Heimar (HEIMAR) Q4 2024 earnings summary

Executive summary

• Rental income grew 7.9% year-over-year, outpacing inflation by 1.5%, with EBITDA up 6.9% and net profit reaching ISK 8.2 billion.

• Operating revenue reached ISK 14.8 billion in 2024, with strong cost control and portfolio upgrades.

• Occupancy rate remained high at 97%, with 34,000 m² of new lease agreements signed in 2024.

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

• Board proposes ISK 750 million dividend and up to ISK 2 billion in share repurchases for 2025.

Financial highlights

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

• EBITDA: ISK 10,054–10,100 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.

• Leverage ratio at 62.5%; equity ratio at 31.8%, up from 30.0% a year ago.

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.

• Continued focus on asset sales, portfolio upgrades, and new revenue streams to enhance competitiveness.