Heimar Hf. · OMXICE:HEIMAR
Heimar Hf — FY2024 Earnings Presentation
47 slides from Heimar Hf's earnings presentation, February 2025
Slide 1: Financial Report 2024
it Heimar Financial Report 2024 N >» Xx
Slide 2: Continued Real Revenue Growth: Rental Income Increases by 7.9%
Continued Real Revenue Growth: Rental Income Increases by 7.9%, about 1.5% Beyond Inflation Real Growth in Rental Income Strong Equity Position Revenue Base Grows Clear Strategy in Words and and EBITDA continues Beyond Inflation Actions Rental income increases Total assets amount to Lease agre
Slide 3: Strong Performance Driven by Heimar's Core Areas
Strong Performance Driven by Heimar’s Core Areas. Increased Profitability and Declining Leverage Open Opportunities for the Future Operations Profitability Financial Position Sustainability 7.9% (1.5% real growth) 8.2 bn (3.8 bn) 191.4 bn (182.7 bn) 38% Rental Income Increases year- Profit after Tax
Slide 4: Purposeful Steps Toward Clear Goals
Purposeful Steps Toward Clear Goals Clear Strategic Focus Delivers Measurable Results Once Again Properties in the Portfolio Occupancy Rate Customers Proportion of Green Buildings 94 97% 400 38% m2 Located Within Public Entites and Listed Proportion of Green Investment Properties Core Areas Companie
Slide 5: Heimar's Deliberate Steps Toward Long-Term Goals
Heimar‘s Deliverate Steps Toward Long-Term Goals The Company is Leading in Shaping Core Areas % of Rental Income 2024 Long Term Goal In recent years, Heimar has focused on investing in Core Areas 71% 70 - 80% properties in designated core areas. According to the company’s investment strategy, proper
Slide 6: Heimar Among the Strongest Brands in the Country
Heimar Among the Strongest Brands in the Country, Highlighting the Success of the Companies Rebranding Last Spring The brand's perception has strengthened by 41% in a recent study compared to measurements in 2022, when the company operated under the name Reginn. Sustainability and corporate soci
Slide 7: Finance and Operations
Finance and Operations
Slide 8: Revenue Growth on a Solid Foundation Beyond Inflation
Revenue Growth on a Solid Foundation Beyond Inflation Real Revenue Growth and Operating Profit More Than Doubles Income Statement Rental Income 3.069 Million ISK 3.242 3.276 3.439 3.341 3,439 3,341 3,490 3,504 3,716 7.9% Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 2023 - 2024 Δ % Million ISK 2024 2023 Δ% Rental I
Slide 9: Real Growth: Rental Income Increases By 1.5% Beyond Inflation
Real Growth: Rental Income Increases By 1.5% Beyond Inflation Revenue Development Million ISK 2023-2024 Rental income grew by 7.9% year-over-year. +8% -137 Price levels increased by 6.4% between years. 14,051 341 There is strong demand for commercial real estate within the company, with occupa
Slide 10: Shareholder-Focused: Intrinsic Value is the Benchmark for Buybacks
Shareholder-Focused: Intrinsic Value is the Benchmark for Buybacks P/B Ratio Adjusted For Non-Interest-Bearing Deferred Tax Liability. Debt and Equity P/B Ratio Billion ISK Development Over Time Initiation of Completion of share buyback share buyback 1,2 1.2 203 1,0 1.0 0.87 0,8 0.8 Other Debt 122 0
Slide 11: Board Proposal for Profit Allocation
Board Proposal for Profit Allocation in Line ISK 750 million with the Company’s Dividend Payment Dividend Policy About one-third of the profit Up to ISK 2 billion from previous financial year Repurchase of own shares* paid to shareholders, either in the form of dividends or by purchasing own shares.
Slide 12: Accounts Receivable: Reduced Risk Through Tenant Diversification
Accounts Recievable: Reduced Risk Through Tenant Diversification A Strong Tenant Portfolio with Reliable Commitments and Robust Oversight Accounts Recievable Over 30 Days Past Due (Net) Accounts Recievable (Net) As % of Rental Income Million ISK 672 684 1.90% 1.89% 62 638 592 High-Quality Properties
Slide 13: New Revenue
Tenant Property Square Revenue Meters Generating New Revenue IV Treatment Silfursmári 8 137.0 Q1 Upcoming Verslunin Bræðurnir Eyjólfsson Hafnarstræti 18 87.6 Q1 Deliveries Dútl Garðartorg 1 299.4 QF Wok to Walk Borgartún 29 200.4 Q2 Mayroal Smáralind 100.0 Q2 Loccitane Smáralind 82.2 Q2 As we grow H
Slide 14: 93 Lease Agreements Signed in 2024
Office Skrifstofa Retailog Verslun and Services þjónusta Akureyrarbær Embætti Landlæknis 93 Lease Agreements Signed in 2024 Hagkaup World Class Margt Smátt S4S ehf. Heimar hf. Golfsví Smárabíó S4S ehf. tan 19 Sport og Renewed Agreements Malbikstöði Grill / Verifone ehf GoNorth ehf n ~16.800 m2 Frida
Slide 15: Positive Revaluation of ISK 8.2 Billion in 2024
Positive Revaluation of ISK 8.2 Billion in 2024 Reflects the Strong Revaluation of Investment Properties Position of Core Areas Million ISK 2024 8,152 522 1,401 Inflation the primary factor influencing valuation changes. 1,058 Offsetting this, the increase in indexed loan interest rates contribu
Slide 16: Limited Refinancing Need in the Coming Years
Limited Refinancing Need in the Coming Years Enviable Financing Position Compared to Competitors Refinancing Plan Million ISK 2025-2030 Minimal refinancing need in 2025. Green financing accounts for 40% of total 16,723 intrerest-bearing debt. Approximately 27% of interest-bearing loans 7,156 1
Slide 17: Operational Assets Generate Strong Cash Flow
Operational Assets Generate Strong Cash Flow Equity Adjusted for Non-Operating Assets – Associates Cash Flow From Operations 2024 Operational Equity at the Beginning of 2024 ISK Billion ISK Billion 5.0 1.6 51.1 4.6 Return on Funds used for: Operational 5.5 Equity 10.1 Payment of debts 57,8 and insta
Slide 18: Sustainability
Sustainability
Slide 19: Carbon Footprint of the Value Chain
Carbon Footprint of the Value Chain Enhanced Sustainability Disclosure Environmental Reporting Captures a Larger Share of the Value Chain CH4 HFCs PFCs First step taken in mapping scope 3 emissions, including electricity and heating in leased assets. N2O CO2 SF6 The 2024 report now includes all
Slide 20: Human Resources as a Priority
Human Resources as a Priority Social Sustainability Improved Workspaces and Well-Being New premium headquarters Employee handbook published Record-high job satisfaction and well-being Sick days decrease from 7.24 to 4.55 Desirable Workplace Job applications at an all-time high Opportunit
Slide 21: Development of the Property Portfolio
Development of the Property Portfolio
Slide 22: Agreement on the Purchase of Gróska
Agreement on the Purchase of Gróska Community of Innovation and Education Heimar hf. has reached an agreement on main terms for the purchase of all shares in Gróska ehf. and Gróðurhúsið ehf. Gróska owns the property Gróska at Bjargargata 1, 102 Reykjavík. The property is approximately 18,600 m²
Slide 23: Gróska – The Most Sought-After Property in the Country?
Gróska – The Most Sought-After Property in the Country? Terms of the Transaction And A Big Step for Heimar The total value of the transaction is estimated at ISK 13.850 million, which includes the value of the property and Gróðurhúsið. Heimar's management estimates that the impact of the purchas
Slide 24: Garðatorg
Garðatorg Strenghtening the City Center Ongoing collaboration with Garðabær on revising the city center zoning plan. Key objectives are to support the continued development of the city center with diverse services, retail, public spaces, and residential units. A new 6-7000 m2 building is plann
Slide 25: Ranked highest among shopping centers
ranked highest hopping centers in dic Satisfaction Scale four times out of five 2020 2021 2022 2023 2024 _ {SLENSKA _ {SLENSKA ISLENSKA _ ISLENSKA _ {SLENSKA ANAGIUYOGIN ANAGIUYOGIN ANAGIUYOGIN ANAGIUYOGIN ANAGIUYOGIN
Slide 26: Smáralind's Operations
Smáralind’s Operations Happier Customers Smáralind on the Rise – Significant Investments in 2024 Drive Revenue Growth for 2026 and Beyond Record-Breaking Holiday Traffic in 2024. Tenant sales increased by 2.1% year-over-year – a decline in the first half of the year was offset by a 5.7% increa
Slide 27: Heimar's Core Areas
Heimar‘s Core Areas 95% 95% Acquired Properties Within Core Areas 98% 98% Sold Properties Outside Core Areas Properties Acquired from 2018 60 thousand m2 | 13 properties Sold Properties 41 thousand m2 | 42 properties Properties Sold in 2024 Properties in Core Areas 27 Acquired/Built Before 2018
Slide 28: Heimar's Largest Properties are in the Heart of Core Areas
Heimar‘s Largest Properties are in the Heart of Core Areas Key Properties in the Capital Area Höfðatorg Offices - 37.867 m2 Smáralind Egilshöll Hafnartorg Iceland‘s largest shopping center - 62.100 m2 Sport and entertainment - 33.057 m2 Retail and services - 11.354 m2 28
Slide 29: Other Significant Assets
Other Significant Assets High-Quality Properties in Prime Locations Mjölnisholt 12-14 Litlatún 3 Austurstræti 16 Hotels and Tourism - 6.742 m2 Retail and Services - 5.261 m2 Hotels and Tourism - 2.773 m2 Áslandsskóli Hafnarstræti 17-19 Suðurhraun 3 29 Eduaction and Sports - 6.162 m2 Hotels and Touri
Slide 30: Diverse Properties for Public Entities
Diverse Properties for Public Entities Number of Properties in Core Areas Leased and Operated for Public Entities Schools Sport Facilities Offices Other Primary Schools: Egilshöll in Reykjavík: Number of institutions rent offices • The National Museum – • Áslandsskóli in Hafnarfjörður from Heimar fo
Slide 31: Investment Projects Under Review in Q4
Investment Sale of opportunities Properties 4 2 Investment Opportunities Sales Opportunities Evaluated Evaluated Investment Projects ~52.000 ~3.400 Under Review in Q4 Squaremeters Squaremeters 0 0 PropertiesAcquired PropertiesSold Within Core Areas OutsideCore Areas 0 0 Squaremeters bought Squaremet
Slide 32: Associates
Associates
Slide 33: Klasi
Klasi Valuable Opportunities in a Prime Location in Reykjavík Few Truly Understand Klasi – Let’s Change That. In 2022, Heimar contributed its development properties to the real estate development company Klasi in exchange for a one-third equity stake. Klasi’s key projects in the coming years a
Slide 34: Klasi's Key Projects Align Well with Heimar's Strategy
Klasi’s Key Projects in the Coming Years Align Well with Heimar’s Strategy Residential Commercial Housing Properties Continued Development Under Under of Core Areas Development Development 133 2.700 m2 apartments under construction Constructions 690 64.000 m2 ApprovedPlanning ApprovedPlanning Silfur
Slide 35: Heimar holds a purchase right for properties from Klasi
Heimar holds a Potential Utilization of Purchase Rights for Properties from Klasi purchase right for Squaremeters (without car parking) commercial properties that will be developed 35.000 100.000 and constructed under 90.000 30.000 80.000 the management and 25.000 70.000 Uppsafnaðir fermetrar owners
Slide 36: Estimated Development of the Book Value of Heimar's Stake in Klasi
Estimated Development of the Book Value of Heimar’s One-Third Stake in Klasi Heimar shareholders can ISK billion expect the book value of 7,9 their stake in Klasi to reach 6,8 nearly ISK 8 billion by 2027. 15% 5,9 5,2 The book value of Heimar’s stake in Klasi 4,5 has increased from ISK 3.9 billion
Slide 37: Smárabyggð
Smárabyggð Core Area at the Heart of Kópavogur and the Capital Area Heimar holds a 20.6% stake in Smárabyggð ehf. Smárabyggð ehf. has led extensive development in Smárabyggð in recent years. The neighborhood surrounding Smárabyggð is well- established, with all essential services within walkin
Slide 38: Associates Deliver strong and growing profits
Associates Profit Before Income Tax Deliver strong and Million ISK 2024 growing profits. 9,983 In recent years, Heimar has contributed 889 part of its development properties to two real estate development knowledge companies, Klasi and Smárabyggð. The value of these assets amounted to 8,821 ISK
Slide 39: Operational Plan 2025
Operational Plan 2025
Slide 40: Forecast for 2025
Forecast for ISK 14.4-14.6 ISK 10.3-10.5 billion billion 2025 Estimated Rental Income Estimated BITDA •Based on the company's EBITDA represents property portfolio at the end operating profit before of 2024. valuation adjustments. •Annual price increase is projected at 3.5%. About 1% real revenue g
Slide 41: Shareholders
Shareholders
Slide 42: 20 largest shareholders of Heimar
20 largest shareholders of Heimar Distribution Lífeyrissjóðir Einkafjárfestar Nr. Heiti Hlutafé % 1 Brú lífeyrissjóður 207.959.192 11,79% Brimgarðar ehf. Stefnir hf. 2 Lífeyrissjóður starfsmanna ríkisins 191.502.969 10,86% 3 Lífeyrissjóður verzlunarmanna 153.853.934 8,72% Túnsteinn ehf. 4 Gildi - lí
Slide 43: Heimar's Share Price Increased by 63% in 2024
Heimar‘s Share Price Increased by 63% in 2024 The Highest Increase Among All Listed Companies This Year Heimar‘s Share Price Number of Shareholders Closing Price 2024 in ISK 63% 40 +25% 39 Three Share Buyback Programs of ISK 500 Million Each 798 38 Upphæðir í kr. Keyptir hlutir Meðalgengi Kaupverð 3
Slide 44: Heimar's Financial Calendar
Heimar's Financial Calendar AGM 2025 March 11, 2025 Will be held in Gróska Q1 Earnings Preview May 12, 2025 Q2 2025 Results August 20, 2025 Q3 Earnings Preview October 22, 2025 Preliminiary Financial Report February 5, 2026 Q4 2025 Results March 4, 2026
Slide 45: Slide 45
Slide 46: Við erum annað og meira
Við erum annað og meira
Slide 47: Disclaimers
Disclaimers This presentation is based on information from Heimar hf. (hereafter “Heimar”), the company’s management’s plans and assessments, and public information where applicable. This presentation is intended solely for informational purposes and should not be used as part of or the basis for de