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.

• Net profit reached ISK 2.9 billion, down from ISK 5.6 billion last year, mainly due to lower fair value adjustments.

• Portfolio consists of 97 assets valued at ISK 222 billion, with major expansions including Dvergshöfði 4, Sóltún nursing home, and a new food hall in Smáralind.

Financial highlights

• Rental income for 9M 2025 was ISK 11,186m, up 8.2% nominally and 4% in real terms year-over-year.

• EBITDA and rental income both increased by 8.2% for the nine-month period.

• Q3 rental income grew 14.6% and EBITDA before fair value adjustments rose 15.4% year-over-year.

• Fair value adjustment of investment properties was ISK 3.1 billion.

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

Outlook and guidance

• Strong demand for commercial real estate is expected to continue, with high occupancy rates and new lease agreements signed.

• Updated 2025 guidance: rental income expected at ISK 15.2–15.5 billion, EBITDA at ISK 10.8–11.1 billion.

• Management forecasts next 12 months’ rental income at ISK 16.4–16.7 billion for the current portfolio.

• 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.