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Strategy and value creation

Hemsö’s strategy is to own public properties with long-term lease agreements with predominantly public-sector tenants. The value in Hemsö is created through knowledge of property and project development combined with long-term management and letting.

Business Model

Hemsö’s business model is characterised by low risk and long-term stable returns due to rising demand driven by demographic changes, financially stable tenants, long-term lease agreements, low vacancies and low sensitivity to economic fluctuations. The business model is to generate a stable long-term return. Our tenants are primarily the state, regions and municipalities, but to some extent also private sector operators.

Strategies

  • Strategy

    Investment strategy

    Hemsö invests in social infrastructure, primarily in our defined property categories: Nursing homes, Education, Health care and the Justice system in Sweden, Germany and Finland. Demand for public properties is driven by demographics, urbanisation and structural change. Hemsö therefore prioritises metropolitan areas and large cities. The business model is based on publicly funded tenants, with the aim that most rental income is to be derived from the state, municipality or region. This provides stability through long lease agreements and predictable income. Investments are made in new construction, extension and re-developments or through acquisitions.

  • Strategy

    Financing strategy

    Hemsö strives to achieve a stable capital structure and long-term, low financing costs. Our stable owner, the Third Swedish National Pension Fund, and diversified borrowing across multiple creditors, sources and markets reduces risk and secures cash flows. Furthermore, Hemsö will primarily work with unsecured borrowing to be an attractive borrower in the capital market, and have a clear sustainability profile to attract capital that prioritises lending for sustainable investments.

  • Strategy

    Sustainability strategy

    Hemsö’s sustainability strategy for 2040 is based on our vision of strengthening the resilience and backbone of society. The sustainability strategy provides us with a direction and targets for effectively managing the impacts, risks and opportunities of our operations related to climate impact, optimising energy and resource use, and how a safe and secure environment can be ensured for everyone who lives, works and spends time in our properties. It also provides further support for our ambition to act responsibly at all stages of the value chain and conduct operations distinguished by transparency and high standards of business conduct.

  • Strategy

    Digitisation strategy

    Hemsö’s digitisation strategy aims to create tangible effects in three areas: more resource-efficient and scalable property management, a climate-smart and long-term sustainable property portfolio and increased user value and quality in and on our properties. To realise this strategy, we are focusing on a combination of training and change management for employees, together with investments in technology areas such as digital twins, intelligent connected buildings, and harmonised data and AI.

Our core values

Our core values, Accessible, Reliable and Progressive, is the foundation for everything we do at Hemsö.

  • Accessible

    We are local, nationwide and close to our customers. We are attentive and always endeavour to create a meaningful dialogue. We are a reliable, accessible, highly approachable and cooperative partner.

  • Reliable

    We take responsibility for the properties we manage and ensure security by being a stable owner with stable finances. We live up to our commitments to tenants, employees and owners. We strive for sustainable development, promote the good of society and participate in public discussion of social matters.

  • Progressive

    We drive progress within the industry and develop proposals and properties based on customer requirements. We promote value generation through property development, develop our owner’s assets, and ensure that our employees have opportunities to develop.

Culture and values

More about Hemsö

Hemsö is the leading owner of properties for public use in Sweden. The hallmarks of Hemsö´s business are long-term leases, stable tenants, and strong ownership.

  • Vision and business concept

    Hemsö’s vision is to strengthen the backbone of our society. The properties we develop and manage have a major impact at society.

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  • Our history

    From the very start, the company’s focus has been to own and manage properties for public sector tenants, such as the state, municipalities or county councils, who are responsible for the operations conducted on those premises.

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  • Our mission and owner structure

    Hemsö is Sweden’s leading owner of public properties. Here you can read more about our mission, our owners, and the properties we own.

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About Hemsö