Heimar (HEIMAR) Q2 2024 earnings summary

Executive summary

• EBITDA increased by 9.5% in the first half of 2024, with real income growth of 1.3% year-over-year.

• Net profit for the period was ISK 4,261 million, with total assets at ISK 199,932 million and equity of ISK 62,039 million as of June 30, 2024.

• Revenue for H1 2024 reached ISK 7,224 million, up from ISK 6,682 million year-over-year.

• High demand for commercial properties in core areas, with 25,000 m² leased year-to-date, including 17,000 m² in Q2.

• The company rebranded from Reginn hf. to Heimar hf. in May 2024.

Financial highlights

• Rental income for H1 2024 was ISK 6,831 million, up from ISK 6,311 million year-over-year (8.2% increase).

• EBITDA margin was 71.3% of rental income.

• Profit after tax was ISK 4.3bn, down from ISK 6.1bn year-over-year.

• Operating profit (EBIT) for H1 2024 was ISK 11,074 million, compared to ISK 14,521 million in H1 2023.

• Net financial expenses for H1 2024 were ISK 5,905 million, down from ISK 6,949 million year-over-year.

Outlook and guidance

• Rental income for 2024 is estimated at ISK 13.7–13.9bn and EBITDA at ISK 9.8–10.0bn.

• 94% of rental income is inflation-indexed, mitigating risk of tenant defaults.

• Demand for rental properties remains stable, supported by continued tourism and economic activity.

• Ongoing volcanic activity on Reykjanes could impact the economic environment, but effects remain uncertain.

• The earnings forecast for the year remains unchanged.