Heimar (HEIMAR) Q4 2024 earnings summary

Executive summary

• Rental income grew 7.9% year-over-year to ISK 14,051 million, with EBITDA up 6.9% and net profit reaching ISK 8.2 billion; revenue totaled ISK 14,837 million.

• Occupancy rate remained high at 97%, with 93 new lease agreements covering 33,700 m² signed in 2024.

• Equity ratio increased to 31.8%, with total assets at ISK 203 billion and investment properties at ISK 191.4 billion.

• Share price surged 62.5% in 2024, supported by a share buyback of 45.6 million shares and asset sales above book value.

• Major acquisition of Gróska and Gróðurhúsið for ISK 13.85 billion, paid in shares, expected to add ISK 780 million to annual EBITDA.

Financial highlights

• Rental income: ISK 14,051 million in 2024, up 7.9% year-over-year.

• EBITDA: ISK 10,054 million, up 6.9% year-over-year, with a margin of 71.6% of rental income.

• Net profit: ISK 8.2 billion, with a 14.2% return on equity and 5.4% return on investment properties.

• Positive revaluation of investment properties: ISK 8.2 billion in 2024.

• Net finance costs decreased to ISK 9,344 million from ISK 11,566 million year-over-year.

Outlook and guidance

• 2025 rental income forecast: ISK 14.4–14.6 billion, with a projected 3.5% annual price increase.

• Estimated 2025 EBITDA: ISK 10.3–10.5 billion, with about 1% real revenue growth after asset sales.

• Management expects continued strong demand and high occupancy, with 94% of rental income inflation-indexed.

• Proposed dividend of ISK 750 million for 2025, with continued share buyback authorization up to 10% of share capital.

• Acquisition of Gróska and Gróðurhúsið expected to add ISK 780 million to annual EBITDA, pending approvals.