Heimar (HEIMAR) Q2 2024 earnings summary

Executive summary

• 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.

• Operating profit before fair value changes was ISK 4,871 million, compared to ISK 4,449 million in H1 2023.

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

• The voluntary takeover offer for Eik fasteignafélag hf. was withdrawn in April 2024, incurring a one-time cost of ISK 100 million.

Financial highlights

• Rental income for H1 2024 was ISK 6,831 million, up from ISK 6,311 million 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.

• Cash flow from operations was ISK 2,744 million for H1 2024.

• Equity ratio stood at 31% at the end of June 2024.

Outlook and guidance

• Rising interest rates, inflation, and price levels are expected to increase both revenues and costs.

• 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.