Heimar (HEIMAR) Q1 2025 earnings summary

Executive summary

• Rental income increased 4.3% year-over-year, with 1.2% real revenue growth on a like-for-like portfolio; total revenue for the first three months reached ISK 3.7 billion.

• EBITDA rose 3.2% year-over-year to ISK 2.45 billion; net profit for the quarter was ISK 1.4 billion, down from ISK 3.9 billion last year.

• Occupancy rate remained high at 97.2%, with 24 lease agreements signed in Q1 2025 covering nearly 8,000 m².

• Major investment initiatives include acquisitions of Gróska and Exeter Hotel, and new construction at Dvergshöfði 4; strategic asset sales reduced the property portfolio by nearly 2% since end-2022.

• Dividend of ISK 750 million paid in April; share buyback program initiated, potentially up to ISK 2 billion for the year.

Financial highlights

• Rental income reached ISK 3,486 million in Q1 2025, up from ISK 3,341 million in Q1 2024; adjusted for asset sales, the increase was 5.9%, or 1.2% in real terms.

• EBITDA margin was 70.3% of rental income; operating profit before valuation change increased 3.2% year-over-year.

• Positive fair value adjustment of ISK 1.5 billion recorded in Q1, in line with inflation; investment properties valued at ISK 194 billion.

• Net financial expenses decreased 19.1% year-over-year due to lower inflation; cash at period end was ISK 5.1 billion, with access to unused credit lines of ISK 4.7 billion.

• Return on equity was 8.9%; equity ratio improved to 31.9% and leverage ratio reduced to 62.8%.

Outlook and guidance

• Strong demand for commercial real estate expected to continue, with occupancy rates above 97%.

• Revenue outlook for new and underutilized streams to be presented in August; anticipated addition of Gróska property will expand the portfolio by nearly 25,000 sqm.

• Limited refinancing needs in 2025; bank loans maturing in 2026 have been refinanced to 2031.

• Continued focus on asset sales and external investments to enhance shareholder value.