Heimstaden's Polish portfolio shrinks as company sells apartments

Heimstaden, a major European player in the private rented sector (PRS), saw its net operating income (NOI) rise by 1.7% to 5.79 billion Swedish kronor in the first half of 2026. The company is actively privatizing parts of its portfolio, selling individual apartments to buyers. In the second quarter alone, 538 apartments were sold for 2.24 billion kronor, achieving a price 30% above book value. This strategy aims to enhance liquidity and improve debt indicators.

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In the rental segment in Poland, we achieved a very high operational margin and improved it year-on-year – along with a 3.8% increase in rents, despite accounting for the effect of vacancies, in a period more stable in terms of rent than in previous years. Rental income in the second quarter amounted to 48 million kronor, and the portfolio value, after accounting for the privatization effect, slightly but again increased to approximately 4.2 billion kronor with improved portfolio profitability above 5.6%. We signed over 500 new rental agreements and are well prepared for the summer period in terms of apartment offerings.

In Poland, Heimstaden's portfolio generated 105 million kronor in NOI during the first half of the year. Rental income for the second quarter stood at 48 million kronor, with rents increasing by 3.8% despite vacancies. The overall value of the Polish rental portfolio, after accounting for privatization, slightly increased to approximately 4.2 billion kronor, with profitability exceeding 5.6%.

Paweł Romańczuk, head of asset management and operations at Heimstaden Poland, highlighted the strong operational margin in the Polish rental segment and the signing of over 500 new rental agreements. He also noted that the company maintained its apartment sales pace in Poland during the second quarter, improving profitability through careful pricing and the efforts of its sales team, which was responsible for 38% of transactions in the period.

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In Poland in the second quarter, we maintained the pace of apartment sales from the first quarter, despite growing caution among buyers and a wider offer of available units. At the same time, we improved profitability from sales thanks to greater discipline in apartment pricing and the efforts of our agents, including our newly formed team, which was responsible for 38% of all transactions in this quarter. In the second quarter, the sales value was 227 million kronor. This was our best quarter since the beginning of the privatization process in terms of achieved margin.

Heimstaden has shifted from using external agencies for apartment sales to an in-house model. Romańczuk explained this provides greater flexibility, allowing for quicker decisions on sales, better timing, and the ability to reintroduce units into the rental market if deemed more profitable. At the end of June, Heimstaden's rented portfolio comprised 155,600 apartments across Europe, with Poland holding a smaller share of 1,790 units.

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This allows us to make decisions about individual apartments faster, more effectively assess the moment of sale, and flexibly return apartments to the rental market if we consider it more profitable.