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.

• 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 in Q1 2024.

• Occupancy rate remained high at 97–97.2%, 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.

• Portfolio adjustments and asset sales led to a 2% decrease in total square meterage since end-2022.

Financial highlights

• Rental income reached ISK 3,486 million in Q1 2025, up from ISK 3,341 million in Q1 2024.

• 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.

• Net financial expenses decreased 19.1% year-over-year due to lower inflation.

• Investment properties valued at ISK 194 billion; cash and cash equivalents at ISK 5.1 billion.

Outlook and guidance

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

• Gróska acquisition expected to add 25,000 sqm to the asset base, pending regulatory approval.

• New and upgraded office and restaurant spaces to open in 2025, with robust leasing interest.

• Revenue outlook for new and underutilized streams to be presented in August.

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