tenants move out.

Based on a detailed analysis, we have identified appr. 25% of our portfolio, or about SEK

85 billion in book value, suitable for privatisation. This assessment considered achievable

profits, operational fit, future returns, and existing funding. Consequently, we’ve selected

five of our nine markets for inclusion and expect profits to exceed 20% of book value

based on recent sales and market data. Our multi-year plan aims to begin accelerated ex-

ecution in Q1 2024, targeting sale of SEK 20 billion in book value by the end of 2025.

Heimstaden Bostad’s Board directive is clear: prioritise all proceeds for debt servicing

and liability management. These sale proceeds and expected profits will support our

essential credit metrics, playing a key role in stabilising the ICR as we aim to defend our

‘BBB’ rating.

The era of using real estate as a pure fixed income substitute has ended

The heavy focus on spreads between residential yields and nominal rates reflects the

financial engineering of real estate in the recent decade. In a zero-interest rate environ-

ment, fundamentals took a back seat, but now it’s time to remember what truly drives

successful real estate investments: inflation protection.

Residential real estate has seen its fundamentals strengthened. As we navigate this tran-

sitional period, the primary emphasis is on adjusting for higher interest rates. However, it’s

hard to imagine that an undersupplied, non-cyclical asset like residential real estate won’t

rebound from initial declines in nominal prices in a higher inflationary environment.

Christian Fladeland

Deputy CEO Heimstaden

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

Sustainability Highlights

We have improved our ESG risk rating with leading voices in European sus-

tainability analysis.

Morningstar Sustainalytics’ ESG now rates Heimstaden Bostad as “Negligible

Risk” (from “Low Risk” last year), with full scores in 23 out of 50 categories in

addition to a “Strong” rating of our ESG risk management – the highest pos-

sible score.

Danske Bank’s annual ESG report for the real estate sector upgraded our

ESG reporting from “Good” to “Excellent,” spotlighting our key achievements,

ambitious climate roadmap, and sustainability-linked financing framework.

In response to the Ukraine war, we provided 750 emergency apartments for

Ukrainian refugees in the Czech Republic.

As the government adjusted the programme this summer, Heimstaden pro-

actively engaged Ukrainian tenants, holding meetings to explain legislative

changes and offer alternative long-tern solutions. As a consequence, 73% of

the Ukrainian refugees have chosen to continue to lease with us.

Environmental Social Governance

This quarter, the CEO approved the following updated policies:

• Corporate Communications Policy and Manual

• Risk Policy and Manual

• Financial Policy

We have executed training on the new Group Authorisation Matrix and on the

Insider Framework, in addition to launching Anti Bribery and Corruption training

for all employees through our employee portal Workday.

“External validation from

research, ratings, and analytics

firms affirms our purposeful

and passionate sustainability

endeavors, confirming we’re on

the right track”

Katarina Skalare.

Chief Sustainability Officer

“Our Czech team has met

the Ukrainian refugees with

compassion, understanding, and a

solution-oriented mindset. We are

pleased to report that 73% of our

Ukrainian tenants have transitioned

from social contracts to regular

lease agreements—a crucial

step towards successful refugee

integration into local communities”

Anette Konar Riple

Group Director Social Sustainability

“Improving and streamlining our

policy framework, supports a

robust governance structure that

creates value throughout the

entire organisation”

Kristian Berentsen

Chief Legal Officer

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

Heimstaden Bostad/Allianz partnership owning part of the Swedish and German portfolios. Consolidated as Group companies.

Property & Country management

Management

Agreement

Direct

Real Estate

Investments

Largest Institutional Investors

Alecta

Folksam Group

Swedish Pensions Agency

Ericsson Pension Fund

Fredensborg AS

holding ordinary shares

Preference shares listed on Nasdaq First North

Growth Market under the ticker HEIM PREF

Institutional partner

Allianz

Owners

Simplified

Company Structure

Heimstaden is an industrial investor and owns

Heimstaden Bostad together with long-term

institutional investors who share Heimstaden’s

philosophy for evergreen and sustainable

investments. Heimstaden is also the Manager of

Heimstaden Bostad. The property companies are

fully owned by Heimstaden Bostad, except for

Iceland, which is owned by Heimstaden.

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

Quarterly Review

This report is presented on a consolidated basis. For information

on Heimstaden’s standalone financials, see pages 44-46.

Figures in brackets refer to the previous quarter.

Income

Rental income increased by 2.7% to SEK 3,905 million (3,800), driven primarily by

incrased income from standing assets and favourable exchange rate developments.

Service charges paid by tenants decreased to SEK 389 million (414), mainly due to

lower heating consumption.

Like-for-like rental income growth was 4.2% (5.7%). The comparable portfolio made

up 88% (90%) of rental income.

Residential real economic occupancy was stable of 98.1% (98.2%), excluding 2.4%

(2.2%) in vacancy due to refurbishments and other non-market related vacancies.

Operating expenses

Utility expenses decreased to SEK 458 million (494), mainly related to seasonal varie-

ties. Due to different rental regimes between markets, these costs impact net operat-

ing income margins differently. See Note 3 for more details.

Repair and maintenance was stable and amounted to SEK181 million (196). Costs

for facility and property management increased to SEK 667 million (623).

Capital expenditures and Repair & Maintenance

Total expenditure in standing assets was SEK 1,412 million (1,506), corresponding

to 0.42% of fair value (0.43%), while investments in properties under construction,

excluding forward purchase contracts, amounted to SEK 851 million (758) as the

number of homes under constrution was reduced from 3,539 to 3,484 at the end of

second quarter. More details on page 10.

SEK million Q3 2023 Q2 2023 YTD 2023 YTD 2022

Income statement items

Expenses for repair & maintenance

220 237 688 708

Balance sheet items

Capitalised cost on standing assets excluding

tenant improvements 761 724 2,086 2,805

Tenant improvements 431 545 1,452 942

Balance sheet expenditure 1,192 1,269 3,539 3,748

Expenditure on standing assets 1,412 1,506 4,226 4,456

Investment properties under construction 851 758 2,574 3,219

Capital expenditures 2,042 2,026 6,113 6,967

Excluding group eliminations, see Note 3

Rental Economic Occupancy

Property Expenses

SEK million

Rental Income Development

Q3 2023Foreign

currency effect

Standing

assets

Acquisitions

and divestments

Q2 2023

3,800

3,905

Property Cost Development

Q3 2023Foreign

currency effect

Standing

assets

Acquisitions

and divestments

Q2 2023

1,592

-46

1,579

Rental Income

SEK million

Real Economic Occupancy

Q3 23Q2 23Q1 23Q4 22Q3 22

1.9

98.4

96.5

1.9

98.2

96.3

1.9

98.2

96.3

2.2

98.2

96.0

2.4

98.1

95.8

Economic occupancy Non-market vacancy adjustments

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

Net operating income

Net operating income grew by 3.5% to SEK 2,714 million (2,623), resulting in a net

operating income margin of 69.5% (69.0%), mainly driven by rental growth, lower

utility costs, and delivery of new builds.

Change in fair value of investment properties

Net loss from fair value adjustments on investment properties was SEK 4,946 million

(7,349) corresponding to -1.4% of fair value. The yield requirement in the valuation

amounted to an average 3.50%, up from 3.42% at the end of the previous quarter

mainly driven by sentiment-based yield increase.

Q3 2023 YTD 2023

SEK million % SEK million % SEK million

Sweden -2.5 -2,319 -8.0 -8,018

Germany -2.5 -2,130 -12.4 -11,975

Denmark -0.5 -373 -5.2 -4,083

Netherlands -0.5 -143 -10.8 -3,403

Czech Republic 1.6 400 4.2 1,026

Norway -2.5 -464 1.4 243

Iceland 0.6 38 4.1 240

Finland -2.7 -106 -6.1 -250

United Kingdom 2.3 97 9.9 385

Poland 3.7 54 5.4 77

Total -1.4 -4,946 -7.1 -25,758

For more information regarding fair value assessments, see Note 7.

Interest expenses

Interest expenses was SEK 1,561 million (1,422) and the average interest rate

was 3.0% (2.7%). At the balance sheet date the interest rate hedge ratio was

76%(78%). The interest coverage ratio for the last 12 months was 1.8 (2.0).

Foreign currency

Heimstaden has holdings and operations in SEK, EUR, DKK, NOK, CZK, PLN, GBP

and ISK. Exchange differences on translation of foreign operations gave other com-

prehensive loss of SEK3,331 million (income 7,402), which was partially offset by

SEK 1,500 million in foreign exchange gain (loss 3,678), the latter mainly related to

bonds issued in EUR. For more details, see Note 13.

Cash Flow

SEK million Q3 2023 Q2 2023 YTD 2023 YTD 2022

Operating activities 631 57 703 2,072

Investing activities -1,203 -1,970 -4,352 -18,960

Financing activities -1,758 -1,243 -578 3,197

Currency effects 3 268 246 528

Change -2,331 -2,887 -4,227 -13,162

Period opening balance - Cash and cash

equivalents 9,670 12,556 11,323 20,488

Closing balance - Cash and cash equivalents 7,342 9,669 7,343 7,325

Cash generated from operation was SEK 2,719 million (1,162). Interest and taxes

paid in period was SEK –2,088 million (1,105) resulting in a net cash flow from oper-

ating activities of SEK 631 million (57). The main difference between operating profit

and cash flow from operations is fair value adjustments on investment properties of

SEK -4,946 million (-7,339).

Cash flow from investing activities was SEK -1,203 million (-1,970) and included

Capex on investment properties of SEK 2,061million (2,043), and divestments of in-

vestment property of SEK 437 million (259).

Cash flow from financing activities was negative SEK 1,758 million (1,243), where

repayments of loans exceeded proceeds from new financing, with a net effect of

SEK -1,686 million (608).

Earnings per share

Heimstaden will no longer report earnings per share (EPS), a financial metric rele-

vant only to companies where the shareholders do not have defined shareholdings

across several share classes.

Like-for-Like Rental Income Growth

Q3 23Q2 23Q1 23Q4 22Q3 22

5.5

5.4

5.0

4.2

5.7

Net Operating Income and Margin

Q3 23Q2 23Q1 23Q4 22Q3 22

63.4

7,783

64.4

8,497

64.9

8,925

66.2

9,432

66.4

9,885

Q3 23Q2 23Q1 23Q4 22Q3 22

Net Operating Income and Margin

Last twelve months, SEK million / %

Like-for-Like Rental Income Growth

year-on-year, %

LTM Net operating income LTM Net operating income margin

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

30 Sep 2023Fair value lossForeign currencyCapexDivestmentsAcquisitions30 Jun 2023

192

2,043

-4,946

338,754

-4,529

346,629

-635

Fair Value Development

SEK million

Investment Properties

Fair Value Development

Fair value of investment properties increased to SEK 339

billion, down from SEK 347 billion at 30 June 2023, mainly

through a foreign currency loss of SEK 4.5 billion, and an

unrealised fair value loss of SEK 4.9 billion and capital ex-

penditures of SEK 2.0 billion. The portfolio includes 163,157

(162,166) homes across ten markets. Residential units made

up 92.6% of fair value and 55.8% of residential in- come

comes from regulated units.

The decrease in fair value in Q3 2023 was primarily driven

by negative valuation movements in Sweden, Germany and

Finland where sentiment-based yield increases (in some

cases supported by a limited number of individual compa-

rable transactions) outweighed the positive effects of rental

increases. Norway and Iceland also saw values decrease

driven by negative owner-occupier price developments.

Denmark and The Netherlands saw values stabilise as rental

performance and owner-occupier price developments (and

outlook) mitigated the effects of increasing yields. Strong

rent roll performance saw increasing values in the Czech Re-

public, United Kingdom and Poland.

The elevated economic volatility in recent months has in-

creased forward looking uncertainty. Assuming it moderates

and based on Heimstaden’s expected portfolio operational

performance and external valuer forward looking sentiment,

on a like-for-like basis we expect the aggregate portfolio

value to continue to trend towards stabilisation over the next

1-2 quarters (with some variance shown between individual

country portfolios).

Methodology

Heimstaden’s investment properties are valued externally

on a quarterly basis, or with interim indexation applied to

the latest annual valuation (Norway residential only). For all

external valuations the Group instructs a real estate advisory

company with appropriate qualifications, experience, and

the capacity to carry out the valuation in accordance with

the required standards.

In addition, Heimstaden uses a dedicated in-house valua-

tion team to ensure quality control of all external valuations

and the execution of standardised structures and processes

across its markets.

The valuation methodologies the external valuers adopt are

based on best market practice in each respective country,

typically an explicit income, implicit income, or direct own-

er-occupier sales comparison approach. In general, val-

uations are based on a “highest-and-best-use” principle,

adopting the highest value given by a re-letting scenario

(assuming a re-letting of units at market terms upon tenant

churn) and a divestment scenario (assuming a sale of each

unit upon tenant churn). For properties under construction,

external valuers provide a market value on the special as-

sumption the proposed development works have been com-

pleted and occupancy is stabilised, from which Heimstaden

deducts remaining costs to complete and appropriate devel-

opment risk premia to arrive at a fair value.

For more details, see Note 3.1 on page 58 in the 2022 An-

nual Report

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

Capital Expenditures

Four pillars of capital expenditures

Heimstaden allocates Capex across two main segments: value

preserving and value increasing. These non-recurring projects aim

to upgrade, extend or improve the quality and lifetime of an exist-

ing asset with little mandatory commitment while maintaining high

optionality.

Those segments are built upon four categories. Value preserving

segment holds all maintenance Capex while the value increasing

segment is comprised of Sustainability Capex, Tenant Improve-

ments, and Value add Capex.

Maintenance

Maintenance Capex projects preserve the value of an asset or im-

prove tenant quality and satisfaction. All spend is measured in-

dividually and alternative investment calculations are carried out

considering when to repair versus replace.

Sustainability

Sustainability Capex projects contribute to the Company’s ESG tar-

gets and Climate Roadmap by reducing either energy consumption

through efficiency measures or CO

emissions through fuel shifts.

Projects are evaluated from both an emission reduction perspective

as well as a financial.

Tenant improvements

Unit refurbishments are carried out at churn when deemed eco-

nomically viable. Primarily made up of residential units, but can in-

clude improvements on the commercial leases as well. All spend is

optional and viewed on a case-by-case basis where accretive to the

business plan.

Value add Capex

Value add projects carried out opportunistically within standing

assets to increase the value and grow NOI. Projects include exten-

sions adding rentable square meters, attic apartment conversions,

infill buildings, and income producing property upgrades. All pro-

jects evaluated and approved on case-by-case basis as per group

authority matrix.

Capital Expenditures

Q3 2023 YTD 2023 Q3 2022 YTD 2022

SEK million %

SEK million

Sweden 0.49 454 1.28 1,246 0.52 530 1.76 1,723

Germany 0.17 148 0.59 548 0.37 302 0.77 546

Denmark 0.16 124 0.49 366 0.15 108 0.51 340

Netherlands 0.65 188 2.15 647 0.64 198 1.94 530

Czech Republic 0.80 210 2.28 534 0.95 201 2.48 445

Norway 0.06 11 0.20 41 0.15 32 0.55 105

Iceland 0.11 7 0.88 49 0.27 15 0.76 34

Finland 1.22 48 2,79 107 0.28 10 2.39 24

Total 0.34 1,192 1.01 3,539 0.41 1,395 1.23 3,748

Capital expenditure on standing assets

Capital expenditure on standing assets in relation to investment properties

Signed Acquisitions

Heimstaden expands and improves its portfolio through acquisitions of standing assets and newbuilds.

No new signed acquisitions have been made during the quarter.

Newbuild investments are structured either as forward purchase or forward funding. In a forward pur-

chase transaction, Heimstaden commits to buying new turnkey investment properties, which are not

recognised on the balance sheet until delivery.

In a forward funding transaction, Heimstaden incurs Capex throughout the development phase based on

construction milestones, but do not take on direct development risk. To mitigate counterparty risk, Heim-

staden performs thorough due diligence and only partners with robust and experienced counterparties.

In Q3 2023, Heimstaden Bostad reached agreements with developers on two turn-key projects whereby

the developers have bought themselves out of their turnkey obligations via payment to Heimstaden

Bostad. As a result of the agreement, Heimstaden Bostad also reduces future commitments by SEK

1,222 million.

Heimstaden has forward funding contracts with a total capital expenditure commitment of SEK 2.7

billion. The total pipeline of signed acquisitions, including standing assets and newbuilds, amounts to

SEK3.2 billion. For more details, see Note 14.

Remaining Commitments

SEK million

2026202520242023

1,654

3,347

313

627

Forward funding

Own development

Forward purchase

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

Portfolio Overview

Fair Value

339

SEK billion

Country

Fair Value,

SEK million

Fair Value

/sqm, SEK

Homes,

units

Residen-

tial,%

Regulated

Income,

Real Economic

Occupancy, %

Sweden 91,656 27,319 46,236 90.0 100.0 99.0

Germany 84,595 42,329 29,708 91.0 100.0 99.2

Denmark 74,900 36,866 20,793 94.5 14.4 97.2

Netherlands 28,180 26,756 13,351 98.1 59.2 99.7

Czech Republic 25,509 9,787 42,547 95.9 25.1 96.4

Norway 18,170 86,760 4,004 86.8 0.0 99.6

Iceland

6,109 41,799 1,625 100.0 0.0 99.9

United Kingdom 4,268 56,580 949 99.7 0.0 83.2

Finland 3,853 20,698 3,167 95.6 0.0 93.6

Poland 1,515 40,468 777 88.8 0.0. 97.1

Total 338,754 28,936 163,157 92.6 55.8 98.1

Residential income

Properties in Iceland are owned 100% by Heimstaden

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

Q3 2023 Q2 2023 Q3 2022 YTD 2023 YTD 2022

Rental income SEK m 1,115 1,115 997 3 319 3,156

Net operating income SEK m 725 674 571 1 949 1,709

Net operating income margin % 65.1 60.5 57.3 58,7% 54.2

Like-for-like rental income growth % 4.8 5.4 3.2 4,5% 3.0

Real economic occupancy % 99.0 99.3 99.1 99,1% 99.0

Fair value of investment properties SEK m 91,656 93,219 100,395 91,656 100,395

Fair value change SEK m -2,319 -2,527 -2,955 -8,018 -2,101

Capital expenditures SEK m 755 718 1,057 2,239 3,247

Average valuation yield requirement

% 3.3 3.2 2.8 3.3 2.8

Acquisitions SEK m – – 154 24 1,987

Divestments SEK m – – -18 -33 -471

Q3 23Q2 23Q1 23Q4 22Q3 22

997

1,052

1,089

1,115 1,115

Q3 23Q2 23Q1 23Q4 22

Q3 22

51.0

53.8

53.2

55.2

57.2

Q3 23Q2 23Q1 23Q4 22Q3 22

-2.9 -4.6

-3.2 -2.6 -2.5

Rental Income

SEK million

Fair Value Change

Net Operating Income Margin

Last twelve months, %

Sweden

Fair Value

SEK billion

Skåne County

Stockholm County

Östergötland County

Västerbotten County

Södermanland County

Uppsala County

Gävleborg County

Jönköping County

Kronoberg County

Nordbotten County

Västra Götaland County

Blekinge County

The yield applied on the valuation-assumed property-generated cashflow to determine the valuation of said property. The yield corresponds to the valuers market

assumptions in each region.

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

Q3 2023 Q2 2023 Q3 2022 YTD 2023 YTD 2022

Rental income SEK m 683 666 523 1,994 1,517

Net operating income SEK m 500 507 390 1,510 1,142

Net operating income margin % 73.3 76.0 74.6 75.7 75.3

Like-for-like rental income growth % 3.6 5.3 5.3 4.8 11.6

Real economic occupancy % 99.2 98.8 98.5 99.1 98.4

Fair value of investment properties SEK m 84,595 88,102 83,101 84,595 83,101

Fair value change SEK m -2,130 -3,656 -498 -11,975 4,534

Capital expenditures SEK m 149 198 256 549 546

Average valuation yield requirement

% 2.7 2.6 2.3 2.7 2.3

Acquisitions SEK m – – -2 – 2,618

Divestments SEK m – – -21 – -25

Rental Income

SEK million

Fair Value Change

Net Operating Income Margin

Last twelve months, %

Q3 23Q2 23Q1 23Q4 22Q3 22

523

548

645

666

683

Q3 23Q2 23Q1 23Q4 22

Q3 22

75.2

73.5

74.6 74.5

74.1

Q3 23Q2 23Q1 23Q4 22Q3 22

-0.6 -1.5 -6.6 -4.0 -2.5

Germany

Berlin

Hamburg

Düsseldorf

Bonn

Munich

Garching

Stuttgart

Halle

Magdeburg

Rostock

Dresden

Erfurt

Fair Value

SEK billion

The yield applied on the valuation-assumed property-generated cashflow to determine the valuation of said property. The yield corresponds to the valuers market

assumptions in each region.

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

Q3 2023 Q2 2023 Q3 2022 YTD 2023 YTD 2022

Rental income SEK m 912 873 762 2,644 2,224

Net operating income SEK m 649 605 534 1,822 1,548

Net operating income margin % 71.2 69.3 70.1 68.9 69.6

Like-for-like rental income growth % 0.5 1.0 5.2 1.0 6.1

Real economic occupancy % 97.2 96.9 97.6 96.9 98.4

Fair value of investment properties SEK m 74,900 76,286 74,711 74,900 74,711

Fair value change SEK m -373 -528 -1,859 -4,097 -54

Capital expenditures SEK m 330 300 292 873 937

Average valuation yield requirement

% 4.1 4.1 3.6 4.1 3.6

Acquisitions SEK m 5.7 38 1,219 1.696 2,846

Divestments SEK m -19 – -10 -19 -16

Rental Income

SEK million

Fair Value Change

Net Operating Income Margin

Last twelve months, %

Q3 23Q2 23Q1 23Q4 22Q3 22

762

802

859 873

912

Q3 23Q2 23Q1 23Q4 22

Q3 22

69.1

68.3

67.4 67.5

68.0

Q3 23Q2 23Q1 23Q4 22Q3 22

-2.4 -3.7 -4.2 -0.7 -0.5

Denmark

København

Østjylland

Fyn

Sydjylland

Københavns omegn

Vestjylland

Nordjylland

Vest- og Sydsjælland

Østsjælland

Nordsjælland

Jylland

Fair Value

SEK billion

The yield applied on the valuation-assumed property-generated cashflow to determine the valuation of said property. The yield corresponds to the valuers market

assumptions in each region.

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

Q3 2023 Q2 2023 Q3 2022 YTD 2023 YTD 2022

Rental income SEK m 366 346 315 1,050 914

Net operating income SEK m 278 272 210 797 591

Net operating income margin % 76.0 78.5 66.9 75.9 64.7

Like-for-like rental income growth % 4.1 4.8 4.1 4.6 3.3

Real economic occupancy % 99.7 99.7 99.7 99.7 99.7

Fair value of investment properties SEK m 28,180 28,714 30,444 28,180 30,444

Fair value change SEK m -143 -862 -985 -3,403 634

Capital expenditures SEK m 188 229 198 647 530

Average valuation yield requirement

% 3.7 3.7 2.9 3.7 2.9

Acquisitions SEK m – – – – 196

Divestments SEK m -82 -55 -11 -152 -14

Rental Income

SEK million

Fair Value Change

Net Operating Income Margin

Last twelve months, %

Q3 23Q2 23Q1 23Q4 22Q3 22

315

328

338

346

366

Q3 23Q2 23Q1 23Q4 22

Q3 22

62.8

65.2

68.4

71.4

73.7

Q3 23Q2 23Q1 23Q4 22Q3 22

-3.1 -1.4 -7.8 -2.9 -0.5

Netherlands

Fair Value

SEK billion

The yield applied on the valuation-assumed property-generated cashflow to determine the valuation of said property. The yield corresponds to the valuers market

assumptions in each region.

Groningen

Rotterdam

Arnhem

Utrecht

Heerlen

Den Haag

Amsterdam

Alkmaar

Schiedam

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

Q3 2023 Q2 2023 Q3 2022 YTD 2023 YTD 2022

Rental income SEK m 434 443 344 1,292 994

Net operating income SEK m 307 324 249 932 703

Net operating income margin % 70.9 73.0 72.3 72.1 70.8

Like-for-like rental income growth % 10.1 15.8 9.6 13.8 8.0

Real economic occupancy % 96.4 96.8 97.0 96.8 96.8

Fair value of investment properties SEK m 25,509 26,121 22,209 25,509 22,209

Fair value change SEK m 400 240 337 1,026 2,321

Capital expenditures SEK m 210 189 201 534 471

Average valuation yield requirement

% 4.7 4.6 4.4 4.7 4.4

Acquisitions SEK m – – – – –

Divestments SEK m -19 -5 – -24 -1

Rental Income

SEK million

Fair Value Change

Net Operating Income Margin

Last twelve months, %

Q3 23Q2 23Q1 23Q4 22Q3 22

344

414

443

388

434

Q3 23Q2 23Q1 23Q4 22

Q3 22

68.7

69.2

70.0

70.9 70.6

Q3 23Q2 23Q1 23Q4 22Q3 22

1.5

0.2

1.6

0.9

1.6

Czech Republic

Fair Value

SEK billion

The yield applied on the valuation-assumed property-generated cashflow to determine the valuation of said property. The yield corresponds to the valuers market

assumptions in each region.

Ostrava

Pilsen

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

Q3 2023 Q2 2023 Q3 2022 YTD 2023 YTD 2022

Rental income SEK m 189 176 193 561 559

Net operating income SEK m 142 136 131 429 374

Net operating income margin % 74.9 77.3 67.9 76.5 66.8

Like-for-like rental income growth % 6.3 8.0 10.5 7.2 8.1

Real economic occupancy % 99.6 99.2 98.7 99.4 97.6

Fair value of investment properties SEK m 18,170 18,667 20,417 18,170 20,417

Fair value change SEK m -464 -10 -348 243 977

Capital expenditures SEK m 31 64 60 141 262

Average valuation yield requirement

% 3.2 3.0 2.9 3.2 2.9

Acquisitions SEK m – – 1 – 125

Divestments SEK m -189 24 – -1,522 -6

Rental Income

SEK million

Fair Value Change

Net Operating Income Margin

Last twelve months, %

Q3 23Q2 23Q1 23Q4 22Q3 22

193

195

176

198

189

Q3 23Q2 23Q1 23Q4 22

Q3 22

64.1

68.4

72.9

73.8

75.6

Q3 23Q2 23Q1 23Q4 22Q3 22

-1.7 -3.4

4.1

-0.1 -2.5

Norway

Fair Value

SEK billion

Oslo

The yield applied on the valuation-assumed property-generated cashflow to determine the valuation of said property. The yield corresponds to the valuers market

assumptions in each region.

Reykjavík

South Peninsula

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

Q3 2023 Q2 2023 Q3 2022 YTD 2023 YTD 2022

Rental income SEK m 87 83 77 249 220

Net operating income SEK m 58 58 54 167 145

Net operating income margin % 66.5 69.2 69.2 67.1 66.0

Like-for-like rental income growth % 4.9 11.0 N/A 9.6 N/A

Real economic occupancy % 99.9 99.9 99.7 99.9 99.4

Fair value of investment properties SEK m 6,109 6,013 5,624 6,109 5,624

Fair value change SEK m 38 52 18 240 573

Capital expenditures SEK m 7 21 15 49 34

Average valuation yield requirement

% 4.6 4.2 4.6 4.6 4.6

Acquisitions SEK m 181 – – 181 –

Divestments SEK m -154 -225 -3 -379 -3

Rental Income

SEK million

Fair Value Change

Net Operating Income Margin

Last twelve months, %

77 78

Q3 23Q2 23Q1 23Q4 22Q3 22

Q3 23Q2 23Q1 23Q4 22

Q3 22

64.3

65.7

66.4

67.2

66.6

Q3 23Q2 23Q1 23Q4 22Q3 22

0.3

4.2

2.6

0,9

0.6

Iceland

Fair Value

SEK billion

The yield applied on the valuation-assumed property-generated cashflow to determine the valuation of said property. The yield corresponds to the valuers market

assumptions in each region.

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

Q3 2023 Q2 2023 Q3 2022 YTD 2023 YTD 2022

Rental income SEK m 29 16 2 52 6

Net operating income SEK m 7 6 1 13 1

Net operating income margin % 23.7 38.5 N/A 24.9 N/A

Like-for-like rental income growth % 5.1 3.0 N/A 3.0 N/A

Real economic occupancy % 83.2 83.8 99.6 83.4 99.2

Fair value of investment properties SEK m 4,268 4,008 2,370 4,268 2,370

Fair value change SEK m 97 -37 -66 385 164

Capital expenditures SEK m 293 233 348 860 916

Average valuation yield requirement

% 4.4 4.3 4.5 4.4 4.5

Acquisitions SEK m – – – – 268

Divestments SEK m – – – – –

United Kingdom

Fair Value

SEK billion

Birmingham

City of Edinburgh

Barnet

Essex

The yield applied on the valuation-assumed property-generated cashflow to determine the valuation of said property. The yield corresponds to the valuers market

assumptions in each region.

Rental Income

SEK million

Fair Value Change

Net Operating Income Margin

Last twelve months, %

Q3 23Q2 23Q1 23Q4 22Q3 22

21.2

Q3 23Q2 23Q1 23Q4 22

Q3 22

23.7

-0.9

10.0

1.2

-2.7

Q3 23Q2 23Q1 23Q4 22Q3 22

2.3

The yield applied on the valuation-assumed property-generated cashflow to determine the valuation of said property. The yield corresponds to the valuers market

assumptions in each region.

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

Q3 2023 Q2 2023 Q3 2022 YTD 2023 YTD 2022

Rental income SEK m 69 66 61 199 130

Net operating income SEK m 34 31 36 94 69

Net operating income margin % 50.3 46.9 58.9 47.1 53.3

Like-for-like rental income growth % 3.5 0.8 N/A 1.6 N/A

Real economic occupancy % 93.6 93.3 95.5 93.6 95.6

Fair value of investment properties SEK m 3,853 3,976 3,711 3,853 3,711

Fair value change SEK m -106 -38 -10 -250 200

Capital expenditures SEK m 48 41 10 106 24

Average valuation yield requirement

% 4.4 4.3 5.3 4.4 5.3

Acquisitions SEK m – – – – 1,962

Divestments SEK m – – – – –

Rental Income

SEK million

Fair Value Change

Net Operating Income Margin

Last twelve months, %

Q3 23Q2 23Q1 23Q4 22Q3 22

Q3 23Q2 23Q1 23Q4 22

Q3 22

53.7

48.3

48.7

46.8

44.9

Q3 23Q2 23Q1 23Q4 22Q3 22

-2.7 -0.9 -2.7-0.3 -1.2

Finland

Fair Value

SEK billion

Central Finland

North Ostrobothnia

Helsinki-Uusimaa

Päijät-Häme

North Savo

Pirkanmaa

The yield applied on the valuation-assumed property-generated cashflow to determine the valuation of said property. The yield corresponds to the valuers market

assumptions in each region.

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

Q3 2023 Q2 2023 Q3 2022 YTD 2023 YTD 2022

Rental income SEK m 21 15 1 45 1

Net operating income SEK m 12 10 -3 26 -6

Net operating income margin % 59.1 65.1 N/A 58.1 N/A

Like-for-like rental income growth % N/A N/A N/A N/A N/A

Real economic occupancy % 97.1 92.4 94.6 95.3 94.6

Fair value of investment properties SEK m 1,515 1,522 474 1,515 474

Fair value change SEK m 54 17 14 77 14

Capital expenditures SEK m 32 33 – 115 –

Average valuation yield requirement

% 5.4 5.6 5.0 5.4 5

Acquisitions SEK m 5 117 462 249 462

Divestments SEK m – – – – –

Poland

Fair Value

SEK billion

Warsaw

The yield applied on the valuation-assumed property-generated cashflow to determine the valuation of said property. The yield corresponds to the valuers market

assumptions in each region.

Rental Income

SEK million

Fair Value Change

Net Operating Income Margin

Last twelve months, %

Q3 23Q2 23Q1 23Q4 22Q3 22

Q3 23Q2 23Q1 23Q4 22

Q3 22

50.5

Q3 23Q2 23Q1 23Q4 22Q3 22

1.1

0.5

6.6

3.0

3.7

The yield applied on the valuation-assumed property-generated cashflow to determine the valuation of said property. The yield corresponds to the valuers market

assumptions in each region.

Krakow

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

2032+203120302029202820272026202520242023

1,178

23,772

39,026

21,639

43,318

14.244

17,782

14,651

21,591

6,827

Financing Overview

Owning and operating residential real estate requires stable access to capital at favoura-

ble terms. In line with announced strategy Heimstaden’s primary focus on a standalone

basis is to further reduce leverage to obtain a financial structure that creates resilience

in a macro environment associated with increasing risk of refinancing. As part of that

strategy Heimstaden successfully completed a bond buyback to proactively improve the

company’s debt maturity profile and strengthen the balance sheet.

Funding strategy

Heimstaden is through available sources of funding building a cash position that will

serve to meet upcoming debt maturities and refinancing needs and support the de-

leveraging strategy to create a more robust balance sheet and conservative financial

structure.

During the quarter, Heimstaden tendered a total consideration of SEK 530 million

senior unsecured bonds under its EMTN programme with a maturity in 2024 and

2025. At the end of the period, Heimstaden had SEK 12,088 million in senior unse-

cured bonds and a SEK 7,925 million hybrid bond outstanding, all listed on Nasdaq

Stockholm.

Rating

Fitch lowered Heimstaden’s rating by one notch to ‘BB’ and revised the Outlook to

Rating Watch Negative. The downgrade reflects a forecasted weaking of the interest

coverage ratio.

See pages 46-49 for more information on Heimstaden’s debt instruments and stan-

dalone financials.

Interest bearing liabilities maturity

SEK million

Bank debt Mortgage debt Senior unsecured bonds Commercial paper

BBB

S&P and Fitch credit ratings

of Heimstaden Bostad

Fitch credit rating

of Heimstaden

2032+

203120302029202820272026202520242023

4,460

3,446

000 00 0

Hybrid bonds reset dates

SEK million

Hybrid bonds

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

Credit Metrics

Q3 23Q2 23Q1 23Q4 22Q3 22

52.2

53.6

54.9

57.2 57.9

Q3 23Q2 23Q1 23Q4 22Q3 22

1.6

2.1

2.5

2.7

3.0

Q3 23Q2 23Q1 23Q4 22Q3 22

Average loan tenor

8.3

8.0

8.1

8.0 8.0

Q3 23Q2 23Q1 23Q4 22Q2 22

77 76

Q3 23Q2 23Q1 23Q4 22Q3 22

2.7

2.6

2.3

2.0

1.8

Net Loan-to-Value (LTV)

Average Interest Rate

Funding Distribution

Average Loan Tenor

Interest Rate Hedge Ratio

ICR

multiple

Bank debt Senior unsecured bonds Commercial paper

Hybrid bonds Mortgage debt

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

Condensed Consolidated Financial Statements and Notes

Condensed Consolidated FinancialStatements

Condensed Consolidated Statement of Comprehensive Income

Condensed Consolidated Statement of Financial Position

Condensed Consolidated Statement of Changes in Equity

Condensed Consolidated Cash Flow Statement

Notes to the Condensed Consolidated Financial Statements

1. Accounting Principles

2. Related Parties

3. Segment Reporting

4. Rental Income

5. Other Operating Expenses

6. Realised Gains/losses from Divestment of Properties

7. Investment Properties

8. Intangible Assets

9. Investments in Associated companies and Joint Ventures

10. Inventory Properties

11. Financial Assets and Liabilities

12. Fair Value Measurements of Financial Instruments

13. Equity

14. Commitments and Contingencies

15. Subsequent Events

Condensed Parent Company Financial Statements

Parent Company Income Statement

Parent Company Statement of Comprehensive Income

Parent Company Statement of Financial Position

Parent Company Statement of Changes in Equity

Parent Company Statement of Cash Flows

Auditor’s review report

Earnings Capacity

Alternative Performance Measures

Heimstaden AB Standalone

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

Condensed Consolidated Statement of Comprehensive Income

SEK million Note Q3 2023 Q3 2022

YTD 2023 YTD 2022

FY 2022

Rental income 3, 4 3,905 3,283 11,403 9,729 13,204

Service charges paid by tenants 3, 4 389 271 1,319 843 1,229

Property expenses 3 -1,579 -1,294 -4,984 -4,222 -5,935

Net operating income

2,714 2,260 7,738 6,350 8,497

Corporate administrative expenses -196 -170 -492 -498 -724

Other operating income 57 27 262 244 285

Other operating expenses 5 -97 -88 -278 -245 -282

Realised gains/losses from divestment of properties 6 34 -7 54 -10 9

Profit before unrealised fair value adjustment 2,513 2,023 7,285 5,841 7,786

Fair value adjustment of investment properties 7 -4,946 -6,351 -25,758 7,261 -4,232

Value adjustment of inventory properties 10 18 -16 32 -35 402

Operating profit/loss -2,415 -4,345 -18,441 13,067 3,955

Share of net profits/losses of associated companies and joint ventures 9 -1,195 1,553 -1,530 1,383 409

Impairment of intangible assets 8 - - -1,058 - -

Interest income 97 54 207 122 342

Interest expenses -1,561 -816 -4,231 -2,174 -3,253

Net currency translation gains/losses 1,500 -1,539 -2,870 -4,859 -7,257

Fair value adjustment of derivative financial instruments -19 80 -210 964 1,115

Other financial items -29 -751 474 -2,407 -2,307

Profit/loss before tax -3,622 -5,764 -27,658 6,095 -6,995

Current tax expense -219 -254 -725 -860 -842

Deferred tax income/expense 1,360 1,336 5,320 -1,357 2,028

Profit/loss for the period -2,481 -4,681 -23,064 3,879 -5,809

Other comprehensive income/loss 13 -3,331 2,291 4,929 8,880 13,866

Total comprehensive income -5,812 -2,390 -18,135 12,759 8,056

Profit/loss for the period attributable to:

The Parent Company’s shareholders -1,480 -3,159 -13,696 967 -4,628

Non-controlling interests -1,001 -1,523 -9,368 2,912 -1,182

Total comprehensive income for the period attributable to:

Parent Company’s ordinary shareholders -3,419 -1,909 -10,858 6,234 3,477

Parent Company’s preference shareholders 29 29 88 88 117

Non-controlling interests -2,422 -511 -7,364 6,437 4,462

Excludes income from inventory properties.

Comparables restated, see note 1

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

Condensed Consolidated Statement of Financial Position

SEK million Note 30 September 2023 31 December 2022 30 September 2022

ASSETS

Investment properties 7 338,754 351,337 343,456

Intangible assets 8 16,244 16,915 17,297

Machinery and equipment 389 358 350

Investments in associated companies and joint ventures 9 8,336 9,758 10,384

Derivative financial instruments 11, 12 509 836 1,018

Deferred tax assets 1,529 1,297 −

Other financial assets 12 3,219 3,885 3,515

Total non-current assets 368,980 384,387 376,021

Inventory properties 10 538 573 826

Rent and trade receivables 524 403 252

Other financial assets 2,608 5,011 1,522

Derivative financial instruments 11, 12 541 645 312

Prepayments 1,385 1,763 1,032

Cash and cash equivalents 7,342 11,322 7,325

Total current assets 12,936 19,716 11,269

Total assets 381,917 404,103 387,289

SEK million Note 30 September 2023 31 December 2022 30 September 2022

EQUITY AND LIABILITIES

Equity 13 148,796 168,808 164,573

Interest-bearing liabilities 11 190,469 185,082 174,905

Lease liabilities 11 1,215 1,405 1,366

Derivative financial instruments 11, 12 46 51 139

Deferred tax liabilities 19,899 24,463 26,128

Other financial liabilities 1,682 1,100 1,046

Total non-current liabilities 213,311 212,101 203,584

Interest-bearing liabilities 11 13,136 14,418 11,712

Lease liabilities 11 96 90 79

Trade payables 452 928 561

Other liabilities 3,270 4,737 4,204

Derivative financial instruments 11, 12 15 75 2

Accrued expenses and prepaid income 2,839 2,946 2,574

Total current liabilities 19,809 23,195 19,132

Total equity and liabilities 381,917 404,103 387,289

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

Condensed Consolidated Statement of Changes in Equity

SEK million

capital

Other capital

contributions

Hybrid

bonds

Currency translation

reserve Retained earnings

Attributable

to Parent Company

shareholders

Non‑controlling

interests

Total

equity

Opening balance, 1 January 2022 95 7,540 7,374 -221 27,013 41,801 105,294 147,093

Profit for the period - - 251 - 716 967 2 912 3 879

Other comprehensive income - - - 5 355 - 5 355 3 526 8 880

Total comprehensive income - - 251 5 355 716 6 322 6 437 12 759

New share issue - - - - - - 14 211 14 211

Costs of issuance - -36 - - - -36 - -36

Buy-back of hybrid bonds - - - - - - -7 274 -7 274

Dividends - - -251 - -88 -339 -12 454 -12 793

Contributions from non-controlling interests - - - - - - 2 918 2 918

Transactions with non-controlling interests - - - - -441 -441 8 135 7 694

Total transactions with the Company’s shareholders – -36 -251 – -529 -816 5 536 4 720

Equity, 30 September 2022 95 7 504 7 374 5 133 27 200 47 306 117 268 164 573

Profit for the period - - 78 - -5 673 -5 595 -4 094 -9 689

Other comprehensive income - - - 2 868 - 2 868 2 118 4 986

Total comprehensive income - - 78 2 868 -5 673 -2 727 -1 976 -4 703

New share issue - - - - - - 435 435

Costs of issuance - - - - - - - -

Buyback of hybrid bonds - - - - - - -370 -370

Dividends - - -78 - -29 -107 -10 -117

Contributions from non-controlling interests - - - - -374 -374 689 315

Transactions with non-controlling interests - - - - - - 8 674 8 674

Total transactions with the Company’s shareholders - - -78 - -403 -481 9 418 8 937

Equity, 31 December 2022 95 7 504 7 374 8 001 21 123 44 098 124 710 168,808

Opening balance, 1 January 2023 95 7,504 7,374 8,001 21,124 44,098 124,711 168,808

Profit for the period – – 516 – -15,053 -14,537 -8,527 -23,064

Other comprehensive income – – – 2,925 – 2,925 2,004 4,929

Total comprehensive income – – 516 2,925 -15,053 -11,611 -6,523 -18,135

New share issue – – – – – – 1,942 1,942

Buyback of hybrid bonds – – – – – – -82 -83

Cost of issuance – – – – – – -6 -6

Dividends – – -516 – -1,588 -2,104 -4,198 -6,302

Contributions from non-controlling interests – – – – -264 -264 2,837 2,573

Transactions with non-controlling interests – – – – 1,376 1,376 -1,376 –

Total transactions with the Company’s shareholders – – -516 – -476 -992 -884 -1,877

Equity, 30 September 2023 95 7,504 7,374 10,926 5,595 31,495 117,303 148,796

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

Condensed Consolidated Cash Flow Statement

SEK million Note Q3 2023 Q3 2022 YTD 2023 YTD 2022

Operating activities

Profit/loss income tax -3,622 -5,764 -27,658 6,095

Adjustments to reconcile profit before tax to net cash flows:

Fair value adjustment on investment properties 7 4,942 6,365 25,758 -7,226

Fair value adjustment of derivative financial instruments 19 150 210 -733

Finance expenses – net 1,536 629 4,095 2,092

Share of profit of an associate and a joint venture 1,195 4 1,530 174

Other adjustments -1,591 688 2,988 5,590

Working capital changes

Increase/decrease(+) in rent and other receivables 258 225 -876 -276

Increase/decrease(-) in trade and other payables -18 -103 -234 -1,013

Cash generated from operations 2,719 2,194 5,813 4,704

Interest paid -1,729 -876 -4,302 -1,911

Interest received 158 -21 207 −

Paid income tax -517 -57 -1,015 -721

Net cash flows from operating activities 613 1,240 703 2,072

SEK million Note Q3 2023 Q3 2022 YTD 2023 YTD 2022

Investing activities

Purchase of investment and inventory properties -20 -547 -1,273 -6,861

Capital expenditure on investment and inventory properties 7,10 -2,061 -2,910 -6,168 -7,441

Divestments of investment properties 6 437 57 2 183 535

Deposits paid for signed acquisitions − -1 − -548

Purchase of machinery and equipment -11 -14 -50 -50

Investments in associated companies and joint ventures 178 125 663 -121

Purchase of quoted equity investments − -775 − -4,474

Other cash flows from investing activities 273 − 293 −

Net cash flows from investing activities -1,203 -4,065 -4,352 -18,960

Financing activities

Proceeds from interest-bearing liabilities 11 8,176 5,527 24,212 32,932

Repayment of interest-bearing liabilities 11 -9,681 -4,028 -25,553 -35,121

Dividends paid 13 − − -1,500 −

Dividends paid to preference shares -29 -29 -88 -88

Dividends paid to non-controlling interest − − -1,951 -1,010

Proceeds from non-controlling interests -11 6,643 6,647 14,338

Buyback of hybrid bonds 13 − -6,783 -58 -6,783

Repayments on hybrid bonds -105 -181 -1,357 -1,201

Transaction costs on issue of shares and hybrid capital − − -6 -36

Settlement of deriviative financial instruments − − 176 230

Other cash flows from financing activities 73 -22 -1,099 -62

Net cash flows from financing activities -1,758 1,126 -578 3,198

Net change in cash and cash equivalents -2,331 -1,699 -4,227 -13,690

Cash and cash equivalents at the beginning of the period 9,670 9,165 11,323 20,488

Net currency exchange effect in cash and cash equivalents 3 -141 246 528

Cash and cash equivalents at the end of the period 7,342 7,325 7 343 7,325

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

Notes to the Condensed Consolidated Financial Statements

1. Accounting Principles

Corporate information

Heimstaden AB (publ), Corp. ID No. 556670-0455, is a limited liability company registered in Sweden with its registered office at Östra

Promenaden 7A, SE-211 28, Malmö, Sweden. Heimstaden’s operations consist of owning, developing and managing residential properties.

Basis for preparation

Heimstaden’s interim condensed consolidated accounts have been prepared in accordance with IAS 34 Interim Financial Reporting. The

Parent Company applies RFR 2 Accounting for Legal Entities and the Swedish Annual Accounts Act. The financial statements do not in-

clude all the information and disclosures required in the annual financial statements, and should be read in conjunction with the 2022 annual

financial statements. The accounting policies and methods of computation followed are consistent with those of the previous financial year,

except for items specified below.

Due to rounding, numbers presented in these financial statements may not add up precisely to the totals provided.

Recently issued accounting standards, interpretations and amendments

At the balance sheet date, there were no new or amended standards or interpretations published by IASB that are expected to have a ma-

terial impact on the financial statements of the Group or the Parent Company.

Associated companies and joint ventures

Effective 1 January 2023, the Condensed Statement of Comprehensive Income has been revised to provide the user of the consolidated

financial statements with more relevant information, including relevant and comparable subtotals. Share of net profits/losses of associated

companies and joint ventures are now excluded from the operating profit. The revised presentation did not have any impact on any financial

statement line item, the group’s profit/loss before tax, the financial position or equity. The comparative financial data has been reclassified

accordingly.

Realised Gains/losses from

divestment of properties

The Board of Directors have approved a Privatisation Plan that that represents a new line of business that works across all segments. The

goal of this plan it to sell a significant part of our portfolio to the private home-owner market. In response to the new strategy the accounting

policy for divestment of properties has been revised. The new policy separates realised gains/losses form unrealised change in value. Gains/

losses from divestments, both from Privatisation and other divestments, are realised and shown on a new financial statement line, “Realised

gains/losses from divestment of properties”. This also includes realised gain/losses from inventory properties. Gain/loss is calculated based

on the valuation in the latest interim financial statement and net of direct transactions cost.

To clarify the distinction of realised gains/losses and unrealised value change the following line items have been changed:

- “Profit before inventory properties and fair value adjustments” renamed to “Profit before unrealised fair value adjustments”

- “Change in value and gains/losses from sale of inventory properties” renamed to “Value adjustment of inventory properties”

The revised presentation did not have any impact on the group’s profit/loss before tax for the year, the financial position or equity. Compa-

rable figures in the Condensed Consolidated Statement of Comprehensive Income statement of have been changed accordingly.

2. Related Parties

During 2023 transactions with Fredensborg amounted to the net amout of SEK 48 million in management services expenses. No other re-

lated party transactions other than salaries and board fees have been paid to management and the board as of Q3 2023.

Heimstaden’s subsidiary Heimstaden Bostad AB received an investment guarantee from Fredensborg AS in 2018, recognised in other cur-

rent assets. The investment guarantee increased with SEK 9 million to SEK 715 million during Q3 2023, see note 10 for more information.

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

3. Segment Reporting

Heimstaden organises and governs its activities based on geographical areas. These geographical areas form the basis of the reportable segments. Senior management monitors net operating income and changes in the value of investment properties in the identified segments; other profit

and loss items are not distributed per segment. Heimstaden has identified ten reportable segments consisting of the geographical areas of Sweden, Germany, Denmark, Netherlands, Czech Republic, Norway, Finland, Iceland, United Kingdom and Poland.

The eliminations of the consolidated financials mainly consist of reclassifications due to internal services provided within countries. The rental income from the portfolio in Sweden reflects all-inclusive rents, meaning that majority of property expenses is not recoverable towards the tenants.

Other property costs consist of Property insurance, Property security, Running costs for broadband/TV, recurring inspections and similar items.

Q3 2023

SEK million Sweden Germany Denmark Netherlands Czech Republic Norway Iceland United Kingdom Finland Poland Eliminations Group in total

Statement of Comprehensive Income

Rental income

1,115 683 912 366 434 189 87 29 69 21 – 3,905

Service charges paid by tenants 20 267 1 – 89 4 0 0 3 5 – 389

Total income 1,135 950 913 366 523 193 87 29 72 26 – 4,293

Utilities -147 -172 -31 – -85 -9 -4 -2 -9 -2 1 -458

Repair and maintenance -46 -47 -40 -24 -42 -10 -4 -2 -5 – 39 -181

Property tax -26 -26 -52 -16 -2 -1 -6 -2 -2 -1 – -135

Other

-34 -34 -27 -15 -22 – -3 1 -5 -1 2 -137

Property management -157 -170 -113 -33 -64 -32 -13 -19 -16 -9 -42 -667

Total property expenses -409 -449 -264 -88 -215 -51 -29 -22 -37 -14 – -1,579

Net operating income 725 500 649 278 307 142 58 7 34 12 – 2,714

Net operating income margin, % 65.1 73.3 71.2 76.0 70.9 74.9 66.5 23.7 50.3 59.1 − 69.5

Q3 2022

SEK million Sweden Germany Denmark Netherlands Czech Republic Norway Iceland United Kingdom Finland Poland Eliminations Group in total

INCOME STATEMENT

Rental income

997 523 762 315 344 193 77 2 61 1 -1 3,283

Service charges paid by tenants 21 166 − − 71 10 − − 4 − − 271

Total income 1,017 689 762 315 415 203 77 2 65 1 -1 3,554

Utilities -166 -99 -29 − -68 -12 -3 − -9 − -1 -386

Repair and maintenance -44 -35 -36 -29 -33 -23 -5 − -4 − 109 -100

Property tax -30 -14 -40 -28 -2 -3 -5 − -1 − − -125

Other

-102 -48 -32 -14 -14 3 -2 5 -4 − 3 -212

Property management -105 -103 -91 -33 -49 -36 -8 -7 -11 -3 -24 -472

Total property expenses -446 -299 -228 -104 -166 -72 -24 -2 -29 -4 87 -1,294

Net operating income 571 390 534 210 249 131 54 1 36 -3 86 2,260

Net operating margin, % 57.3 74.6 70.1 66.9 72.3 67.9 69.2 - 58.9 − − 68.8

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

YTD 2023

Other property costs consist of Property insurance, Property security, Running costs for broadband/TV, recurring inspections and similar items.

SEK million Sweden Germany Denmark Netherlands Czech Republic Norway Iceland United Kingdom Finland Poland Eliminations Group in total

Statement of Comprehensive Income

Rental income

3,319 1,994 2,644 1,050 1,292 561 249 52 199 45 -1 11,403

Service charges paid by tenants 62 748 4 – 460 26 – – 9 10 – 1,319

Total income 3,381 2,742 2,648 1,050 1,751 587 249 52 208 55 -1 12,723

Utilities -563 -476 -96 – -447 -43 -11 -3 -35 -4 3 -1 674

Repair and maintenance -145 -153 -137 -68 -128 -28 -11 -2 -15 -1 112 -576

Property tax -80 -71 -148 -45 -7 -3 -18 -2 -7 -3 – -384

Other

-109 -112 -95 -45 -71 -22 -8 -2 -14 -2 7 -474

Property management -534 -421 -350 -94 -167 -62 -34 -30 -44 -19 -120 -1,876

Total property expenses -1,432 -1,232 -826 -253 -819 -158 -82 -39 -114 -29 1 -4,984

Net operating income 1,949 1,510 1,822 797 932 429 167 13 94 26 – 7,738

Net operating income margin, % 58.7 75.7 68.9 75.9 72.1 76.5 67.0 24.9 47.1 58.1 − 67.9

YTD 2022

SEK million Sweden Germany Denmark Netherlands Czech Republic Norway Iceland United Kingdom Finland Poland Eliminations Group in total

INCOME STATEMENT

Rental income

3,156 1,517 2,224 914 994 559 220 6 130 1 -1 9,729

Service charges paid by tenants 51 447 1 − 317 20 − − 6 − − 843

Total income 3,207 1,964 2,225 914 1,312 579 220 6 136 1 -1 10,572

Utilities -552 -253 -75 − -312 -32 -9 − -20 − 2 -1,251

Repair and maintenance -216 -105 -106 -92 -102 -67 -15 − -6 − 162 -547

Property tax -78 -42 -115 -81 -6 -10 -16 − -4 − − -351

Other

-255 -137 -89 -45 -46 8 -8 5 -10 -1 5 -581

Property management -397 -285 -292 -105 -142 -105 -28 -9 -27 -7 -95 -1,492

Total property expenses -1,498 -822 -677 -323 -608 -206 -75 -5 -67 -9 74 -4,222

Net operating income 1,709 1,142 1,548 591 703 374 145 1 69 -8 73 6,350

Net operating margin, % 54.2 75.3 69.6 64.7 70.8 66.8 66.0 - 53.3 − − 65.3%

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

4. Rental Income

Rental income distributed by property category

SEK million Q3 2023 Q3 2022 YTD 2023 YTD 2022

Residential 3,590 3,004 10,465 8,907

Commercial premises 262 234 785 691

Garage and parking spaces 53 45 153 131

Total rental income 3,905 3,283 11,403 9,729

Service charges paid by tenants distributed by property category

SEK million Q3 2023 Q3 2022 YTD 2023 YTD 2022

Residential 366

249 1,245 799

Commercial premises 23 22 74 44

Total service charges paid by tenants 389 271 1,319 843

5. Other Operating Expenses

During 2023, SEK 109 million was expensed, of which SEK 43 million in the quarter, as donations to SOS Children’s Villages. See page 19

in the 2022 Annual Report for more information regarding the partnership A Home for a Home.

6. Realised Gains/losses from Divestment of Properties

Realised gains/losses from divestment of investment properties and inventory properties

SEK million Q3 2023 Q3 2022 YTD 2023 YTD 2022

Net proceeds from divestments of properties 497 53 2,183 528

Book value of divestments of properties -463 -60 -2,129 -538

Realised gain/loss on divestments of properties 34 -7 54 -10

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

7. Investment Properties

Total properties value per segment

The value of investment properties, as of 30 September 2023 was SEK 338,754 million (351,337). The fair value decreased by SEK million 25,758 (increase 7,261) during the first nine months. In percentage, the decrease in value was 7.1 (increase 2.2) of fair value of investment properties.

The decrease in fair value during the first nine months was primarily driven by sentiment-based yield increases (in some cases supported by a limited number of individual comparable transactions) outweighing the positive effects of rent increases and outlook in Heimstaden Bostad’s larger

markets (Sweden, Germany, Denmark, Netherlands, and Finland). In addition, in the Netherlands, an increase in Real Estate Transfer Tax (RETT) combined with negative owner-occupier house price development earlier in the year further negatively impacted values. These negative move-

ments were mitigated to a small extent by value increases in the Czech Republic, Poland, and the United Kingdom where rental increases outweighed sentiment-based yield increases, and Norway and Iceland benefitted from owner-occupier HPI increases earlier in the year. Over the last

quarter, Denmark and The Netherlands saw values stabilise as rental performance and owner-occupied price developments (and outlook) mitigated the effect of increasing yields. The total property value per operating segment is shown below.

Change in fair value of investment properties

SEK million Sweden Germany Denmark Netherlands Czech Republic Norway Iceland United Kingdom Finland Poland Total

Fair value of investment properties, 31 Dec 2022 97,429 92,820 73,960 30,048 23,443 20,338 5,583 2,854 3,837 1,026 351,337

Acquisitions during the period 24 − 1,696 − − − 181 − − 249 2,150

Divestments -33 − -19 -152 -24 -1,522 -378 − − − -2,129

Land leases 15 − − − − -242 4 − 37 − -186

Capital expenditure on investment properties 1,246 548 366 647 534 41 49 1 107 − 3,539

Capital expenditure on investment properties under construction 994 1 507 − − 100 − 858 − 115 2,574

Currency translation − 3 201 2,474 1,041 530 -788 431 169 123 48 7,228

Fair value after transactions 99,674 96,569 78,983 31,583 24,483 17,927 5,869 3,883 4,103 1,438 364,512

Value change -8,018 -11,975 -4,083 -3,403 1,026 243 240 385 -250 77 -25,758

Fair value of investment properties, 30 September 2023 91,656 84,595 74,900 28,180 25,509 18,170 6,109 4,268 3,853 1,515 338,754

Breakdown by category

SEK million Sweden Germany Denmark Netherlands Czech Republic Norway Iceland United Kingdom Finland Poland Total

Investment properties 88,770 84,595 73,995 28 ,181 25,298 17,746 6,057 3,332 3,479 1,515 332,966

Investment properties under construction 2,454 − 844 − − − − 936 − − 4,234

Land and building rights 191 − 62 − 211 − − − − − 463

Land leases 241 − − − − 424 52 − 374 − 1,091

Total 91,656 84,595 74,900 28,181 25,509 18,170 6,109 4,268 3,853 1,515 338,754

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

8. Intangible Assets

As of 30 September 2023 the carrying amount of goodwill is SEK 16,080 million (16,788), of which SEK 15,972 million (16,700) is goodwill

identified in the acquisition of Akelius Lägenheter Aktiebolag, Akelius Bolig Holding Aps and Akelius GmbH.

Goodwill identified in a business combination is allocated to the Group’s cash generating units (CGUs) and tested for impairment annually or

when impairment indicators are present. In Q1 2023, the Company recorded an impairment of SEK 1,058 million. The impairment is related

to goodwill identified in connection with the business combination from the acquisition of the Akelius portfolio.

For more information of assumptions regarding the methodology for calculating recoverable amount and WACC, see Note 3.2 in Annual

Report 2022.

9. Investments in Associated companies and Joint Ventures

SEK million

Opening balance, 1 January 2023 9,758

Investment for the period 12

Disposal of associated companies and joint ventures -22

Change in value from foregin currency 333

Dividend from associated companies and joint ventures -215

Share of net profits/losses of associated companies and joint ventures -1,530

Closing balance, 30 September 2023 8,336

Heimstaden follows the development of the share price of Kojamo Oyj closely and have due to the difference of share price to book value of

equity performed an impairment test. To identify the recoverable amount, the management calculated the “value in use” by discounting the

estimated future cash flows of the investment. The discounted cash flow is higher than the associated company’s carrying amount. Accord-

ingly, no impairment has been recognised.

YTD 2023

SEK million Share, % Rental income

Property

expenses

Financial

items, net

Change in

value

Profit/loss

YTD 2023

Heimstaden's

of profit/loss

YTD 2023

Kojamo Oyj 20 3,325 -1,501 -933 -10,137 -7,540 -1,507

Rosengård Fastighets AB 25 126 -84 -26 -125 -88 -22

Upplands Bro Brogårds Etapp 2 AB 50 14 -7 -53 -7 -50 -25

Kiinteistö Oy Hiihtomäentie 14 53 5 -4 – 3 4 3

Other 20-50 89 -28 -6 -7 49 21

Total 3,559 -1,624 -1,018 -10,273 -7,625 -1,529

10. Inventory Properties

SEK million

Opening balance, 1 January 2023 573

Capital expenditures 56

Foreign currency translation -23

Divestments of inventory properties -81

Value change

Closing balance, 30 September 2023 538

Change in value and gains/losses from sale of inventory properties in the income statement, SEK 32 million, also includes return on investment guarantee from

Fredensborg of SEK 20 million (0).

In 2018, Fredensborg AS sold the Norwegian housing portfolio to Heimstaden Bostad. As part of the commercial agreement between the parties, Fredensborg AS

guaranteed that the development projects would provide an annual equity return of at least 7.5% until April 2025. The guarantee is settled in cash on an ongoing

basis for completed projects that do not generate a return above the minimum level, and the total guarantee responsibility must be settled in cash at the end of the

guarantee period, with potential subsequent settlement for projects that have been started but not completed at this time.

The investment guarantee is not reflected in the table above. The balance as per 30 September 2023 is recognised as other current assets.

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

11. Financial Assets and Liabilities

Despite macroeconomic challenges, we are cautiously optimistic that the market conditions will improve. Inflation is trending down in many

European markets, which may end the hiking cycle, but we expect the higher interest rate environment to remain.

From Heimstaden’s perspective, rental market fundamentals remain strong. Inflation has driven rental growth and positively impacted oper-

ating results. While sentiment-driven yield expansion initially negatively impacted portfolio values, this effect is now gradually countered by

rising NOI due to rent indexation. Increasing residential transaction volumes, yield rebalancing, and reduced bid-offer spreads further rein-

force expectations of short-term value stabilisation. The current interest rate environment impacts Heimstaden’s funding expenses and fu-

ture borrowing costs. Heimstaden’s is currently prioritising to obtain secured financing due to limited liquidity in the public debt market. The

banking sector continue to provide financing to counterparts such as Heimstaden. Managing the financial risk is a key priority by maintain-

ing strong liquidity and proactive maturity management. Heimstaden proactively identifies and addresses significant business risks. Refer to

pages 37-38 of the 2022 Annual Report for a detailed description of the risk factors.

During the last nine months, Heimstaden has redeemed the following outstanding amount of senior unsecured bonds. The payment in Q1

was SEK 165 million with a gain of SEK 1 million, Q2 repayment was SEK 168 million and Q3 repayment was SEK 530 million with a gain

of SEK 67 million. In Q1, Heimstaden’s subsidiary, Heimstaden Bostad bought back SEK 10,346 million of outstanding senior unsecured

bonds, obtaining an average discount of 7.8% and resulted in a SEK 805 million gain, net of SEK 175 million in tax, recognised in other fi-

nancial items.

As of 30 September 2023, SEK 1,404 million of the total unutilised credit commitments, is related to future ESG Capex and Construction

Facilities.

At the balance sheet date, Heimstaden was in compliance with its financial covenants. The Company’s hybrid bonds are classified as eq-

uity, amounting to SEK 31,623 million, and therefore not included in the specifications of interest bearing liabilities in the tables below. For

more information, see note 13.

Specification of interest bearing liabilities

SEK million

Interest-bearing

liabilties

Secured

loans, % Share, %

Unutilised credit

commitment(s)

Corporate bonds 91,224 0 45

Mortgages 43,356 100 21

Bank loans 69,449 98 34 26,415

Total 204,028 55 100 26,415

Deferred charges -423

Total incl. deferred charges 203,606

Movements of interest bearing liabilities

SEK million

Corporate

bonds

Mortgages/

bank loans

Deferred

charges

Lease

liabilities Total

Opening balance, 31 December 2022 105,206 94,950 -656 1,495 200,996

Loan repayments -17,666 -8,693 – -307 -26,665

New borrowings 719 23,494 – 130 24,921

Assumed debt from acquisitions – 578 – – –

Currency exchange effect on loans 2,965 2,475 – -7 5,433

Capitalisation of debt issuance cost, net of amortisation – – 233 – 233

Closing balance, 30 September 2023 91,224 112,804 -423 1,311 204,917

30 September 2023

Interest maturity, loans Interest maturity, incl. financial instruments

Years SEK million Share, %

Interest, incl.

margin, % SEK million Share, %

Interest, incl.

margin, %

0-1 83,765 41 5.27 66,521 33 4.84

1-2 27,598 14 0.68 31,050 15 0.75

2-3 17,244 8 3.07 19,046 9 3.11

3-4 19,109 9 2.99 20,246 10 2.99

4-5 17,359 9 2.18 20,385 10 2.29

>5 years after balance sheet date 38,953 19 2.23 46,781 23 2.34

Total 204,028 100 3.41 204,028 100 3.04

Average remaining term of fixed interest in the loan portfolio, including derivatives: 3.00 years

Loan tenor Lines of credit

Years SEK million Share, % SEK million Share, %

0-1 10,274 5 85 –

1-2 32,091 16 6,393 24

2-3 33,181 16 11,467 43

3-4 29,103 14 – –

4-5 19,800 10 8,087 31

>5 years after balance sheet date 79,579 39 383 1

Total 204,028 100 26,415 100

Average loan tenor 7.97 years

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

Financial instruments

Maturity, interest rate derivatives

Years Type SEK million Share, % Interest, %

0-1 Payed 19,733 52 0.99

1-2 Payed 4,260 11 1.39

2-3 Payed 1,802 5 3.56

3-4 Payed 1,137 3 3.05

4-5 Payed 3,026 8 2.93

>5 years after balance sheet date Payed 7,827 21 2.88

Total 37,785 100 1.77

Maturity, interest rate derivatives

Years Type SEK million Share, % Interest, %

0-1 Received 36,977 98 -3.78

1-2 Received 808 2 -1.7

2-3 Received – – –

3-4 Received – – –

4-5 Received – – –

>5 years after balance sheet date Received – – –

Total 37,785 100 -3.73

Indicates average interest rate. A negative value indicates received interest.

12. Fair Value Measurements of Financial Instruments

30 September 2023 31 December 2022

SEK million Carrying amount Fair value Carrying amount Fair value

Financial assets:

Derivative financial instruments 1,050 1,050 1,481 1,481

Other non-current financial assets 3,219 3,219 3,885 3,885

Trade receivables 524 524 403 403

Other financial receivables 2,608 2,608 5,011 5,011

Cash and cash equivalents 7,342 7,342 11,322 11,322

Total  14,743 14,743 22,102 22,102

Financial liabilities:

Derivative financial instruments 61 61 127 127

Non-current interest-bearing liabilities 190,469 157,879 198,835 179,827

Other non-current financial liabilities 1,682 1,682 1,100 1,100

Current interest-bearing liabilities 13,136 13,136 665 665

Lease liabilities 1,312 1,312 1,495 1,495

Trade payables 452 452 928 928

Other current liabilities 3,270 3,270 4,737 4,737

Total  210,383 177,793 207,887 188,879

Fair value hierarchy of the Group’s financial assets and financial liabilities as of 30 September 2023:

Fair value measurement using

SEK million Total

Quoted prices in

active markets

(Level 1)

Significant

observable inputs

(Level 2)

Significant

unobservable in-

puts (Level 3)

Financial assets measured at fair value: 1,050 – 905 145

Derivative financial assets

Interest rate swaps 905 – 905 –

Forward purchase contracts 145 – – 145

Financial liabilities measured at fair value: -61 – -61 –

Derivative financial liabilities

Interest rate swaps -61 – -61 –

There were no changes in the Group’s valuation processes, valuation techniques, and types of inputs used in the fair value measurements

during the period. There were no transfers between Level 1 and Level 2 fair value measurements during the period, and no transfers into or

out of Level 3 fair value measurements during the nine months ended 30 September 2023.

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

13. Equity

Hybrid bonds

Heimstadens subsidiary, Heimstaden Bostad, bought back hybrid bonds in Q1 2023. The hybrid bond buyback included SEK 82 million in

outstanding hybrid bonds, obtaining an average discount of 34.6% and resulted in a SEK 25 million gain, net of SEK 6 million in tax, recog-

nised in retained earnings.

Non-controlling interests

Non-controlling interests consist of external ownership interests in subsidiaries and their subsidiaries. Heimstaden ABs shareholders only

control hybrid bonds in Heimstaden AB, all other hybrid bonds are classified as non-controlling interests.

Specification of Other Comprehensive Income

The exchange rates of the currencies relevant to Heimstaden have developed as follows:

Basis 1 local currency to SEK Closing rate Average rate

Country 30 Sept 2023 31 Dec 2022 Q3 2023 Q3 2022

Czech Republic CZK 0.4727 0.4617 0.4817 0.4275

Denmark DKK 1.5516 1.5020 1.5409 1.4145

Iceland ISK 0.0794 0.0737 0.0771 0.0747

Netherlands, Germany & Finland EUR 11.5529 11.1592 11.4787 10.5240

Norway NOK 1.0209 1.0629 1.0117 1.0518

Poland PLN 2.4965 2.3818 2.5068 2.2540

United Kingdom GBP 13.3109 12.6154 13.1892 12.4250

Other comprehensive income is related to foreign currency translation differences that may be reclassified to profit or loss in subsequent

periods.

SEK million

Country Currency code Q3 2023 Q3 2022 YTD 2023 YTD 2022

Czech Republic CZK -1,144 473 507 1,337

Denmark DKK -513 637 1,283 2,238

Iceland ISK 9 -4 218 258

Netherlands, Germany & Finland EUR -1,559 1,352 3,378 4,952

Norway NOK 282 -133 -828 81

Poland PLN -240 -27 200 11

United Kingdom GBP -165 -7 171 4

Total -3,331 2,291 4,929 8,880

14. Commitments and Contingencies

Investment obligations and capital expenditures

Heimstaden subsidiary, Heimstaden Bostad, has signed agreements to buy turnkey investment properties under construction to be deliv-

ered after the balance sheet date. As at 30 September 2023, Heimstaden Bostad had total investment obligations of SEK 3,223 million.

Additionally, Heimstaden Bostad had agreed forward funding contracts with third parties and is consequently committed to future capital

expenditure in respect of investment properties under construction of SEK 2,718 million.

SEK million 2023 2024 2025 2026 Total

Forward funding 959 1,330 313 80 2,682

Own development 19 17 - - 36

Forward purchase 676 2,000 - 547 3,223

Total 1,654 3,347 313 627 5,941

Disputes

As of the balance sheet date and to the best of our knowledge, Heimstaden is not a part in any ongoing legal processes or administrative

proceedings which have had or may have a material impact to its financial statements.

15. Subsequent Events

Heimstaden divested 100% of the shares in the Icelandic residential real estate company Heimstaden ehf. to Fredensborg AS for a pur-

chase price ISK 18.7billion (appr. SEK 1.5billion) paid in October 2023 upon closing and a deferred purchase price in the range ISK 10.9 –

12.1 billion (SEK 0.87-0.97billion) paid when Fredensborg AS has completed the exit strategy of Heimstaden ehf. Heimstaden has owned

the portfolio since 2021, achieving an annualised return on investments of appr. 18% post-acquisition, corresponding to an accounting

profit of SEK 0.6 billion for the parent company upon realisation (consolidated accounting loss SEK 0.4 billion). The divestment forms part of

the strategy to continue the deleveraging of Heimstaden, and proceeds will be allocated to liability management.

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

Parent Company Income Statement

SEK million Q3 2023 Q3 2022 YTD 2023 YTD 2022 FY 2022

Management service revenues 46 193 147 603 581

Administrative expenses -35 -245 -105 -510 -421

Operating profit/loss 10 -51 42 93 161

Dividends from shares in subsidiaries − − − 182 182

Profit/loss from the sale of shares in subsidiaries − 2,603 − 2,603 2,603

Interest income 14 4 52 6 14

Interest expenses -180 -194 -550 -530 -824

Net currency translation gains/losses 169 -136 -298 -499 -699

Other financial items -1 -32 -6 -105 -13

Profit/loss after financial items 13 2,194 -760 1,750 1,423

Closing dispositions − − − − 109

Profit/loss before tax 13 2,194 -760 1,750 1,532

Current tax expense -108 − − − 306

Profit/loss for the period -95 2,194 -760 1,750 1,837

Parent Company Statement of Comprehensive Income

SEK million Q3 2023 Q3 2022 YTD 2023 YTD 2022 FY 2022

Profit/loss for the period according to the Income Statement -95 2,194 -760 1,750 1,837

Other comprehensive income/loss − − − − −

Comprehensive income/loss -95 2,194 -760 1,750 1,837

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

Parent Company Statement of Financial Position

SEK million 30 September 2023 31 December 2022 30 September 2022

ASSETS

Shares in subsidiaries 29,864 20,233 20,136

Receivables, subsidiaries 473 186 198

Deferred tax assets 306 306 −

Total non-current assets 30,643 20,725 20,334

Receivables, subsidiaries − 14,394 14,653

Other financial assets 17 13 46

Accrued income, group companies 35 − −

Cash and cash equivalents 322 1,862 2,362

Total current assets 375 16,269 17,061

Total assets 31,018 36,994 37,395

SEK million 30 September 2023 31 December 2022 30 September 2022

EQUITY AND LIABILITIES

Equity 19,733 22,597 22,617

Interest-bearing liabilities 10,267 11,172 12,469

Liabilities, subsidiaries 19 181 227

Total non-current liabilities 10,286 11,353 12,695

Liabilities, subsidiaries 91 − −

Interest-bearing liabilities 844 2,869 1,946

Trade and other payables 3 22 82

Accrued expenses and prepaid income 62 153 55

Total current liabilities 999 3,044 2,083

Total equity and liabilities 31,018 36,994 37,396

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

Parent Company Statement of Changes in Equity

SEK million Share capital Share premiumreserve Hybrid bonds Retainedearnings Total equity

Opening balance, 1 January 2022 95 1,802 7,374 11,934 21,206

Profit/loss for the period − − 251 1 499 1 750

Total profit/loss − − 251 1 499 1 750

Dividends − − -251 -88 -339

Total transactions with the Company’s shareholders − − -251 -88 -339

Equity, 30 September 2022 95 1 802 7 374 13 345 22 617

Profit/loss for the period − − 78 9 87

Total profit/loss − − 78 9 87

Dividends − − -78 -29 -107

Total transactions with the Company’s shareholders − − -78 -29 -107

Equity 31 December 2022 95 1,802 7,374 13,326 22,597

Opening balance, 1 January 2023 95 1,802 7,374 13,326 22,597

Profit/loss for the period − − 516 -1,276 -760

Total profit/loss − − 516 -1,276 -760

Dividends − − -516 -1,588 -2,104

Total transactions with the Company’s shareholders − − -516 -1,588 2,104

Equity, 30 September 2023 95 1,802 7,374 10,461 19,733

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

Parent Company Statement of Cash Flows

SEK million Q3 2023 Q3 2022 YTD 2023 YTD 2022

Operating activities

Profit/loss before income tax 13 2,195 -760 1,750

Adjustments to reconcile profit before tax to net cash flows:

Finance expenses – net 207 222 544 629

Other adjustments -38 -2,465 429 -2,103

Working capital changes

Increase/decrease(+) in short-term receivables -26 144 -24 160

Increase/decrease(-) in trade and other payables -55 -192 -83 -165

Cash generated from operations 101 -96 106 271

Interest paid -177 -133 -544 -542

Interest received − − − −

Net cash flows from operating activities -76 -229 -438 -271

SEK million Q3 2023 Q3 2022 YTD 2023 YTD 2022

Investing activities

Proceeds from divestment of shares in subsidiaries − 2,603 − 2,603

Acquisitions of subsidiaries − − − 216

Net cash flows from investing activities − 2,603 − 2,819

Financing activities

Proceeds from loan and borrowings − − − 500

Repayment of loan and borrowings -643 -2,000 -3,317 -2,497

Repayment of loans from subsidiaries -21 68 4,315 1,652

Dividends -29 -30 -1,588 -89

Proceeds to subsidiaries − − − −

Repayments on hybrid bonds -105 -67 -516 -251

Net cash flows from financing activities -798 -2,029 -1,106 -685

Net change in cash and cash equivalents -874 345 -1,544 1,863

Cash and cash equivalents at the beginning of the period 1,214 1,999 1,863 483

Net currency exchange effect in cash and cash equivalents -19 18 2 15

Cash and cash equivalents at the end of the period 322 2,362 321 2,362

The Board of Directors and the CEO provide their assurance that this interim report provides a true and fair view of the operations, financial position and results of the Parent Company and the Group and describes the significant risks and uncertainties.

Malmö, 23 October 2023

Helge Krogsbøl

CEO

Ivar Tollefsen

Chairman

John Giverholt

Board Member

Fredrik Reinfeldt

Board Member

Vibeke Krag

Board Member

This interim report has been subject to review by the Company’s auditors.

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

Auditor’s review

report

Heimstaden AB (publ), corporate identity number 556670-0455

To the Board of Directors for Heimstaden AB (publ)

Introduction

We have reviewed the condensed interim report for Heimstaden AB (publ) as at 30 September 2023. The Board of Directors and the Managing Director are

responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is

to express a conclusion on this interim report based on our review.

Scope of review

We conducted our review in accordance with the International Standard on Review Engagements, ISRE 2410 Review of Interim Financial Statements

Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting

matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International

Standards on Auditing and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain

assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in

accordance with IAS 34 and the Swedish Annual Accounts Act regarding the Group, and in accordance with the Swedish Annual Accounts Act regarding the

Parent Company.

Malmö, 23 October 2023

Ernst & Young AB

Jonas Svensson

Authorised Public Accountant

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

Earnings Capacity

Earnings capacity represents annualised earnings calculated on the basis of the contracted rental income, current property expenses and

administrative expenses of the property portfolio as of 30 September 2023. Announced property acquisitions that closed after the balance

sheet date are not included in the calculation. Earnings capacity does not include any adjustment for development trends in rent levels,

vacancy rates, property expenses or interest rates, nor does the earnings capacity provide any adjustment for expected changes in the

fair value of properties, foreign exchange rates, acquisitions or divestments. Earnings capacity should not be considered a forecast for the

current year or for the next 12-month period.

SEK million Q3 2023

Rental income 15,626

Service charges paid by tenants 1,807

Property expenses -6,963

Net operating income 10,470

Corporate administrative expenses -493

Profit before financial items 9,977

Earnings Capacity Rental Income

SEK million

Q3 20232022202120202019

14,152

14,221

15,626

7,202

12,436

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

Alternative Performance Measures

For more information, definitions, and methodology please refer to www.heimstaden.com

SEK million Q3 2023 Q2 2023 Q3 2022

Interest-bearing secured liabilities 111,441 108,677 78,650

Interest-bearing unsecured liabilities 92,165 99,310 107,966

Less: Cash and cash equivalents 7,342 9,669 7,325

Net interest-bearing liabilities 196,264 198,319 179,292

Fair value of investment properties 338,754 346,629 343,456

Net Loan-to-Value (LTV), % 57.9 57.2 52.2

SEK million Rolling 12 months Q3 2023 Q2 2023 Q3 2022

Profit before unrealised fair value adjustment 9,229 8,743 4,880

Transaction costs from business combination − − 2,053

Reduction of gain from reclassification − − 163

Interest income 427 384 236

Adjustment interest reclassification -51 -63 -30

Profit before financial items plus financial income 9,604 9,064 7,301

Interest expenses on interest-bearing liabilities 5,309 4,564 2,759

Adjustment interest reclassification -51 -69 -30

ICR 1,8 2.0 2.7

SEK million Q3 2023 Q2 2023 Q3 2022

Net interest-bearing liabilities 196,264 198,319 179,292

Total assets 381,917 394,503 387,289

Net Debt / Total Assets, % 51.4 50.3 46.3

Alternative performance measures

Q3 23Q2 23Q1 23Q4 22Q3 22

Net loan-to-value (LTV)

52.2

53.6

54.9

57.2 57.9

Q3 23Q2 23Q1 23Q4 22Q3 22

2.6

2.3

2.0

1.8

2.7

Alternative performance measures

Q3 23Q2 23Q1 23Q4 22Q3 22

46.6

48.2 50.3 51.4

46.3

Net loan-to-value (LTV)

Interest Coverage Ratio (ICR)

multiple

Net Debt / Total Assets

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

Residential share of investment property, %

Q3 2023 Q4 2022

Fair value residential properties, standing assets 308,165 316,219

Fair value investment properties, standing assets 332,966 340,150

Residential share of investment property, % 92.6 93.0

Like-for-like rental income growth

Q3 2023

Q3 2022

Rental income current year 3,444 2,015

Rental income last year 3,305 1,910

Like-for-like rental income growth, % 4.2 5.5

2023: only properties owned as of 2021-12-31 are included.

2022: only properties owned as of 2020-12-31 are included.

Net operating income margin

YTD 2023 YTD 2022

Rental income 11,403 9,729

Net operating income 7,738 6,350

Net operating income, % 67.9 65.3

Economic occupancy, residential

Q3 2023 Q3 2022

Theoretical rental income on residential units 3,748 3,147

Economic vacancy -159 -111

Rental income on residential units 3,589 3,037

Economic occupancy rate, % 95.8 96.5

Real economic occupancy, residential

Q3 2023 Q3 2022

Theoretical rental income on residential units 3,748 3,147

Adj. to real vacancy -70 -51

Adj. Theoretical rental income 3,678 3,097

Real economic occupancy, % 98.1 98.4

Equity ratio

Q3 2023 Q4 2022

Equity 148,796 168,808

Total assets 381,917 404,103

Equity ratio, % 39.0 41.8

EBITDA

Rolling 12 months Q3 2023 Q4 2022

Profit before unrealised fair value adjustment 9,229 11,337

Transaction costs from business combination − 2,050

Depreciation and amortisation 12 12

EBITDA 9,241 13,399

Debt / EBITDA

Rolling 12 months Q3 2023 Q4 2022

Interest-bearing loans and borrowings 202,830 183,233

EBITDA 9,241 13,399

Debt / EBITDA, multiple 21.9 13.7

Secured loan-to-value

Q3 2023 Q4 2022

Interest-bearing secured liabilities 111,441 92,154

Total assets 381,917 404,103

Secured loan-to-value, % 29.2 22.8

All figures in SEK million unless otherwise specified.

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

Heimstaden

Standalone

In this section the Heimstaden financials are included standalone to present

the performance of the entity on an isolated basis. Standalone is defined as

the management companies of Heimstaden Group as well as the consolidated

balance sheet of Heimstaden excluding the consolidated balance sheet of

any (partly) owned subsidiary-group, which includes but is not limited to

Heimstaden Bostad AB.

Standalone Earnings, Rolling 12 Months

SEK million 30 Sep 2023 31 Dec 2022 30 Sep 2022

Operating income

787 826 755

Operating cost

-592 -569 -478

Operating profit/loss

195 257 276

Share Class A dividend 673 434 434

Common dividend

1,648 1,809 1,809

Share Class B dividend 1,063 1,007 1,007

Dividends from Heimstaden Bostad 3,384 3,250 3,250

Other profit distribution 1,178 − −

Adjusted earnings 4,758 3,507 3,526

Interest expense

-845 -824 -668

Adjusted earnings after interest expense 3,913 2,683 2,859

Payments on hybrid securities -594 -329 -317

Adjusted earnings after debt and hybrid instruments 3,319 2,354 2,542

Interest Coverage Ratio (ICR)

SEK million 30 Sep 2023 31 Dec 2023 30 Sep 2022

Adjusted earnings 4,758 3,507 3,526

Interest expense

-845 -824 -668

Interest Coverage Ratio 5.6 4.3 5.3

Payments on hybrid securities -594 -329 -317

Interest Coverage Ratio including hybrid payments 3.3 3.0 3.6

Operating Statement of Comprehensive Income of Heimstaden AB parent company and wholly-owned management companies.

Only includes part that has been distributed in cash and not dividend sett-off against the subscription price in new share issue.

Heimstaden Bostad AB Dividend Policy

Heimstaden Bostad has three share classes, Share Class A (‘Share Class A’), Share Class B (‘Share Class B’) and Common shares. Share

Class A are entitled to quarterly dividends of 0.05% of the market value of Heimstaden Bostad’s investment properties. Dividends on the

B shares are dependent on the Loan-to-Value and Return on Equity of Heimstaden Bostad. Owners of Common Shares are entitled to all

additional possible dividend payments, to be decided by the general assembly, subject to that Heimstaden Bostad maintains its financial

policies, after owners of A Shares and B Shares have received their parts in full. More information on the dividend policy can be found in

Heimstaden Bostad’s Articles of Association at: https://www.heimstadenbostad.com/articles-of-association.

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

Debt and Relevant Assets

SEK million Q3 2023 Q4 2022 Q3 2022

Interest-bearing secured liabilities

2,113 2,542 2,034

Interest-bearing unsecured liabilities

12,088 14,364 15,359

Interest-bearing liabilities 14,202 16,906 17,393

Cash and cash equivalents

-555 -1,937 -2,652

Net interest-bearing debt 13,647 14,969 14,741

Heimstaden Bostads net asset value 164,459 190,101 187,135

Equity attributed to Heimstaden Bostad's hybrid securities and non-controlling interests 40,347 42,167 33,642

Heimstaden Bostads adjusted net asset value 124,112 147,934 153,493

Heimstaden share of capital, % 36.3 42.1 43.1

Heimstaden share of capital 45,018 62,334 66,114

Investment properties

7,000 6,481 6,489

Relevant assets 52,019 68,815 72,603

Difference between Heimstaden and Heimstaden Bostad consolidated figures excluding deferred charges.

Net loan-to-value (LTV)

SEK million Q3 2023 Q4 2022 Q3 2022

Net interest-bearing debt 13,647 14,969 14,741

Relevant assets 52,019 68,815 72,603

Net loan-to-value (LTV), % 26.2 21.8 20.3

Liquidity Reserves

SEK million Q3 2023

Cash and cash equivalents

555

Unutilised credit commitment 1,000

Total 1,555

Estimated interest expense (12-months forward) -578

Difference between Heimstaden and Heimstaden Bostad consolidated figures excluding deferred charges.

HEIMSTADEN THIRD QUARTER 2023HEIMSTADEN THIRD QUARTER 2023

Funding Maturity Profile

SEK million

Net Loan-to-Value

Interest Coverage Ratio

multiple

Interest Coverage Ratio incl. 100% hybrid

multiple

Standalone Funding Overview

Standalone Financial Policy

Policy Q3 2023

Net Loan-to-Value, % ≤30 26.2

Interest Coverage Ratio, rolling 12 months, multiple ≥2.0 5.6

Interest Coverage Ratio including hybrid bonds, rolling 12 months, multiple ≥1.5 3.3

As at 30 September 2023, Heimstaden had outstanding senior unsecured bonds

amounting to SEK 12,088 million, listed on Nasdaq Stockholm and Euronext

Dublin

Currency Amount (million) Fixed/floating Coupon/spread Start date Maturity

SEK 1,200 Floating Stibor 3m + 330 bps 15/10/2020 15/01/2024

SEK 1,200 Floating Stibor 3m + 400 bps 15/10/2020 15/10/2025

EUR 350 Fixed 425 bps 09/03/2021 09/03/2026

EUR 400 Fixed 438 bps 06/09/2021 06/03/2027

SEK 500 Floating Stibor 3m + 475 bps 14/04/2022 14/04/2025

As at 30 September 2023, Heimstaden had outstanding perpetual hybrid bonds

amounting to SEK 7,926 million, listed on Nasdaq Stockholm

Currency Amount (million) Fixed/floating Coupon/spread Start date First call date

SEK 4,500 Floating Stibor 3m + 590 bps 11/04/2019 10/11/2024

EUR 300 Fixed 675 bps 15/10/2021 15/01/2027

2032+203120302029202820272026202520242023

884

4,044

5,249

00 0

1,116

143

2,806

Q3 23Q2 23Q1 23Q4 22Q3 22

20.3

21.8

19.9

24.3

26.2

Q3 23Q2 23Q1 23Q4 22Q3 22

3.6

3.0

3.4

3.6

3.3

Q3 23Q2 23Q1 23Q4 22Q3 22

5.3

4.3

5.5

5.6 5.6

Bank debt Mortgage debt Bond

Ö Promenaden 7 A, SE-211 28 Malmö, Sweden

Corporate ID Number: 556670-0455

+46 40 660 2000, www.heimstaden.com

Financial calendar

Annual Report 2023 27 February 2024

Q1 2024 Report 24 April 2024

Q2 2024 Report 16 August 2024

Q3 2024 Report 25 October 2024

Contacts

Thomas Alexander Hansen, CFO, +47 90 06 30 54, [email protected]

Malin Lethenström, Investor Relations, +44 77 48 05 58 21, [email protected]

This information is such that Heimstaden AB (publ) is required to disclose under the EU Market Abuse Regulation. The information

was submitted for publication through the agency of the above contact persons at 08:00 CET on 24 October 2023.

artbox.no