Heimar (HEIMAR) Q3 2025 earnings summary

Executive summary

• Rental income increased by 8.2% year-over-year for the first nine months of 2025, with real revenue growth of 4% and a high occupancy rate of 97%.

• EBITDA rose by 8.2% to ISK 8.1 billion, maintaining a 72% margin, and net profit reached ISK 2.9 billion, down from ISK 5.6 billion last year due to lower fair value adjustments.

• Portfolio consists of 97 assets valued at ISK 222 billion, with 75% of rental revenue from core areas and 42% from public entities and listed companies.

• Major developments include a new office building at Dvergshöfði 4, a 3,500 m² expansion at Sóltún nursing home, and a new food hall in Smáralind.

• 21 lease agreements were signed in Q3 2025, covering nearly 19,000 m², marking the second largest leasing quarter in company history.

Financial highlights

• Rental income for 9M 2025 was ISK 11,186 million, up 8.2% year-over-year, with real growth of 4%.

• EBITDA was ISK 8,051 million, an 8.2% increase, and EBITDA margin remained strong at 72%.

• Net profit for 9M 2025 was ISK 2.9 billion, mainly impacted by a fair value adjustment of ISK 3.1 billion.

• Return on equity was 5.6%, and yield on investment properties was 5.4%.

• Cash and cash equivalents stood at ISK 1.8 billion at period end.

Outlook and guidance

• Rental income for 2025 is projected between ISK 15,200–15,500 million, and EBITDA between ISK 10,800–11,100 million.

• Management expects rental income from the current portfolio to range between ISK 16,400–16,700 million over the next twelve months.

• Ancillary revenues expected to grow to 2–3% of total revenue annually in 3–5 years.

• Equity value of associate company Klasi projected to rise 15% annually, contributing ISK 700–900 million to profit.

• Ongoing investments in core areas and sustainable properties are expected to support future growth.